Eyes on, hands off - Horizon's legal play
Why the private equity investor has placed a big bet on Adeptio Law Group
Hello Rainmakers,
The consolidation of the legal sector and the moves by private equity provide a fascinating snapshot of how professional services is being turned upside down.
In our deep dive today Horizon Capital’s Simon Hitchcock explains to Rainmakers their rationale for the £30m investment in FBC Manby Bowdler to form new legal services platform, Adeptio Law Group.
“We’ve watched the sector closely. It’s fragmented, still largely partnership-owned, and reminds us of accountancy five years ago - right before it started corporatising. In Neil and FBC, we saw a business that was focused on the SME market, which we think is the most attractive part of the market,” he says, but he also puts an operational marker down for how firms will be run in the future.
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For FBC Manby Bowdler's managing partner, Neil Lloyd (centre, above), his business success is a lot like sport.
“I’m very big on having goals,” Lloyd says. “Whether it's business or sport, you surround yourself with the best people to help you perform at your peak. Personally, as well as I can do for being 50, I’ve got a strength coach, a physio, and a nutritionist.
“In business, that translates to great risk and compliance, marketing, and finance teams - and now, Horizon Capital are part of that elite team”.
That mindset is exactly what has helped secure a landmark £30m investment from private equity firm Horizon Capital, aimed at doubling the size of the 200-strong West Midlands-based law firm in the next 18 months.
FBC Manby Bowdler’s turnover has recently exceeded £17m and is forecast to grow at more than 10% annually.
Horizon Capital is a private equity firm focused on investing in high-growth technology and services businesses with enterprise values of up to £100m. Launched in 2018, Horizon’s buy-and-build strategy has led to it completing more than 125 add-on acquisitions.
The investment will fuel both organic and acquisitive growth, including the creation of 20 new jobs in a new Knowle office and continued expansion with openings in Birmingham and a second Wolverhampton location.
Rainmakers spoke to Neil Lloyd, managing partner of FBC Manby Bowdler and Simon Hitchcock, managing partner at Horizon Capital, as the firm prepares to open its first Birmingham office.
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