X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Top Scots firm Dundas & Wilson is bucking the trend of its increasingly equity-shy English and US rivals by taking a stake in a client for the first time ever. Dundas joins the select band of Scottish firms, who have also started to take equity in place of fees. Masons’ Glasgow office took its first equity stake in a client, Dundee-based Internet company Mindwarp Pavilion, in April. And both MacRoberts and McGrigor Donald are also believed to have taken shares in return for fees in recent months. Under the deal, Dundas, Andersen Legal’s Scottish firm, is taking a 2% share in start-up Intense Photonics, Glasgow university’s opto-electrics spin-off. Andersen, which is doing the corporate finance work has taken a 2.7% stake, while Glasgow university has taken a 10% stake. Dundas head of technology Laurence Ward said that although it was the Dundas partnership that holds the shares, Intense Photonics would have access to the Andersen Legal network. “People will be mindful that for Dundas & Wilson this is an important client. We are not going to do this for every technology company that we act for,” he said.Ward added that part of the motivation for the deal was to secure work on the exit of the investment, which investment banks tend to push to the magic circle.US and UK law firms such as Linklaters, which trail-blazed the practice of taking equity instead of fees as the hi-tech sector boomed in the late 90s, have become more cautious with reports of some getting burnt when their internet clients have gone bust.John Salmon, Masons’ technology head, said: “I’m quite surprised that Dundas & Wilson have done it because a year ago they said they weren’t going to do it.”However, Ward said: “I’ve never ruled it out completely. I have never said we’d never do it and we’ve not changed our view.”

This premium content is reserved for
Legal Week Subscribers.
Subscribe today and get 10% off.

A PREMIUM SUBSCRIPTION PROVIDES:

  • Trusted insight, news and analysis from the UK and across the globe
  • Connections to senior business lawyers within the leading law firms and legal departments
  • Unique access to ALM's unrivalled, market-leading reporting in the US and Asia and cutting-edge research, including Legal Week's UK Top 50 and Global 100 rankings
  • The Legal Week Daily News Alert, Editor's Highlights, and Breaking News digital newsletters and more, plus a choice of over 70 ALM newsletters
  • Optimized access on all of your devices: desktop, tablet and mobile
  • Complete access to the site's full archive of more than 56,000 articles

Already have an account?

For enterprise-wide or corporate enquiries, please contact Paul Reeves on Preeves@alm.com or call on +44 (0) 203 875 0651

 

Legal Week Newsletters & Alerts

Sign Up Today and Never Miss Another Story.

As part of your subscription, you can sign up for an unlimited number of a wide range of complimentary newsletters and alerts. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.