An Arkansas personal injury law firm has a new private equity-backed partner.
Rainwater, Holt & Sexton has joined Orion Legal. Orion is a management services organization, or MSO.
Uplift Investors backs Orion Legal. The deal was announced on September 24.
The firm’s lawyers will still own the practice. Meanwhile, Orion Legal will handle key business tasks.
These tasks include finance, marketing, technology, and office support. This gives the firm outside help with daily business work.
The deal also shows growing private equity interest in legal services. However, investors face limits on law firm ownership.
MSO deals offer another way to enter the legal market. They keep business work apart from legal work.
Key Takeaways
- Rainwater, Holt & Sexton has partnered with Orion Legal.
- Uplift Investors backs Orion Legal.
- The deal is Uplift’s sixth MSO law firm deal.
- Orion Legal will handle finance, marketing, technology, and administration.
- The firm’s lawyers will keep ownership of the practice.
- Mike Rainwater and Bob Sexton will join Orion Legal’s national advisory board.
- Orion Legal also works with firms in Georgia, Kentucky, Louisiana, Rhode Island, Tennessee, and Texas.
Arkansas Injury Firm Joins Orion
Orion Legal Will Handle Business Work
Rainwater, Holt & Sexton is an Arkansas personal injury law firm.
Under the deal, Orion Legal will handle several business tasks. These include finance, marketing, technology, and administration.
As a result, the firm can use an outside team for this work.
The lawyers will still own the law practice. They will also remain in charge of legal work.
In contrast, Orion Legal will focus on business support.
Mike Rainwater and Bob Sexton will join Orion Legal’s national advisory board. Rainwater is also one of the firm’s name partners.
Uplift said Rainwater supports the deal. He said the deal will help the firm build on its work.
He also said the firm will keep supporting its clients and team.
Uplift Investors Expands Legal Reach
Arkansas Is Its Latest Market
The Arkansas deal is Uplift Investors’ sixth MSO law firm deal.
Uplift Investors is a private equity firm based in Darien, Connecticut. It launched Orion Legal in January.
Orion Legal focuses on personal injury law firms.
Since then, the platform has worked with firms in several states. These include Georgia, Kentucky, Louisiana, Rhode Island, Tennessee, and Texas.
Now, Arkansas has joined that list.
As a result, the deal expands Orion Legal’s reach in the personal injury market.
The move also shows growing interest in new ways to invest in legal services. At the same time, lawyers can keep control of legal work.
What Is a Law Firm MSO?
How an MSO Works
A management services organization, or MSO, provides business help to a law firm.
For example, an MSO can handle:
- Technology
- Accounting
- Marketing
- Human resources
- Administration
The law firm still handles legal work. Therefore, lawyers remain responsible for clients and legal decisions.
The model also lets investors support the business side of a law firm.
However, the business and legal roles remain separate.
The law firm pays the MSO for its services. Outside investors do not own the law firm.
They also do not receive a share of attorney fees under the reported structure.
This separation matters because many states limit non-lawyer ownership of law firms. Fee-sharing rules also apply.
Why Private Equity Uses MSO Deals
Private equity firms are showing more interest in legal services.
However, investors cannot simply buy most U.S. law firms.
That creates a challenge for investors. MSO deals offer one possible answer.
Instead of buying a law firm, an investor can back a separate company. That company can then provide services to the firm.
As a result, the law firm can gain new business resources.
These resources may include technology, marketing, finance, and office support.
Meanwhile, attorneys can remain in charge of legal work.
Still, MSO deals must follow legal and professional rules. Attorney independence remains important.
Fee rules and ownership rules also matter.
Impact on Legal Professionals
Law Firm Leaders
MSO deals can give law firm leaders more business support.
For personal injury firms, technology and marketing can play a key role. Finance and office work can also take time.
Therefore, outside help may give lawyers more time for legal work.
At the same time, the MSO can handle selected business tasks.
However, each deal is different. The benefits depend on the agreement.
Attorneys
For attorneys, the key issue is control of legal work.
In this deal, Rainwater, Holt & Sexton will remain attorney-owned.
Therefore, the transaction is not a normal sale of the law firm to private equity.
Instead, Orion Legal will support the firm’s business operations.
Lawyers who consider similar deals should review the terms. They should look at staffing, technology, pay, and daily operations.
They should also consider their professional duties.
Recruiters and Legal Talent
MSO-backed firms could also affect legal hiring.
For example, a firm with more business support may hire more staff. It may also expand its technology and marketing.
As a result, these firms could create new legal jobs.
Recruiters should therefore watch how MSO-backed firms grow.
They should also track changes in firm structure and hiring plans.
Private Equity and Law Firms
The Rainwater, Holt & Sexton deal adds to a wider legal industry trend.
Law firms face strict rules on ownership and lawyer independence. At the same time, they need to invest in technology and business services.
MSOs offer one way to meet both needs.
On one side, firms can get outside business support. On the other side, lawyers can keep control of legal services.
Uplift’s Orion Legal platform is expanding across the personal injury market.
The Arkansas deal is its sixth such transaction.
However, MSO deals do not remove legal concerns. Firms must still protect lawyer independence.
They must also follow rules on ownership and fees.
Why the Arkansas Deal Matters
The Arkansas private equity deal shows how law firm business models are changing.
Rainwater, Holt & Sexton will remain attorney-owned. Meanwhile, Orion Legal will provide business support.
Therefore, the deal separates two parts of the business.
The attorneys will handle legal services. Orion Legal will handle selected business tasks.
Other law firms may consider similar deals in the future.
This could become more important as firms face stronger competition. Technology spending may also increase demand for outside business help.
For attorneys and recruiters, these deals are worth watching.
They can affect hiring, firm growth, technology spending, and business operations.
FAQs
What Arkansas law firm received private equity-backed support?
Rainwater, Holt & Sexton received private equity-backed support through Orion Legal.
The firm is an Arkansas personal injury law practice.
What is Orion Legal?
Orion Legal is a management services organization backed by Uplift Investors.
It provides business and office support to personal injury law firms.
Does private equity own Rainwater, Holt & Sexton?
No. Its attorneys still own the law firm.
Orion Legal provides business support.
What services will Orion Legal provide?
Orion Legal will provide several business services.
These include finance, marketing, technology, and administration.
How many MSO law firm deals has Uplift Investors completed?
The Arkansas deal is Uplift Investors’ sixth MSO deal involving a law firm’s back-office operations.
Where does Orion Legal operate?
Before the Arkansas deal, Orion Legal worked with personal injury firms in several states.
Those states include Georgia, Kentucky, Louisiana, Rhode Island, Tennessee, and Texas.
Arkansas now joins that group.
Why are MSOs important to law firms?
MSOs can provide outside help with business tasks.
For example, they can support technology, marketing, finance, and administration.
At the same time, lawyers can remain responsible for legal work and client decisions.
Bottom Line
The Arkansas injury firm private equity deal shows a changing legal market.
Rainwater, Holt & Sexton will remain attorney-owned. Meanwhile, Orion Legal will provide business support.
Uplift Investors is also expanding its MSO platform in the personal injury sector.
As a result, MSO deals are becoming an important topic for law firms.
Attorneys, recruiters, and legal professionals should watch this trend. It could shape hiring, technology, growth, and law firm management.
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Private Equity Deal Gives Arkansas Injury Firm New Power first appeared on
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