DLA Piper has acquired a minority stake in LawVest, a holding company set up to take advantage of opportunities presented by the Legal Services Act.

The deal also sees DLA managing partner Nigel Knowles become non-executive chairman of the Wirral-based company, which is planning to enter the alternative business structure (ABS) market next year.

Knowles (pictured) commented: "All law firms will have spent considerable time evaluating what impact the Legal Services Act will have on their strategic ambitions and its effects on the competitive landscape.

"This strategic investment is an innovative way of participating in and benefiting from the new environment, while protecting our client's interests in this sector of the market."

DLA is investing in the company – which was set up in May this year – alongside existing stakeholder AdviserPlusBusiness Solutions, an outsourcer of HR, employment law and health and safety services.

LawVest chief executive Karl Chapman said: "We are delighted that DLA Piper has become a shareholder. We share a common view about the likely changes in the legal market over the next few years and believe that we are well-positioned to exploit them.

"As will be seen when we launch our first business, we have all the advantages of the new entrant; we started with a blank piece of paper, built our models from the customer up, have a different cost base and can deliver demonstrable quality."

The news comes after DLA confirmed plans to look again at full integration between its US and international profit centres, three three years after backing away from plans to move in this direction.