David Patient discussed the growing influence of private equity on the legal sector. David spent 35 years at Travers Smith, including nearly seven years as Managing Partner, before retiring from the firm in 2025. He now holds several leadership and advisory positions across the profession and serves on the board of AGRD Partners, a private equity-backed Nordic business law group.

Overview

The session explored the story behind AGRD Partners, which was launched with the acquisition of six Swedish law firms by Nordic private equity firm Axcel. He noted that Sweden does not permit external investment in regulated law firms, so participating lawyers withdrew from the Swedish Bar Association while remaining able to practise law. To preserve high professional and ethical standards, AGRD introduced its own Code of Conduct, supported by an independent Ethics Committee comprising two former GC’s and a professor of Civil Law, who are completely independent of AGRD Partners.

Central to the model is what David described as the “Nordic governance model”. Although AGRD owns the firms it acquires, each retains its identity and control over core decisions, including its clients, pricing, and day-to-day operations. The firms gain access to capital, technology, stronger systems, specialist management expertise, and shared resources without surrendering their operational independence. This “stronger together” approach is particularly attractive to successful and entrepreneurial smaller firms that wish to take advantage of the AI strategies, improved infrastructure, and the ability to attract and retain talent that being a part of a larger business permits.

The conversation also considered the wider direction and impact of PE on the legal market. External investment could give firms the resources to accelerate acquisitions, technology projects, international growth and the recruitment of both senior lawyers and business professionals. However, success depends on careful due diligence, strong relationships with firm leadership, transparent communication with clients and a credible governance framework. Exit strategy remains one of the model’s biggest unresolved questions, with potential routes including a secondary sale, an IPO, a strategic acquisition or a continuation vehicle. David nevertheless expects pressure for regulatory liberalisation to grow as AI, changing client expectations and younger lawyers’ attitudes towards traditional partnership reshape the profession.

Key Takeaways

• Private equity can offer law firms more than capital. It can provide technology, systems, professional management, branding expertise and support for long-term growth.
• Independence does not necessarily have to disappear following investment. AGRD’s model allows member firms to retain their names, clients, pricing structures and operational autonomy.
• Smaller firms increasingly need significant investment to develop AI strategies, improve processes and compete effectively for clients and talent.
• Client trust must remain central. Firms considering external investment should explain clearly how ownership changes will affect professional independence, ethics and service delivery.
• Strong governance and rigorous due diligence are essential, particularly where firms operate outside traditional regulatory structures.
• The long-term success of private equity investment in law will depend partly on whether investors can demonstrate credible and sustainable exit routes.