Stowe: Quadrupled in size in seven years
The largest family law firm in the country, Stowe Family Law, has been sold by its private equity owner to a global investment giant entering the legal market for the first time.
Bahrain-headquartered Investcorp has offices across the world and more than $50bn under investment, dwarfing Stowe’s original investor, Livingbridge, which bought the practice in 2017. It has since quadrupled in size.
The terms of the deal have not been disclosed but Livingbridge described it as a “successful exit”.
In 2017, Stowe had around 100 staff operating in 10 offices. It now has nearly 400 staff in 90 locations, boosted by four acquisitions in the last two years.
The impact of these has been significant, with Livingbridge saying Stowe’s annual turnover for the year to 31 March 2024 exceeded £37m.
Its most recently published accounts, for the previous year, put turnover at nearly £25m, with a profit of £2.7m.
In the year to 31 March 2017, Stowe reported a £3m profit on a £9m turnover.
Investcorp said it would work with the Stowe team “to continue in the development of its growth strategy, focusing on its five-year Stowe 3.0 plan”.
It said the firm’s ambition was to serve more than 10,000 clients a year by 2029 – it currently has 5,000 – and to offer “more holistic support to families going through the challenges of change”.
The statement added: “Investcorp will also use its vast experience in building technology-enabled businesses to help Stowe continue to expand its services and delivery for clients using the latest solutions.”
Ken Fowlie, Stowe’s executive chairman, said: “With Investcorp’s support and collaboration, we will continue to invest in our business and people to achieve our mission to become the first choice for family law.
“Given Investcorp’s experience, we will accelerate investment in technology, including looking to unlock the power of artificial intelligence to further enhance customer experience and service quality.”
Gilbert Kamieniecky, head of private equity, Europe at Investcorp, added: “We were impressed by the company’s commitment to build a resilient and scalable business powered by technology, and look forward to working with Ken and the team as they continue on their vision of Stowe 3.0, a true leader in the legal field.”
Adam Holloway, partner at Livingbridge said: “In 2017 we saw the opportunity to create a market leader in the fragmented family law market, combining best-in-class digital marketing with a great place to work for lawyers.
“We have succeeded in this goal, growing the business fourfold through exceptional customer service and employee engagement.”
Since 2012, Investcorp European Private Equity has invested more than €2bn in companies across the continent.
Livingbridge is not the first private equity investor to sell a law firm claiming a successful exit. It has happened at Setfords and Keoghs among others.
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