Investec targets US firms for post-Legal Services Act funding offers
Baker & McKenzie, Greenberg Traurig Maher (GTM) and Reed Smith are among a raft of firms to have been approached by Investec about the possibility of receiving external investment from the bank in order to take advantage of the Legal Services Act (LSA). Other firms to have been contacted by the South African bank include London funds boutique MJ Hudson, which was founded last year by former Proskauer Rose London managing partner Matthew Hudson.
August 31, 2011 at 07:03 PM
2 minute read
Bank contacts line-up of firms for external investment opportunities
Baker & McKenzie, Greenberg Traurig Maher (GTM) and Reed Smith are among a raft of firms to have been approached by Investec about the possibility of receiving external investment from the bank in order to take advantage of the Legal Services Act (LSA).
Other firms to have been contacted by the South African bank include London funds boutique MJ Hudson, which was founded last year by former Proskauer Rose London managing partner Matthew Hudson.
It is understood that only MJ Hudson is still in talks with Investec.
Investec set up a professional services finance unit at the end of last year to invest up to £10m per law firm in those looking to grow and take advantage of the LSA via the use of alternative business structures (ABS), which allow external investment in law firms. The bank will not take a stake in the firms in return for the investment, or have any say in management decisions.
Jonathan Harvey, the Investec private banker leading the initiative, said: "When approaching firms, we are generally looking for a more entrepreneurial approach, which can be demonstrated by the firm's leadership and culture."
He added: "We will not take a stake in firms in return for the investment, or have any say in management decisions, which differentiates our offering from the private equity approach. Instead, we will take a high interest coupon on the loan."
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