Key Takeaways
- • Charlesbank Capital Partners, a Boston-headquartered private equity firm with $24 billion in AUM as of June 30, has invested in a newly formed management services organization (MSO) of Los Angeles-based insurance-defense firm Wood Smith Henning & Berman (WSHB), announced Oct. 19.
- • The Financial Times reported the transaction is valued at approximately $700 million; WSHB and Charlesbank declined to confirm financial terms, and co-founder Daniel Berman said it is likely the largest private equity deal involving a U.S. law firm.
- • The capital will fund WSHB's first-ever law firm acquisitions, faster expansion into new markets, and investment in AI and technology extended into administrative functions such as finance and recruiting.
- • The structure is built around WSHB Support Services, which provides nonlegal operational support while attorneys retain control of legal services, a model designed to comply with California Rule of Professional Conduct 5.4.
- • Holland & Knight reported 36 MSO transactions in the first three quarters of 2026, signaling that private equity interest in law firms is broadening beyond personal injury practices.
Summary
Los Angeles-based Wood Smith Henning & Berman (WSHB) announced on Oct. 19 that private equity firm Charlesbank Capital Partners has invested in a newly formed management services organization, WSHB Support Services, in a transaction the Financial Times reported at approximately $700 million. Berman declined to confirm the figure, noting that neither WSHB nor Charlesbank was commenting on financial terms. He said the deal is, to his knowledge, the largest private equity transaction involving a U.S. law firm and possibly the largest globally. Trisha Rich, a Holland & Knight partner specializing in legal ethics and law firm transactions, described it as "certainly the largest deal that's been publicly announced so far."
WSHB, founded in 1997, has grown to nearly 600 attorneys largely through founder capital and internal working capital, a model that supported organic growth but limited major acquisitions. According to Berman, the investment will allow the national insurance-defense firm to acquire other law firms for the first time, expand more rapidly into new markets, and invest substantially in artificial intelligence. The firm intends to extend its technology capabilities into administrative operations including finance, recruiting and internal workflows. Berman said WSHB spent more than a year structuring the deal to comply with professional responsibility rules in every state where it operates.
The transaction reflects broader private equity interest in the legal sector. Rich said early movers were largely personal injury firms, but interest now extends across the sector. Her team at Holland & Knight handled 36 MSO transactions in the first three quarters of 2026, including 16 involving personal injury firms, nine corporate and transactional firms and four other litigation firms. Rich said insurance-defense firms may be particularly attractive to investors because their revenue streams are easier to evaluate.
MSO structures allow outside investors to acquire interests in entities providing administrative support while lawyers retain ownership and control of their practices. California Rule of Professional Conduct 5.4 generally prohibits nonlawyer ownership, fee sharing and outside interference with attorney judgment. Berman said "there's no fee splitting or fee sharing" and that Charlesbank will have no involvement in legal decisions. California, Colorado and Illinois have enacted measures addressing outside investment structures, though Rich said those statutes largely reinforce existing professional responsibility requirements.
Berman will serve as CEO of WSHB Support Services, while Stewart Reid remains firmwide managing partner of the law firm. Both will sit on the MSO's board alongside co-founders Stephen Henning and Kevin Smith. WSHB currently has more than 550 attorneys across 43 offices in 23 states. Charlesbank, headquartered in Boston, reported $24 billion in assets under management as of June 30.
WSHB, founded in 1997, has grown to nearly 600 attorneys largely through founder capital and internal working capital, a model that supported organic growth but limited major acquisitions. According to Berman, the investment will allow the national insurance-defense firm to acquire other law firms for the first time, expand more rapidly into new markets, and invest substantially in artificial intelligence. The firm intends to extend its technology capabilities into administrative operations including finance, recruiting and internal workflows. Berman said WSHB spent more than a year structuring the deal to comply with professional responsibility rules in every state where it operates.
The transaction reflects broader private equity interest in the legal sector. Rich said early movers were largely personal injury firms, but interest now extends across the sector. Her team at Holland & Knight handled 36 MSO transactions in the first three quarters of 2026, including 16 involving personal injury firms, nine corporate and transactional firms and four other litigation firms. Rich said insurance-defense firms may be particularly attractive to investors because their revenue streams are easier to evaluate.
MSO structures allow outside investors to acquire interests in entities providing administrative support while lawyers retain ownership and control of their practices. California Rule of Professional Conduct 5.4 generally prohibits nonlawyer ownership, fee sharing and outside interference with attorney judgment. Berman said "there's no fee splitting or fee sharing" and that Charlesbank will have no involvement in legal decisions. California, Colorado and Illinois have enacted measures addressing outside investment structures, though Rich said those statutes largely reinforce existing professional responsibility requirements.
Berman will serve as CEO of WSHB Support Services, while Stewart Reid remains firmwide managing partner of the law firm. Both will sit on the MSO's board alongside co-founders Stephen Henning and Kevin Smith. WSHB currently has more than 550 attorneys across 43 offices in 23 states. Charlesbank, headquartered in Boston, reported $24 billion in assets under management as of June 30.
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