Private equity investment could transform how US lawyers are paid, according to the founders of Massumi + Consoli, a mid-market M&A advisory boutique that sold a stake to Trive Capital. The deal, one of the first in the sector, uses a “management services organisation” (MSO) structure to bypass ethics rules that previously barred outside ownership of law firms. Founding partners Tony Consoli and Peter Massumi believe the model will lock lawyers into equity incentive plans, reducing the “poaching wars” that have driven compensation and billing rates upward.

The MSO structure splits the firm into an attorney-owned legal core and a separate entity housing back-office functions, technology, and assets, with shared ownership between lawyers and private equity. The founders argue this creates long-term value for clients and offers partners liquidity events every few cycles, similar to trends in accounting. The firm, based in Los Angeles, has grown to over 70 lawyers and generated more than $100mn in annual gross revenue.

It plans to announce the new structure and hire Shon Glusky from Sheppard as chief strategy officer, with ambitions to recruit talent and acquire firms to expand practice areas. Larger firms remain skeptical due to cultural, financial, and logistical concerns.