Market Overview

LegalZoom Announces $500 Million Secondary Investment Led by Francisco Partners and GPI Capital, with Participation from Franklin Templeton and Neuberger Berman


Addition of New Growth Equity Investors as LegalZoom Accelerates

LegalZoom, the leading provider of legal solutions for small businesses
and families, announced a $500 million secondary investment led by
Francisco Partners and GPI Capital, with participation from one or more
Franklin Templeton Investments funds and funds managed by Neuberger
Berman Investment Advisers.

"Delivering valuable solutions that naturally evolve into deeper
relationships with customers has resulted in a rare combination of
healthy profitability and accelerating revenue growth," commented
LegalZoom CEO John Suh. "We're excited to partner with an impressive set
of new growth equity investors that will support our efforts to
democratize law."

LegalZoom continues to build on its market leadership position by
launching new services to small businesses and families while expanding
into new channels and territories. The company enjoys more than 10 times
greater brand awareness than online or offline competitors. In recent
years, LegalZoom has successfully expanded into the United Kingdom and
grown subscriptions to more than 50% of U.S. revenue.

"We are delighted to partner with the team at LegalZoom, which has
combined preeminence of brand and leadership in online legal services
with an attractive business model," says Neil Tolaney, head of consumer
internet investing at Francisco Partners. "We share LegalZoom's
commitment and mission-driven approach to providing business owners and
families with a robust product offering, leveraging the power of a
passionate team of ‘Zoomers' and an extensive network of attorneys."

Dipanjan "DJ" Deb, Co-Founder and CEO of Francisco Partners, continued,
"This investment builds upon our rising consumer internet franchise. We
look forward to supporting the company to accomplish its long-term
strategic vision as the category leader."

"LegalZoom delivers a truly compelling value proposition and is
well-recognized as a market pioneer. We are excited to invest at another
inflection point as the team extends the platform with an innovative
product roadmap, drives further penetration of a large addressable
market and continues to deliver first quartile metrics," said Khai Ha,
Partner at GPI Capital.

"LegalZoom's business model has gone through an impressive evolution
since we first met them five years ago," says Dan Searle, Vice President
and Research Analyst at Franklin Templeton Investments. "They are a
clear category leader with a mission to make legal services more
affordable and accessible for small businesses and families. We think
this is an exciting time to be investing in the company as both the
business and pace of innovation are accelerating, with a substantial
opportunity still ahead that should produce long term value creation for
our Franklin Templeton shareholders."

"As LegalZoom continues to deliver on its enormous market opportunity,
we look forward to providing the LegalZoom team with experienced public
market perspectives to help further drive long-term shareholder value
creation," added Neuberger Berman Portfolio Manager, Charles Kantor.

Following completion of the transaction, existing investors will retain
meaningful stakes in the company. Global private equity firm Permira
will remain the largest shareholder, Bryant Stibel will retain its
entire ownership stake and Kleiner Perkins and Institutional Venture
Partners (IVP) will retain the majority of their ownership stakes in
LegalZoom. IVP and Kleiner Perkins invested in LegalZoom in 2011; the
Permira funds and Bryant Stibel invested in 2014.

"Since the Permira funds' 2014 investment, LegalZoom has doubled revenue
and enhanced its growth rate with exceptional profitability," said Dipan
Patel, a Permira Partner. "We invested four years ago based on a
compelling vision, only to see it come to life through great execution
and continuous innovation. We'd like to thank all Zoomers for an
incredible 4 years; the opportunity ahead is immense and we're excited
to continue the journey as a long-term holder."

As part of their firms' investment in LegalZoom, Dipanjan "DJ" Deb and
Neil Tolaney from Francisco Partners and Khai Ha from GPI Capital will
join the company's board of directors. Jeff Stibel of Bryant Stibel, who
has served on the LegalZoom Board of Directors since 2015, will assume
the role of Chairman.

J.P. Morgan served as sole placement agent on the transaction and Cooley
LLP acted as legal advisor to LegalZoom and its board of directors.
Deutsche Bank acted as financial advisor and Paul Hastings LLP acted as
legal advisor to Francisco Partners. The transaction is subject to
customary regulatory approvals and is expected to close during the third
calendar quarter of 2018. The terms of the transaction were not

About Francisco Partners

Francisco Partners is a leading global private equity firm that
specializes in investments in technology and technology-enabled services
businesses. Since its launch over 18 years ago, Francisco Partners has
raised over $14 billion in capital and invested in more than 200
technology companies, making it one of the most active and longstanding
investors in the technology industry. The firm invests in opportunities
where its deep sectoral knowledge and operational expertise can help
companies realize their full potential. For more information on
Francisco Partners, please visit

About GPI Capital

GPI Capital is an investment firm dedicated to non-controlling,
growth-oriented investments with offices in New York and London. GPI
leads equity and equity-like structured financings, typically investing
US$100 to $300 million for stakes of up to 20% in privately-held late
stage businesses or through negotiated investments in public companies.
GPI's investment team has extensive experience in North America, Western
Europe, and select high growth economies focusing on the consumer,
technology and industrial sectors.

About Franklin Templeton Investments

Franklin Resources, Inc. (NYSE:BEN) is a global investment management
organization operating as Franklin Templeton Investments. Franklin
Templeton Investments provides global and domestic investment management
to retail, institutional and sovereign wealth clients in over 170
countries. Through specialized teams, the company has expertise across
all asset classes—including equity, fixed income, alternative and custom
solutions. The company's more than 650 investment professionals are
supported by its integrated, worldwide team of risk management
professionals and global trading desk network. With offices in over 30
countries, the California-based company has 70 years of investment
experience and over $724 billion in assets under management as of June
30, 2018.

About Neuberger Berman

Neuberger Berman, founded in 1939, is a private, independent,
employee-owned investment manager. The firm manages a range of
strategies—including equity, fixed income, quantitative and multi-asset
class, private equity and hedge funds—on behalf of institutions,
advisors and individual investors globally. With offices in 20
countries, Neuberger Berman's team is more than 2,000 professionals. For
four consecutive years, the company has been named first or second in
Pensions & Investments Best Places to Work in Money Management survey
(among those with 1,000 employees or more). Tenured, stable and
long-term in focus, the firm fosters an investment culture of
fundamental research and independent thinking. It manages $304 billion
in client assets as of June 30, 2018. For more information, please visit
our website at

About Permira

Permira is a global investment firm. Founded in 1985, the firm advises
funds with a total committed capital of approximately US$38.5bn (€33bn)
and makes long-term investments in companies with the objective of
transforming their performance and driving sustainable growth. The
Permira funds have made over 250 private equity investments in five key
sectors: Technology, Consumer, Financial Services, Industrials, and
Healthcare. The Permira funds have a long track record of successfully
investing in technology companies around the world and have deployed
over US$10bn (€8.8bn) in the sector since 1997. In addition to
LegalZoom, portfolio companies have included Magento, WeddingWire,
Allegro,, Genesys, Informatica, NDS, TeamViewer and Teraco.
Permira employs over 250 people in 14 offices across Europe, North
America and Asia.

About LegalZoom

LegalZoom is a trusted platform of people and technology that gives the
world access to consistently high quality legal solutions. As the
nation's leading provider, LegalZoom empowers millions of people to
protect what matters most to them. Whether it's helping small business
owners or families, LegalZoom delivers high touch, high service legal
solutions that help customers be more informed and secure in their legal
decisions. LegalZoom services customers in the US and the UK and is now
over 1,200 employees strong.

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