Former SJ Berwin private equity partner Matthew Hudson has launched his own boutique with the financial backing of a number of private equity houses.

The firm, which will be known as MJ Hudson, launched today (20 July) with Hudson as the sole equity partner supported by three associates.

Hudson has identified more than 20 private equity and hedge funds as target clients, and he is planning to add three more partners to the new practice by the end of the year.

Hudson, the former London office head of US firms O'Melveny & Myers and Proskauer Rose, pointed to the Legal Services Act as a catalyst behind the creation of the new practice.

The LSA, which will come into force in October 2011, will enable firms to operate a partnership culture within a modern corporate structure – retaining earnings, paying dividends and attracting external capital from clients and other bodies.

Hudson (pictured) said: "Many law firms are more traditional, but it is possible to have a partnership culture within a corporate structure."

Hudson commented: "The LSA coincided with my views that private equity and funds are practice areas that are well suited to a focused boutique. We plan to maintain this focus in years to come."

The firm has been set up on a limited liability partnership basis, which enable it to invest its own equity into its clients' funds. Options in these investments could then be made available to both clients and associates.

Hudson left SJ Berwin in 1998, after which he spent a number of years working at private equity firms. He joined O'Melveny in 2004 as London chief before joining Proskauer Rose in 2007 to launch its base in the City.