A survey of law firm partners commissioned by Harbour on post pandemic strategies revealed that:
- 31% of those surveyed said their firms are actively considering an IPO in the next 12-18 months
- 50% said the pandemic had presented new opportunities for their firm
- 80% felt their senior leadership team should embrace innovation to deliver growth
- Only 22% of respondents said their firms had ruled out credit facilities with third party funders over the next 12-18 month
30th NOVEMBER 2021: In a recent nationwide survey of over 200 law firm partners, 31% stated that their firm is actively considering a stock market listing in the next 12-18 months with a further 44% saying an IPO was under consideration.
Coupled with this, 78% of law firm partners said their firms were either in active discussions or considering whether to pursue a credit facility indicating that there is greater demand than ever before from partners at UK firms to seek external capital to complement their own equity.
Ambitious plans for growth are the catalyst for this sentiment change, with more than 50% of those surveyed saying the pandemic had presented new growth opportunities to expand existing practice areas or develop new business lines with several firms acquiring talented teams to spearhead growth.
Many law firm partners felt that adopting innovative practices was key to accelerating growth or maintaining market position, with 80% of respondents observing that senior leadership teams should incorporate innovation in the firm’s post pandemic strategies.
Whilst 86% of respondents highlighted some continued downward pressure from clients on costs for certain services, innovation and attracting external investment are expected to counteract this pressure and to meet the growth agenda.
Ellora MacPherson, Chief Investment Officer at Harbour said: “This survey shows a real desire by firms to access external finance to support their growth ambitions. IPOs are one way of doing this but won’t be the best fit for all firms.
The survey reveals an expanding appetite amongst firms to source credit facilities from established litigation funders.
For more information, please contact harbour@thephagroup.com
About Harbour
Harbour is the largest privately-owned, dedicated litigation and arbitration funder in the world. Since its foundation in 2007, Harbour have become trusted advisors and providers of capital to law firms, corporates and claimants, supporting them in progressing high-value commercial disputes all over the world. So far, the organisation has funded 126 cases, with a total combined claim value of US$19billion, in both common and civil law jurisdictions, and in several arbitral forums.
About the survey
The survey was conducted by Censuswide and commissioned by litigation and arbitration funder Harbour. Through a survey of over 200 partners at law firms with 50 + layers, the survey sought to deduce the key challenges and opportunities law firms are facing, and what their priorities are post-pandemic.