Caribbean Offshore Report: The vital signs

Posted on |
Caribbean Offshore Report: The vital signs

Driven by different dynamics, the Cayman Islands, the British Virgin Islands (BVI) and Bermuda have each experienced their own problems in the Covid era – much like the rest of the world – but collectively and individually these sophisticated legal jurisdictions have continued to fare well. Driven by experienced and talented lawyers, strong commercial nous and a well-honed judicial system, the leading global players in the Caribbean can take whatever is thrown at them.

As all jurisdictions were forced to adapt quickly to the coronavirus pandemic, the Caribbean was no exception, with working from home and reduced contact due to social distancing swiftly becoming the norm. The climate has not been without its challenges as multiple lockdowns forced local businesses to suffer and caused substantial disruption to many in the hospitality sector. Indeed, the region’s once-thriving tourism industry continues to stall as travel levels remain low compared to pre-pandemic times – an inevitable blow for Bermuda, the BVI and Cayman – given their significant reliance on international cash injections into the local economy. Continue reading “Caribbean Offshore Report: The vital signs”

Africa focus: Rising again?

Posted on | and
Africa focus: Rising again?

While the same old story of political volatility continues to pervade in Africa, a bullish M&A market and renewed optimism driven by a pan-Africa trade agreement makes the continent hard to ignore for law firms.

For Herbert Smith Freehills (HSF), an ongoing commitment to Africa has played an important role in galvanising its place among global firms. London and Paris offices have targeted the continent for decades, while the launch of a Johannesburg office in 2015 took its ambitions a step further. Nina Bowyer, the Paris-based co-head of HSF’s Africa group is very much alive to the challenges: ‘Obviously, Covid has crippled a number of economies across the world and Africa is no exception. Finding the necessary resources to tackle some of the challenges will continue to be difficult. Continue reading “Africa focus: Rising again?”

Euro Elite Overview: Sterner stuff

Posted on |
Euro Elite Overview: Sterner stuff

In what should be difficult times, our annual Euro Elite survey finds the 100 leading firms across more than 40 jurisdictions largely in great shape and looking forward to 2022 – with clearly no room for doom and gloom.

The European Commission’s Winter 2022 Economic Forecast projects that, following a notable expansion by 5.3% in 2021, the EU economy will grow by 4% in 2022 and 2.8% in 2023. Growth in the euro area is also expected at 4% in 2022, moderating to 2.7% in 2023. The EU as a whole reached its pre-pandemic level of GDP in the third quarter of 2021 and all member states are projected to have passed this milestone by the end of 2022. The comments coming back from the leading independent law firms across the region reflect this macroeconomic picture – they are generally in rude health. Continue reading “Euro Elite Overview: Sterner stuff”

Euro Elite Baltics: Closer together

Posted on |
Euro Elite Baltics: Closer together

The relatively small markets of Latvia, Lithuania, and Estonia enjoy a strong reputation for legal know-how on behalf of international investors, which has ensured that the bigger Baltic firms were able to weather the consequences of the Covid-19 pandemic unscathed, easily changing emphasis to respond to quickly shifting and time-sensitive legal mandates.

Consequently, there is a general pattern that has developed since 2020: many reported a momentary freeze in work in the early months of the pandemic. This led to an increase in contentious corporate disputes, restructuring, and refinancing, all expected consequences of an economic downturn. Continue reading “Euro Elite Baltics: Closer together”

Euro Elite Benelux: Full steam ahead

Posted on | , and
Euro Elite Benelux: Full steam ahead

Independent law firms across the Benelux region have gone into 2022 with a renewed sense of optimism, with them successfully withstanding the challenges of Covid-19 to continue winning exciting new mandates. Reflective of the buoyant mood of the market, at Stibbe, Brussels managing partner Wouter Ghijsels says: ‘Last year was our best year in terms of turnover. Our office is growing, and things are actually going extremely well in Brussels.’

Deal activity in Belgium has remained high since summer 2020, with firms reporting unprecedented demand from clients, as pre-pandemic trends in debt markets reassert themselves. 2021 saw an increase in activity from private equity funds, with the TMT, logistics and industrial sectors doing particularly well. Real estate, after a period of uncertainty, has once again become a sought-after asset, with centrally-located office space, logistics property and data centres in particular proving attractive targets for international investors, REITs and portfolio holders. Continue reading “Euro Elite Benelux: Full steam ahead”

Euro Elite CEE: The middle ground

Posted on | and
Euro Elite CEE: The middle ground

Compared to previous uncertainty faced across the CEE region at the start of the pandemic, countries have started to recover well with transactions regaining speed. For independent and regional law firms, market conditions are favourable, and firms with office networks that span the region are well placed to handle increasingly cross-border transactional work. As US firms continue to gradually scale down their operations in jurisdictions across the region, many lawyers have become wary of working for the big international players, which is a boon for more localised firms.

In Poland, where the legal market has remained strong and withstood the effects of the pandemic considerably well, law firms are benefiting from continued growth in the economy. Poland also continues to see international inward investment and its geographical position places it at the crossroads of numerous transport routes across Europe, both of which are factors enabling its continued economic success. Continue reading “Euro Elite CEE: The middle ground”

Euro Elite France: Vive l’autonomie

Posted on |
Euro Elite France: Vive l’autonomie

The second year of the Covid-19 crisis has seen French firms busier than ever. Following an initial slowdown between March and May at the beginning of the pandemic, the Paris market has more than picked itself up since early summer 2020. As corporates and investors adapted to life under Covid rules and French courts opened up again, firms across all areas of the legal market report extremely high levels of activity.

As interest rates remain low, firms are struggling to keep pace with the big appetite for mergers and acquisitions. LBO specialists in particular shouldered more transactions in 2021 than in the year before the pandemic hit. The Paris fund formation teams also report a buzzing market, partly caused by a necessity to fund restructurings, but mainly driven by the economy’s staggering comeback. In the venture and growth capital scene, the extremely busy market, and in particular the heavy investments made by US and UK investors, has caused a rise in the number of new firms specialising in venture and growth capital transactions. Continue reading “Euro Elite France: Vive l’autonomie”

Euro Elite Germany: Bouncing back

Posted on |
Euro Elite Germany: Bouncing back

At the beginning of the Covid pandemic, German law firms found themselves wary of what the future might hold and prepared for the worst. Two years on, most say their fears were unwarranted – several firms have reported the last financial year to be their strongest to date. ‘The pandemic has shown the enormous resilience of the independent law firm model,’ says Alexander Ritvay, co-managing partner at Noerr. ‘The legal market in Germany recorded a 6% revenue increase in 2020 [to €253m]. We outperformed the market, as we increased our top line by 10%. The ongoing year is also looking quite strong.’

This optimism can, in part, be attributed to the fact that the predicted big slump in commercial and corporate mandates never arrived. M&A, private equity and restructuring are identified as current key drivers of activity in the legal market. ‘With the low interest rates and the liquidity that’s in the market, we believe that transactional activity – both domestic and foreign – will continue and probably increase in the forthcoming 12 months,’ says Ritvay. ‘This is likely because there is also significant reorganisation as well as restructuring going on in many industries.’ Continue reading “Euro Elite Germany: Bouncing back”

Euro Elite Iberia: Aiming high

Posted on | and
Euro Elite Iberia: Aiming high

Though the landscape has shifted as a result of the pandemic, the entry of international players and the ongoing digital transformation, independent law firms in Spain and Portugal continue to rise to the occasion.

The M&A market took an inevitable knock due to Covid-19, but Spanish firms’ optimism appeared justified, with high liquidity and low interest rates continuing to fuel M&A activity in 2021. ‘There has been strong investor interest in sectors such as renewable energy, technology, real estate, health, finance and agri-food,’ notes Fernando Vives, executive chair of Garrigues. Continue reading “Euro Elite Iberia: Aiming high”