Big Law Moats: Refinforced and Eroding
The quest in business is to create a moat. Essentially that's a competitive advantage that is difficult to replicate. It positions the business as the go-to. And that's the distinct edge Big Law firm Kirkland & Ellis has maintained. Have a high-stakes legal matter? You want K&E. The branding is that K&E always wins. In coaching former employees I heard over and over again that, even though they were relieved to be out of the New York office (Chicago wasn't as stressful), they respected how the firm manages to outfox the opposition. But moats need to be reinforced. Recently K&E did just that with investing $500 million for a proprietary AI platform. That will capture and store the total results-oriented genius of K&E case management. No longer will their lawyers have to start from scratch. One seminal benefit will be to reduce the fee-for-service. FT reports that banks, which are major consumers of Big Law services, are demanding a piece of the cost...