LawFuel – Law Firm News – UK law firms profited hugely from the booming private equity market in 2006, according to a report issued by the British Private Equity and Venture Capital Association.
Out of a total of £5.4bn in revenue to the financial and professional services sectors, with an estimated £1.2bn going on legal services.
The British private equity market is the second-largest in the world, after the US, with financial and professional services now accounting for 12 per cent of Britain’s GDP. It has been one of the success stories of the British economy over recent years.
The report notes that law firms account for £14.9 billion, or 1.4% of Britain’s GDP and employing over 286,000 people. Over 200 law firms provide services to private equity firms, ranging from the large, London-based ‘Magic Circle’ law firms with dedicated private equity specialists to regional firms undertaking mandates on an ad hoc basis. Collectively, there are over 2000 lawyers and related professionals actively involved in private equity work in the UK, over half of whom are in London.
“Together, these firms generated an estimated £1.2 billion of revenue from private
equity-related services in 2006,” the report says.