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

The Non-Billable Podcast