In recent years, a growing number of U.S. law firms have started exploring outside investment as a powerful path to growth, wealth creation, and long-term stability. The American Bar Association’s (ABA) rules prohibit non-lawyer ownership of law firms, but an alternative structure — the Management Services Organization (MSO) — allows them to tap into private equity and debt while remaining compliant with ABA rules. This MSO structure has been employed for decades in similarly regulated, professional sectors like medicine and dental.

To understand how this model works and what it means for firm owners, dozens of law partners attended a Marks Baughan webinar in September 2025: Law Firm Value Creation: Exploring Outside Investment. This article summarizes the content of that webinar, which featured experts from Marks Baughan — a global investment bank in the legal and compliance sectors — as well as Scott Brinkley, CEO of a360inc, a technology and services provider to law firms that’s organized as an MSO.

Why Law Firms Are Pursuing Outside Capital Through MSOs

The MSO model separates the law firm from its back-office operations, creating two sister entities. The back-office company is organized as an MSO and provides administrative, technological, and operational support to the law firm. Because the MSO itself is not engaged in the practice of law, nor is it funded by legal fees, it can legally accept outside investment. This arrangement opens many opportunities for firm leaders: