Many business clients have long-term relationships with their attorneys and come to view them as their de facto partners, assisting the client through challenges and new opportunities. Although there is typically a division between the legal and business sides, sometimes attorneys can seem such a vital part of the business that the distinction appears blurred.

As part of that close relationship, it is increasingly common for attorneys to become actual business partners by investing financially in clients. Such investments can take on many different forms and, at times, can be intended as compensation for the attorneys’ services, particularly if the client is cash-poor. In that respect, attorneys who receive compensation based on a financial stake in companies are arguably analogous to litigators with contingency fee arrangements, where the fee depends entirely on the success of the client.