Duke Street invests in Parabis as ABS applications near 100
updated on 09 February 2012
In a high-profile utilisation of new alternative business structure (ABS) regulations, the investment firm Duke Street has provisionally acquired a significant stake in the Parabis Group, a leading legal services provider for travel, insurance and personal injury claims. As with other ABS applications, the deal is subject to SRA approval - with a decision expected in the first quarter of 2012. The transaction will be valued at between £150 million and £200 million if it goes through.
Duke Street partner Iain Kennedy said: "Parabis presents a unique opportunity to invest in a fast growing, dynamic and fragmented sector. The intention is to support management with Duke Street's operational expertise in transforming the business from a professional services firm to a business process outsourcer, and to drive the continued consolidation of the legal services industry via Duke Street's successful buy-and-build model."
The news follows the SRA's announcement that ABS applications now number close to a hundred since the process was opened to companies on 3 January - a far higher number than initially expected by the legal regulator. The SRA has pointed out that its exacting assessment procedure for firms applying for ABS status will not necessarily mean that all applications will succeed, but the first ABS announcement is surely drawing close indeed.
