Private equity's experiment with buying US law firms began in earnest this year with personal injury firms. A wave of investment promises to turbocharge the billboard-advertising, ambulance-chasing sector of the legal market. Perhaps more palatable will be insurance defence specialists — law firms that defend companies against personal injury, product liability and other claims. Wood Smith Henning & Berman (WSHB), based in Los Angeles with over 550 lawyers, is close to signing a deal with Charlesbank valuing the firm at about $700mn. This would be the most significant use to date of the management services organisation structure enabling private investment in US law firms.

Apollo Global Management detected red flags at First Brands Group before its collapse last September. An internal Apollo presentation from April 2024 revealed concerns about mismatches between cash flow and claimed margins, large gaps in acquisition margins, and CEO Patrick James's history of failed entities. The presentation detailed how Apollo turned down opportunities to invest after discovering these issues.

Meta's $14bn data centre campus in El Paso, Texas faces an insurance gap. Marsh estimates a 1-in-500 year fire would cause $450mn losses, just 3% of project value. While the project has secured hundreds of millions in coverage, it remains exposed to billions in possible losses above insurance caps. Lenders are increasingly accepting partial coverage as deal sizes multiply.