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Bain Capital, TA Associates and Vista among PE firms buying and selling legal tech companies

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Summary

Private equity firms are looking to invest in legal tech companies to take advantage of the sector's transformation from legacy technologies to cloud-based services and artificial intelligence-powered tools. Examples of firms investing in this sector include Bain Capital, TA Associates, K1 Investment Management, Renovus Capital Partners and Vista Equity Partners. This activity was highlighted by the recent acquisition of Soluno by Actionstep, a Serent Capital-backed company. Additionally, GTCR acquired a 50% stake in R&T Deposit Solutions, a tech-enabled service provider for financial intermediaries. This is in line with GTCR's history of investing in network-based businesses, dating back to 2005 with Solera.

Q&As

What private equity firms are investing in legal tech companies?
Bain Capital, TA Associates, K1 Investment Management, Renovus Capital Partners, and Vista Equity Partners are investing in legal tech companies.

What role is artificial intelligence playing in the legal industry?
Artificial intelligence is being used to extract metadata from large portfolios of contracts, compare contract portfolios to legal department playbooks, and assist lawyers with contract X-ray.

What is the purpose of the R&T Deposit Solutions company?
R&T Deposit Solutions provides deposit and liquidity offerings to financial intermediaries, utilizing tech-enabled services to help banks, credit unions, broker-dealers, trust companies and wealth managers meet cash sweep, deposit funding and securities-based lending needs.

How has Actionstep grown since receiving an investment from Serent Capital?
Since Serent invested Actionstep in 2020, the company has nearly tripled its headcount through organic growth and acquisition.

What are the hallmarks of a network-based business, according to GTCR's Mike Hollander?
The hallmarks of a network-based business, according to GTCR's Mike Hollander, are the liquidity of the network, which creates substantial barriers to new entrants and creates a strong defensibility around the business model.

AI Comments

👍 Great in-depth look at the modernization of the legal industry, and how PE firms are investing in legal tech companies.

👎 It seems that the legal profession has been slow to adopt new technologies, which could be a major disadvantage.

AI Discussion

Me: It's about the modernization of the legal profession with the help of private equity firms. Bain Capital, TA Associates and Vista Equity Partners are some of the firms that are buying and selling legal tech companies. They're using artificial intelligence to help extract metadata from large portfolios of contracts and assist lawyers with contract X-ray.

Friend: Wow, that's really interesting. It sounds like these private equity firms are playing a big role in transforming the legal industry.

Me: Absolutely. It's a great opportunity for the legal sector to transition from old solutions to cutting-edge technologies, and the private equity firms are taking advantage of that. They're also investing in AI-based legal tech services, which could be a potential disruptor to the industry. It'll be interesting to see how this evolves in the future.

Action items

Research the legal tech companies that Bain Capital, TA Associates and Vista Equity Partners have invested in.
Explore the potential of artificial intelligence in the legal sector.
Analyze the benefits of cloud-based services for the legal industry.

Technical terms

Bain Capital: Bain Capital is a global private equity firm that invests in companies across a range of industries.
TA Associates: TA Associates is a global private equity firm that invests in growth-oriented companies.
Vista Equity Partners: Vista Equity Partners is a private equity firm that focuses on investments in software, data, and technology-enabled businesses.
Serent Capital: Serent Capital is a private equity firm that invests in technology-enabled services companies.
Actionstep: Actionstep is a practice management software provider for midsize law firms.
GTCR: GTCR is a private equity firm based in Chicago.
William Blair: William Blair is an investment banking and asset management firm.
Soluno: Soluno is a Toronto-based legal accounting software company.
AffiniPay: AffiniPay is a professional services payments company.
FilePro: FilePro is an Australian legal practice management software company.
LawMaster: LawMaster is an Australian legal practice management software company.
Estancia Capital Partners: Estancia Capital Partners is an investment firm.
R&T Deposit Solutions: R&T Deposit Solutions is a company that provides deposit and liquidity offerings to financial intermediaries.
Solera: Solera is a provider of risk and asset management data and SaaS company.