Haden: Certainty and continuity
The private equity backer of serious injury law firm Fletchers has committed to another four or five years after announcing a continuation fund transaction.
The news come as Black Country firm Higgs announced its first acquisition since being bought by private equity last August.
Continuation funds allow private equity managers to transfer assets from an existing fund nearing the end of its lifecycle to a new one, extending their ownership of the assets, committing additional capital and providing a return to existing investors.
Fletchers chief executive Peter Haden said he believed the move by Sun Capital was one of the first uses of a continuation fund, if not the first, in the legal sector.
“It’s an innovative solution for a private equity investor that has grown a business but wants to own it for many more years,” he said.
“Sun Capital has been a brilliant investor in our practice, and we’re delighted to sign up to working together for another four or five years. We believe this gives us certainty and continuity so we can keep investing for growth well into the 2030s.”
Mr Haden reported that, in the past year, Fletchers has handled around 60% more clinical negligence cases than the previous year, “so our biggest immediate priority is to recruit several hundred talented clinical negligence lawyers, especially in our new offices in the Midlands, the South and the North-East”.
In November, Fletchers also moved outside of injury work for the first time by acquiring leading family law firm Rayden Solicitors [1].
Alexander Wyndham, managing director at Sun European Partners, Sun Capital’s European adviser, said: “We are very pleased with this outcome and are looking forward to continuing to invest and grow the business with this additional capital.”
“A Sun Capital affiliate bought Fletchers in the autumn of 2021, and over the first four years of our ownership the business grew EBITDA from £8m to £38m through organic growth, operating improvements and 10 add-on acquisitions.
“The business has continued to grow since then and we believe that there is more to come.”
Higgs was bought by August Equity [2] last summer and on Friday announced that it had bought Scottish business Vialex, together with its specialist employment law arm, Navigator Employment Law.
Vialex, which is not a regulated law firm, offers corporate and commercial legal services, including a legal counsel service providing lawyers who act as in-house counsel.
The deal adds 40 staff and a first presence in Edinburgh for Higgs “and marks a significant step in the firm’s strategic growth across the UK”, it said.
Higgs chief executive Nick Taylor said the deal “strengthens our already well-regarded corporate, commercial and employment capabilities, and gives us a strong base in Scotland from which to support clients across the UK and beyond”.
Keith Anderson, chief executive at Vialex, added: ”We have been looking for support to expand our corporate and commercial services, and reach for some time, and Higgs is the perfect fit.
“From our base here in Edinburgh, this transaction allows us to broaden our offering to our many clients who have business interests or an existing footprint in England and Wales.”
Higgs follows the likes of Irwin Mitchell [3] and Stowe Family Law [4] by investing in Scotland.
Away from private equity, Ipswich-headquartered Kerseys has acquired Stowmarket firm Haywards Solicitors, adding two partners – Jennifer Carter and Helen Barnes – and 13 other members of staff.
It represents the next step in the firm’s regional expansion following the opening of new offices in Felixstowe in 2024 and Woodbridge last year. Kerseys also has an office in Colchester.
Managing partner Kimat Singh said: “By bringing our teams together, we are broadening the depth of expertise and ensuring clients across Suffolk have even greater access to high-quality legal support.”
Berkshire firm Clifton Ingram has acquired PainSmith Solicitors, which specialises in landlord and tenant work and adds eight staff to its existing 117 headcount.
Described as “a carefully planned, founder-led succession”, Clifton Ingram managing partner Jonathan Foulds said: “Landlord and tenant law has become increasingly complex over recent years. Clients need advice that is not only technically sound but also practical and commercially realistic.
“Bringing PainSmith into Clifton Ingram allows us to offer exactly that, alongside our wider dispute resolution, property and other legal services.”
PainSmith founder Marveen Smith said: “For me, success is continuity. It is about clients being supported properly, staff developing in their careers, and knowing what we have built will continue in the right way, with a firm who shares our values.”
Learn more about private equity investment and M&A activity at our Law Firm Growth Summit [5] on 18 March in London.