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A large majority of partners at mid-sized law firms believe their practices need to grow by at least a third over the next three to five years to remain competitive, with many open to the idea of external investment, a recent survey has shown.

The “inexcusable delay” in enabling the Solicitors Regulatory Authority to start licensing alternative business structures could make private investors think twice about entering the legal sector, the Legal Futures conference heard this week.

The German Bar has called on its American counterpart to form an international coalition against alternative business structures. The news comes as the American Bar Association prepares to publish a proposed rule change that would allow minority non-lawyer ownership of law firms, with the New York courts set to rule on the issue too.

The Solicitors Regulation Authority is unlikely to start licensing alternative business structures (ABSs) until 2012, it has confirmed. The news comes as the authority spelt out the detailed level of information about investors in prospective ABSs that it will expect to see.

Nearly a third of the top 100 law firms are considering taking external capital, while a few see floating on a stock exchange as “likely”, new research has claimed. A survey of finance directors at the top 100 by Sweet & Maxwell found that “a significant number” of the firms are considering embracing alternative business structures “at an early stage”.