Ed. note: Welcome to our daily feature, Quote of the Day.
In most cases, partners will need to be persuaded not only that PE investment—and giving up a degree of equity and control to outside investors—is in the firm’s best interests, but that it represents the best available alternative for achieving the partnership’s aspirations.
— Kent Zimmermann, co-chair of the Zeughauser Group, in comments given to the American Lawyer, concerning what needs to happen at a law firm before a private equity deal to sell of a portion of the firm’s business can be approved. Zimmerman went on to note that partners will likely have questions about clients and rates, and that “they will expect compelling, evidence-backed answers that they can live with while preserving the kind of culture they want to have in their firm.”
Staci Zaretsky is the managing editor of Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Bluesky, X/Twitter, and Threads, or connect with her on LinkedIn.
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