- Three-quarters of firms seeking investment now favour private equity as sector faces “once-in-a-generation” transformation according to survey of UK law firm leaders
[London, UK, 28 April 2026] – Private equity has overtaken merger and partnership as the preferred growth strategy among UK law firms seeking investment, according to new research from leading legal technology provider Dye & Durham. According to the results: Among firms seeking investment, 75% now favour private equity, while only 52% cite the traditional route of merger or partnership. The finding is among several key insights from the extensive research that appear to signal a once-in-a-generation shift in firms’ attitudes to investment, technology, and growth.
The data suggests the market shift may be more advanced than many in the profession realise. While previous research has tracked private equity deal volumes and the extent to which firms have been approached by investors, this is believed to be among the first studies to measure law firms’ own investment preferences, finding a marked shift toward private equity and away from the traditional merger or partnership route.
Speaking about the release of the report today, Colin Bohanna, Managing Director of Dye & Durham UK, said: “This research confirms what many in the profession are increasingly alert to, and which many more have yet to realise: there is a monumental shift taking place in the UK legal market, and it will affect every part of the profession.
“While the traditional merger and partnership model is in no danger of going away, there is a remarkable transformation taking place in UK law, one that is changing how law firm leaders operate and which will have a growing influence in years to come. We hope this research will be a useful tool to the industry in navigating a way forward.”
Other key findings of the research include:
- 86% of legal professionals polled in a live survey agreed that the business model of UK law firms has evolved more in the past 10 years than in the previous 20
- 88% of senior leaders agreed their technology platform signals their firm’s maturity to external investors
- 80% said financial performance expectations are higher today than five years ago
- 45% cited talent recruitment and retention as the single biggest barrier to scaling
The report draws on an independent survey of 200 senior leaders at mid-sized and large UK law firms, conducted by Arlington Research, with 80% of respondents from firms with 50 or more fee earners. Dye & Durham supplemented this with a live poll at the British Legal Technology Forum and an in-depth interview with Adrian Jaggard, CEO of Taylor Rose and AIIC Group.
Market analysis
The complete whitepaper of the research findings – The Future of UK Law Firms 2026: Changing Leadership, Capital, and Operating Models – also draws attention to what is likely driving these changing attitudes, specifically a “trifecta” of forces driving the shift: the growth of the consultant model (now over 4,000 practitioners)[1], the rise of alternative business structures (from 8% of SRA-regulated firms in 2017 to 13% by 2022/2023)[2], and an unprecedented influx of private equity (£1.2bn invested over five years, with a record £534m in 2024 alone)[3] with 70% of mid-sized UK law firms approached by private equity investors in 2025.[4] Together, the paper argues, these forces are reshaping not just how firms are financed, but how they operate and compete.
The full report can be found here.
[1] Today’s Family Lawyer, 2024
[3] Acquira Professional Services (via Legal Futures), February 2025
[4] MHA & Law Society, January 2026
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