As private equity firms seek to diversify their portfolios, they are increasing their investments into personal injury law firms. While ethics rules still restrict non-lawyer ownership in most states, some places now allow new kinds of law firm ownership. Others are allowing firms to create management companies that are separate from the law firm, enabling them to receive outside investment. So, if you’re choosing a lawyer after an accident, how can you tell who owns the firm, who runs its business, and who makes decisions about your case? It’s important to look past the ads and ask the important questions.
Is Joye Law Firm Owned by Private Equity?
No. Joye Law Firm Injury Lawyers is a locally owned and operated law firm. Founded in 1968 by Atty. Reese Joye, a South Carolina-native and nationally renowned trial lawyer, the firm is proudly owned and managed by his son, Atty. Mark Joye, and Managing Partner, Atty. Ken Harrell.
By adhering to our commitment to provide the best possible legal services in South Carolina, Joye Law Firm has never accepted outside money from private equity, outside investors, or any other funding source. All business decisions, including those that determine when and how to litigate a client’s claim, rest solely with the firm’s two partners.
Can Private Equity Actually Own a Law Firm?
In most U.S. jurisdictions, private equity firms cannot simply buy a traditional law firm the same way a private equity fund might acquire a company in another industry. The American Bar Association’s Model Rule of Professional Conduct 5.4 prohibits lawyers from sharing legal fees with non-lawyers and restricts non-lawyer ownership of law firms. Most states have adopted rules based on that framework. The rule includes limited exceptions, such as certain employee compensation arrangements and payments involving a deceased lawyer’s estate.
The underlying principle is professional independence. A lawyer’s judgment about a client’s case should be guided by the client’s best interests, free from the influence of outside investors whose financial goals may conflict with those interests. This means a private equity fund cannot simply buy an ordinary law practice and become the firm owner in most parts of the United States.
However, there are important exceptions. A small number of jurisdictions have created frameworks that permit some form of non-lawyer ownership or participation. Indirect structures also allow outside investors to put money into the business side of a law practice without owning the law firm itself.
Where Non-Lawyer Ownership Is Allowed
While the traditional rule covers most of the country, a few jurisdictions have moved in a different direction. Arizona and Utah allow non-lawyer investment in law firms under specific regulatory frameworks.
- Arizona has permitted licensed alternative business structures (ABS) since January 1, 2021. Non-lawyers can hold a financial stake and help make decisions at firms that provide legal services.
- Utah launched a regulatory sandbox in 2020, granting limited waivers from standard rules. It was tightened in 2025 and is authorized through 2027.
- The District of Columbia allows non-lawyer partners only if they provide professional services within the firm. Passive investment remains prohibited.
Beyond these, states have generally not adopted ABS models, and several have moved to restrict outside investment instead. California enacted a ban on sharing legal fees with alternative business structures in October 2025, Colorado enacted its own fee-sharing prohibition in June 2026, and Illinois enacted a law in August 2026 that limits how investor-owned management companies can charge and control law firms. Regulatory changes in a handful of states are creating new ways for private equity to participate. However, most states (including South Carolina) still prohibit direct investor ownership.
Private Equity Investors: The MSO Structure
One of the most striking developments is the management services organization model, commonly called an MSO. Instead of buying the professional law practice, outside investors may own a separate company that provides business services. According to the ABA, an MSO may handle back-office functions such as marketing, technology, human resources, and client intake while the professional law firm remains lawyer-owned.
The structure works like this: the attorneys own and practice through the law firm, investors own or fund the management company, and the firm contracts with that company for specified operational services.
Moreover, the lawyers still handle the legal work and represent the clients. The outside entity participates in the business side of the operation rather than practicing law directly. The ABA says these arrangements must still follow rules against sharing legal fees, practicing law without a license, and letting outsiders interfere with a lawyer’s independent judgment.
Investors can also invest in companies that work with law firms, such as litigation finance companies or alternative legal service providers. Those companies may contract with law firms without owning them. This type of investment is different from a lawsuit loan or other funding provided directly to an injured plaintiff.
What the ABA Has Flagged as a Concern
The American Bar Association has pointed to several risks that matter when you’re choosing a lawyer. According to the ABA, outside owners might pressure firms to put financial goals ahead of professional duties. The pressure could strain a lawyer’s independence and the duty to put the client’s interests first. The ABA has also raised concerns that an investor-backed firm could push lawyers to take on more cases, move them faster, or favor quicker settlements, which could mean less individual attention and less focus on getting the best result for each client.
The ABA has also warned about client confidentiality. Investor involvement through MSOs or alternative legal service providers can create risks if those outside companies gain access to client data. The ABA also urges firms to check for conflicts connected to an investor and the other companies that investor owns, because one of those businesses could have interests opposed to a firm’s client.
On the flip side, , outside funding can give firms more resources to hire expert witnesses and cover large litigation expenses, which can benefit certain clients.
Similar Concerns Can Arise at National Firms
Private equity is not the only business model that can create pressure to prioritize volume and profitability. A law firm can remain entirely lawyer-owned and yet still operate in ways that leave clients feeling like a case number. If a firm emphasizes signing more clients, assigns heavy caseloads, or pushes cases toward quick settlements, injured people may face the same concerns: limited access to their attorney, inconsistent communication, and insufficient attention to the full impact of their injuries.
A firm’s size and resources can benefit clients, but a recognizable name and a large advertising budget do not tell you how well your case will be handled. The important question is whether the firm uses its resources to provide thoughtful, individual representation. Whether you are considering a national firm, an investor-backed practice, or a local firm, ask who will handle your case, how accessible that attorney will be, and how the firm will evaluate your long-term needs before recommending a settlement.
Questions Worth Asking Any Firm You’re Considering
You can ask these questions of every law firm you are considering, including Joye Law Firm Injury Lawyers. Clear answers can tell you more than an advertisement can.
- Who owns the firm and its related business entities? Ask whether the lawyers own the practice and whether an outside investor, private equity firm, MSO, or other company has a financial stake or a say in how the firm is run.
- Who will actually handle my case day to day? Find out which attorney and staff members will work with you, how you can reach them, and who will answer important questions about your claim.
- Will my case stay with this firm? Ask whether the firm expects to handle the matter itself or whether cases like yours are commonly referred to or handled with another law firm.
- Who controls settlement decisions? Your lawyer can advise you and negotiate on your behalf, but under the ABA Model Rules, the client decides whether to settle. Ask how offers will be communicated and discussed with you.
- How many cases does the lawyer assigned to me handle? Caseload alone does not tell you whether representation will be good or bad. It can, however, help you understand how the firm operates.
Frequently Asked Questions
Private Equity
Can private equity own a law firm in the United States?
In most states, no. Direct non-lawyer ownership is restricted under rules modeled on ABA Rule 5.4, although a few jurisdictions allow limited exceptions.
Which states allow non-lawyer ownership of law firms?
Arizona and Utah allow forms of non-lawyer ownership or investment under special regulatory programs. The District of Columbia allows certain non-lawyer professionals to hold interests in a firm, but it generally does not allow passive investment.
If it’s prohibited, how are investors buying into law firms?
One common route is a management services organization, or MSO. Investors can own a separate company that provides business services, while lawyers continue to own the law firm. Investors may also back related businesses such as litigation finance companies or alternative legal service providers. What is allowed depends on the state and the structure.
How can I find out who owns the law firm I’m considering?
Ask the firm directly and read the fee agreement before signing it. You can also review the firm’s website, state business records, and any applicable regulatory records. In Arizona, for example, the Supreme Court maintains a public directory of licensed alternative business structures. If an ownership or management relationship is unclear, ask the firm to explain it in ordinary language.
Does it matter who owns the firm handling my case?
It can. Consider who will handle your case, how decisions are made, how the firm communicates, and whether outside business relationships are clear. Whatever the business model, lawyers still owe professional duties to their clients.
Talk to a South Carolina Injury Lawyer
If you are comparing South Carolina personal injury firms, ownership is only part of the picture. Experience, communication, and who will actually handle your case matter too.
Partner and Head of Litigation, Mark Joye, is a Past President of both the South Carolina Association for Justice and Charleston County Bar Association. He’s also served on the Board of Governors for the American Association for Justice. Managing Partner Ken Harrell is a Past President of Injured Workers’ Advocates and current Legislative Affairs Committee Co-chair, a position he’s held for nearly two decades.
Kenny was also named a 2026 SCBIZ Icon Honors recipient, recognizing his professional achievements, leadership as managing partner, and lasting contributions to South Carolina communities. Under his leadership, the firm has grown its statewide reach while emphasizing compassionate advocacy and client service.
Joye Law Firm Injury Lawyers was included in the 2026 Best Law Firms® in America by Best Lawyers®, with Regional Tier 1 rankings for personal injury litigation for plaintiffs in Charleston and Columbia. We have also consistently earned recognition in local readers’ choice awards, most recently being voted Best Law Firm in the Charleston City Paper’s 2026 Best of Charleston awards and receiving Silver for Best Law Firm in the 2026 Best of the Beach awards.
If you are considering Joye Law Firm Injury Lawyers for your case, our free consultation provides you with the opportunity to get clear answers before deciding who you want to represent you.
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