Key Takeaways
- • Massumi + Consoli, a Los Angeles-based deals boutique founded in 2015 by Peter Massumi and Anthony Consoli, sold a stake in its back-office operations to Dallas-based private equity firm Trive Capital to fund technology and artificial intelligence improvements.
- • The transaction employs a management services organization (MSO) structure, allowing private equity to invest in law firm operations while circumventing state regulations that prohibit direct non-lawyer ownership of legal practices.
- • The deal reflects a broader trend in the legal sector, with a Dechert survey showing 77% of fund managers plan stake sales in the next 24 months, up significantly from 34% in the prior year.
- • Massumi + Consoli specializes in mid-market private equity transactions and has advised on notable deals including Monogram Capital acquisitions and the Skillz-Beamable transaction, leveraging founder expertise from Kirkland & Ellis, the world's most profitable law firm.
- • Private equity capital has increasingly targeted legal services, particularly high-margin contingency-fee practices, as an alternative investment asset class with attractive economics and consolidation opportunities.
Summary
Massumi + Consoli, a Los Angeles-based legal boutique specializing in mid-market private equity transactions, has sold a stake in its back-office operations to Trive Capital, a Dallas-based private equity firm. The transaction, structured through a management services organization (MSO), allows the law firm to access growth capital while maintaining attorney control over legal practice operations. According to sources familiar with the deal, Massumi + Consoli plans to deploy the capital infusion to enhance technology infrastructure and develop artificial intelligence capabilities within the firm.
The MSO structure has become increasingly prevalent in the legal profession as a regulatory workaround. State bar rules prohibit non-lawyers from directly owning law practices, but MSOs enable private equity investors to capitalize on back-office operations—including administrative, technology, and operational functions—while keeping the practice of law exclusively within attorney hands. This vehicle has gained particular traction as private equity seeks exposure to the legal services sector's attractive economics and consolidation opportunities.
Massumi + Consoli was founded in 2015 by Peter Massumi and Anthony Consoli, both former attorneys at Kirkland & Ellis, the world's most profitable law firm. The firm has built a track record in mid-market private equity counsel, advising on notable transactions including acquisitions by Monogram Capital and the Skillz-Beamable deal. This transaction positioning demonstrates how specialized legal advisory practices with concentrated private equity expertise are becoming attractive acquisition targets for financial investors.
The Trive Capital investment reflects a significant acceleration in private equity's broader push into the legal services sector. A Dechert survey of fund managers revealed that 77% plan to execute stake sales in the next 24 months, compared to just 34% in the prior-year survey. Private equity has made particularly aggressive moves into personal injury law firms, where high profit margins from contingency-fee structures, consumer-facing marketing capabilities, and concentrated ownership have attracted institutional capital seeking alternative investments with stable cash flows and consolidation potential.
The MSO structure has become increasingly prevalent in the legal profession as a regulatory workaround. State bar rules prohibit non-lawyers from directly owning law practices, but MSOs enable private equity investors to capitalize on back-office operations—including administrative, technology, and operational functions—while keeping the practice of law exclusively within attorney hands. This vehicle has gained particular traction as private equity seeks exposure to the legal services sector's attractive economics and consolidation opportunities.
Massumi + Consoli was founded in 2015 by Peter Massumi and Anthony Consoli, both former attorneys at Kirkland & Ellis, the world's most profitable law firm. The firm has built a track record in mid-market private equity counsel, advising on notable transactions including acquisitions by Monogram Capital and the Skillz-Beamable deal. This transaction positioning demonstrates how specialized legal advisory practices with concentrated private equity expertise are becoming attractive acquisition targets for financial investors.
The Trive Capital investment reflects a significant acceleration in private equity's broader push into the legal services sector. A Dechert survey of fund managers revealed that 77% plan to execute stake sales in the next 24 months, compared to just 34% in the prior-year survey. Private equity has made particularly aggressive moves into personal injury law firms, where high profit margins from contingency-fee structures, consumer-facing marketing capabilities, and concentrated ownership have attracted institutional capital seeking alternative investments with stable cash flows and consolidation potential.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.