A venture capital organisation's in-house legal department has set up in private practice.
Yorkshire Enterprise, which was founded by the local authority to invest in and advise small businesses, became a private company and has since split off its legal team.
It will now be known as James Kendall, but will operate in the same Leeds premises, with the same staff and the same clients.
The split came after an increase in demand for the services of the 10-year-old legal department.
James Gervasio, who runs James Kendall with his partner Kendall Hernandez and three administrative staff, said he believes the firm has uncovered a niche in the legal market and is ready to expand.
“We do not think the market in small and medium-sized businesses is that well served, and I think our expansion is inevitable,” he said.
“Large law firms tend to concentrate on large clients, and small firms tend to lack our expertise in the company commercial field.”
Gervasio confirmed that James Kendall, which is named after both partners, will continue to provide legal services for Yorkshire Enterprise.