DLA Piper buys stake in ABS-in-waiting LawVest
DLA Piper has become a minority stakeholder in LawVest, a holding company that aims to launch into the alternative business structure (ABS) market next year.
Nigel Knowles
The move gives DLA Piper a foothold in the commoditised sector, with the firm’s co-chief executive officer Sir Nigel Knowles taking on the role of non-executive chairman at the company.
Other investors in LawVest include AdvisorPlusBusiness Solutions and a number of private investors, including chief executive Karl Chapman and chief operating officer Adam Shutkever, who was formerly chief executive of Palatium Investment Management.
LawVest is planning to launch an ABS aimed at small to medium sized entities next year, when the Government is expected to approve the Solicitors Regulation Authority as a watchdog for the industry (6 October 2011). The company says that it intends to deploy its model of delivering legal services both through organic growth and acquisitions.
In a statement, Knowles said: “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 clients’ interests in this sector of the market.”
The news comes in the same week that The Lawyer revealed that former Linklaters managing partner Tony Angel is to join DLA Piper as senior partner (26 October 2011).
Readers' comments (14)
Anonymous | 28-Oct-2011 10:55 am
Game, Set and Match DLA Piper!
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Anonymous | 28-Oct-2011 11:05 am
DLA are going to be the most hated firm in the next few years - a bit like Manchester United are the most hated football team.
The top 15 firms will hate them because they've got sharp elbows and are now making top quality lateral hires.
The 15-50 category will really struggle if this SME focussed service is cheaper and better than they can provide (and let's be honest there are some awful SME focussed services delivered by mid-tier firms). This development really turns the screw on them.
In fairness, the 50 plus firms don't have much reason to hate them. However the chances are that this action will squeeze the 15-50 market into their market.
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Anonymous | 28-Oct-2011 12:32 pm
This looks more like the market DLA should be playing in. Now they can transfer all their existing lawyers into this ABS to do the work they are more suited to. To cimb the ladder in the City they will need to open their cheque book and hire some decent hight quality lawyers in their London office (Angel doesnt count in this category as he isnt to be client facing). If they can somehow shed the dross (and unfortunately it goes all the way through the firm ) they might stand a chance of being a respected law firm capable of giving high quality legal advice, rather than just a PR machine that everyone knows lacks substance!!
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Anonymous | 28-Oct-2011 1:21 pm
What you'd rather they'd stayed Dibb Lupton, sloshing around as a Brown Medallion firm in Leeds? Times move on, PEP moves up. Well done i say.
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Anonymous | 28-Oct-2011 1:35 pm
Times move on, but trying to conquer every market isn't wise when they have barely proved themselves as a strong bronze medallion firm. Time shall tell if they have the substance.
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Anonymous | 28-Oct-2011 1:55 pm
You missed the point. In terms of quality of legal advice, they are still Dibb Lupton. And clients benefit nothing from their PEP having moved on. Their challenge is to become a law firm of high quality legal advisors. And this they are still not
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Anonymous | 28-Oct-2011 2:17 pm
The above comments just prove once again that DLA is becoming the most feared firm amongst its competitiors, and it now has the resources of a $2 billion revenue stream with which to fight. And win.
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Anonymous | 28-Oct-2011 4:03 pm
Hello, Mr Knowles! $2 billion could buy a lot of bronze medallions.
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Anonymous | 28-Oct-2011 4:21 pm
The comments above say it all - DLA are going places.
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anon | 4-Nov-2011 10:03 am
Anonymous | 28-Oct-2011 4:21 pm
The comments above say it all - DLA are going places.
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DLA are "going places"? Well whatever place it is they're going, I'm glad I'm not going with them...
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Anonymous | 4-Nov-2011 11:53 am
It's probably best to suck up to DLA now.
In a couple of years they'll have such a stranglehold over the legal market that Knowles will be able to issue his own laws.
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Anonymous | 4-Nov-2011 11:54 am
Law-Vest. Is this the most absurd name for a commercial organisation ever?
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Anonymous | 4-Nov-2011 11:57 am
Any chances of a picture of Sir Nigel Knowles wearing his Law-Vest?
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Anonymous | 20-Feb-2012 12:53 pm
LawVest? What an awful name. LawPants in fact. I suppose it's better than LawSuit (will they grab that for their disputes operation?) and we've already had the Law Soc...
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