Key Takeaways
- • Wood Smith Henning & Berman, a 550-lawyer insurance defense firm with 43 offices in 23 states, has accepted outside investment from Charlesbank Capital Partners, announced Monday (October 2026).
- • The capital is channeled through a management services organization (MSO), WSHB Support Services, which will supply non-legal operational infrastructure while the law firm remains legally separate and independent.
- • Exact transaction terms were not disclosed.
- • The firm is expected to direct heavy investment into artificial intelligence technology and infrastructure, alongside geographic expansion and deeper practice-area capabilities.
- • The deal distributes equity across the firm's roughly 200 partners, according to Executive Chairman Daniel Berman.
Summary
Wood Smith Henning & Berman, a 550-lawyer insurance defense firm with 43 offices in 23 states, announced Monday that it has accepted outside investment from Charlesbank Capital Partners. The investment funds a management services organization, dubbed WSHB Support Services, which will provide non-legal operational infrastructure and support to the law firm. The MSO structure is a workaround that allows law firms to take private capital without violating professional rules that prohibit fee-sharing and nonlawyer ownership of law firms. The law firm will remain legally separate and independent from the MSO, which is typical of such transactions. The exact terms were not disclosed.
Executive Chairman Daniel Berman, one of the four original lawyers who has been with the firm since its founding, told the publication that firm leaders had spent roughly the past year considering the firm's future and a desire to "create a firm that was lasting." The firm evaluated M&A, partner capital contributions and debt financing. Debt was quickly rejected because the firm is debt-averse. It chose private equity based on the success of private investment in other professional services industries. Berman said the firm began talks with private equity firms about eight months ago and connected with Charlesbank five or six months ago, largely due to Charlesbank's focus on professional services. He said the firm reviewed ethics and regulatory issues before proceeding.
Berman said a central goal was creating real equity for current and future partners. The firm has around 200 partners, and he said the MSO structure has distributed equity across the partnership. The capital from Charlesbank is expected to support geographic expansion, deeper capabilities across practice areas and infrastructure for continued growth. Berman said the largest opportunity is heavy investment in new artificial intelligence technologies to improve client and employee experience. He added that the firm has focused on technology since its founding and forecast that 25 or 30 firms might follow.
Berman said insurance defense work is particularly attractive to private equity because of its counter-cyclical nature, describing it as "less cyclical and more predictable." Wood Smith primarily represents insurers, self-insured corporations and institutional clients. The firm was formed in 1997.
David Katz, managing director and co-head of private equity at Charlesbank, said in a statement that Wood Smith sits at the intersection of professional services and insurance services, areas where Charlesbank has invested for years. Katz said Charlesbank would bring its thematic research and experience as the first institutional capital partner to founder-led businesses. Mutian Rui, a Charlesbank principal, said the firm has an "enviable reputation with its clients" and is expanding into new markets and practice areas while maintaining its founding culture and values.
Executive Chairman Daniel Berman, one of the four original lawyers who has been with the firm since its founding, told the publication that firm leaders had spent roughly the past year considering the firm's future and a desire to "create a firm that was lasting." The firm evaluated M&A, partner capital contributions and debt financing. Debt was quickly rejected because the firm is debt-averse. It chose private equity based on the success of private investment in other professional services industries. Berman said the firm began talks with private equity firms about eight months ago and connected with Charlesbank five or six months ago, largely due to Charlesbank's focus on professional services. He said the firm reviewed ethics and regulatory issues before proceeding.
Berman said a central goal was creating real equity for current and future partners. The firm has around 200 partners, and he said the MSO structure has distributed equity across the partnership. The capital from Charlesbank is expected to support geographic expansion, deeper capabilities across practice areas and infrastructure for continued growth. Berman said the largest opportunity is heavy investment in new artificial intelligence technologies to improve client and employee experience. He added that the firm has focused on technology since its founding and forecast that 25 or 30 firms might follow.
Berman said insurance defense work is particularly attractive to private equity because of its counter-cyclical nature, describing it as "less cyclical and more predictable." Wood Smith primarily represents insurers, self-insured corporations and institutional clients. The firm was formed in 1997.
David Katz, managing director and co-head of private equity at Charlesbank, said in a statement that Wood Smith sits at the intersection of professional services and insurance services, areas where Charlesbank has invested for years. Katz said Charlesbank would bring its thematic research and experience as the first institutional capital partner to founder-led businesses. Mutian Rui, a Charlesbank principal, said the firm has an "enviable reputation with its clients" and is expanding into new markets and practice areas while maintaining its founding culture and values.
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