| April 2007 Issue 173 |
This issue marks our ninth annual Global London survey, our most extensive yet in terms of data and analysis. Despite the continued bull market in European M&A, the number of lawyers at US firms in London has actually decreased for the first time since our survey began in 1999 (see analysis, p46). In this new era, the top US firms in London have largely reached their critical mass targets and are now about strategic growth through select laterals. In terms of the numbers, the development is a winning one. Despite contending with the continued weakness of the dollar, Global London firms grew revenues by 17% to £1.4bn last year compared with a 13% rise for the year-end April 2006 among UK firms. If the LB100 included Global London firms, 27 would make the cut. Revenues per lawyer at top US firm Sullivan & Cromwell are more than double that of its nearest UK rival, Freshfields. According to one partner at New York firm Cravath, Swaine & Moore, many second-tier US firms, buoyed by strong growth in the Eurozone, now find it easier to crack London than they do New York. A sobering thought for those City law firms who concede that battles for corporate and finance work – the two areas that US firms are overwhelmingly hiring in – will become even more competitive as the froth inevitably evaporates from the ‘toppy’ European M&A scene. One US firm that might be in the market for a big-name lateral is Cadwalader, Wickersham & Taft, which lost restructuring star and London managing partner Andrew Wilkinson to Goldman Sachs (see p20). Wilkinson made his name representing bondholders on some of the biggest restructurings in recent years, yet was not known for his team-building skills. Hence, most of the likely targets for recruitment are ex-Cadwalader partners at the likes of Bingham McCutchen, Kirkland & Ellis or Clifford Chance, none of whom will relish returning to their former stomping ground. As LB went to press, the firm confirmed that the position of London managing partner would not be replaced. Litigation partner Michelle Duncan will oversee administration issues for the office (and continue to fee-earn) and the London restructuring team will be managed by NYC-based partner Bruce Zirinsky. With the firm’s NYC office celebrating the recruitment of four partners from rival Weil, Gotshal & Manges (see p32), the difference in profile between Cadwalader’s London and New York offices could not be more acute. James Baxter, editor
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