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Parabis Law becomes first ABS with private equity funding

The SRA today (22 August 2012) licensed Parabis Law, which has private equity funding from Duke Street, as an ABS.

22 August 2012

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Parabis Law LLP specialises in claimant and defendant insurance work, operating through the brands Plexus Law and Cogent Law. The LLP, which employs 1,184 people, had a turnover of £108m in the last financial year.

The Parabis Group offers a wide range of non-legal insurance services from loss adjusting and rehabilitation to risk management.

Tim Oliver, chief executive of Parabis, said: “This is a fast-changing, highly competitive market. It has been important to secure ABS status so that we can compete effectively and retain our innovative edge.

“Admittedly, at times, we have felt frustrated at the time it has taken to secure our licence but we are very pleased with the robustness of the application process.

“We look to the SRA as our regulator to ensure legal services are delivered in a safe way by good quality professional organisations and for the protection of the public. The ABS licensing process has given us great confidence that the SRA is fully committed to discharging that obligation.

“This really is a milestone for Parabis. It signals our intention to be at the heart of change in the insurance and legal sectors. We are very excited by the possibilities now open to us.”

Duke Street partner Iain Kennedy said Parabis presented a “unique opportunity” to invest in a “fast-growing, dynamic and fragmented” sector.

“The attractions for us are clear: a market leader with an unrivalled track record of revenue and profit growth, a differentiated business model, and the best management team in the industry.

“The intention is to support management with Duke Street’s operational expertise in transforming the business from a professional services firm to a business process outsourcer, and to drive the continued consolidation of the legal services industry via Duke Street’s successful buy-and-build model.”

Samantha Barrass, SRA executive director, said: “Parabis Law is the 20th ABS that we have licensed and the first ABS to be created through private equity ownership. It is a good example of the type of innovation that the liberalisation of the legal services market has enabled.”

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Legal services