Ashurst Perkins Coie has become the largest law firm to hold an Alternative Business Structure (ABS) licence from the Solicitors Regulation Authority (SRA) for England and Wales, it was reported today.
The ABS regime was launched in 2011/2012 as part of a move to deregulate law firms and promote innovation. Under an ABS licence, a law firm has more flexible ownership and investment options. For example, a firm can take investment from private equity houses, corporates or other non-lawyers, or it can float on a public stock exchange.
However, a spokesperson for the firm said: “We are not seeking and have no intention to seek third-party investment, and the structure was not put in place for that purpose.”
According to the firm, Alternative Business Structures were used for the combination as they provide a regulatory structure under which to operate globally and to facilitate the global financial integration of Ashurst Perkins Coie from the beginning of 2027.
Ashurst and Perkins Coie completed their merger on 29 June 2026. The new firm has combined revenues of around $2.8 billion and over 3,000 lawyers across 52 offices.
Two ABS licences were granted in June 2026 in the weeks leading up to the merger. The firm also holds a licence originally granted to Perkins Coie’s London office in 2024. It is not uncommon for US law firms to set up London offices with ABS licences. Other US firms that have used this model include Alston & Bird, Cahill Gordon & Reindel, Crowell & Moring, Haynes and Boone, and Reed Smith.
Investment activity was slower than predicted at the launch of the ABS regime, but private equity investment in law firms has accelerated over the past two years according to research from merger broker and consulting firm Acquira Professional Services, as AI provides a new economic rationale for capital and scale.
To date, investment into law firms has been concentrated in smaller mid-market and regional law firms outside London. No top-100 UK corporate law firm has accepted private equity investment since DWF was taken private by Inflexion in 2023.
David Morley, former managing and senior partner at Allen & Overy and co-founder of advisory firm Dejonghe & Morley says: “Momentum is gradually building. At the smaller end the market has cooled as the roll-up model loses its shine, but among mid-size and larger firms, interest is growing in minority deals: the capital comes on board, the partners stay at the wheel. These take 12 to 18 months to do. What gets announced this year was set in motion long before it.”
Another reason law firms have implemented ABS structures has been to enfranchise key non-legal professionals within their partnerships. For example, Mishcon de Reya made its then director of business development, Elliot Moss, a partner in 2017 after it became one of the first City firms to receive an ABS licence in 2015.
