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Riders on the stormAfter five years of exponential growth, six firms now dominate the Spanish legal sector. But with few high-end deals in the pipeline and strong competition in the market, only firms that can keep hold of talent – and clients – will stay the course. By Miguel Cortez There have been significant changes at the upper echelons of the Spanish legal market as a result of the transactional boom of the past half-decade. Six major law firms have formed a distinct grouping, ahead of the rest of the field in terms of financial performance and market dominance: Iberian giants Garrigues, Uría Menéndez and Cuatrecasas, and Magic Circle trio Clifford Chance, Freshfields Bruckhaus Deringer and Linklaters. However, with competition for mandates fierce, the market is preparing for a war on talent as partners’ loyalty to their firms – amid significant differences in partner pay – is being tested like never before. Successful expansion into neighbouring Portugal – where Garrigues, Cuatrecasas and Uría Menéndez have now established a leading presence – in addition to an impressive track record of high-end deals and the opening of a large number of other international offices across Europe and Asia, have led the three major Spanish firms to consolidate as true Iberian powerhouses. Corporate and finance firm Uría Menéndez is the smallest of the three, fielding some 450 lawyers, yet it remains the most admired in the Spanish legal market. ‘Uría is miles away from any other competitor in the Spanish market,’ one managing partner at an international firm comments. The firm’s managing partner, Luis de Carlos, explains how Uría progressed through the past decades. ‘From a corporate boutique in the ’80s, we expanded to become a full-service firm in the ’90s,’ he says. ‘Today, we are an Iberian firm with a strong international network of offices.’ The firm’s track record in Spain is exceptional. Together with Garrigues, Uría is considered to be one of the strongest client relationship firms in the market, an accolade demonstrated by its staggering track record of 12 IPOs out of a total of 19 since 2006 (see table, ‘Firms ranked by volume of IPOs 2006-08’, page 74). On nine of those IPOs, the firm was advising the issuer, a clear sign of its overwhelming reputation with some of Spain’s major corporates. To read the rest of this article subscribe to Legal Business. 
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