UK private equity firm Root Capital has completed an investment in ‘dispersed’ law firm Keystone Law.
Founded in 2002 by its existing managing partner, James Knight, and Charles Stringer, Keystone recently converted to an ABS allowing for effective structuring of management and the ability to offer clients additional services. Over the past 18 months headcount has increased by over 50 per cent, with the business attracting numerous partner-level solicitors from leading law firms – it now has over 150 experienced solicitors averaging in excess of 20 years post qualification experience. The firm has also taken its first steps to international expansion with the successful opening of Keypoint Law in Australia.
Root Capital invests in entrepreneurial situations and will work in partnership with Keystone to drive growth. The investment will be used to develop and expand the firm’s infrastructure and this has commenced with the appointment of a new IT director and selection of a new finance director. A portion of the investment will be used to acquire an equity interest from founding partner, Charles Stringer, who will continue as a non-executive.
Knight says: “This move signifies one of the most significant strategic developments in Keystone’s 12 year history. We have always experienced strong organic growth and this additional capital injection will help us to realise our more ambitious growth plans. Root’s investment really will enable us to rapidly improve the facilities Keystone provides to its lawyers and the service it delivers to its clients. And just as importantly, we are excited to have Root as a partner in a true sense of the word. We know them well and understand how their expertise, connections and growth skills will complement those of Keystone’s existing management.”
Simon Philips, managing partner of Root, says: “We were drawn to Keystone because it stands out from the crowd as a forward thinking law firm with innovative leadership and a clear vision. It is not weighed down by a partnership and it has the infrastructure, people and processes to make huge waves in the legal market. We understand the firm’s unique culture and personality and the driving factors that make it so successful and look forward to nurturing these in the future.”
