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Update

What changed

Freshfields’ 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.

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