Why private equity wants a piece of Big Law: Former A&O boss David Morley on what's really happening

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Nov 4, 2025

Join David Morley, former managing partner at Allen & Overy and now an investment consultant, as he delves into the surge of private equity interest in the legal sector. He shares insights on how investor sentiment has shifted suddenly, mirroring trends in accountancy. Morley discusses the need for law firms, big and small, to grasp these market forces and navigate consolidation pressures, while pondering the future landscape of legal services with PE-backed models and the implications for innovation and competition.

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ANECDOTE

Career Spanning Law And Investment

David Morley joined Allen & Overy in 1980 and witnessed its growth from 100 lawyers to thousands across dozens of offices.
After leadership roles at A&O he transitioned into investment roles including chairing a litigation finance firm and heading Europe for a large pension fund.

ANECDOTE

Lehman Shock And Rapid Restructuring

In 2008 Morley became senior partner days before Lehman collapsed and the firm's phone

INSIGHT

Investor Sentiment Has Flipped

Investor interest in the legal sector has surged dramatically in the last 12 months according to Morley and De Jong's client inquiries.
The previous stigma about law being

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Private equity is closing in on the legal industry, and few people have a better vantage point than David Morley, former managing and senior partner at Allen & Overy.

After steering A&O through the 2008 financial crisis, Morley moved into the investment world, chairing a private equity firm and heading up Europe for one of the world’s biggest pension funds.

Earlier this year, he teamed up with fellow A&O alum Wim Dejonghe to launch a consultancy advising law firms and investors on the surge of capital eyeing the profession.

In this episode, David explains why investor sentiment toward law firms has flipped “gradually, then suddenly.” He says private equity’s move into legal mirrors what happened in accountancy a decade ago - starting small before rapidly scaling once investors see proven success. “There’s a level of investor interest we’ve never seen before in the legal sector,” he says.

We talk about what this means for firms of all sizes - from smaller players under pressure to consolidate, to elite firms exploring capital as a growth tool. Morley breaks down how deals are structured, where money would actually go, and why capital brings more than funding.

He also reflects on the limits of the partnership model in funding innovation - and why looming tax and structural changes could accelerate a shift towards more corporate-style models. His message for firm leaders: whether or not you plan to take investment, you need to understand the forces driving it.

Chapters

00:01 Introduction

01:30 Introduction to David

03:06 Navigating the Financial Crisis

07:14 Lessons from Crisis Management

10:07 The Rise of External Investment in Legal

12:50 Changing Perceptions of Legal Investments

17:00 Market Dynamics and Future Trends in Legal Investments

23:23 The Competitive Landscape of Law Firms

24:19 Investment Opportunities in Legal Sector

25:25 The Role of Private Equity in Law Firms

29:43 Innovative Business Models in Legal Services

33:54 Understanding Private Equity Investments

37:34 Strategic Use of Capital in Law Firms

39:44 Private Equity vs. Traditional Financing

42:35 Future Trends in Legal

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