In this episode of The Law Deals Podcast, the first in a two-part series, I’m joined by attorney Jonathan Hawkins: founder and managing partner of Law Firm GC. Together, we explore one of the most significant shifts facing the legal industry: the rise of private equity in law firms.

We break down the two primary models of investment: direct ownership and indirect ownership, and the ethical rules that stand in the way of non-lawyer participation under Rule 5.4 and state bar regulations. Jonathan explains how Arizona’s Alternative Business Structures have opened the door, why states like Texas and Florida are holding firm, and how multi-state firms and local counsel arrangements create complex challenges.

For lawyers and law firm owners, the implications are clear: private equity may already be your competition, and modernization isn’t optional, it’s the key to creating value and resilience in your firm.

This conversation lays the foundation for Episode 33, where we will turn to the equally important issue of indirect ownership and its impact on the future of law firm structure and competition.