10/16/2026
Law firm investors now face firm statutory limits on how far their influence can reach into Illinois legal practice. Public Act 104-0801, introduced as House Bill 5487, adds a new "Protection of clients" section to the Illinois Attorney Act. The Act took effect immediately upon becoming law in August 2026.
Its focus is the growing role of private equity and other outside investors, much of which is channeled through management services organizations (MSOs). The Act defines an MSO as an entity that provides management and administrative support services in exchange for ownership of a law firm's assets or payments. Some are compensated based on firm performance, which has raised concerns about financial interests shaping legal decisions.
It was backed by the Illinois State Bar Association, the Illinois Trial Lawyers Association, and the Illinois Defense Counsel. It was opposed by the Illinois Venture Capital Association and the International Legal Finance Association. For Illinois lawyers at small and mid-sized firms, the Act changes how outside capital can enter a practice.
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Law firm investors now face firm statutory limits on how far their influence can reach into Illinois legal practice. Public Act 104-0801 adds a new "Protection of clients" section to the Illinois Attorney Act.