Mishcon de Reya managing partner Kevin Gold has revealed a series of structural changes, including a conversion to LLP status, bringing all partners into the equity and an ABS application.
Gold says the restructure, and corresponding cash call, was sparked by the firm’s forthcoming £3m-plus rent hike as it prepares to take on 120,000 sq ft of office space at Africa House in Kingsway.
Whatever the party line, Mishcon’s reform trails several similar moves in the market over the past couple of years including DLA Piper’s move to full equity in 2012 and a similar shift by Bircham Dyson Bell last year.
The full-equity model also means Mishcon will not fall foul of HMRC’s changes to partnership taxation when it transfers to LLP status.
The firm’s mooted ABS conversion adds steam to the growing movement of non-volume or high street legal businesses seeing the potential in the new model.
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