Legal Business

‘A well-kept secret’ – inside Covington’s City corporate push

While other flashier US firms might attract more headlines for their London growth strategies, Covington & Burling has for some time been building up a sizeable presence in the capital.

Over the last decade, the firm’s City base – which dates back to 1988 – has grown its headcount by around 50%, and is now home to around 140 lawyers.

And 2024 saw the firm make bold steps in the City corporate market with a trio of high-profile lateral hires from Sidley Austin – M&A partner Phil Cheveley, private equity partner Lyndsey Laverack and private equity real estate partner Jade Williams-Adedeji.

‘Covington has always wished to keep the focus on the great work of its clients and shied away from publicity for its own sake,’ said Laverack. ‘The firm is a bit of a well-kept secret, notwithstanding the fact that we’ve been in London for nearly 40 years.’

Other major City hires last year included the addition of Adrian Chiodo from Paul Hastings to lead the firm’s European leveraged finance practice – and the firm’s growth in London is far from over, according to Washington DC-based corporate head Catherine Dargan.

We have been investing in London for some time, and we expect that to continue,’ explained Dargan. We remain committed to strategically identifying and pursuing lateral hires and are always open to opportunistic additions. However, we are not focused on growth for growth’s sake. We are eager to grow in London, but we are determined to do it the right way.’ 

The firm’s most recent hire, Cheveley, who joined in November, brings a wealth of experience from firms including legacy Shearman & Sterling, where he served as EMEA and Asia M&A head, and Travers Smith, where he spent 17 years and was head of corporate M&A and equity capital markets.

Cheveley described Covington as an ‘excellent fit’ for his practice, emphasising the firm’s focus on healthcare and life sciences – for which it has a top-tier London practice – as well as technology and financial services. ‘Covington already has a strong M&A practice in London, but the opportunity is there to further deepen the bench strength,’ he said. 

‘The firm has excellent relationships with marquee clients globally, and there’s huge potential to further leverage and enhance those relationships to win increased volumes of transactional mandates from them.’ 

Cheveley’s arrival was preceded by Laverack and Williams-Adedeji also making the move from Sidley in July, and he described being reunited with his former colleagues as ‘a very happy coincidence’.

‘I’ve known Covington for quite a number of years; over time, we had some high-level discussions, but things fell into place shortly after Lyndsey and Jade – people I’ve always enjoyed working with – decided to move. My decision, however, was almost entirely independent of their move.’

The hires take lawyer count in Covington’s London corporate practice to more than 60, sitting in a global team of approximately 330.

The lateral investment investment comes amid a broader pickup in M&A activity, which Cheveley expects to continue, driven by favourable financing, emerging alternative capital, potential US tax cuts, and a shift toward lighter regulations and more deal-friendly merger controls. 

However, he cautioned: ‘There is naturally uncertainty around what form these reforms will take and the impact they will have. This uncertainty, coupled with the fundamental frailty of a number of national economies, would suggest that the return to high levels of M&A activity remains some way off, with only a modest improvement in the early part of 2025 as the new transacting landscape is established.’ 

Across private equity, Laverack noted that digital infrastructure and renewable energy are key areas of focus. She added: ‘We also expect to see continued investment in the fintech area, specifically in payments and money transmission, and increasing use of crypto currencies on those platforms. We are [also] still seeing strong interest in senior living and other living sectors.’ 

As for the recent wave of lateral moves at other firms, Dargan argued that some of these moves are ‘more defensive than offensive’, and that Covington’s all-equity partnership is a clear differentiator when looking to attract talent.

‘Globally, there is significant movement among firms, with lawyers seeking different platforms or higher compensation. We are fortunate to operate with a single-tier partnership, which means laterals are joining us primarily for the value we offer – our platform, culture, relationships, and broader expertise.’ 

elisha.juttla@legalease.co.uk