Why are Companies Snubbing the London Stock Exchange – and What’s Being Done About It?
The London Stock Exchange (LSE) is bleeding companies. Fundraising from initial public offerings on the exchange has dropped to a 30 year low, with only £160mn raised by five companies in the first half of 2025. Looking at the past decade, the number of LSE-listed firms has dropped 25%. Companies like Wise, Astrazeneca and Shein are instead looking to list in New York, Hong Kong or, following its stock exchange’s meteoric growth, India.
This fall-off in the number of IPOs comes partly as a result of valuation gaps, with the UK typically undervaluing startups, as opposed to Wall Street, which does the opposite. Another reason is the UK’s opposition to dual-class share structures favoured by founder-led IPOs (these give the founder double voting rights). Finally, the factor which few in power want to mention is the after-effects of Brexit and its impact on investor appetite.
The UK government is pursuing an array of reforms to re-energise the LSE. Changes to the Financial Conduct Authority’s listing rules, including a relaxation of governance requirements within companies, have been made to entice companies to list in London. A further change is its mansion house reforms (which I covered in Docket & Deal 01, find it here), which aim to unlock pension capital for investment.
So what does this mean for law students and professionals?
The London Stock Exchange’s decline in IPO activity has significant implications for law students and professionals. As more UK companies list in New York, law firms are increasingly required to advise on US securities law, cross-border governance, and dual-listing structures. This expands the scope of legal expertise beyond domestic frameworks, especially for capital markets teams. While fewer LSE listings may reduce UK deal flow, the City’s legal market remains active, just more international.
Quickreads ⌚️
US Private Equity Giant Apollo buys UK-based Pension Insurance Corporation (PIC)
Apollo, a US private equity giant is buying UK a pension insurer, PIC, for £5.7bn. It now hopes to use the UK’s vast pool of pension liabilities as permanent capital, combining insurance with private credit to invest in high-return assets.
While European regulators’ concerns about mismanagement have stopped the firm doing the same on the continent, the UK is more open to it. Time will tell how this will play out, but the strategy has seen huge success on the other side of the Atlantic.
Read more: Financial Times
Private equity targets Law Firms
Private equity (PE) is eyeing up law firms, viewing them as the next big ‘roll-up’ following its raid on accountancy firms. The fragmented nature of the industry is encouraging this, with small and medium-sized firms hoping that investment from private equity will allow them to compete on a larger scale.
For firms, the tradeoff is obvious: funding in exchange for culture and control.
Read more here
(I got most of this information from a Times article, which you can find here, but it’s paywalled)
Latham & Watkins Tops Global M&A Tables
Latham & Watkins has topped the global M&A tables in the first half of 2025, advising on almost $277.5bn in deals. It earned the number 1 spot in UK deal value and volume.
Read more: Global Legal Post
Eudia acquires Johnson Hana
Eudia, a legal AI startup backed by General Catalyst (a VC firm), is buying Irish legal services provider Johnson Hana for an undisclosed sum. The company has said that it wants to build the world’s first AI-augmented human workforce, bringing together Johnson Hana’s legal professionals with its own legal AI tools.
This is also an interesting deal because it flips the trend of an Alternative Legal Service Provider buying an AI company. Instead, the reverse has happened.
Read more here
What to Watch 👀
- Could we see more privately backed, AI-native legal service providers in future? Could they pose a threat to the business models of more traditional firms?
- Will law firms allow themselves to be bought up by private equity?
- Will UK and European pensions continue to deregulate in favour of private market investment?
Data in the Deal – The LegalTech digest 💡
AI tools – To Build or To Buy?
In house legal teams are stuck over whether to build legal AI tools in house or buy them from software providers. One concern is sharing sensitive information like contracts or negotiating strategies with providers, pushing some companies, like Hewlett Packard Enterprises, to build their own tools in house. On the other hand, for corporate legal departments with less resources, building bespoke tools is harder to justify. Instead, they are outsourcing to companies like Harvey.
Read more: Financial Times
Honourable Mention – ‘Accelerating Business’ by the Financial Times
This monthly article series by the FT is examining how the legal industry is using technology. Super quick to read and worth keeping an eye on.
The Docket & Deal 
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