McDermott Will & Emery is currently in preliminary discussions regarding the potential sale of a stake in the firm to outside investors. This development, reported by Bloomberg Law, marks a significant departure from the traditional law firm ownership model, which has historically been restricted to licensed attorneys.
Firm Chairman Ira Coleman stated, “This is all very preliminary and we are fielding inbound interest. We are constantly approached and we always listen to new ideas.” He emphasized the firm’s commitment to exploring innovative opportunities that align with client expectations and the firm’s strategic goals.
The proposed structure under consideration involves creating a managed service organization (MSO) to handle administrative functions such as technology services. This arrangement would allow investors to share in the firm’s revenue without violating state regulations that prohibit non-lawyer ownership of law firms. The MSO model has been utilized in other professional services sectors, including healthcare, to facilitate external investment while maintaining compliance with industry-specific ownership rules.
McDermott’s exploration of external investment opportunities follows a period of significant growth and strategic expansion. In June 2025, the firm approved a merger with Schulte Roth & Zabel, resulting in a combined entity with over 1,750 lawyers across more than 20 offices globally and joint revenues exceeding $2.8 billion. The merger, as reported by Above the Law, positioned the firm among the top 20 largest law firms in the United States by revenue.
Additionally, McDermott has been actively enhancing its service offerings through strategic hires and investments. In February 2025, the firm welcomed Allison Scher Bernbach as a partner and head of the U.S. private equity fund regulatory practice in New York. According to a firm press release, Bernbach’s expertise in investment funds and private equity regulatory compliance is expected to bolster McDermott’s capabilities in navigating complex regulatory landscapes.
In October 2021, McDermott announced a $10 million anchor investment in The LegalTech Fund, a venture capital fund dedicated to supporting legal technology companies. As detailed in a press release, this investment underscores the firm’s commitment to innovation and its proactive approach to integrating cutting-edge technologies into its practice.
While the discussions regarding external investment are still in the early stages, McDermott’s willingness to consider such a move reflects a broader trend within the legal industry toward exploring alternative business models and funding structures. This approach aims to enhance service delivery, attract top talent, and meet the evolving needs of clients in a competitive market.