Investors voice confidence in Taylor Rose

Investors Colum Smith and John McMillan, who previously backed Taylor Rose during its growth phase, have countered recent market speculation about the law firm’s financial stability and potential ownership changes. Their comments follow a report from The Times and the Law Gazette indicating that Nordic Capital withdrew from negotiations for a £120 million buyout, citing concerns related to client account interest.

Despite these speculations, Smith and McMillan maintain that Taylor Rose’s finances are robust and its growth model remains fundamentally sound. "When we supported Taylor Rose during 2020, we believed the business had the potential to become a major force within the UK legal market. To see it grow beyond 1,000 consultants and exceed £100 million in annualised revenues has been hugely rewarding," McMillan stated.

Taylor Rose, part of the AIIC Group, recorded a 27.4% revenue increase to £124 million for the year ending 30 September 2025, alongside an adjusted EBITDA of £12.2 million, showcasing the firm’s resilience. Smith and McMillan had initially invested £4.85 million in the firm in 2020, aiming to support its expansion. They exited the business on 2 April 2026, realising close to three times their original investment following a buyback deal.

McMillan also noted that “the real achievement is the scale and quality of the platform Adrian and his team have built.” He highlighted the significant momentum generated by investment in technology and infrastructure, affirming their continued confidence in the firm's future. Smith echoed these sentiments, remarking, “Achieving nearly three times our original investment is clearly pleasing,” while also acknowledging the dedication of the leadership team at AIIC.

Moreover, regarding the debate around client account interest, Smith clarified, “Client account interest is not a business model - it is a natural consequence of scale.” He explained that as the firm processes considerable client funds, interest accrues naturally, and that the scrutiny of client account interest is influenced by the current interest rate environment rather than any fundamental issues within the firm itself.

In the year leading up to September 2025, Taylor Rose reported £6.64 million in net client account interest income against a pre-tax profit of £9.8 million, showcasing significant underlying profitability enhancements. The firm's spokesperson affirmed this trend, noting over £10.5 million invested in an extended IT transformation programme during the same timeframe, reinforcing their commitment to innovation and resilience.

The recent discussions on client account interest follow a closed consultation by the Ministry of Justice proposing to redirect a substantial portion of such income away from law firms, creating uncertainty about potential policy changes in the future. Following the exit of Smith and McMillan, AIIC Group’s Chief Executive Adrian Jaggard remarked on the concentration of the shareholder base while stressing that the Group’s strategy remains unchanged, remaining focused on its growth trajectory.

As these developments unfold, both Smith and McMillan’s remarks signify a strong belief in Taylor Rose’s ability to navigate through market challenges and continue its trajectory of growth while maintaining financial integrity