Freshfields has apologised "unreservedly" after a leaked email chain revealed comments dismissing Middle Eastern sovereign wealth investors. Global managing partner Alan Mason and Ethan Klingsberg, co-head of US corporate and M&A, discussed spinning out the firm’s legal AI unit, Freshfields Lab, potentially worth billions. In the exchange, Klingsberg suggested approaching "sophisticated investors" and stated this "probably" ruled out "Middle Eastern sovereign wealth money." The email was inadvertently forwarded to a large internal list and later leaked to the Financial Times.
The firm stated the comment does not reflect its position and affirmed its deep respect for clients in the region, including the Abu Dhabi Investment Authority, Qatar Investment Authority, Kuwait Finance House, and DP World. Freshfields maintains offices in Abu Dhabi, Dubai, Saudi Arabia, and Bahrain. The Middle East has become a growing revenue source for Western law firms as sovereign wealth funds expand globally.
Freshfields Lab develops AI tools for legal analysis and due diligence, competing with firms like Harvey and Legora, valued at $15.5bn and $5.6bn respectively.
Source: Financial Times Companies · Summarized by HeadlinesBriefing