The leader in next generation solutions for complex legal work at scale is now poised to accelerate its rapid growth, increase global market share
Factor, the leader in next-generation solutions for complex legal work at scale, today announced a significant new investment to be provided by Carrick Capital Partners (Carrick), an investment firm focused on software and software-enabled businesses with over $1B in assets under management. As part of the deal, Carrick would be multiplying their original investment to become the majority shareholder of Factor. The deal, expected to close by October 2020, represents one of the biggest net new investments in the global legal solutions market.
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Company officials said the infusion of capital will allow Factor to immediately expand its presence in the global marketplace and accelerate its development of innovative, large-scale, customized, legal solutions for clients in the Enterprise, Life Sciences and Financial Services sectors. Factor will also draw upon Carrick’s proven track record of growing technology-enabled services businesses. Carrick’s increased investment in Factor comes at a time of transformative change and rapid growth in the legal solutions market. Alternative providers are disrupting the traditional law firm model, and corporate law departments continue to look for help solving increasingly complex legal and business problems that require advanced technology and process expertise on a massive scale.
“Our move to become majority shareholder of Factor was a strategic decision based on the company’s unique track record of delivering differentiated solutions to the legal market,” said Jim Madden, Co-Founder of Carrick and Founder of business process outsourcing (BPO) provider Exult. “With their vision, deep domain expertise, and gold-plated client list, the Factor team combines sophisticated expertise, technology adoption and business process optimization with a nuanced understanding of how lawyers and business leaders think. Their singular focus on bringing legal innovation to more complex work is unique in the market. With lots of players focused on the commoditized bottom, Factor has a huge growth opportunity in the much larger sphere of more complex work. Rather than innovating around the periphery, they are helping GCs and businesses where they need it most.”
The announcement is the latest milestone in a journey that began more than a decade ago when Factor, then part of Axiom, began offering corporations a combination of efficient, technology-enabled legal managed services and expert legal resourcing. In a strategic move, the company successfully spun off from Axiom last year, rebranded to Factor, evolved its core enabling infrastructure and has gained strong market momentum.
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The new investment by Carrick follows a series of recent significant business achievements by Factor.
- In early 2020, the Factor brand launched with a deep focus on bringing process efficiency and tech-enablement to more complex, transactional work like contract negotiations.
- Factor will retain the powerhouse leadership team assembled since the hiring of new CEO Varun Mehta—former founding team member and CRO of Clutch Group—as well as senior executives from Accenture, Mercer and EY Law. Axiom Founder and Knowable CEO Mark Harris will remain as Factor’s Chair of the Board.
- Factor has since shown sustained market momentum with huge client wins and new logos across Financial and Technology clients. This includes the single largest regulatory mandate in Factor’s history for one of the world’s largest banks.
- Factor has developed strong partnerships in the legal ecosystem, including legal technology providers, and Magic Circle law firm Allen & Overy, focused on helping large banks transition away from LIBOR.
“Carrick has already demonstrated it is a committed and trusted partner of ours,” said Varun Mehta, CEO of Factor. “The new chapter in our partnership with Carrick positions us to bring new client solutions to the market at unprecedented scale, and fuel even faster growth than we achieved in our first six months as a rebranded company. Factor has the geographic reach, domain expertise and financial backing to provide our clients with the industry’s most innovative solutions. We fully expect to leverage this investment into larger opportunities, and more focus on our customers and our mission in transforming the way legal solutions are delivered for General Counsels and the companies they serve.”
