_LB223 Global London

The ups and downs of the 50 largest overseas fi rms in LondonEVERYTHING TO PLAY FOR

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GLOBAL LONDON

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GLOBAL LONDON

Part I: Overview

LONDON BRONCOS 24-31Chart Hiring spree: the fi rms that made the most lateral hires in 2011 26Chart Global London total headcount 1998-2011 26Chart Partner headcount by practice area 26Table Revenues of the top ten largest fi rms by headcount 28Box Methodology 30Table Global London top 50 32-33

Part 2: Immigration

SITUATIONS VACANT 34-39Chart Proportion of international and UK-qualifi ed lawyers 36

Part 3: Funds

MAJOR FEAST 40-45Table Lateral funds partner moves in 2011/12 42Table Did your fi rm expand into any new practice areas in 2011? 44

Part 4: Pockets of excellence

NO STONE UNTURNED 46-49Box Which fi rm will be next to open in London? 48

GLOBAL LONDON

April 2012 Legal Business 23


Illustration ELLIOT THOBURN24 Legal Business April 2012

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GLOBAL LONDON

There must be a lot of empty desks over at Hunton & Williams’ offi ce in London’s Gherkin. Over the course of a few short weeks in April and May last year the US fi rm lost virtually

its entire transactional team, after a partner exodus saw the 35-strong offi ce dwindle to just 13 lawyers (although insiders say that the number is closer to eight) by the close of 2011.

Partners Matthew Williams and John Deacon joined Hogan Lovells’ energy practice, while Paul Tetlow moved to K&L Gates. Martin Thomas and Dearbhla Quigley were picked up by Chadbourne & Parke. It’s a sorry state of affairs for a fi rm that began with bright hopes in London.

The fi rm launched in the capital in 1999, and in 2004 began an ambitious hiring spree that saw it build up a credible pre-recession AIM team that was one of the busiest in

the City at the time. But after a fl urry of investment and relocations of US big hitters, all went quiet. Then came the partner exodus.

The fi rm has said that the offi ce will now focus on energy and infrastructure work alongside data privacy. But this year is the fi rst in over a decade that Huntons will not feature in our Global London tables.

However, Huntons’ decline in the City is one of only a few bad stories over the past year for Global London fi rms. For the vast majority of other fi rms in our survey, things have been less dramatic, with another year of largely fl at revenues and fl at headcount.

LB has been running the Global London survey since 2002 (formerly the US fi rms in London survey), tracking the fate of the 50 largest international (mainly US) fi rms in London, by analysing headcount, revenues, promotions and hiring patterns.

While generally international law fi rms in London have remained static, there have been a handful of US fi rms that have continued to shine. LB tracks the most aggressive performers in London in the past 12 monthsBECKY PRITCHARD

LONDON BRONCOS

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GLOBAL LONDON

26 Legal Business April 2012

This year we have broken down our analysis into four sections. In this section we take an overview of the market. In section two we take an in-depth look at the split between international and UK-qualifi ed lawyers in London at global fi rms over the past decade and review some of the changes to immigration laws that have made it diffi cult to hire international lawyers into London practices.

In section three, we focus on one of the few bright spots in the lateral hiring scene of the past year – looking at UK private equity and funds lawyers, who are hot property for US fi rms, and analysing why these individuals are such a valuable commodity. And in our fi nal section, we look at the hidden gems of the City, the smaller US fi rms that don’t get the attention they deserve and have developed focused, well-respected and successful practices in London without fanfare.

HEADCOUNTWhile Huntons may have had a diffi cult 12 months, for its US and international contemporaries 2011/12 was another broadly fl at year. The total number of lawyers at the top 50 international fi rms in London has increased slightly from 4,182 lawyers last year to 4,271 this year. Over the past four years there has been a slow decline in total lawyer headcount, and there are now 173 fewer lawyers in the City than at the pre-crunch peak of 4,444 lawyers in 2008.

Kirkland & Ellis, Greenberg Traurig Maher, Simpson Thacher & Bartlett and Vinson & Elkins all managed to buck the trend, by increasing total London lawyer headcount by more than 20% in the past year.

Vinson & Elkins increased its headcount by around 40% from 31 lawyers in 2010/11 to 51 lawyers this year. The fi rm is focused on energy and natural resources and London

managing partner Alexander Msimang believes the fi rm’s growth is due to the

tight specialisation. ‘We are able to focus on what

we are best at and we do not need scale for that,’ he says. ‘At the heart is energy and alongside everything that complements that, like projects and telecoms. And that

seems to work for us. We compete with the Magic Circle fi rms of this

world in London and if you compare our team, we are every bit as strong as

the larger players.’

GLOBAL LONDON TOTAL HEADCOUNT 1998-2011

HIRING SPREE: THE FIRMS THAT MADE THE MOST LATERAL HIRES IN 2011

Firm name Total lateral hires 2011 Star recruitsWeil, Gotshal & Manges 10 Adam Plainer from Jones Day and Stephen Lucas from LinklatersEdwards Wildman Palmer 9 Jon Yorke from Barlow Lyde & Gilbert

Reed Smith 9 Tamara Box from Berwin Leighton Paisner and Perry Yam from SJ BerwinWhite & Case 8 Lee Cullinane, Jacqueline Evans and James Dodsworth from Mayer BrownBrown Rudnick 7 Adrian Harris from Chadbourne & Parke

Jones Day 7 Matthew French from Nomura and Drew Salvest from Hogan Lovells

PARTNER HEADCOUNT BY PRACTICE AREA

TaxReal estate

Other

Disputes

Competition

Bankruptcy/insolvency

Corporate/finance

472

169

306

61 324549

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GLOBAL LONDON


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REVENUESLondon revenue at the ten largest international fi rms is up 2.5% on last year, from £824.1m in 2010/11 to £844m this year. LB only collects information on the fi nancial performance of the ten largest international fi rms in London, mainly because international fi rms are increasingly cagey about providing fi nancial information for individual offi ces, preferring not to attribute income to a specifi c jurisdiction.

Of those ten biggest fi rms, Skadden, Arps, Slate, Meagher & Flom was one of the strongest performers with revenues up by 8% to £95m, giving the white-shoe fi rm an impressive revenue per lawyer of £798,000, the highest in our group. Skadden had a strong year in both litigation and M&A, playing a key role advising Roman Abramovich in his $6.5bn dispute with oligarch Boris Berezovsky last year (see LB222, ‘Battle Royale’, page 38). The fi rm also advised ExxonMobil on its $3.2bn arctic exploration deal with Rosneft in August last year.

The biggest international fi rm in London by both turnover and headcount continues to be Baker & McKenzie, with London offi ce revenues now making up 9% of global turnover, or £122m. This makes it larger in terms of revenues than Wragge & Co, which appears at position 25 in the LB100. Bakers has 385 fee-earners in London, roughly the same size as Olswang.

Bakers has an eye fi xed fi rmly on organic growth and improving profi tability. As London managing partner Gary Senior explains: ‘It is preferable to grow through internal promotion [rather than lateral hires] because there is less of a risk of someone not fi tting in. There is a sense that we need to be

more profi table and we are seeing incremental change, as each year goes by the perception of us in the market is changing.’

While it has been a steady year for most of the larger fi rms in London, a select band of smaller, leaner practices have outperformed the market. Quinn Emanuel Urquhart & Sullivan and Proskauer Rose are two of the most obvious examples.

Despite only being open since 2008, litigation-only outfi t Quinn now has 20 lawyers in London and has offi ce revenues of £21.3m, with an eye-watering 68% profi t margin.

‘The thing that makes us stand out in terms of US fi rms is that our message is simple and clients buy into that specialisation,’ says Richard East, Quinn’s London co-managing partner. ‘London is a market in which simple direct messaging works best. All of the UK fi rms are struggling to defi ne that message in the current market.’

Proskauer Rose is another fi rm that is staying focused on a few core practice areas in London. The fi rm opened in the City in 2007 and suffered from unsuccessful merger talks with SJ Berwin. But the failed merger talks don’t seem to have dented the fi rm’s ambitions, with Proskauer picking up a number of choice hires from SJ Berwin, including funds partners Nigel van Zyl and Oliver Rochman along with six associates last year.

The fi rm is focused on building up in private investment, mezzanine fi nance and US capital markets and now has 17 fee-earners in London, including fi ve partners. The fi rm just missed out on making it into the Global London 50 fi rms but will be one to watch out for next year. ‘The strategy we have is very

REVENUES OF THE TOP TEN LARGEST FIRMS BY HEADCOUNT

Firm name London turnover London turnover % change Revenue per 2011 (£m) 2010 (£m) lawyer Baker & McKenzie 122.2 120.3 2% Ò £317,000 Latham & Watkins 119.7 107 12% Ò £557,000 White & Case 119.1 118.8 0.3% Ò £343,000 Mayer Brown 98 102 -4% Ú £333,000 Skadden, Arps, Slate, Meagher & Flom 95 87.9 8% Ò £798,000 Reed Smith 94.5 90 5% Ò £318,000 Dewey & LeBoeuf 62.5 64.1 -2% Ú £530,000 Jones Day 50 55 -9% Ú £317,000 Sidley Austin 50 49.1 2% Ò £434,000 K&L Gates 33 30 10% Ò £248,000

‘There have been around 90 moves in the London market this year. There is a real appetite for bolt-on team moves.’Guy Adams, Laurence Simons

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GLOBAL LONDON


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GLOBAL LONDON


targeted towards building signifi cant practices in London in areas in which we have a leading position in the US,’ says Allen Fagin, the former chairman of the fi rm. ‘We’ve had lawyers joining continuously. We are in signifi cant building mode,’ he adds.

PROMOTIONS AND LATERAL HIRESPromotions to partnership are up on last year. On average over the past fi ve years, 64 partners were made up annually compared to 77 new partners this year.

Arnold & Porter, which opened in London in 1997 and currently has 38 lawyers in the capital, made up one new partner in the past year. ‘We have promoted a partner for the fi rst time this year,’ says London managing partner Tim Frazer. ‘But looking at organic growth in its pure form? We have not been in town long enough for that.’

Shearman & Sterling also made up more partners than in previous years, promoting four London lawyers to the partnership. ‘Fundamentally the driver for growth is our training programme,’ says London managing partner Nicholas Buckworth. ‘There are fi rms out there that pile into the lateral market and then hope they can stick it all together. But we’ve spent a huge amount of time and effort building up our training programme and keeping our associates engaged. We are now seeing the fruits of that.’

While the appetite for organic growth may have increased, there is still demand by US fi rms to splash the cash and invest in partner-level hires. Over the course of the past 12 months, Global London fi rms made 134 lateral partner hires, compared to an average of 85 across each of the past fi ve years.

Two of the most prolifi c recruiters of the year relative to their size were Brown Rudnick and Edwards Wildman Palmer. Brown Rudnick brought in seven new partners this year – including restructuring and fi nance partners Adrian Harris and Alper Deniz from Chadbourne & Parke. The fi rm also took corporate, fi nance, litigation and IP partners from White & Case, Dublin-based McEvoy Partners, Lawrence Graham and Gide Loyrette Nouel.

The 29-partner London offi ce of Edwards Wildman Palmer made nine lateral hires this year. It brought in IP, insurance and corporate partners from Bird & Bird, Allen & Overy, CMS Cameron McKenna, Nabarro, Barlow Lyde & Gilbert, Debevoise & Plimpton and Curtis, Mallet-Prevost, Colt & Mosle.

Hiring teams of three or more lawyers has become particularly popular. ‘There have been around 90 moves in the London market this year and at least 17 moves were with teams with three or more partners,’ says Guy Adams, head of European private practice at recruiters Laurence Simons. ‘There is a real appetite for bolt-on team moves, particularly in strategic areas.’

In many ways this makes sense – teams are far more likely to bring across clients than single partner hires and they also bring across junior lawyers.

‘To have an impact on the profi t and loss, it helps to have full teams with associates, which means the team can become profi table more quickly,’ says Martin Piers, head of Europe, Middle East and Africa legal at recruiter Hudson. ‘It’s very diffi cult for English fi rms to do anything about it, whatever the restrictive covenants may say. If a fi rm can’t service the client’s needs, then they can’t kick up a stink about the client moving.’

But with most fi rms reluctant to hire aggressively, and headcount and revenues

fl at, the London market is a long way from the heady days of 2007. London

continues to act as a springboard to the rest of the world and

international fi rms don’t seem to be planning any major cutbacks in London anytime soon. LB

[email protected]

Legal Business would like to thank

AlixPartners for its support of the

Global London.

METHODOLOGYThe fi rms that appear in Global London are the 50 largest non-UK originated fi rms in London, ranked by headcount. Partner and lawyer numbers were all requested as full-time equivalent averages for 2011. All partner hires are up to and including February 2012. Total lawyer numbers include partners, associates, assistants and trainees but not paralegals. An average exchange rate for the year 1 January 2011 to 31 December 2011 was used for Global London. This was £1 = $1.64036.

‘We compete with the Magic Circle fi rms of this world in London and we are every bit as strong as the larger players.’Alexander Msimang, Vinson & Elkins

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GLOBAL LONDON


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Dubai

Dublin

Geneva

London

Moscow

Mumbai

New York

Paris

Rio de Janeiro

São Paulo

Singapore

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Partners

www.laurencesimons.com

more than a legal recruiter

Search for the Laurence Simons group on

UK & Ireland | Portia White

[email protected]

+44 (0)207 645 8516 | +353 (0)1 669 8522

Europe & Offshore | Guy Adams

[email protected]

+44 (0)207 645 8515

Russia | Oksana Solomou

[email protected]

+44 (0)207 645 8508

North America | Gary Weiss

[email protected]

+1 646 380 6860

São Paulo | Guilherme Nicolau

[email protected]

+55 11 4890 0510

Rio de Janeiro | Fernando Cavaleiro

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+55 21 2586 6378

Middle East | Louise Wall

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GLOBAL LONDON


TOP 50 (1-25)

Baker & McKenzie Offi ce founded: 1961

White & Case Offi ce founded: 1971

Reed Smith Offi ce founded: 2001

Mayer Brown Offi ce founded: 1974

Latham & Watkins Offi ce founded: 1990

Jones Day Offi ce founded: 1986

K&L Gates Offi ce founded: 2005

Skadden, Arps, Slate, Meagher & FlomOffi ce founded: 1988

Dewey & LeBoeuf Offi ce founded: 1978

Sidley Austin Offi ce founded: 1974

Kirkland & Ellis Offi ce founded: 1994

Shearman & Sterling Offi ce founded: 1972

Weil, Gotshal & Manges Offi ce founded: 1996

Cleary Gottlieb Steen & Hamilton Offi ce founded: 1971

Dechert Offi ce founded: 1972

Debevoise & Plimpton Offi ce founded: 1989

Edwards Wildman Palmer Offi ce founded: 2008

Fasken Martineau Dumoulin Offi ce founded: 2006

Salans Offi ce founded: 1992

Orrick, Herrington & Sutcliffe Offi ce founded: 1998

Covington & Burling Offi ce founded: 1988

Sullivan & Cromwell Offi ce founded: 1972

Simpson Thacher & Bartlett Offi ce founded: 1978

Milbank, Tweed, Hadley & McCloy Offi ce founded: 1979

Vinson & Elkins Offi ce founded: 1971

1

2

3

4

5

6

7

8

9

=10

=10

12

13

14

15

16

17

18

19

20

21

22

=23

=23

=25

Global London rank by no. of lawyers

Firm namedate founded

Total fee-earners

(% change year on year) Partners

English-qualifi ed lawyers

Other qualifi ed lawyers

(as % of total London partners)

Partner promotions in latest round

Change in London lawyer headcount 06-11

London fee-earners

385 (5.5%) 80 331 54 2 (3%) 322 to 385

54 (22.4%) 12 36 18 2 (17%) 49 to 54

54 (19.6%) 15 52 2 0 (0%) 50 to 54

66 (10.9%) 18 47 19 0 (0%) 34 to 66

68 (0%) 17 63 5 2 (12%) 54 to 68

69 (-20.3%) 28 65 4 0 (0%) 87 to 69

65 (-9.2%) 20 20 45 0 (0%) 56 to 65

73 (26%) 37 26 47 4 (11%) 0 to 73

79 (19%) 29 79 0 0 (0%) 0 to 79

99 (5.6%) 19 80 19 1 (5%) 83 to 99

87 (-5.7%) 18 63 24 0 (0%) 59 to 87

96 (6.3%) 29 93 3 0 (0%) 109 to 96

114 (4.9%) 25 72 42 4 (16%) 148 to 114

115 (22.6%) 44 101 14 3 (7%) 52 to 115

115 (3.5%) 39 96 19 3 (8%) 104 to 115

118 (0.8%) 33 87 31 0 (0%) 126 to 118

119 (0%) 29 99 20 1 (3%) 115 to 119

133 (3.7%) 61 132 1 1 (2%) 141 to 133

158 (-12.7%) 49 33 125 5 (10%) 170 to 158

215 (10.7%) 53 122 93 4 (8%) 124 to 215

294 (-3.7%) 90 238 56 7 (8%) 241 to 294

297 (3%) 103 297 0 4 (4%) 71 to 297

348 (3.9%) 66 310 38 6 (9%) 293 to 348

51 (39.2%) 14 35 16 2 (14%) 19 to 51

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111 (-4.9%) 26 111 0 1 (4%) 108 to 111

0 100

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300

400

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GLOBAL LONDON


TOP 50 (26-50)

McGuireWoods Offi ce founded: 2009

McDermott Will & Emery Offi ce founded: 1998

Morrison & Foerster Offi ce founded: 1980

Greenberg Traurig Maher Offi ce founded: 2009

Paul Hastings Offi ce founded: 1997

Bingham McCutchen Offi ce founded: 1973

Gibson, Dunn & Crutcher Offi ce founded: 1979

Chadbourne & Parke Offi ce founded: 1994

Gide Loyrette Nouel Offi ce founded: 2003

Dorsey & Whitney Offi ce founded: 1986

Arnold & Porter Offi ce founded: 1997

Fried, Frank, Harris, Shriver & Jacobson Offi ce founded: 1970

Brown Rudnick Offi ce founded: 1997

Ropes & Gray Offi ce founded: 2009

Wilmer Cutler Pickering Hale and Dorr Offi ce founded: 1972

Davis Polk & Wardwell Offi ce founded: 1972

Bryan Cave Offi ce founded: 1982

Fulbright & Jaworski Offi ce founded: 1972

Steptoe & Johnson Offi ce founded: 2001

Akin Gump Strauss Hauer & Feld Offi ce founded: 1997

Faegre Baker Daniels Offi ce founded: 1985

Cravath, Swaine & Moore Offi ce founded: 1973

King & Spalding Offi ce founded: 2003

Cadwalader, Wickersham & Taft Offi ce founded: 1997

O’Melveny & Myers Offi ce founded: 1986

Global London rank by no. of lawyers

Firm namedate founded

Total fee-earners

(% change year on year) Partners

English-qualifi ed lawyers

Other qualifi ed lawyers

(as % of total London partners)

Partner promotions in latest round

Change in London lawyer headcount 06-11

London fee-earners

51 (9.8%) 24 39 12 0 (0%) 0 to 51

21 (-8%) 11 18 3 0 (0%) 20 to 21

21 (-4.8%) 4 17 4 0 (0%) 61 to 21

27 (n/a) 7 5 22 1 (14%) 29 to 27

29 (1.2%) 11 20 9 1 (9%) 25 to 29

30 (-3.3%) 16 26 4 1 (6%) 32 to 30

25 (12%) 4 0 25 0 (0%) 17 to 25

30 (-10%) 11 30 0 1 (9%) 16 to 30

37 (24%) 19 33 4 0 (0%) 0 to 37

37 (60%) 15 27 10 0 (0%) 0 to 37

34 (6.9%) 10 32 2 1 (10%) 24 to 34

35 (5.7%) 7 0 35 0 (0%) 32 to 35

37 (-2.7%) 17 29 8 1 (6%) 43 to 37

38 (2.6%) 17 35 3 1 (6%) 26 to 38

40 (3.8%) 13 33 7 2 (15%) 41 to 40

40 (-3.8%) 9 31 9 3 (33%) 0 to 40

41 (-1.2%) 17 28 13 1 (6%) 39 to 41

36 (-32%) 12 20 16 0 (0%) 54 to 36

43 (-7%) 17 32 11 1 (6%) 33 to 43

47 (7.5%) 17 41 6 5 (30%) 39 to 47

48 (5.3%) 19 46 2 1 (5%) 25 to 48

48 (22.4%) 21 48 0 2 (9%) 0 to 48

48 (-10.4%) 16 45 3 0 (0%) 36 to 48

48 (-15.7%) 21 47 1 3 (15%) 71 to 48

21 (-21.4%) 7 18 3 0 (0%) 50 to 21

u

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=25

=27

=27

=27

=27

31

32

33

=34

=34

36

=37

=37

=37

40

41

42

=43

=43

45

46

47

=48

=48

=48

0 100

200

300

400

LB223 p32-33 (3) Glob Lon Main t33 33LB223 p32-33 (3) Glob Lon Main t33 33 28/3/12 12:20:1228/3/12 12:20:12


Browsing through the Jobcentre Plus website throws up a few surprises. Alongside minimum wage jobs at McDonald’s and Argos are choice positions at

international law fi rms. Gibson, Dunn & Crutcher is advertising for a contentious antitrust associate, paying £100,000 – the required candidate must have ‘knowledge of global cartel investigations within the fi nancial services sector’. Meanwhile, Wilmer Cutler Pickering Hale and Dorr (WilmerHale) is looking for a litigation associate and is willing to pay £84,000 for the right candidate with an LLM in Latin American law and ‘a solid understanding of and experience in international arbitration’.

The adverts sit uncomfortably on a site more suited to jobs on the shop fl oor than at a global law fi rm. Advertising on these websites is evidence of the changes to immigration laws over the past few years that require fi rms to jump through bizarre bureaucratic hoops, making it more diffi cult than ever to bring in internationally qualifi ed lawyers to work in London. But despite all the job ads, our data reveals that the proportion of internationally qualifi ed lawyers working in London is at a ten-year low.

Overall lawyer headcount at the top 50 international fi rms in London rose marginally this year. The number is up by 89 lawyers to 4,271, but down from an all time high of 4,444 lawyers back in 2008, and the number of internationally qualifi ed lawyers is disproportionately low.

Immigration laws are forcing international law fi rms to advertise jobs alongside retail and fast food companies. Despite this, the number of international lawyers in London is falling. Where have all the US-qualifi ed lawyers gone?BECKY PRITCHARD

SITUATIONS

VACANT

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GLOBAL LONDON


GLOBAL LONDON


Our data reveals that back in 2009, non-UK qualifi ed lawyers (the vast majority are US-qualifi ed) made up 25% (552) of the total lawyers at the ten largest international fi rms in London. By 2011 that had fallen to just 437 (20%) internationally qualifi ed lawyers in total.

Over the longer term, that shift away from international lawyers towards UK solicitors has been even more pronounced. Back in 2002, when LB began the Global London survey (then called the ‘US fi rms in London’ survey), over 30% of the 2,174 lawyers at the fi rms were US-qualifi ed. By this year that proportion had fallen to just 21% of all lawyers (see chart, ‘Proportion of international and UK-qualifi ed lawyers’, above).

Turbulence in the global economy has undoubtedly had just as much of an impact on those numbers as have the changes to immigration laws. But more importantly, international fi rms have realised the advantage of having a strong English law practice and that has meant bulking up by hiring English-qualifi ed lawyers while trimming the US-qualifi ed ranks.

Davis Polk & Wardwell has operated in London since 1972 and currently has 35 lawyers in its offi ce. However, it wasn’t until this year that the fi rm announced it was launching an English law practice for the very fi rst time. In January, the fi rm made a splash with the eye-catching hire of capital markets specialist Simon Witty from Freshfi elds Bruckhaus Deringer.

The fi rm had been looking for an English lawyer for some time and the opening of an English law offi ce in Brazil expedited the move for Witty. Much of the rationale behind that launch must be that the fi rm realised it cannot compete on the global stage without English law capability.

‘With the launch of an English law practice in London, we can strengthen our leadership in global securities offerings that we already handle in Europe, Asia and Latin America, and we can expand the services we offer in the UK,’ said Davis Polk managing partner Thomas Reid at the time of Witty’s hire.

This recognition of the importance of English law is a long-term trend that can be seen at fellow transatlantic elite fi rms that have bulked up their UK law offerings over the past decade.

In 2002, Simpson Thacher & Bartlett had just one English-qualifi ed lawyer in its 31-strong offi ce. By 2011 the white-shoe fi rm had 36 English solicitors in its 54-lawyer offi ce. And while Sullivan & Cromwell had just ten English lawyers in its 72-lawyer offi ce in 2002, by 2011 it had 20 English lawyers in its 65-strong offi ce. Of the top 50 international fi rms in London Cravath, Swaine & Moore is now the only fi rm with no English law capability.

And it is not just Global Elite fi rms that are cottoning on to the importance of having a critical mass in English law. The recent spate of lateral hires in the funds space, such as a three-partner team that left Clifford Chance for Weil, Gotshal & Manges in June 2011, and the hire of Nigel van Zyl and Oliver Rochman from SJ Berwin by Proskauer Rose in July 2011, is yet further evidence of US fi rms belatedly bulking up with English-qualifi ed lawyers. (For more in-depth analysis, see feature, ‘Major feast’, page 40.)

PROPORTION OF INTERNATIONAL AND UK-QUALIFIED LAWYERS

20112002

UK-qualified lawyers US and internationally qualified lawyers

3,374

897

1,518

656

‘The London local market may not be as strong as it was, but it acts as a bridge to the rest of the world.’Daniel O’Donnell, Dechert

‘We’ve advertised a few roles on Jobcentre Plus and had hundreds of applicants. Most are completely unsuitable.’HR manager at a major US fi rm in London

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GLOBAL LONDON


Missioncritical.Not impossible.

When it really matters.

In urgent, high-impact situations, our small teams of senior professionals improve business performance, execute turnarounds, provide dispute services, carry out corporate investigations and offer world-class interim management.

alixpartners.com


GLOBAL LONDON

‘The UK is at the centre of much of what is going on in the rest of the world,’ says Daniel O’Donnell, chief executive of Dechert, who points out the importance of having English law capability to service markets in Russia and Asia. ‘I understand the London local market may not be as strong as it was, but the reason we are here is not so much to serve the local market (although we are not going to turn away FTSE 100 clients) but to participate in the market as a bridge to the rest of the world,’ says O’Donnell.

But the other factor in the decreasing proportion of US-qualifi ed lawyers at international fi rms is, anecdotally at least, down to changes in immigration laws.

Legislative changes brought in during 2010 mean that fi rms now have to bring associates and partners who are not from the EU over on the UK Border Agency’s (UKBA) skilled worker or ‘tier 2 visa system’. In order to get a visa for their preferred candidate, fi rms fi rst have to advertise the job for a month on at least two websites that have been approved by the UKBA. For fi rms like WilmerHale and Gibson Dunn, that means sticking up a notice on Jobcentre Plus and another more tailored site, such as www.totallylegal.com.

‘We’ve advertised a few roles on Jobcentre Plus and had hundreds of applicants,’ says the HR manager at a major US fi rm in London.

‘Most are completely unsuitable. We advertised for a junior US-qualifi ed lawyer and from over 50 applications only two were suitable. When we say you have to be qualifi ed at the New York Bar, most think they just need to have worked in an actual bar in New York.’

Once fi rms have jumped through the hoops of advertising on the Jobcentre website, they then have to identify their candidate and start the visa application process, which usually takes a minimum of six to eight weeks. The added bureaucracy and admin seems to have made many fi rms more cautious about hiring international lawyers.

‘In general the visa situation has had an impact,’ explains James O’Brien, head of private practice at LPA Legal Recruitment. ‘It’s put a lot of fi rms off getting lawyers from abroad. I’ve had HR managers tell me that the rules have seemed very muddy to them and they didn’t know what was going on, so they don’t want to go through the process of getting visas.’

Vinson & Elkins is another fi rm that is keen to grow the English law side of its business but has come across visa issues. In 2008, around 40% of the fi rm’s 23 lawyers in London were internationally qualifi ed, but by 2011 that had fallen to 35% or 16 of its 51 London lawyers.

‘[The visa situation] is more onerous for admin teams, but actually we do not do much relocating of foreign lawyers to London,’ says Alexander Msimang, head of Vinsons’ London offi ce. ‘We want to be a primarily English law practice.’

In April 2010, the government also introduced a cap on the number of skilled workers that could enter the country. While the UK has consistently not met that limit, there is a worry that, once the economy bounces back, the cap could restrict the ability of fi rms to bring in the international talent they need. While all of this is relatively good news for UK-qualifi ed lawyers, it may mean that there are far fewer US-qualifi ed lawyers in the City over the coming years. But whatever the impact of immigration laws, the biggest driver to the number of US lawyers in London is always going to be client demand.

‘We don’t see it as a split between US and UK-qualifi ed lawyers,’ says Nicholas Buckworth, head of the London offi ce of Shearman & Sterling. ‘We just see it as a demand for services and the primary demand is going to be for English law services. It’s all driven by client demand.’ LB

[email protected]

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‘In general the visa situation has had an impact. It’s put a lot of fi rms off getting lawyers from abroad.’James O’Brien, LPA Legal Recruitment


GLOBAL LONDON


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Periodically the City goes through a feeding frenzy of lateral hires. In the past, fi rms have gobbled up partners in structured fi nance, restructuring and litigation. The

current plat du jour though, is funds. Be they real estate, private equity,

hedge, investment or otherwise, fi rms have recognised the importance of being able to offer the whole funds piece from cradle to grave, with the US fi rms making hay mostly at the expense of the leading UK fi rms.

Since February 2011 there have been 22 City partner hires in the funds space (see table, ‘Lateral funds partner moves in 2011/12’, page

42). Of that group 14 left UK fi rms to join US fi rms, while three went from one US fi rm to another. It is diffi cult to pinpoint a similar rate of movement in one area at any time in recent City history. To see talent seep to the US fi rms at such a fast pace must be gut-wrenching for the established leaders in the UK market, in particular the likes of SJ Berwin and Clifford Chance (CC).

In a world where English law has become the dominant force, funds work bucks the trend because much of it falls under US regulations – the recent fl urry of investment shows that deep relationships in the US are absolutely crucial to running a successful global funds practice.

With a fl urry of US fi rms luring funds partners from UK rivals, LB fi nds out why lawyers in this area are hot propertyJEREMY HODGES

MAJOR FEAST

GLOBAL LONDON


‘The ability to do the whole funds piece under one roof is the big attraction of a US fi rm.’Richard Watkins,Kirkland & Ellis

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GLOBAL LONDON


However, the activity of the global and European big players has been in decline since 2007. Global fundraising peaked that year when €485.7bn was raised by private equity houses, according to data provider Preqin. That fell to €201.8bn in 2011. European activity has dropped from €110.2bn in 2006 to €42bn in 2010. There was a slight pick up in 2011 after €44bn in funds were raised. Most of the major private equity players have raised or are expected to raise signifi cant amounts in the next six months but beyond that it is diffi cult to predict.

LOOKING BACKUS fi rms making a move into the funds space is by no means news. Since around 2003, there have been various interesting plays, particularly as the funds market started to globalise.

John Daghlian’s move to O’Melveny & Myers from SJ Berwin in 2004 has seen him carve out a successful mid-market niche acting for the secondary market as well as being a key adviser to fi rms such as Coller Capital.

Daghlian explains that, pre-2003, the vast majority of funds were private equity and venture capital with a few infrastructure and fund of funds but not much beyond that.

That began to change as funds moved to grow from their domestic markets and expand globally. There was an increase in the number of distressed and illiquid funds. ‘The volume, variety and size of funds changed. The whole market got bigger as it matured,’ he says.

Although O’Melveny’s progress was eye-catching, the fi rm never really capitalised on its initial manoeuvrings as the team has remained roughly the same size. It wasn’t until the triple partner move of Mark Mifsud, Richard Watkins and Justin Dolling from SJ Berwin to Kirkland & Ellis in 2007 that the closely knit funds world sat up and took notice.

In fairly short shrift the trio began to see work from SJ Berwin clients Candover, Apax Partners, Mid Europa Partners and Vision Capital. Allied to this was Kirkland’s enviable stock of clients, including Bain Capital, and there was genuine momentum in the US fi rm’s City funds practice. More recently the team has advised Lion Capital and AMP Capital. The proposition of a platform with deep US relationships was clearly becoming a compelling one.

Watkins suggests that when he was at SJ Berwin, around 80% of funds work was outsourced to US fi rms.

Watkins explains: ‘The ability to do the whole funds piece under one roof is the big attraction of a US fi rm. People who are currently raising funds are having to look further afi eld for capital – to be able to offer insights on investor developments globally is a real advantage.’

The success of the team at Kirkland still did not precipitate a call to arms by US fi rms. This was largely because a number of US fi rms had failed to crystallise their London and European strategies, while SJ Berwin and CC had enough business to hold on to their leading lawyers.

However, if there was one move that really started the rush it was that of Jason Glover, who left CC to join Simpson Thacher & Bartlett in mid-2010 (although he didn’t start at the fi rm until the beginning of 2011).

He embodied the quality that CC had spent so long building up and had been the target of multiple approaches by rival fi rms over a number of years. Since his move he has advised, alongside CC, on the largest post-Lehman fundraising by acting in 2011 for BC Partners on its €4bn fundraising. Glover has also scored roles on subsequent

‘It has become much more important to have the full range of services globally in your private equity offering than ever before. ’ Mike Francies, Weil, Gotshal & Manges

LATERAL FUNDS PARTNER MOVES IN 2011/12Name To From DateWilliam Yonge Morgan, Lewis & Bockius Proskauer Rose March 2012Matthew Judd Ropes & Gray White & Case February 2012Tim Pearce Akin Gump Strauss Hauer & Feld Simmons & Simmons February 2012Ian Meade Akin Gump Strauss Hauer & Feld Simmons & Simmons February 2012Noel Ainsworth Morgan, Lewis & Bockius Simmons & Simmons January 2012Jim Baird SNR Denton Dechert December 2011David Evans Goodwin Procter Ashurst November 2011Samantha Lake Coghlan Goodwin Procter Ashurst November 2011Gerard Saviola Clifford Chance Debevoise & Plimpton October 2011Stephen Sims Skadden, Arps, Slate, Meagher & Flom Macfarlanes September 2011James Tinworth Stephenson Harwood Simmons & Simmons August 2011Kate Simpson Proskauer Rose Kirkland & Ellis July 2011Nigel van Zyl Proskauer Rose SJ Berwin July 2011Oliver Rochman Proskauer Rose SJ Berwin July 2011Nick Terras Brown Rudnick Ashurst June 2011Tim Simmonds Osborne Clarke (Bristol) Berwin Leighton Paisner June 2011Peter McGowan Proskauer Rose Berwin Leighton Paisner June 2011Ed Gander Weil, Gotshal & Manges Clifford Chance June 2011Nigel Clark Weil, Gotshal & Manges Clifford Chance June 2011Nick Benson Weil, Gotshal & Manges Clifford Chance June 2011Gray Smith Mishcon de Reya Appleby May 2011Daniel Greenaway Pinsent Masons SJ Berwin March 2011

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GLOBAL LONDON


multibillion-euro fundraisings for Apax and EQT Funds Management. As one City funds partner says: ‘His move must have caused people to think that “if he can do it, then so can I”.’

WHY NOW?There are three clear reasons to explain the recent movement of funds partners in the market. The fi rst two are intertwined and the most crucial, while the third is perhaps a little more cynical.

The regulators have come down particularly hard on the global funds community of late. The regulatory burden that funds now have to bear globally is a huge strain on business, with a large chunk of it driven out of the US. In Europe there have been similar swinging changes to the regulatory landscape.

This has polarised the funds community between the large, truly global players and the smaller domestic ones. If a law fi rm targeting the top end of the market does not have quality people in Asia, Europe and the US, then it is at a distinct disadvantage.

Up and coming star Nigel van Zyl, a private equity fund formation expert who moved from SJ Berwin to Proskauer Rose along with Oliver Rochman in July 2011, says: ‘With regulatory and tax being more global and far reaching, the fi rms that do not have that are at a disadvantage.’

Proskauer Rose has long been in the market for a London funds team and, after a couple of false starts, has followed up with some interesting hires, including the 2009 recruitment of Travers Smith’s investment funds chief Bob Barry. With the highly rated van Zyl now in place, the team at this New York-based fi rm has recently won solid mid-market mandates for HgCapital and Adams Street Partners.

‘Portable business is much easier than other areas of practice. The number of relationships is far fewer, and they are highly personal relationships that are built up over many years. So they are more likely candidates for movement,’ says former Proskauer chair Allen Fagin.

Weil, Gotshal & Manges London offi ce head Mike Francies goes on: ‘It has become much more important to have the full range of services globally in your private equity offering now than ever before. It is harder to do deals without knowing how they

are structured and regulated and US fi rms certainly have the advantage.’

Francies and his team sealed the landmark hires of three funds partners from CC last year as well as a tax partner. This led to an acrimonious fall out between the two fi rms with a fair amount of sabre rattling.

Ultimately Ed Gander, Nigel Clark and Nick Benson joined the US fi rm in June 2011, which now boasts a well-rounded offering on the private equity side in the City. The team recently acted for BC Partners in a €6.5bn fundraising and has been instructed on a fundraising for 8 Miles, the Africa-focused private equity house led by Bob Geldof.

Linked to this is the fact that the largest global funds invariably have US origins, meaning that investor cash is predominantly American. David Evans, who moved from Ashurst to head up Goodwin Procter’s nascent UK practice in 2011 and specialises in real estate funds, adds: ‘Always follow the money and the reality is a lot of the money fl ows are US focused.’

‘They obviously dominate the market and as the houses have become more global with their funds the US fi rms have followed them and have picked up work. It is still very much a relationship-driven business,’ reckons David Billings, head of Akin Gump Strauss Hauer & Feld’s London investment funds group.

Akin Gump has had an investment funds team in the City for a decade with its

‘US fi rms have really picked up on fund formation work. Part of that is a natural extension of the client base.’Maurice Allen, Ropes & Gray

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GLOBAL LONDON


primary focus on hedge funds. The fi rm recently hired Tim Pearce and Ian Meade from Simmons & Simmons to build a respectable-looking fi ve-partner City funds team.

One of the more recent eye-catching moves in London was that of Matthew Judd from White & Case to Ropes & Gray. Judd, a former CC partner, has held relationships with Société Générale and ABN AMRO.

‘US fi rms have really picked up on fund formation work. Part of that is a natural extension of the client base,’ says Maurice Allen, who co-heads Ropes’ City offi ce. ‘But UK fi rms have not really gone into the US in the same way, they are not truly global.

‘There are still some standout practices at the UK fi rms, SJ Berwin and Macfarlanes, for example, but others, such as CC, have suffered something of a blow in the recent hiring spree.’

The last reason for so much movement is that funds lawyers can name their price because this small talent pool is in such high demand.

Evans suggests: ‘They recognise they are a small, in demand and liquid group of individuals and they realise that they are at the top of a sellers’ market and they want to cash their chips in.’

However not everyone agrees. James O’Brien, head of private practice at LPA Legal Recruitment, suggests that the moves have been client driven. ‘I don’t think those partners are necessarily being lured by pay packets, rather they are likely going over because it makes sense to be with a fi rm that represents their clients in the US also,’ he says.

The reality is somewhere in between the two. Clients will play a part but a US fi rm’s ability to put a couple of extra noughts onto a package to lure the right team is well known.

SUSTAINED PUSHUS fi rms are seeing a perfect storm in terms of clients and talent at the moment. However, it would be churlish to think the UK fi rms are sitting back and taking a hiding. Those worst hit by the hiring are rightly defi ant.

CC is a global practice with a large funds team and has held onto its key relationships despite the bulk of its London team leaving. Of the largest European fundraisings, the fi rm has been there in one form or another, including advising on Apax’s €9bn fundraising in August 2011. It also recently

hired counsel Gerard Saviola from Debevoise & Plimpton as a partner.

Meanwhile, SJ Berwin is, by some measure, still the number one fi rm for European funds work. According to Preqin, the fi rm has closed 13 funds in the last 12 months with a total value of $6.7bn. In fact out of the top fi ve law fi rms to advise on all European fundraisings in the last 12 months, three have been UK-based practices, with SJ Berwin, CC and Macfarlanes all featuring. Proskauer Rose and O’Melveny were also listed.

SJ Berwin’s formidable reputation continues. The fi rm argues that having more players in the City has only consolidated its position at the top of the market. This latest hiring spree has spread the talent out, which will inevitably make for a much more competitive environment. But as Weil’s Francies points out: ‘That is no bad thing. It keeps us on our toes.’

The greatest change of the past fi ve years is that CC and SJ Berwin are not perhaps as dominant as they used to be, but that doesn’t mean they are impotent forces. They just have more company at the top of the market.

The headline-grabbing moves have almost certainly come to an end now and the US fi rms have to capitalise on investments. One concern is that US fi rms are all selling similar products, leaving UK fi rms the opportunity to differentiate. The battle for market share is now well and truly on and, with more players fi ghting for a piece of the global pie, things are just about to get interesting. LB

‘Always follow the money and the reality is a lot of the money fl ows are US focused.’David Evans, Goodwin Procter

DID YOUR FIRM EXPAND INTO ANY NEW PRACTICE AREAS IN 2011?

Yes: 13 fi rms Banking and fi nance 2 Edwards Wildman Palmer; Paul HastingsCompetition 1 King & SpaldingConstruction and engineering 1 Dorsey & WhitneyEnergy 1 Cadwalader, Wickersham & TaftDisputes 2 King & Spalding; McGuireWoodsFinancial services regulatory 1 Orrick, Herrington & SutcliffeInsolvency and restructuring 2 Edwards Wildman Palmer; Shearman & SterlingInvestment management 1 Skadden, Arps, Slate, Meagher & FlomIT and telecoms 2 Edwards Wildman Palmer; Gibson, Dunn & CrutcherPrivate funds and private equity 2 Paul Hastings; Weil, Gotshal & Manges Tax 1 Edwards Wildman PalmerWhite collar 3 Arnold & Porter; McGuireWoods; Sullivan & CromwellNo: 37 fi rms

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LB223 p45 IHL ad.indd 45LB223 p45 IHL ad.indd 45 26/03/2012 15:05:2826/03/2012 15:05:28

Illustration ELLIOT THOBURN

GLOBAL LONDON


The need to differentiate in the market is paramount. Some fi rms have always been good at it, while others have struggled and fl oundered.

There is a group of US fi rms in the City that has now established its strengths. Using the benefi t of large US platforms, these fi rms have, over time, built impressive offerings in the City, be it in IP, energy, regulation or litigation.

These pockets of excellence are all over the City and, while the below list is by no means exhaustive or defi nitive, LB has picked just fi ve from a possible list of 15 that are top performers. Having a smaller, high-quality practice serves as a competitive advantage in itself. These are the less obvious fi rms that live in the shadow of larger US counterparts.

■ VINSON & ELKINS London lawyer headcount growth 2004 to 2011: 18 to 51 Speciality: EnergyLondon offi ce: 51 lawyers, including 14 partnersOffi ce head: Alexander MsimangRepresentative London work: ● Advised Tullow Oil on the sale of its Ugandan licences to China National Offshore Oil Corporation (CNOOC) and Total for $2.9bn.● Advised Statoil on the $3.1bn sale of a 40% share in a Brazilian oilfi eld to Sinochem.

Understated is rarely a term used in the same breath as Texas but Vinson & Elkins is a fi rm that has quietly built a City presence off the back of being one of the leading global energy fi rms.

Despite having a physical presence in the City since the early 1970s, the fi rm formed

a multinational practice in 1994 to start practising English law. The real growth has accelerated during the last six years, with the offi ce growing to over 50 lawyers from 18 in 2004.

At the fi rm’s core is an established energy practice. Offi ce head Alexander Msimang, who joined the fi rm from Denton Hall in 1999, explains: ‘It is quite exciting for an energy lawyer to be right at the heart of a fi rm’s focus. I might be an energy specialist but I want to do all parts of energy from M&A to fi nancing and project development.’

Vinsons has made some judicious hirings from the likes of Freshfi elds Bruckhaus Deringer and Dewey & LeBoeuf along the way. The fi rm has made six lateral hires in the last fi ve years and promoted six associates to partner in the last fi ve rounds of

LB ventures beyond the established elite to highlight fi ve practices blazing a trail in the CityJEREMY HODGES

NO STONE UNTURNED

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GLOBAL LONDON


promotions, showing a good balance between organic and lateral growth.

‘We are able to focus on what we are best at and we do not need huge scale in London for that,’ says Msimang. ‘At the heart is energy and alongside are all those complementary areas like projects, infrastructure and telecoms.’

The real success of this fi rm is that, as a whole, it is far more powerful than any one individual. Although there are a number of leading individuals like Msimang, Mark Coker and Nick Henchie – the collective of the partners appears to be a far more potent force than a prima donna-ish heavyweight.

■ ARNOLD & PORTERLondon lawyer headcount growth 2004 to 2011: 32 to 38Speciality: Regulatory, competition, IP and life sciences London offi ce: 38 lawyers, including 17 partnersOffi ce head: Tim FrazerRepresentative London work:● Advising News International’s management standards committee on criminal matters relating to the phone-hacking scandal.● Advised food production group Danisco in a cross-border patent litigation against Novozymes.

Every once in a while a fi rm wins a mandate in the City that makes the market pay attention. Advising on competition aspects of the 2010 merger between Kraft Foods and Cadbury was one such moment for Arnold & Porter’s City offi ce.

Although the team’s credentials in top-end competition work are no big secret, to advise the US food giant on its UK competition work when a handful of larger UK fi rms capable of doing the work were available is a real testament to its practice. Add to the mix competition work for tobacco giant Philip Morris and IPC Media, and Arnold & Porter is a genuine leader in the City.

On the global scene few fi rms can match Arnold & Porter’s pre-eminent IP and life sciences practice. Philip Morris has outsourced the majority of its worldwide trade mark fi ling and opposition work to the fi rm. In 2010 it successfully defended Sanofi in the foetal anticonvulsant litigation. The case was discontinued by all claimants in 2011.

The fi rm’s 17 London partners are class operators, with the majority mentioned in the latest edition of The Legal 500 UK, picking up recommendations in ten different practice area

rankings. The fi rm has achieved a great deal in all these areas but without bowling the market over with growth. The fi rm has relied on lateral growth after making 11 hires since 2006. The last 12 months have seen the addition of life sciences partner Anna Buscall, who joined from Allen & Overy. She brings with her serious heft on the transactional side. Kathleen Harris, who previously headed the fraud business at the Serious Fraud Offi ce, also joined in 2011.

Offi ce head Tim Frazer is pleased with where the fi rm is in the City but wants more. ‘We are clearly not trying to be everything to all men; we are trying to be a true leader in the regulatory sphere. I understand more the importance of developing a strategy and identifying the right people. We do not like attrition, being small it would be damaging if someone leaves.’

■ AKIN GUMP STRAUSS HAUER & FELDLondon lawyer headcount growth 2004 to 2011: 20 to 29Speciality: Emerging markets, corporate, energy and telecoms, investment funds, arbitration and taxLondon offi ce: 29 lawyers, including 11 partners Offi ce head: Steve Blakeley Representative London work:● Represented LUKOIL on the offering of $1.5bn in convertible bonds and its listing on the London Stock Exchange.● Acting for Petrobras in a $500m dispute currently before the Commercial Court. It has been described as the ‘world’s largest oil platform dispute’.

Cross-border, emerging markets and M&A: the holy trinity of a modern day corporate team. Outside of the elite, few have done as well in these areas as Akin Gump. One need only look to its work for VimpelCom on the 2011 mega-merger with Wind Telecom for which the fi rm picked up Corporate Team of the Year at the Legal Business Awards. The deal created the sixth-largest mobile telecommunications carrier globally, with net operating revenues of $21.5bn. In addition, the team acted as corporate counsel for Bridas Energy on its sale of 50% of Bridas Corporation to CNOOC for $3.1bn. With a small but potent team, the fi rm’s credentials are not in question.

The 29-lawyer team has had a City presence in investment funds for a decade and this year was boosted by the double partner hire of Tim Pearce and Ian Meade from Simmons & Simmons, marking the fi rm’s third and fourth

WHICH FIRM WILL BE NEXT TO OPEN IN LONDON?US fi rms have been operating in London for over 20 years, and since 2007 Proskauer Rose, Quinn Emanuel Urquhart & Sullivan, Ropes & Gray, Greenberg Traurig Maher and Edwards Wildman Palmer have all opened up. But there are still a few fi rms that haven’t yet made the leap to London. In this table we review the Global 100 fi rms that don’t yet have London offi ces. Who will be next?

Firm Global revenues 2010/11Foley & Lardner $633mWachtell, Lipton, $580mRosen & KatzAlston & Bird $571.2mHolland & Knight $551.7mCooley $517mWilson Sonsini $493mGoodrich & RosatiPerkins Coie $477mBaker & Hostetler $386mFish & Richardson $383.7mJenner & Block $379mLittler Mendelson $377.7mPatton Boggs $337.5mVenable $337.5m

Source: Legal Business Global 100

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GLOBAL LONDON


laterals since 2006. The fi rm could never be accused of being meteoric in its rise, but its singular and determined desire to be a leader in its core areas without having huge teams of lawyers has marked out the fi rm’s progress in recent years.

‘We want to refl ect what the fi rm is good at but only where we can see a clear rationale strategically and for the client,’ says offi ce head Steve Blakeley.

The quality of recent deals has made it easier for the team to sell its City story and Blakeley is a man who knows the legal industry inside and out, having overseen the merger between Denton Hall and Wilde Sapte in 2000 and fi lled a number of management positions.

‘We are now seeing more quality on the market than we ever have before. Some fi rms think they need an offi ce everywhere but we don’t see that as a long-term sustainable business,’ says Blakeley. ‘It is imperative that we are not diverted from our strategy by trying to pursue superfi cial objectives.’

Akin Gump is currently going through one of those blue patches that fi rms have once in a generation. The team will hope to capitalise on that to attract the sort of lawyers it needs to make the next step of its evolution a success.

■ BINGHAM MCCUTCHENLondon lawyer headcount growth 2004 to 2011: 27 to 47Speciality: Finance, restructuring and litigation London offi ce: 47 lawyers, including 17 partnersOffi ce head: James RoomeRepresentative London work:● Advising the ad hoc committee of bondholders of Petroplus, a Swiss oil refi nery group, following insolvency fi lings in multiple European jurisdictions. Total outstanding bond debt of $1.75bn.● Representing holders of more than $23bn in bonds issued by three major Icelandic commercial banks: Glitnir, Landsbanki and Kaupthing.

Bingham has stormed through the recession in the City. This culminated in 2011 when the fi rm’s London offi ce posted $49.1m in fees, equating to revenue per lawyer of $1.2m.

What stands the fi rm apart from other fi nance outfi ts in the City is the specialist knowledge that it provides to a mainly fi nancial institutions client base.

From last year’s $1.3bn restructuring of the Quinn Group to Gala Coral’s and Wind Hellas’ own restructuring, the fi rm is the go-to outfi t for bondholders, mezzanine lenders and noteholders looking for a result.

Offi ce head James Roome admits the fi rm didn’t necessarily get it right on a couple of occasions but feels the London offi ce is now pretty complete. Initial hires into the fi nance practice were more transactional and it was quickly realised that the fi rm’s clients didn’t want that capability, rather they needed an advisory practice.

The hire of former Simmons & Simmons managing partner Mark Dawkins last year into its fi nancial litigation group is symptomatic of a fi rm that’s stock is at an all time high. Not afraid to pay for the right people, newly qualifi ed lawyers can expect to earn £100,000 upon qualifi cation.

‘We have sought to grow our London offi ce deliberately over a number of years. As a largely advisory practice, it is all about the quality of the individual lawyers we have brought in,’ explains Roome.

He says: ‘We have a reasonably tight focus in London, acting mostly for fi nancial institution clients who are looking for specialist knowledge and advice rather than a full-service practice.’

■ COVINGTON & BURLING London lawyer headcount growth 2004 to 2011: 53 to 66Speciality: IP/IT, life sciences (transactional and regulatory), and litigation (fraud and arbitration)

London offi ce: 66 lawyers, including 18 partnersOffi ce head: Roger EnockRepresentative London work:● Acted for Vernalis, a life sciences company, on its recent £68.5m fundraising.● Representing Ryanair in proceedings before the Court of Appeal against the Offi ce of Fair Trading and Aer Lingus, concerning the Offi ce of Fair Trading’s investigation of the competition implications of Ryanair’s shareholding in Aer Lingus.

Since the launch of its last global strategic review in 2008, aptly called Project 2012, Covington’s City practice has stopped at little to achieve its goals. The review set out growing its pre-eminent life sciences and regulatory team in London as well as technology and media as important steps.

Hires from competitors such as Herbert Smith and Debevoise & Plimpton have been strategically targeted and are beginning to pay off. This year the fi rm hired six partners, bringing total lateral hires since 2006 to 11. The highlight of this spree was the hire of a highly regarded life sciences corporate team from Morrison & Foerster, which included Paul Claydon, Natalie Diep, James Gubbins and James Halstead. Additionally litigation partner Casey Cooper joined its white-collar crime team from Baker Botts in February.

Louise Nash, deputy managing partner of the London offi ce, says: ‘What we are seeing now are the fruits of the 2008 strategy. We achieved signifi cant European and other international growth and our 2016 plan calls for continuing that growth,

especially in London, Europe, Asia and the Middle East.’

An impressive roster of clients includes Microsoft, Merck

Pharmaceuticals, Samsung Electronics and Giorgio Armani. The team advised Axis-Shield on its £235m all-cash public takeover offer from Alere. The standout deal of 2011 was the London offi ce’s role advising, as part of a larger cross-border team,

Microsoft on its $8.5bn takeover of Skype. The large mandate really

brought its core expertise to the fore. ‘It kept our attention focused on the

strategic goals, the big picture,’ reckons Nash. ‘It became easy for us to stay on

course during a time when many other fi rms panicked.’ LB


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