Eversheds Sutherland is set to launch its own alternative legal services provider business targeting revenues of £100m, as law firms increasingly look to outside ventures to deliver tech-led, lower cost services.
Konexo will become the trading name of Eversheds advisory, interim resourcing and managed service offerings, effectively packaging up existing and new offerings including its consultancy arm ES Consulting, and Corporate Secretarial and Volume Insolvency teams. It will act as a global alternative legal service and compliance provider, servicing global clients from its current teams in Europe and Asia.
Last year the three teams’ combined business grew by 38% last year, and won and delivered the single biggest matter for the International business in FY18/19.
Going forward, the current intention is to move this business into a new corporate structure which will include an alternative business structure (“ABS”) and a separate Financial Conduct Authority regulated vehicle into which the volume insolvency team of Eversheds Sutherland (International) LLP will be transferred.
The new structure, whilst preserving a close connection with Eversheds Sutherland, will give it the flexibility to access external funding and consider JVs and acquisition opportunities to support and accelerate its ambitious growth plans. It will be led by Graham Richardson, currently head of Eversheds Consulting.
It follows the launch by Greenberg Traurig in the United States of its own ALSP, called Recurve, which we take a close look at in the June Orange Rag out today (26 June). While the benefits to clients of an integrated alternative services offering include a streamlined workflow, by creating an entirely separate venture firms can more easily ensure that tech-led services are not burdened with the costs of the overall partnership and can offer more flexible pricing, led by people familiar with selling subscription services.
Mark Wasserman, co-CEO at Eversheds, commented, “This is an excellent step forward and will be welcomed by the US market. Our intention is for Konexo to be present in the US by the end of 2019.”
Richardson added, “I am proud to be leading Konexo, and to be able to bring together three long-established teams to build a unique, market leading business. Intelligent analytics, automation technology and innovative operational processes are at the heart of what we do and this will play a critical role in driving Konexo’s future success.”