Law Firm Investments

August 03, 2025

by a professional from University of Miami in New York, NY, USA

Has anyone had any experience with private investment into law firms? I know that accounting firms are common, but there seems to be limited restriction on licensing for that. For a law firm, an investor would have to capitalize a management company, and then there would have to be a management agreement in place to ensure investor returns. Is this something that has been done? Use of Funds: take out old debt, capitalize robust marketing and CRM systems, hire staff, and possibly acquire other firms. Curious about people's experience with this, and who an ideal investor would be.

Reply by a professional
from University of Michigan in Detroit, MI, USA

Hi Anon, as a lawyer, I can say that many law firms would benefit from having someone else manage the practice (leaving the lawyers to focus on doing legal work). There are some states that allow non-lawyer investment into law firms. As Tyler mentioned, I believe AZ is one of those states. That would be a great place to start. Without looking into it further, I am not sure whether an MSO structure would work in most states. I can see a state bar arguing that it conflicts with the ethical rules that govern the legal industry. But it's an exciting area to investigate. Let me know if you want to discuss further. Feel free to reach out at redacted

Reply by a professional
from Northwestern University in Chicago, IL, USA

I’m happy to offer some insights and chat more! You can reach me at redacted

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