Appleby, the offshore law firm at the centre of the Paradise Papers data leak nearly a decade ago, is exploring selling a stake to private equity as deals in the legal sector accelerate. The firm, which advises clients in offshore tax havens such as the Cayman Islands, has drawn up a list of fewer than 10 potential investors. Appleby's limited liability parent structure means a decision would require fewer shareholder approvals than most large law firms, though any deal would likely not close until next year.

Private equity firm Synova spoke to Appleby but is not pursuing an investment. The move follows rival offshore firm Mourant selling a 27 per cent stake to MML, and Walkers agreeing a deal with Vitruvian Partners for its non-legal corporate services arm. Private equity has long sought entry into the highly profitable legal industry, though law firms have been more reluctant than accountancy firms due to the traditional partnership model.

Top partners can now earn over $20mn annually, making investors vulnerable to departures. Appleby, founded in Bermuda in the 1890s, employs more than 500 people, including over 200 lawyers across 11 offices.