Defendant insurance firm Keoghs has struck a deal to accept external investment once it receives its alternative business structure (ABS) licence, it has confirmed.

A spokesman for the Bolton-based practice said: “Like many firms in our sector, we’ve been exploring the options presented by ABSs as a means of accelerating our long-term growth strategy.

“We have reached a provisional agreement with an external investor who shares our ambition and appetite for growth. However, completion remains subject to full Solicitors Regulation Authority approval.

“Keoghs has established a leading position in the defendant insurance sector, achieved by continually evolving our business to ensure we can provide clients with cost effective, quality services. We’re confident that securing external funding will enable us to accelerate the development of complementary services and invest further in our people, processes and infrastructure, all of which will benefit the long-term interests of our clients.”

The firm is not providing further information at the moment. When reports of Keoghs looking at external investment first surfaced in March, local press suggested that private equity firm Bowmark Capital is was in exclusive talks to take a stake in the business.

The Manchester Evening News claimed that Bowmark had fought off competition from the likes of LDC to win exclusive status, after Keoghs had appointed Deloitte to advise on its search for investment. However, today it suggested that LDC had in the end outbid Bowmark to secure the deal.

Keoghs, which also has an office in Coventry, describes itself as the only top 100 firm that works solely on handling and defending general insurance claims. It recently recruited its 1,000^th member of staff, and has 11 senior equity and 55 junior equity partners, including director of strategy Don Clarke, who is currently president of the Forum of Insurance Lawyers. Peter Hubbard, former chief executive of AXA, is a non-executive director.

Tags: ABS, Alternative business structures, external investment