Bowmark explores Lawyers On Demand exit

Cristiano Dalla Bona , Min Ho and Josh O'Neill
18 March 2022

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Bowmark Capital has mandated Rothschild to explore an exit of UK-based legal services platform Lawyers on Demand (LOD), three sources familiar with the situation said.

The process is still in its early stages and timing is uncertain, two of the sources said, adding that it will likely kick off in earnest early next year. Options include a straightforward change of investor, one said.

According to Lawyers On Demand's most recent limited liability accounts, its UK revenue declined slightly from GBP 22.3m to GBP 21.1m. Previous press reports noted that in the last financial year, global revenue at LOD decreased by 2% from GBP 56.7m to GBP 55m.

LOD's core services include seconding lawyers and other legal professionals to corporate clients and law firm. It also offers managed services, legal operations and tech consulting, and operates an internal law firm, LOD Legal, whose headcount mostly comprises in-house lawyers.

The company operates in an increasingly crowded sector, with US-headquartered contract-lawyering platforms Axiom and Elevate Services its main competitors. It is also seeing competition from ancillary services launched by law firms, which include Peerpoint, owned by Allen & Overy; Konexo, owned by Eversheds Sutherland; and Herbert Smith Freehills, which operates alternative legal services, according to press reports.

The business has been on an expansion streak recently. Last year, it struck a partnership with Syke, a UK legal engineering firm founded in 2016, according to company information. In 2019, it acquired Australian legal operations provider lexvoco.

In 2018, Bowmark Capital became the main shareholder in LOD, which was previously backed by law firm Bryan Cave Leighton Paisner, as reported. The business was marketed off GBP 7m-GBP 8m EBITDA in the process, which had Livingstone Partners as sellside advisor.

Bowmark declined to comment. A spokesperson from LOD said that the company does not comment on market speculation. Rothschild did not return requests for comment.