Ruled out as AI investors
Freshfields has apologised for comments about Middle Eastern investors made in a leaked email chain which also revealed discussions about a potential spin-off of the firm’s AI and legal tech division.
In the emails, Ethan Klingsberg, co-head of the firm’s US corporate and M&A team, reportedly said Freshfields would approach “sophisticated investors that are respected by the rest of the investor community for their leadership”, adding that this “probably” ruled out “Middle Eastern sovereign wealth money”.
The exchange, seen by the Financial Times, centred on proposals to spin off Freshfields Lab, the firm’s in-house legal tech arm, into a standalone business potentially worth “billions”.
Freshfields’ global managing partner, Alan Mason, had outlined the plans to Klingsberg, with the pair discussing outside investment and the possibility of a multibillion-dollar valuation. Mason had also been in contact with two Wall Street banks about the proposal.
The email chain was accidentally forwarded by Mason to a large internal distribution list named “$Freshfields All”. Although it was swiftly recalled, some recipients had already taken screenshots.
In a statement on Monday, Freshfields distanced itself from the remarks about Middle Eastern investors, saying Klingsberg’s comment “does not reflect the position or beliefs of the firm or those participating in that email chain”, according to FT.
The firm added: “We apologise unreservedly for a comment made about Middle Eastern sovereign wealth investors… the comment does not reflect the position or beliefs of the firm or those participating in that email exchange, and we sincerely regret the offence caused”.
“We hold our clients across the Middle East in the highest regard and deeply value the longstanding relationships and trust we have built in the region,” the firm continued. “We have enormous respect for the discerning leadership and global impact of our clients and remain firmly committed to the region.”
Freshfields has an established presence in the Middle East, with offices in Abu Dhabi, Bahrain, Dubai and Riyadh, The Legal Cheek Firms Most List 2027 shows.