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So here we are, 18 months since the onset of alternative business structures, but has private equity money been flooding into the sector? It was never going to be a tidal wave, as the very nature of private equity is that only measured investment decisions are taken, and it’s linked but separate from the venture capital world where of 10 technology start-up investments, nine are expected to fail in the hope that one becomes a Facebook or a Google. With private equity it’s generally later-stage companies that are invested in, that have a proven track record and room for growth. Every investment is fully expected to succeed.

Duke Street today became the first private equity firm to own part of a law firm after the Parabis Group received its alternative business structure licence, the twentieth so far issued by the Solicitors Regulation Authority.

Some law firms are considering conversion to an alternative business structure (ABS) out of “panic or paranoia” without first getting their own houses in order, experts warned yesterday. Lawyers need first to build sustainable businesses, they said.

Staffordshire law firm Knights has struck a deal to accept investment from the private equity company owned by former Dragon’s Den star James Caan in a bid to attract work away from the City.

There have now been well over 100 alternative business structure applications since 3 January 2012 and we should see the first approvals imminently. So, what does this mean for the estimated 75% of practices which are just sitting and watching and hoping this will all go away? Should they be preparing to join the law firm beauty parade that will decide which law firms are purchased, sold and merged? Or are they right to wait on the side lines, biding their time?