Vested Interest March 2026

Clients First: Holding the Line Against Private Equity  

Innovation in law is important, but at what expense? Private equity promises efficiency and capital, but its interest in legal services poses an existential risk to professional independence, ethical judgment, and most importantly, what is best for the client. 

Private equity is finding multiple avenues to invest in and profit from law firms:
•    Alternative Business Structures (ABS) allow nonlawyers to own, share in profits, manage and be appointed to boards of law firms. 
•    Management Service Organizations (MSO) are separate companies owned by nonlawyers that manage HR, marketing, IT, etc., which allow a financial stake in a lawyer-owned firm. 
•    Regulatory Sandboxes are time-limited and state-supervised programs where firms can test non-traditional legal services that might otherwise violate fee-splitting rules.
 

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