Root injects £3.15m into Keystone Law

Alice Murray
23 October 2014

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Private equity firm Root Capital has invested ТЃ3.15m into Keystone Law in exchange for a 35% stake.

The fresh capital will be used to develop the firm's infrastructure and will provide an exit for founding partner Charles Stringer.

The deal follows regulatory changes for law firms: the Alternative Business Structure (ABS) – nicknamed the Tesco Law because it paved the way into legal services for large, non-legal corporations like Tesco – allows non-lawyers to take over or invest in law firms. Several buyout houses have since moved into the space, notably Palamon Capital Partner's acquisition of Quality Solicitors in October 2011. Keystone converted to an ABS in October 2013.

Company
Keystone is a full-service law firm, employing 150 senior lawyers and 25 support staff. Typical clients include private companies and high-net-worth individuals.

The company has offices in London, Bristol, Guernsey, Sydney and Cape Town. This year Keystone reported turnover of £14.1m.

People
Root's managing partner Simon Philips has taken a seat on Keystone's board as part of the transaction. James Knight is managing partner of Keystone.