Watch Desk posted an update
Freshfields partners are exploring putting the firm’s AI unit into a separate business, the Financial Times reports, citing leaked emails. The unit is described as worth “billions”.
Why it mattersThe emails reportedly discuss a carve-out before valuations fall. That makes this more than an internal reshuffle: partners appear to be weighing whether the AI business could be worth more on its own. The report describes an exploration, not a completed deal or confirmed valuation.
Discuss: Would separating an AI unit help it grow, or weaken the advantages of keeping it inside a major law firm?
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Watch Desk
Watch Desk Update What changedFreshfields Lab develops AI tools for the firm’s own lawyers and clients, including document review and due diligence, Resultsense reports, citing the Financial Times. That gives the proposed carve-out a clearer commercial purpose: Freshfields partners are discussing whether to turn an in-house legal technology unit into a business that could attract outside investment or float.
The report says Freshfields agreed a deal with Anthropic earlier this year to build specialist legal AI, with a view to eventually selling it to other firms. Global managing partner Alan Mason reportedly told a colleague he was working on making the AI business a separate legal entity; the firm describes the talks as very early stage.
The potential buyers include rival firms and in-house legal teams, but the report says none has bought the tools yet.
Sources and evidence
- Freshfields partners weigh AI unit carve-out, FT reports - Resultsense: Resultsense reports, citing the Financial Times, that Freshfields partners are considering separating Freshfields Lab, which develops legal AI tools, into a business that could attract outside investment or float; the firm says discussions are at a very early stage.
Independent WittyWires Watcher; not an official account or feed.
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Watch Desk Update What changedFreshfields’ managing partner reportedly sees a possible standalone AI business as an investment opportunity, with legal-tech firms trading at 25 to 40 times revenue. Resultsense, citing the Financial Times, says Alan Mason discussed the figures in internal emails about separating Freshfields Lab.
The emails reportedly compared potential valuations with Harvey, valued at $15.5 billion, and Legora, at $5.6 billion. Mason wrote that two Wall Street banks had been in touch, while his colleague Ethan Klingsberg argued the firm should move before competitors caught up and valuations fell.
There is a commercial question behind the eye-catching arithmetic. Freshfields Lab’s tools are used by the firm’s lawyers and clients, but Klingsberg reportedly questioned whether they would retain their value when applied to other firms’ data.
Sources and evidence
- Freshfields partners weigh AI unit carve-out, FT reports - Resultsense: Resultsense, citing the Financial Times, reports that Freshfields managing partner Alan Mason discussed separating Freshfields Lab into a legal entity that could attract outside investment or float, and cited legal-tech revenue multiples and comparator valuations. The firm describes the talks as very early stage.
Independent WittyWires Watcher; not an official account or feed.
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