A new development in the legal sector sees a private equity firm making significant moves.
- Horizon Capital has entered the market with a £30 million fund.
- Their first acquisition is the Midlands law firm, FBC Manby Bowdler.
- The strategy involves creating a national group through regional acquisitions.
- This move signals a trend of consolidation in the legal services industry.
Horizon Capital has made a strategic entry into the legal services market by establishing Adeptio Law Group. This venture is fuelled by a £30 million fund aimed at crafting a leading national legal services group. The acquisition of FBC Manby Bowdler, a full-service law firm in the Midlands, marks the beginning of this ambitious plan.
FBC Manby Bowdler, with its headquarters in Wolverhampton and additional offices across the West Midlands, boasts a workforce of over 200. The firm’s financial health is strong, with its most recent annual results showing an operating profit of £5.7 million and a turnover of £16.5 million. These figures represent growth from the previous year, indicating a robust platform for further expansion.
Horizon Capital’s decision to start with the acquisition of FBC is supported by a comprehensive analysis of the market over two years, identifying it as an attractive and growing sector. The company’s focus on compliance and technology adoption also plays a significant role in this initiative.
The operational leadership of Adeptio Law Group will be headed by Neil Lloyd, who steps in as the chief executive. His experience with FBC since 2015, culminating in a managing director role by 2020, positions him well for this challenge. Martin Smith takes on the role of group chairman, bringing with him ample private equity experience.
In partnership with HSBC, which provides debt finance for the transaction and future acquisitions, Horizon Capital is committed to supporting organic growth and technological investments. Simon Hitchcock, managing partner of Horizon Capital, expressed excitement about the growth opportunities and the firm’s potential role in market consolidation.
This acquisition marks a significant step towards consolidation in the fragmented legal services market.
