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A decade in the life... Legal Business Partner Focus: 1994-2004 July/August 2004

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50 Legal Business July/August 2004

The Legal Businesspartner focus: 1994-2004

Adecadeinthelife...Partners’ lives have been transformed over the last decade.

They’re now working in a highly pressured cauldron of

insecurity and 24/7 communications. The financial

rewards provide comfort. Is it enough?

CHRIS CROWE

LB146 partner survey p50-67 29/6/04 5:39 pm Page 50

July/August 2004 Legal Business 51

PARTNERSHIP CAREERS ARE GETTINGshorter and more intense. Wireless technologyputs partners on call 24 hours, 365 days a year. But is life worse now than it was a decade ago? Legal Business checks the progress of some stars of the class of1994, and contrasts the challenges facingtoday’s crop.

A partner at a US firm in London recentlynegotiated a £54,000 salary cut for himself:it’s not everyone’s idea of a great deal, buthe simply wanted to alleviate some of thepressure. This former Denton Wilde Saptelawyer expressed relief to an old colleaguethat he’d grabbed a sliver of life back.

For those partners who are unwilling totake pay cuts, the future is less secure. The

fluidity of the modern legalmarket does not sit well withjob security.

As firms attempt to maximisefinancial performance withinorganisations that have

Illustration ANNE CAKEBREAD

mushroomed in size and complexity, inse-curity levels among partners are soaring. Inreturn, for management comes the grimrealisation that partner loyalty cannot bedepended upon. ‘The relatively new trendof firms firing underperforming partners, or

‘Today’s partners have become much moremercenary. Their loyalty is now moretowards themselves than their firms.’ Jon Garrett, director, GMK Legal Recruitment

>



The Legal Business partner focus: 1994-2004

profound change in the legal market. Weinterviewed some of that year’s stars, andcontrasted their lot with that of a partnerbeing made up ten years later.

The biggest hurdle, of course, is to makepartner in the first place. ‘You have to waita bit longer these days, but the attritionrates are huge, so if you’ve made it, you are

de-equitising them, has come into play,’Jon Garrett, director of GMK Legal Recruit-ment, says. ‘The flip-side is that today’spartners have become much moremercenary. Their loyalty is now moretowards themselves than their firms.’

Partners elected in 1994 have had adecade of the most phenomenal and

probably of the right calibre,’Yvonne Smyth, Hays Legaldirector, says. ‘Making partnerin a firm like this is the aim andthe high point,’ Susan Howard,partner and former head ofcorporate at Allen & Overy,confirms. Howard earned

>

JAMES PALMER

Firm: Herbert SmithMade partner: 1994 Palmer has etched out a significant profile atHerbert Smith with his enthusiasm and artic-ulate delivery. He is regularly touted as afuture Herbert Smith senior partner, althoughhe is adamant that management and admin-istration are not his favourite parts of the job.

He says:‘Size is not the real issue for firms, it’s aboutculture and excellence. As you get bigger itdoes require more effort. McKinsey &Company has a true culture of excelling, sodoes Goldman Sachs. Size is not innatelywrong, it just creates challenges.’

Legal Business says:Tipped by many as a future leader, Palmer is somewhat old school in his views on thelegal profession. He sees excellence as thehighest accolade a firm or individual canhave – he makes known his respect forSlaughter and May. A technically excellentlawyer, his contemporary pragmatic style haswon him a great name at Herbert Smith’scorporate practice.

CLASS OF 1994 HOTSHOTS

JOHN REYNOLDS

Firm: McDermott, Will & EmeryMade partner: 1994After making partner at Herbert Smith,Reynolds, an ambitious litigator, workedunder David Gold. In 1999 Reynolds joined the US-based McDermott, Will & Emery, gaining an earnings hike in excess of £100,000. His earnings are now plateauing.

He says: ‘US firms discourage full-time management.You don’t want to be sucked into manage-ment during your early 40s; it’s not necessari-ly a good thing. I prefer fee-earning, I came tothe law to be a lawyer.’

Legal Business says:Having stepped out from the shadow of the pre-eminent Gold, Reynolds has built up a reputable litigation practice at McDermott and even completed a stint as its London managing partner. He played a key role in securing McDermott’smerger with Italy’s Carnelutti in 2003 and is now head of the international disputes group


SUSAN HOWARD

Firm: Allen & OveryMade partner: 1994Howard was just six years’ PQE when shemade partner. Seven years later, she wasmade head of corporate in the UK. After athree-year term, she has now re-set hersights on private equity work where herclients include Englefield Capital and Charter-house Group International.

She says:‘Allen & Overy does give you credibility, but Iam convinced that clients go for the individ-ual rather than the firm. It’s probably moretrue with private equity because it’s a smallermarket and you get to know people better.The pace with which one operates is that 20 years may be enough. This is a hell of apace of life.’

Legal Business says:Howard has made it by remaining loyal to one firm. Specialisation was key to herrocketing career. Her emergence coincidedwith Allen & Overy reinventing itself as acorporate adviser alongside its leadingbanking practice.



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July/August 2004 Legal Business 53


‘The relatively new trend of firms firing underper-forming partners, or de-equitising them, has comeinto play. The flip-side is that today’s partners havebecome much more mercenary. Their loyalty isnow more towards themselves than their firms.’

Jon Garrett, GMK Legal Recruitment

‘Having had to kick out a number of unprofitablepartners and close down whole departments, firmshave evolved into businesses rather than traditionalpractices, keeping a beady eye on bottom line andprofitability.’

Dominique Graham, Graham Gill

‘A minimum of £1m [revenue per partner] is thestarting point for most these days. In fact, many

firms talk of wanting to get to a level where theirpartners are responsible for revenue of £2m-pluseach, and, therefore, there is a paranoia that anylateral will dilute the equity revenue.’

Andrew Caulfield, Caulfield Search

‘The concept of becoming a partner for life isone that no longer exists.’

Andrea Grossman, Garfield Robbins

‘Retirement age is dropping in comparison to the US firms where senior partners are actuallysenior.’

Charles Elderton, Chadwick Nott

‘Because of the current state of the economiccycle there is a tendency to scrutinise partnerprogression to equity much more carefully.’

Adrian Fox, Fox Rodney Search

WHAT THE RECRUITERS ARE SEEING

‘Partners who survive must bepolitical animals.’ Dominique Graham, Graham Gill




£6,500 on qualification: today she drawsaround 100 times more than that,according to Legal Business 100 figures.

Equity partnership remains astonishinglylucrative, but it’s getting harder and harder to achieve. Many of 2004’s newly elected partners are notfull equity partners. Initiationprocesses often encompass aspell – sometimes indefinite – asa salaried or fixed-share partner.With partners being electedlater in their careers and oftentaking equity status even laterstill, many are getting a fullshare of the profits five yearslater than their colleagues whomade partner in 1994.

At Herbert Smith, partnerselected this year were, onaverage, eight years’ qualified.They become B partners whoare considered for full equityafter three or four years. ‘You’renot a B partner unless we’reconfident that you will becomean A partner,’ Herbert Smithsenior partner Richard Bondexplains. B partners will earnbetween £150,000 and £200,000– some way below averagepartner profits of around£740,000.

‘You don’t have people beingheld at salary partner level,’Hays Legal’s Smyth says. ‘If youare made a partner at Linklatersthat means something.’ Partnerselected this year at Linklaterswere on average nine years’PQE. Of those made up, severalhad been partners at other lawfirms before joining Linklatersat associate level.

Despite immediatelybecoming equity partners andjoining a strict ten-year up-or-out lockstep, Slaughter andMay’s 2004 crop of new partnersare on average just seven years’PQE. However, only four weremade up: a measure of how hardit is to make it at one of theworld’s most tightly held equitypartnerships.

Similarly, Richards Butlerpartners were made up on

average six years after qualifica-tion in the early 1990s. Now,though, the average is eightyears, and the class of 2004 willbe fixed-share equity partnersfor three years before taking

We asked some of the UK’s top law firm partners to spell outthe key qualities a lawyer needs to make it as a partner in2004. This is what they came up with.

EXPECTATIONS‘We expect management skills, including team building skills,financial awareness and an understanding of the firm as abusiness. New partners must also have strong sales skills.’

David Gray, managing partner, Eversheds

‘The acid test was, and is, can you do the job in a way thatenables your clients and colleagues to trust you and think you care?’

Dick Tyler, managing partner, CMS Cameron McKenna

‘Partners need to meet financial targets but also competency-based objectives, which involves objective measurement ofprogress from a professional perspective.’

Roger Parker, managing partner, Richards Butler

‘It’s tough to make it to partner in Linklaters today: you haveto have first-rate technical skills, that gets you off first base,but you must have a much broader range of skills.’

Tony Angel, managing partner, Linklaters

SPECIALISATION‘To get a profile these days you need a special string to your bow.’

Richard Bond, senior partner, Herbert Smith

SHELF LIFE‘Not every partner wants to stay past 60, but we do see anumber of our partners who are beyond that age. In terms of wisdom, leading on deals and marketing abilities, they cancontribute to the firm in many ways beyond the number of chargeable hours they put in. Our modified lockstep system allows that.’ Mel Immergut, chairman, Milbank, Tweed, Hadley & McCloy

‘One of the advantages of a meritocracy is that we don’t have a mandatory retirement age. If the contribution to the firm drops we scale back earnings to reflect what theircontribution is.’

Bob Link, chairman, Cadwalader, Wickersham & Taft

BUREAUCRACY‘In all entrepreneurial firms there is room for rainmakers whenclients are looking for a sophisticated service.’

Trevor Watkins, managing partner, Lewis Silkin

‘We were very UK-centric, but now we’re an internationalbusiness. There is a need for partners to be aware of differentcultures.’

Richard Bond, senior partner, Herbert Smith

HOW TO MAKE PARTNER IN 2004

TIM EMMERSON

Firm: Milbank, Tweed, Hadley & McCloy Made partner: 1994Emmerson joined Milbank, Tweed, Hadley &McCloy in 2003, having been a partner atFreshfields Bruckhaus Deringer for nineyears. He qualified at Norton Rose in 1987.Emmerson, a respected corporate lawyer, iscurrently advising Goldman Sachs and MerrillLynch, financial advisers to Philip Green’s bidvehicle to acquire Marks & Spencer. He alsoworked on the sale of Bass Breweries toInterbrew.

He says: ‘I can market to any of the investment banksnow, some of them were off-limits to mebefore. I think I had done most of what Icould do on the track I was on. I was gettinga little tired of banging the same drum overand over again.’

Legal Business says: Emmerson is a prime example of someonewho made a name for himself at a leadingcorporate practice in London, but wasyearning to return to a smaller, and – in some eyes – more collegiate partnership than the Anglo-German behemoth that isFreshfields today.



CORPORATE PARTNER- TO LEAD THE MIDLANDS FUNCTION

Midlands £Substantial + Benefits

Our client is a substantial, driven, innovative and highly regarded commercial law firm. Well known for the quality of its work within the corporate sector as

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Now, following a period of streamlining, strategic growth and careful investment, the firm is seeking to recruit a senior corporate lawyer to work alongside the

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With profitability and turnover at an all time high, the successful individual will help develop,

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knowledge that they can draw upon impressive corporate and commercial strength in depth.

Already an existing partner or a senior lawyer seeking partnership you will have a

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In addition, you will possess two personal qualities that mirror the

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This is a high profile and front-line position in a dynamic

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The question is.......are you the person to drive it?

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This assignment is being handled exclusively by Braybrooke & Barrow and all

direct and third party applications will be forwarded to them for consideration.




equity. For many trainees qualifying thisyear, the expectation of a share in the firm’sprofits is well over a decade away – in stark

contrast to Allen & Overy’sHoward, who became a fullequity partner in 1994, at sixyears’ PQE.

Shelf lifeFew UK partners over 50 remainat the Magic Circle and top Cityfirms – and most that do sohave a management role.Careers are being squeezed –often to the relief of thosewho’ve worked under suchpressure for a couple of decades.

Firms – in particular UKoutfits – have noted that senior-level partners take a greatershare of profits while not alwayscontributing significantly morethan their younger colleagues.It’s a consequence of lockstep-influenced remuneration struc-tures. Younger partners cost afirm less money, and can bemaking far more cash for thepartnership. You start to feel oldpretty quickly.

In the battle over ageism, US firms provide more flexibili-ty, in general, than their Britishcounterparts. James Croock, 53, a South African who spent25 years at Linklaters, moved to Dechert in 2002 to becomeco-head of international M&A.

Cleary Gottlieb Steen &Hamilton retains a hearty groupof over-60s, despite the firmhaving a lockstep remunerationstructure.

Addleshaw Goddard has four partners who have obtainedan extension beyond the retire-ment cap of 62: all four are inthe top equity band of 100 to150 points (worth a potential£390,000). Addleshaws filmfinance partner Jonathan Blair – who was elected in 1994 – points out that at hisformer firm, Mishcon de Reya,Lord Mishcon has enormousgravitas: he’s 92 and still practis-ing. Famously, Princess Dianainstructed the firm on the basisof Lord Mishcon’s reputation,Blair says.

TREVOR SOAMES

Firm: Howrey Simon Arnold & White,Brussels officeMade partner: 1994Competition specialist Soames was madepartner at Norton Rose in 1994 and subse-quently headed up the firm’s Brussels office.When he chose to join Howrey Simon Arnold& White in 2002, he was put on a lengthygardening leave stint. According to one com-petition partner at a US firm, Howrey was soeager to get Soames on board that it struck adeal with the City firm to buy him out of hisgardening leave term.

He says:‘The legal profession is much more pres-surised than it was ten years ago. It is difficultto carve out time for oneself, family orfriends.’

Legal Business says:Soames is a voracious writer, speaker andacademic. Far from a City stereotype, he isfamed for his unusual dress sense,something that he admits has increased hisprofile in Brussels. He is credited with estab-lishing Howrey Simon’s competition practicein Europe and recently acted for RockwellCollins, an avionics competitor to Honeywell,in the antitrust case of the decade, GE-Honeywell. Other clients include Caterpillar,DuPont, Intel and SAS.


>

No of partners Firm No of partnersmade 1994 that have left

NATIONALS13 Eversheds 2

10 DLA 86 Hammonds 3

5 Addleshaw Goddard 0DLA has the highest percentage of departees

MAJOR GLOBALS7 Clifford Chance 0

16 Freshfields 4Bruckhaus Deringer

14 Allen & Overy 013 Linklaters 3

Clifford Chance’s partners are more loyal than current events would have you believe

ENTREPRENEURS4 Olswang 0

3 Taylor Wessing 01 Charles Russell 0

2 Lewis Silkin 21 Osborne Clarke 0

Employment specalists Lewis Silkin lost its 1994 duo

PURE EQUITY10 Ashurst 0

8 Slaughter and May 06 Cleary Gottlieb 0

Steen & Hamilton5 CMS Cameron McKenna 0

Stability rules at these rock solid partnerships

THE RICH7 Cadwalader, 1

Wickersham & Taft4 Macfarlanes 2

2 Milbank, Tweed, 0Hadley & McCloy

Half of Macfarlanes’ class of 1994 have gone

BIG CITY PLAYERS17 Herbert Smith 4

4 Lovells 04 Norton Rose 05 Simmons & Simmons 3

25% moved on from a fast-expanding Herbies

Source: Legal Business

CLASS OF ‘94: WHO STAYED


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‘Many UK firms are getting it wrong,’Addleshaws managing partner MarkJones comments, referring to theshortened shelf-life of senior partners.

Those making partner this year must consider their career prospectscarefully. At many City firms, theircareers will be cut short and, by 50, it’soften hard to find a home willing torecognise fully the experience garnered.Hays Legal’s Smyth says: ‘The idealprofile is a partner in their early 40s atthe height of their fee-earning capacity,but not at the top of equity. Peoplealways say: “I’m pleased I’m on the rightside of 50.”’

Hanging around is proving risky.

Collegiality Many international firms are of a sizeonce way beyond the imagination ofsome of the partners who now runningthem. The term ‘partnership’ has becomean anachronism, with many partnersresembling highly-paid employees ratherthan playing a role in the firm’s vision,strategy and management.

Eversheds’ Paris managing partnerColin Brown is an enthusiastic manage-ment figure at one of the world’s moredynamic firms. He notes generational shifts.‘The upstream communication is muchbetter now,’ Brown says. He recalls beingtold to belt up, after voicing opinions to hiselders, when just a junior partner at whatwas Norwich’s Daynes Hill & Perks (nowEversheds). ‘Younger partners bring newideas to the firm,’ he says.

Freshfields partnership’. In 2003 heabandoned a firm that had grown exponen-tially and profoundly across Europe. ‘Thepartnership ethic has been drastically reducedby UK law firms expanding,’ Emmerson says. ‘I didn’t want to move to a US firm sothat I could work until 85. It was aboutbuilding something at a US firm in London.

Big is bigThe increasing bureaucracyinherent in the largest firms is frustrating for many. Some act on it: Milbank, Tweed,Hadley & McCloy’s TimEmmerson made partner in1994, in what he terms a ‘tight

CONSTANTINE PARTASIDES

Firm: Freshfields Bruckhaus DeringerMade partner: 2004An international arbitration specialist, Partasideslearnt his trade under Freshfields’ celebratedhead of international arbitration, Jan Paulsson.Partasides has represented Hutchison Interna-tional in ICC proceedings regarding third gener-ation UMTS mobile telephony investment in

Italy. He has an MPhil in international relationsfrom Peterhouse, Cambridge. Clients includeAlcatel, BP, Hutchison Whampoa, BG and thegovernments of the Philippines and Kenya.

He says: ‘I’m not expecting things to change radically.As a senior associate, it was supposed to beabout developing a practice and then, beingselected as a partner, one should continue withthat. I am joining a large partnership, but apartnership that knows who you are. Theprocess by which you are confirmed into thepartnership, it brings all the new partnerstogether. It’s also impressive how well the man-agement knows me and got to know me.’

Legal Business says: Any firm in the world would take Partasides onboard. He is a renowned intellectual and hasan impressive track record in noteworthy inter-national arbitrations. He’s an example of theexceptional calibre that Freshfields and rivalsare expecting from new partners – regardlessof the economic cycle.

THE 2004 STAR PROMOTION

Opinions vary on that eternal issue for law firms –the management of a partnership by those fromoutside the legal profession. It’s certainly apressing issue: according to a report publishedby Gracechurch Consulting, entitled ‘LegalFutures’, the global market will be worth $36bn(£20bn) in 2007, an increase of 47% on currentestimates. Gracechurch’s paper indicates thatfirms will prime themselves for a new battle overa further expanding global market, but it’s notjust about flags on maps, they’ll be managing forprofit rather than turnover. Nick Jefferson, ofhuman capital specialist Couraud Consulting,says: ‘We know firms that just can’t bite the

bullet, and it poisons the well as far as morejunior partners are concerned.’

The tactic of using professional managersrather than management by a long-servingpartner is also slowly gaining popularity. ‘Somewere thinking about it pre 9/11. The downturnput a stop to some of these plans,’ SimonChadwick of Chadwick Nott explains. Hebelieves that UK regional firm Shoosmiths hasimproved its position with a non-lawyer chiefexecutive. ‘Paul Stothard has been careful todraw up clear parameters for his role,’ he says.‘He went to the partners and told them that thefirm needed to invest and this was going to have

a hit on the profits. It had poor financial resultsin 2003, but in 2004 there was a paradigm shiftin performance. A good chief executive has hada direct effect on profit.’

The chief executive experiment hasn’t alwaysprovided the desired results. Richards Butler triedit and has now reverted to a managing partner.(Until 2000, the firm was headed by a formeraccountant, chief executive Chris Schulten.)

No consensus exists across the profession. ‘I think understanding a law firm’s business willalways require a partner who has been throughthe business,’ Lawrence Graham managingpartner Penny Francis says.

OUTSIDE INFLUENCES

>


‘Founded in 1989 as a legal search consultancy, Longbridge is now one of the largest boutique search firms operating in

the City. Longbridge has a standard of quality that is readily apparent, both in the quality of its staff and the calibre of

research information it distributes to its clients.’

‘Longbridge is one of the top five professional and financial services search consultancies in the UK’

Our consultants have trained and qualified in the UK, France, Germany, Italy and Spain. All European searches are

conducted with in-depth expertise and full local language capabilities. For further information or a confidential

discussion please contact: Frank Varela, managing director Tel:020 7208 5858, Fax:020 7208 5859, E-mail:

[email protected] www.longbridge.com Longbridge International plc, 85 Gracechurch Street, London, EC3V 0AA

Economist Intelligence Unit’

focusing on key people

I N T E R N A T I O N A L L E G A L S E A R C H & C O N S U L T I N G

Executive Grapevine


For partners


E J • H U M A N R E S O U R c E S E J • M E R G E R S E J • t a x a t i o n E J • C o m p a n y S e c r e t a r i a l

E J • L e g a lPlease contact Simon Janion [email protected] 020 7400 2000 303-306 High Holborn London WC1V 7JZ www.ejgroup.co.uk

Actually, no; as impressive as these figures are, they’renot down to a law firm at all. It’s simply a snapshot of thebusiness we’ve been involved in over recent months.

If you’d like to discuss your personal or corporate futurewith people who know all about achieving impressiveresults, talk to EJ Legal 020 7400 2000.

performance




You can’t do that at UK firms because theyare so mature.’

There are upsides to such expansion:namely that you can sell a vision. The Class of 2004 has much wider prospects –geographically speaking at least. In 1994,firms had only just begun to branch outoverseas with real gusto. Now, building a profile in a smaller overseas office is an attractive prospect to some junior partners.

more important. It was luck that the firmchose me.’ Lewis thinks young partnershave serious scope now.

Choosing a firm with overseas officesthat carry clout, though, is key. ‘If I was at aUS firm, I think I’d feel I was more part of abranch office,’ Allen & Overy Hong Kongpartner Stanley Chow explains. ‘A lot of ourwork is originated in Hong Kong and wehave our own infrastructure here.’ Chow,who was made up in 2000, has worked on a

Herbert Smith’s Tokyo headSteve Lewis was made up in1994 after moving out to Japan.‘When they opened Tokyo andasked people to go out there, alot of people said no. But ofcourse I got a specialisation forJapanese clients that no one elsehad,’ Lewis says. ‘Everyone cando the work hard bit, butspotting these niche areas is

GROWTH SPURT: GLOBAL FIRMS’ TRANSFORMATION

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Allen & OveryFee-earner numbers

590 595 646 704 8261,165

1,4601,912

2,238 2,350

Turnover

£116m £127.5m £138m £167m £219m £250m

£332m£494m £582m £647m

Clifford ChanceFee-earner numbers

1,203 1,237 1,348 1,459 1,626 1,856 2,029 2,868

3,531 3,612

Turnover

£215m £230m £282m £310m £377m £432m£587m

£937m £983m £978m

Freshfields Bruckhaus Deringer Fee-earner numbers

635 707 755 819 9321,208 1,397

2,0302,420 2,570

Turnover

£131.5m £138m £154.6m £182m £232m £280m£380m

£625m£740m £800m

Linklaters Fee-earner numbers

779 797 862 922 1,028 1,161 1,360

1,4002,000

2,390

Turnover

£162m £173m £187m £213m £266m £290m£395m

£500m£640m £720m


>


RESTRUCTURING/INSOLVENCY $1.5MWithout doubt one of the leading Wall Street law firms, our client hasa genuine need to hire a first rate restructuring/insolvency partner –a following is not a pre-requisite. This is a premier US firm with a rocksolid London office, requiring a top class lawyer who has theinternational experience to deal with financial difficulties, often of aglobal nature. Outstanding remuneration is a given – the mostattractive aspect is the quality of the firm, its people, and its clients.

PROPERTY FINANCE to £900,000This is a top flight City firm with an excellent and entirely meritedreputation in the commercial property and (particularly)banking/finance area. In recognition of the increased complexity ofinternational property financing deals, they now wish to invest atpartner level with a specialist keen to join this already substantial butgrowing department. You will recognise this as a strategic andchallenging career opportunity, relishing a collegiate environmentand the requisite back-up at assistant level.

EMPLOYMENT PARTNER £400,000Highly regarded ten fee-earner strong employment department in thislong established City firm seeks to invest at partner level to join thisclose knit team. The majority of the workload in this department isself generated representing employers in the financial and industrialsectors as well as high profile individuals, including enforcement ofrestrictive covenants, gardening leave and TUPE matters. Genuinelyoutstanding opportunity for a partner and possibly a small team,currently at a London or regional practice which seems unable tooffer commitment to future investment in this fast developing sector.Genuinely collegiate atmosphere will appeal to focused partnershaving/or beginning to make a name for themselves in this field.

INTERNATIONAL SECURITIES £800,000Pre-eminent US firm which has been increasingly seen as one of theUS practices to challenge traditional London firms offers opportunityfor international equities partner. You will almost certainly come fromone of the Top Ten City practices and have the ability to exploit ahuge work potential afforded by the firm’s institutional financial andcorporate client base. The London office is already well established,offering a mix of UK and US expertise.

PRIVATE EQUITY PARTNER $1.5MExpanding London office of major US firm, with flourishing privateequity practice, seeks high-profile UK Partner looking for a newchallenge. Successful candidates will relish the demands of helping togrow a practice with the backing and profits of a major Wall Streetplayer behind them. Serious about its English Law capability, the firmviews this position as pivotal in the future development of itsEuropean operations.

PRIVATE EQUITY/FUNDS circa £500,000Without doubt one of the leading growth sectors in corporate law,private equity within the investment funds and investmentmanagement arenas has been identified by this large City firm as adevelopment ‘must’. Already possessing a reputation in this sector,they seek a partner with the experience and enthusiasm to assist intaking the team to the next level. Ideally with a credible list ofcontacts from which to develop new business, the new partner willalso enjoy a burgeoning amount of homegrown instructions from avariety of financial and corporate institutions who are regular clientsof the firm.

The above represents a small selection of the instructions we currently hold on our books. For an informaldiscussion, please contact Hugh Kelly on 020 7539 0135, email: [email protected] to Zarak Legal, 4 Crown Place, London, EC2A 4BT or visit our website at: www.zarakgroup.com

Legal RecruitmentThe Zarak Group

We are committed to equal opportunities and positive cultural diversity

LONDON, PARTNER LEVEL RECRUITMENT

Hugh Kelly heads up the Zarak Group’s partner-level recruitment practice.Formerly the Head of HR at Ashurst for six years, Hugh left the firm in 1995,spending the next eight years as a Director of Kellyfield Consulting. He hasexperience at all levels of legal recruitment for private practice and investmentbanks, specialising particularly in senior level resourcing. Hugh has also hadconsiderable experience of advising clients on international mergers, teammoves within international law firms and providing management consultancyto the legal profession.

Hugh Kelly


string of high-profile transactions alongsideHong Kong’s leading corporate lawyer,Michael Liu.

His view tallies with the fact that US firms Cravath, Swaine & Moore and Dewey Ballantine closed their offices inHong Kong last year. Of course, not all UK firms are as secure as Allen & Overy.Many of Denton Wilde Sapte’s formerpartners in Asia complain that Londonoffered little support prior to the decisionearlier this year that signalled the demise of the Asian offices.

Recruitment consultants strike a furtherword of caution. ‘If you go abroad, is there a route back?’ asks Fiona Bennett of HaysLegal. ‘You can be at the coalface in HongKong and making money, but what can youoffer back in London? You will want to stayon the same equity level, but you won’thave the business to sustain that level,’ she

Moving onSo partners will at times consider movingfirms, a daunting prospect for minds trainedin law to be risk-averse. Often firms will belooking for a substantial book of business.

adds. Going overseas can putpartners on the periphery ofinfluence – and in such aninsecure profession, you need allthe influence you can muster.



A DECADE OF CHANGE: ENTREPRENEURIAL FIRMS

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Charles RussellFee-earner numbers

94 109 107 120 115

200 171 203 203242

Turnover

£12.3m £13.3m £14.3m £16.9m £21.5m £26.4m £30m £35.6m £41.7m £43.8m

Mishcon de ReyaFee-earner numbers

81 8692 92

98 102 102 98110

120

Turnover

£12.5m £12.5m £12.2m £12m £14m

£15.2m £15.8m£17.34m

£20.09m £21.3m

OlswangFee-earner numbers

ENTERSLB100 IN

53 65 86

109 139205 255 274

Turnover

ENTERSLB100 IN

£9.9m

£14.4m £18.2m £23.7m£35.1m

£46.1m £46.5m £49m


> PEP: THEN AND NOW

LEGAL BUSINESS TOP TEN, BY PEP 1994 2003Allen & Overy £382,000 £675,000Slaughter and May £371,000 £886,000Linklaters £350,000 £734,000Ashurst £298,000 £590,000Freshfields Bruckhaus Deringer £295,000 £700,000Macfarlanes £272,000 £735,000Clifford Chance £269,000 £639,000Mishcon de Reya £260,000 £211,000Lovells £256,000 £558,000SJ Berwin £246,000 £402,000


Funds CityUS firm that has growing corporate and fundspractice seeks additional partner or possibly veryambitious associate already on track in currentfirm. Candidates may well be working for anotherUS firm in London and if not it is likely that onewould need to have international experienceincluding US related deals. Capability already existsto handle a broad range of funds includingproperty, hedge and private equity and those withemerging markets funds experience would be ofinterest. Candidates will have more transactionaland corporate experience as opposed to pureregulatory and this offers the opportunity to join afirm that has attractive profitability levels, a cross-selling initiative that works and the reputation for aconducive working environment.Ref. 763A/AS

Property (Partner + Associate) CityLondon office of small - mid sized UK/Regional firmthat is well established in London and noted for itsconducive working environment seeks a partnerand possibly small team for reasons of successionplanning. The department is well established andstand alone and works alongside corporate andlitigation as well as servicing the needs of partnerswho refer work into the London office from otherUK jurisdictions. The current partner is starting towind down his career and this could be viewed asan 'heir apparent' role although if a more seniorpartner were presented they would considerbringing in a new head of department. Thedepartment presently has excess work and ideallythey also seek an associate with 4-5 yrs pqe so thiscould be ideal for a small team.Ref. 927 A/AS

IP Litigation CityFast growing US firm that has set up London LLPseeks to appoint first UK partner in London.The firmis rising swiftly up the US league tables in both sizeand profitability and it is also broadening anddeveloping its client base as well. It operates a meritbased partnership that rewards those who performwell which would suit entrepreneurial partners whoare confident in their business building abilities. Thekey area that needs to be addressed is the area of IPboth hard and soft and there is huge potential to tapthe firm's existing client base that includes clientsfrom life sciences, pharma and healthcare. Manyhave increasingly active European businesses. Agreat opportunity for very entrepreneurial partnerswho are money driven.Ref. 928A/AS

Property Finance CityLondon office of Scottish firm seeks associate orjunior partner to develop property financefunction in the firm. The firm already has anestablished property practice that deals with abroad range of work and also a developingbanking practice that handles a broad range ofbanking and lending work, and as a result ofincreased activity in both Scotland & London theneed has arisen for additional resource in this area.Candidates likely to be at senior associate or juniorpartner level with both excellent experience andsufficient contacts to assist the firm in generatingnew work. An immediate following is notprerequisite but good contacts would be seen asevidence of commercial acumen. Excellentopportunity to join genuinely friendly firm.Ref. 962A/AS

Telecoms CityUS firm that has recently set up London office seeksto make first UK lateral appointments and one ofthe key areas where they have natural synergieswith the US practice is the communicationspractice that handles telecoms and IT transactions.Partners who have a background in assistingcommunications companies in all aspects of theirtelecoms and broadband strategies along with ITand Internet transactions from a corporate ratherthan a regulatory perspective are likely to havecompatible skill set. Also essential is provenbusiness building ability although those partnerswith a name and reputation in the market are likelyto attract work accordingly. Excellent opportunityto join true merit based firm where the successfulwill excel financially.Ref. 935A/AS

FSA CityMid-sized US firm with rated securities litigationpractice in the US that defends corporates andindividuals in breach of SEC regulations and matterspertaining to white collar crime seeks partner orsenior associate with FSA enforcement experiencegained in private practice or in-house. The firm ishandling a number of high profile matters originatingout of the US & UK where cross border matters areinvolved. Candidates will be well experienced inacting on behalf of companies/individuals in breachof the Financial Markets Act and who may be facingcriminal proceedings. Excellent opportunity to join afirm that does have a cross-selling strategy that workswell and very respectable profitability levels and areputation for a pleasant working environment.Ref. 761A/AS

Energy CityMid-sized US firm with established Londonpractice seeks a partner with experience ofenergy law with an emphasis on LNG. The firm hasa strong US presence and also a number ofinternational offices with a reputation for energylaw. The London office has corporate, project andstructured finance capability including deals donein the area of natural resources includingtransactional, corporate and litigation work. Workoriginates from a number of emerging marketlocations and the work that the London office isbroad offering wide opportunities for partners tohandle a cross section of work and not being toospecialist. Candidates likely to be energy partnersbased in London firms with broad internationalexperience to include LNG.Ref. 311A/AS

Insurance/Reinsurance PartnerMid-sized firm with fast expanding London practiceseeks to appoint partner to handle domestic andpan-European corporate insurance matters withsome emphasis towards reinsurance. The firmalready has a strong client connection in LondonMarket and also the US market and there is astrategic need for a partner to develop the practicefurther.Partner will demonstrate the ability to handlesignificant deals and to demonstrate to clients theability to handle and oversee larger scale projectsand deals. There is enormous potential and the idealpartner is probably with a leading City insurancepractice and is seeking a fresh challenge with theopportunity to take head of department status andto take responsibility for the future growth anddirection of the practice.Ref. 554A/AS

PFI/Projects CityLondon office of Scottish firm that has a strong andrated Projects practice in Scotland seeks to appoint asenior solicitor at or close to partner level into itsestablished London office that has is now going toexpand in line with overall firm strategy. The firm hascore capability in London including corporate,property and dispute resolution/litigation and it is in aposition where there is an increasing demand, andexcellent further potential for cross-referral of dealsacross the network. Candidates will have broad PFIand commercial projects experience along with astrong base of client connections. The aim is to assistin handling existing work but also to tap the potentialfor further work from both Scotland and the Londonoffice. Excellent opportunity in friendly office.Ref. 963A/AS

Partners & TeamsInside Information

For further information, in complete confidence, please contact:Anil Shah (Managing Director)DD: 020 7269 6804 Email: [email protected]

LPA LEGAL RECRUITMENT 7 GRAY’S INN SQUARE LONDON WC1R 5AZ

Tel: 020 7430 1199Fax: 020 7831 1001

WWW.PARTNERSANDTEAMS.COM




‘There is no doubt that significant client relationships which have, or are capable of producing, sizeable practices – aroundthree times plus what the partner expects to draw – are necessary to get through the competition,’ says Penny Terndrup, a director at EJ Legal. ‘However, an intelligentworking out of a business plan early on in the process of considering a move is vital.’

Of course, firms are increasingly recog-nising how hard it is to prise away clientsfrom former employers.

Cadwalader, Wickersham & Taft’schairman Bob Link explains the financialdemands for recruitment: ‘You will want to increase those [profit] averages and we will look to people who can do that. But most firms will tell you they don’t buy business – we certainly don’t.’ Onaverage, Cadwalader’s revenue generation

of course, can retire early with thesewindfalls, and compare unfavourably in terms of job security. But that said, the once rock-solid security of partnershipis being eroded, as are pension funds and confidence in the prudence of the Exchequer.

‘London was a grim place in the 1980s,’points out an unsentimental Herbert Smithsenior partner Richard Bond. ‘As a city it has improved dramatically.’ But to capitalise on the manifold enjoyments ofbeing a high earner in London or elsewherein the UK, partners must now achieve aconsistent level of performance that is scrutinised as never before. It’d be nice to get nostalgic, but there’s simply notenough time. LB

[email protected] research by

Stephen J Doggett and Kate Ranson

equates to some $4m (£2.2m)per partner; its PEP stands at $1.6m (£874,000). ‘There aredifferent ways of contributing,’Link notes. ‘Not everyone iscontributing $4m to the bottom line.’

Price of riskThe rewards are tantalising, but modest in comparison with the immense pay-outs that successful investmentbankers receive. Derivatives specialists, with a mere threeyears’ experience at investmentbanks, can earn bonuses of upto $1.5m (£819,000) accordingto a report by Armstrong Inter-national, the financial servicesrecruitment specialist. Bankers,

CITY SLICKERS: MANAGING TEN YEARS OF TIGHT EQUITY PARTNERSHIPS

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003Ashurst Morris Crisp Fee-earner numbers

247 278 296 334

373532 603 685 729 783

Turnover

£51m £55.5m £62.1m £66m £90m£105m

£130m£155m

£185m £197m

CMS Cameron McKenna (Cameron Markby Hewitt and McKenna & Co up to 97, Cameron McKenna from 1998)Fee-earner numbers

292 292 302 302 661 690 718 754 776 761

Turnover

£46.8m £47m £50m £45.9m£102m £117.5m £136m

£162m £175.5m £174m

Slaughter and MayFee-earner numbers

600

568 578 577 569 569

606 633682 715

Turnover

£117m £126m £133m £140m

£152m £162m£190m

£242m £248m £243m


>


Nicholas Robbins - Managing Director

Nick was the founder of Garfield Robbins International and

set up the London office in 1989. He subsequently went on

to establish offices in Australia and Hong Kong, building

the company into a significant worldwide legal recruitment

player. Nick handles senior appointments and merger

assignments worldwide in both the private practice and

in-house sector. He is a business head of BNB Resources PLC

following GRI joining the BNB Resources Group in

September 2003.

Email: [email protected]

Helen Bryant - Director

Helen is a Director and heads up the UK Private Practice

Division of Garfield Robbins International, having joined the

company as a consultant in 1998 from Allen & Overy where

she worked as an assistant specialising in corporate finance.

She specialises in the recruitment of lawyers into London and

London-based international law firms, together with senior

appointments and merger assignments.


John Freeman - Senior Consultant

John has a rare combination of skills - he is a qualified

accountant, who also holds an MSc in Human Resources.

His background includes working in an advisory capacity at senior

management level within a number of law firms including Sidley,

Austin Brown & Wood, Middleton Potts, RadcliffesLeBrasseur

and Hextalls. His experience has included the introduction and

implementation of several law firm mergers. As well as working

with Garfield Robbins international, John is a lecturer at BPP in

finance and management for law firms.


Andrea Grossman - Director

Andrea qualified as a solicitor in 1993 and worked as a litigator

at Clifford Chance and subsequently at Olswang. She has been a

Director of the group since January 2000, prior to which she

spent a year heading up Garfield Robbins International in

Sydney. Andrea handles the recruitment of senior lawyers and

partners into UK private practice firms, together with various law

firm merger assignments. Andrea is currently on maternity leave.


Garfield Robbins International is a groupcompany of BNB Resources Plc.

For more information on our services please contact Nicholas RobbinsGarfield Robbins International (Head Office) 5 Wormwood Street, London EC2M 1RQTel: +44 (0) 20 7417 1400. Fax: +44 (0) 20 7417 1444Email: [email protected]

www.garfieldrobbins.com/jobs/lb

In-House

International

UK Private Practice

Partners & Mergers

Senior Appointments & Mergers

Garfield Robbins International is a specialist legal recruitment consultancy established since 1989 andwe are now part of BNB Resources PLC, one of the world’s leading providers of human resource andcommunications solutions.

Our Senior Appointments and Mergers team handles Partner placements throughout the UK andinternationally and law firms use the merger service to research and target specific law firms for amerger in the UK and worldwide marketplace. Our fee is based on a retainer and success fee.

The Team consists of some of the most experienced consultants in the marketplace today:


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