Firm leaders are increasingly open to expansion through private investment, according to the latest banking sector snapshot of the legal scene. The sixth Law Firm Strategy and Investment research report, released today by HSBC UK, also shows IT spending continuing to rise.
Responses to a question asking how has perception of private equity changed over the past two years, 24% replied it was either more attractive or a lot more attractive, up from 17% last year.
Meanwhile, 45% of firms said they were seeking growth from international opportunities. North America and the Middle East emerged as top regions for growth, with 42% of firms prioritising North America and 31% focusing on the Middle East. Interest in the rest of Europe remains steady at 40%.
Victoria Ritchie, HSBC head of professional services, said the findings suggest a strategic shift in the legal sector. ‘Firms are recognising the potential of external capital to fuel growth and innovation, allowing them to remain competitive in a rapidly changing market.’
Law firms are spending an average of 6.5% of their revenue on information technology. The increase, up from 6.1% in 2024, reflects the sector’s commitment to innovation and efficiency, Ritchie said.
The survey asked more than 90 senior representatives at law firms questions on topics covering growth, technology, investment and ESG.
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