Grip of Steele on fees as firms form joint venture

Grip of Steele on fees as firms form joint venture

Two regional law firms have teamed up in London to form what they maintain is the first joint venture corporate finance team.From 1 May, 18-partner Cheltenham firm Bretherton Price Elgoods and 14-partner Norwich-based Steele & Co set up the joint venture - BPE Steele - to save on legal fees for clients in the 1 million to 15 million turnover market.

Although both practices have London offices, BPE Steele was created as a separate partnership by the two firms, and will operate from Steele & Co's central London office under the leadership of Bretherton Price partner Richard Bretherton, with three assistants.

Profits will be halved between the two firms.

Administrative work will be conducted by the firms' corporate finance departments in their home offices.

Mr Bretherton said that in every modest finance-raising deal, 'there is a common thread - the perception of the shareholders (and often the other advisers involved) that the legal fees are inappropriate to the size of the deal'.

He continued: 'By corralling administrative costs in Cheltenham and Norwich, we can charge at provincial rates.

The clients usually end up paying less than half of what they might otherwise be charged.' Steele & Co managing partner Philip Hyde said that, in due course, BPE Steele would probably become a limited liability partnership.

Jeremy Fleming