Neil Oxford Discusses Barriers to Outside Investment in the Legal Industry

Neil Oxford, chair of Hughes Hubbard, discussed possible barriers to outside investment by private equity in the legal industry with The American Lawyer.

Oxford specifically highlighted the ethical and regulatory concerns of any potential investment.

“The first thing that I see is that there are still some ethical and regulatory barriers here. That’s really the threshold issue, how does non-lawyer ownership of law firms work? How does it work in most U.S. jurisdictions,” said Oxford. “Until we see major shifts to those rules, I think my own view is that private equity ownership of law firms will remain theoretical.”

Oxford went on to share that he doesn’t see much peer interest in PE investment, since “what’s being contemplated here is a fundamental change” to the law firm business model.

“We watch it with great interest, but I don’t see any major changes coming to what is a pretty robust industry at the moment,” he said.

Oxford stated that while PE firms have reached out to Hughes Hubbard with inquiries, the firm has not “sat down for any discussions with them.”

Hughes Hubbard continues to differentiate itself through its independence, agility and unwavering commitment to excellence. This includes the collaborative nature of the firm’s partners, who work across practice areas to provide clients with a broader base of experience.

“We’re a little skeptical as to whether it’s the right model for us and firms like us,” Oxford said.

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