Moore Barlow, the newly merged South-East law firm made up of Moore Blatch and Barlow Robbins, has sold its disbursements book worth more than £3m to legal funder Doorway Capital.
Doorway said the deal demonstrated its confidence that funding for law firms could be structured and completed, despite the “considerable challenges” brought about by Covid 19.
It owns national law firm Simpson Millar and has unveiled funding deals for other law firms over the past year and more.
Doorway announced its interest in buying disbursement books last year, which it said would free up funds that can either be invested in more profitable pursuits, or returned to equity partners.
It would normally look towards paying up to 80% of the face value of a disbursement book, depending on its age and composition. The minimum book that Doorway looks at acquiring is £1m and the maximum about £50m.
Ed Whittington, managing partner of Moore Barlow, said: “We are delighted to have sold our disbursement book to Doorway in conjunction with the merger, providing us with resilience in these challenging conditions.”
Chief executive Ray Black added: “I am pleased that organisations like Doorway are continuing to provide merger and other strategic funding in these difficult times. This has been a very positive move to create a firm platform for stability and future growth for Moore Barlow.”
Steve Din, the founder of Doorway, said: “We are particularly impressed with how the management team at Moore Barlow was able to resolve the operational challenges brought about by coronavirus.
“We anticipate that as well as a permanent change in working habits, Covid 19 should likely bring about an acceleration in consolidation amongst law firms, and the physical space they need to occupy.”