Capital + Counsel

Most firms hear "capital coming into legal" and think private equity. Courtney Worrall has spent nearly 20 years banking law firms, and she says that is one option on a much longer menu. Connect with Courtney on LinkedIn: https://www.linkedin.com/in/courtney-worrall-2b635a40/ Connect with Kim on LinkedIn: https://www.linkedin.com/in/kimwiegand/ In this episode Courtney walks through what is actually available to firms funding transformation: traditional term debt for premises and infrastructure, partner capital contribution loans that most firms put in place 10 to 20 years ago and have never right sized, and working capital facilities. She explains why debt preserves partner autonomy and is usually a great deal cheaper than equity, and when private equity genuinely is the right call. We also get into lock up, which Courtney calls the number that should keep managing partners up at night. Every 10 days of lock up ties up around $30,000 of cash for every $1 million of revenue. For a $20 million firm that is roughly $600,000 sitting with clients instead of in the business. Her question: why are firms acting as an interest free lender to their own clients at the expense of their own profitability? The conversation covers the reluctance of younger lawyers to take up equity partnership, the financial literacy gap among incoming partners, what banks actually look at beyond top line growth, the squeeze on the mid-tier, and why choosing and paying for an AI platform is only 20 percent of the job. Chapters 00:00 Trailer 00:50 The cost of change 01:48 Meet Courtney Worrall 02:27 What firms are struggling with right now 05:17 The full funding menu, not just PE 09:03 Partner capital and the equity partnership problem 11:23 Lock up and what it really costs 14:40 The financial literacy gap 19:50 What banks look at beyond top line growth 24:02 What scale looks like now 25:41 Laterals, exits and the first $10M partner 28:29 The squeeze on the mid-tier 30:46 How AI is changing the funding conversation 38:15 When giving up equity is right, and when it isn't 47:07 The biggest cost of change Capital + Counsel is about capital, governance and technology reshaping the business of law. Season 1 is The Cost of Change.