Senior Freshfields partners discussed carving out the firm’s legal AI unit Freshfields Lab and opening it up to external investors, hoping to create a company “worth billions”, according to an internal email exchange seen by the FT.
In an email to Ethan Klingsberg, co-head of US corporate and M&A, global managing partner Alan Mason said he was putting “a lot of work” into turning “our AI business in[to] a separate legal entity we can get external investors in / IPO”. He named two Wall Street banks that he said “have reached out on this”.
Freshfields Lab develops AI-based tools for its lawyers and clients, including document analysis, platforms to manage complex litigation and due diligence. Mason argued that legal tech companies commanded valuations that were 25 to 40 times revenues. Law-focused AI firms Harvey and Legora are valued at $15.5bn and $5.6bn respectively.
Klingsberg suggested that such a standalone entity would be “probably worth billions”. Both agreed that the firm could “make a lot of money”. Klingsberg said the discussions were “very early stage” and may not come to fruition. Freshfields declined to comment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing