Private Equity Goes to Arizona for National Tort Firms (Correct)

Private equity firms and litigation funders have flocked to Arizona to take advantage of its looser rules on law firm ownership and launch national operations.

The elimination of a rule that forbids non-lawyers from owning law firms in the state has invited a wave of outside capital to have a stake in law firms. Of the 76 applications that have been approved for so-called alternative business structures (ABS) since 2020, at least 15 have involvement from private equity or litigation finance.

A few established litigation funders that have created the structures include Pravati Capital, Virage Capital Management, ...