Montpellier Legal secures £25 million investment to drive expansion, aiming for premium services across the South-West
A rapidly expanding conveyancing firm founded only in May 2021 has been acquired by private equity in a deal that values the business at £25 million. Montpellier Legal, based in Cheltenham, has been bought by Foresight Group, with plans to use the investment to further its growth across the South-West of England.
The firm, which has nearly 100 employees and a turnover surpassing £10 million, operates multiple branches in Bath, Cirencester, Gloucester, Stroud, Worcester, and London. Montpellier is also one of the few law firms to have earned B Corp status, demonstrating a commitment to high standards of social and environmental performance.
Founder Simon Thomas explained that he had received numerous acquisition offers but chose Foresight Group due to its approach, which emphasises patient capital. “Their mantra is patient capital, which means there’s no artificial pace for growth, allowing us to expand at a sustainable rate,” Thomas said. He emphasised that Foresight’s long-term investment style was the ideal fit for Montpellier’s growth ambitions.
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“We’re not aiming for rapid, unchecked expansion. We want to grow at our own pace, and Foresight’s evergreen fund allows us the freedom to do that,” he added. Thomas, who founded Montpellier Legal with a focus on offering premium conveyancing services, explained that his firm’s margins are “much higher” than the industry average. The firm intends to continue opening new branches each year.
Montpellier’s strategy focuses on providing high-quality service and charging premium fees, rather than competing on price. “We’re not trying to compete with firms offering cheap services. Our clients understand the value of quality, especially when dealing with significant property transactions,” Thomas said.
While some clients may not appreciate the difference when purchasing their first home, those with more experience in property transactions often understand the importance of investing in reliable, efficient services. “When you’re dealing with a £1 million house, you want the assurance that the job is done properly and by qualified professionals,” he said.
This approach is also why Montpellier Legal does not participate in referral panels, which typically involve price-driven services. Thomas stressed the firm’s commitment to maintaining its unique market position.
The acquisition by Foresight Group is not Thomas’s first experience with private equity. In 2019, BGF invested in his previous ventures, including conveyancer Thomas Legal and equity release specialist Equilaw. Reflecting on his previous experience, Thomas noted that this time the management team would remain in place, supported by non-executive chair Tom Hartley, a former KPMG partner and ex-CEO of flexible lawyers business LOD.
Regarding future plans, Thomas made it clear that Montpellier Legal would not be diversifying into other areas of law, such as private client services. He believes that firms should focus on their core business, and Montpellier will continue to expand within its niche.
Amy Crofton, managing director at Foresight Group, also expressed excitement about the deal. “This is our second investment from the Foresight South West Fund, and we’re delighted to support such an experienced team in a business that consistently delivers high-quality service,” Crofton said. “We look forward to backing their continued growth and success in the years to come.”