Why Legal Services Demands a Different Kind of Leader

The greatest risk to private equity’s push into legal services isn’t capital or strategy. It’s industry fluency: the ability to navigate the culture, clients, and commercial dynamics of the profession.

Executives often transition seamlessly between sectors like finance, logistics, and technology. But legal services are an exception. Here, the clients are often attorneys, and credibility with that audience is non-negotiable. For roles like Chief Executive Officer (CEO) and Chief Revenue Officer (CRO), direct sector experience is not just a plus, it’s the price of admission. While positions such as CFO may be industry-agnostic and more transferrable, commercial leadership in legal services demands insider knowledge that can’t be improvised.

Because legal services are so distinct, PE firms can’t rely on their traditional executive playbook. The wrong hire can slow down growth and even derail client trust. These businesses require leaders who know how attorneys think, can speak their language, and can operate with credibility from day one.

Understanding the Legal Mindset

“To build a relationship with a lawyer, you either have to be a lawyer—or you have to have some gravitas in the legal space.” —Joy Saphla, Senior Managing Director at Epiq

The intellectual rigor required to enter the profession, combined with the high-stakes nature of the work, attracts minds that are uniquely analytical, cautious, and deeply skeptical of outsiders. Whether they’re partners, general counsel, or in-house attorneys, legal professionals rarely engage with executives who can’t demonstrate credibility in their world.

Pedigree alone isn’t enough. Lawyers scrutinize every interaction with the same rigor they apply to contracts or cases. Executives who are not able to signal authentic understanding of legal dynamics quickly lose influence, no matter how impressive their track record elsewhere.

“Breaking into legal services from the outside isn’t impossible, but it’s definitely an uphill climb. If you don’t understand how lawyers think and operate, it doesn’t matter how much business experience you bring—you won’t gain traction.” —Mark Haddad, Legal Tech & Services P&L Leader

Respect and trust are earned only by those who master the nuances of how lawyers think, communicate, and build relationships – and that expertise takes time and immersion.

Why Legal Demands Its Own Search Approach

The search for executive leadership in legal services requires a sharper, more disciplined focus on direct experience than most PE firms are accustomed to. That said, context still matters: company size, the business model, and the specific business needs can influence how critical industry fluency is.

“If the company generates revenue primarily through licensing, I could see someone with a tech background stepping into the role.” Saphla notes. “But if it’s a pure services business, you really do need to know how to interface with lawyers. In larger businesses, you can rely more on specialized teams—but in a smaller shop, credibility is critical at every level.”

For PE firms, this means the standard playbook – prioritizing raw operating experience or functional expertise – doesn’t apply. A legal services executive search must start with a clear definition of how much legal knowledge the role demands and build outward from there.

Beyond identifying industry veterans, best practices include:

1. Assessing cultural fit. Evaluate how effectively an executive can build trust and credibility with attorneys and demonstrate an understanding of their mindset. This should be tested through scenario-based interviews that test how candidates respond to skeptical partners or pricing pressure. Reference checks should include clients or direct legal stakeholders, not just internal peers.
2. Balancing functional expertise against industry fluency. For client-facing roles, legal experience is non-negotiable. For internally focused positions, functional skills may outweigh direct sector experience – but only if the role is insulated from client interaction. The key is to define upfront how much legal knowledge the role truly demands and calibrate the search accordingly.
3. Recognize the tight talent pool. There’s a limited number of executives with both commercial and legal fluency. Starting searches early and remaining flexible on role design and compensation can help secure the right hire and avoid losing critical talent to competitors.

Even after the right leader is hired, onboarding in legal services requires a more structured approach than in most industries. Fluency must be reinforced through deliberate immersion with legal stakeholders and ongoing alignment with client expectations.

The Bottom Line

In legal services, leadership credibility is a direct driver of returns. Evaluating that credibility isn’t straightforward, which is why partnering with search experts who know the landscape is critical. The right advisor can distinguish when a legal background is essential and identify executives who will accelerate value creation.

With a limited pool of leaders who can navigate both the business and legal worlds, partnering with JM Search’s Legal Executive Recruiting practice ensures private equity firms find executives who deliver results and command credibility with attorneys from the start.