Private equity-owned fletchers invests millions in acquisitions despite fall in profits
One of the UK’s largest private equity-owned law firms has spent millions of pounds on new acquisitions as its investors continue to expand their footprint in the personal injury market. Newly filed accounts reveal that Fletchers Solicitors Limited invested heavily in a series of takeovers in the year to 30 April 2025, signalling continued confidence from its private equity backers despite a decline in annual profits.
The North West-based firm spent £6 million acquiring the personal injury division of national law firm Shoosmiths, with a further £6m deferred for payment at a later date. In December 2024, it also completed the purchase of the trade and assets of Scott Rees & Co, a Cheshire-based firm, in a deal worth nearly £5m, including £2m paid upfront and £2.7m in deferred instalments.
In addition, the accounts confirm that £1.9m is due this year in deferred payments for earlier acquisitions of Serious Injury Law and Emsleys Solicitors, following payouts of £3.5m towards those deals in the previous financial year. The figures underline a clear pattern of consolidation within the personal injury sector as Fletchers continues to expand under private equity ownership.
Fletchers was purchased in 2021 by an affiliate of Sun European Partners, one of several large private equity groups investing in the UK legal services market. Unlike traditional law firm partnerships, the company does not publicly disclose the full details of its deal structures or valuations. However, the scale of recent spending suggests that the investors remain committed to growing the firm, which is now approaching five years under their control.
Embed from Getty Images
According to the latest accounts, turnover rose by 32% to £76.9 million in 2024/25, while profits fell by 11% to £8.1 million. The results reflect Fletchers’ strategy of ploughing almost all available cash back into expansion and case acquisition rather than distributing profits.
Chief financial officer Alex Lynch said the firm’s growth model is based on continuous reinvestment and sustainable scaling. “On average, Fletchers has grown revenues between 25% and 35% year on year by investing all the cash we generate and topping up with some debt,” she said. “Private equity puts money into law firms to make them more valuable; partnerships tend to focus on extracting money out of firms for the partners. That approach is perfectly reasonable, but it tends not to drive growth.”
Lynch described personal injury law as a long-term, revenue-generating area that appeals to investors because of its predictable income stream. “The drip-feed nature of revenue from personal injury cases makes it a more attractive option for investors than corporate work, which is often dependent on key rainmakers who can take business with them if they leave,” she said.
The firm also reported a sharp increase in staffing, with employee numbers rising from 628 to 791 during the year. The five company directors shared total remuneration of approximately £1.5 million.
Fletchers’ balance sheet shows that while the company has taken on more borrowing, its financial position remains strong. Short-term debt rose from £44.5 million to £62.6 million, reflecting continued investment activity, but net current assets grew by 27% to £77.5 million as cash reserves and work in progress increased.
The figures come amid growing debate over the influence of private equity in the legal sector, with investment exceeding £1.2 billion in the past five years. Critics have questioned whether profit-driven ownership models can coexist with traditional professional ethics, while supporters argue that external investment fuels innovation and client-focused service delivery.
For now, Fletchers appears firmly in the latter camp. The company’s latest results demonstrate an appetite for expansion rarely seen among traditional partnerships — and signal that private equity investors are not yet ready to cash out of one of their flagship legal holdings