It's illegal in most states for private equity to buy a law firm. Lawyers have figured out a workaround.

Getty Images; Tyler Le/BI

• Legal ethics rules generally don't allow non-lawyers to own law firms.
• MSOs are a workaround to allow nonlawyers, including private equity firms, to effectively invest.
• Law firm owners can use the investors to scale, as well as for succession planning.

Real estate, airlines, fashion.

It might seem like private equity has climbed the mountain of the American economy, declaring everywhere the light touches as part of its kingdom.