The deal sees the College of Law of England and Wales – which has 7,000 students on its books and an annual turnover of £7m – sold to London-based Montagu Private Equity.
Charity
Historically a charity, the sale will privatise the college’s legal education functions, splitting them from a new charitable foundation, which is to be launched with the proceeds of the deal. According to the college, the Legal Education Foundation will be ‘one of the largest independent educational charities in the UK’.
Controversy and speculation has hung over the sale negotiations for the last year or so, as rumours abounded over who would buy the 50-year-old college. And as the institution enters the growing arena of private law schools, critics have lined up to attack the increasing ‘commercialisation’ of legal education. Law schools in both the US and Europe have been criticised for producing more law graduates and prospective lawyers than the market can bear.
Freedom
But today’s news was warmly heralded by the chairman of the college’s board of governors. Professor David Yates said: ‘Montagu’s investment will give [the college] the freedom and support to continue to build its position as a leading professional legal education institution in the UK and internationally.’
Prof Yates attempted to pre-empt criticisms by saying the college governors – who were advised on the deal by London-based global law firm Allen & Overy -- ‘were clear in their views that Montagu would be an excellent guardian of the college, ensuring a continuation and enhancement of the focus on academic excellence, exceptional teaching and client service’.
The college’s long-standing chief executive, Professor Nigel Savage, was equally enthusiastic, saying: ‘The market for legal services is embracing new business models and a change in our ownership structure will enable us to access investment and expertise to take full advantage of the huge opportunities in the domestic and global legal education market.’.
Montagu director Alex Dabbous said the private equity business ‘share[d] management’s vision to grow the business’.
Charity
Historically a charity, the sale will privatise the college’s legal education functions, splitting them from a new charitable foundation, which is to be launched with the proceeds of the deal. According to the college, the Legal Education Foundation will be ‘one of the largest independent educational charities in the UK’.
Controversy and speculation has hung over the sale negotiations for the last year or so, as rumours abounded over who would buy the 50-year-old college. And as the institution enters the growing arena of private law schools, critics have lined up to attack the increasing ‘commercialisation’ of legal education. Law schools in both the US and Europe have been criticised for producing more law graduates and prospective lawyers than the market can bear.
Freedom
But today’s news was warmly heralded by the chairman of the college’s board of governors. Professor David Yates said: ‘Montagu’s investment will give [the college] the freedom and support to continue to build its position as a leading professional legal education institution in the UK and internationally.’
Prof Yates attempted to pre-empt criticisms by saying the college governors – who were advised on the deal by London-based global law firm Allen & Overy -- ‘were clear in their views that Montagu would be an excellent guardian of the college, ensuring a continuation and enhancement of the focus on academic excellence, exceptional teaching and client service’.
The college’s long-standing chief executive, Professor Nigel Savage, was equally enthusiastic, saying: ‘The market for legal services is embracing new business models and a change in our ownership structure will enable us to access investment and expertise to take full advantage of the huge opportunities in the domestic and global legal education market.’.
Montagu director Alex Dabbous said the private equity business ‘share[d] management’s vision to grow the business’.
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