Legal Business

Orrick duo join DLA Piper to bolster financial regulatory team

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DLA Piper has bolstered its London financial regulatory capability with the appointment of Orrick, Herrington & Sutcliffe duo Tony Katz and Sam Millar.

Prior to joining the litigation team at Orrick in October 2011, both Katz and Millar, who join DLA today (5 March), worked at financial derivatives trading company Liquid Capital Group, where Katz held the position of group head of compliance and legal adviser, and Millar was general counsel.

Katz also worked for the FSA (now FCA) for a number of years as a manager in its retail policy and conduct risk division covering financial promotions: a priority area of risk for the FSA and a key element of its treating customers fairly initiative.

The new recruits bring with them experience in contentious, non-contentious and complex investigations for clients including banks, brokers, trading firms, funds, trade bodies and payment services and e-money firms, and will work alongside DLA’s non-contentious financial regulatory partner Michael McKee and the banking litigation team.

David Gray, UK head of litigation & regulatory said: ‘In the wake of the financial crisis, demand for financial regulatory and investigations specialists of the calibre of Tony Katz and Sam Millar is high, and having them on-board will significantly increase our ability to service the needs of our current and potential clients in these areas.’

JP Douglas-Henry, London head of litigation & regulatory at DLA Piper, noted: ‘Tony Katz and Sam Millar are first rate regulatory lawyers who have worked in-house, in private practice and in Tony’s case, with the FSA. As a result, they will bring an all-round perspective to the advice we provide our financial services clients.’

The news follows the announcement on Friday (28 February) that DLA has hired three Berwin Leighton Paisner partners, including head of real estate finance Laurence Rogers.

The end of last month saw DLA unveil its highest-ever gross turnover, up 1.7% to $2.48bn, while revenue per lawyer rose 3.3% to $625,000.

Profit per equity partner rose just 1% to $1.325m, as the global firm’s net income slipped 0.3% to $602m, although that still constitutes a significant improvement when compared with 2011 figures of $563m.

Francesca.fanshawe@legalease.co.uk

Legal Business

And so the tally rises, Jones Day hires fourth BLP partner since August

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Strategic recruitment Berwin Leighton PaisnerDLA PiperJones Day
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Fresh from the news on Friday (28 February) that DLA Piper has hired three Berwin Leighton Paisner partners, Jones Day has added to its own tally of laterals from the firm by recruiting banking and capital markets partner Paul Simcock.

Simcock specialises in leveraged finance and has acted for private equity sponsors, senior and junior lenders, strategic investors and corporate borrowers on leveraged acquisitions.

He also advises on debt restructurings and other distressed transactions, as well as re-financings and other syndicated and bilateral lending. In 2012 he advised Intermediate Capital Group on the £125m secondary buyout of convenience food manufacturer Symington’s from Bridgepoint. Simcock previously worked closely with BLP alumni Andrew Bamber, an acquisition finance hire from Allen & Overy, who left the firm last year.

Simcock is Jones Day’s fourth partner hire from BLP since August 2013. Earlier this month BLP’s former head of restructuring, Ben Larkin followed in the footsteps of private equity partners Raymond McKeeve and Michael Weir, who left for Jones Day’s London office last year.

The hires come after the news on Friday that BLP’s head of real estate finance Laurence Rogers has joined DLA Piper alongside commercial real estate partner Richard Hopkinson-Woolley and corporate tax partner Neville Wright. Their hire follows the arrival in September of BLP corporate partner Patrick Somers, meaning that the top Global 100 firm has also hired four BLP partners in the space of around six months.

BLP also saw its head of employment Fraser Younson join Squire Sanders in December.

The departures follow BLP’s increase in H1 revenues of 6%, after 2012/13 saw the 786-lawyer firm’s turnover drop by 5% to £233m and its profit per equity partner fall by 39%.

However, signs of an improvement in the firm’s fortunes were overshadowed in January by the news that its bank borrowing has increased by over 220% from £14m to £45m.

David.stevenson@legalease.co.uk

Legal Business

Good things come in threes…or fours: DLA Piper secures triple lateral hire from BLP

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Following the announcement last September that Berwin Leighton Paisner (BLP) corporate partner Patrick Somers had joined DLA Piper, the top five Global 100 firm today (28 February) confirmed it has secured a further three lateral hires, including head of real estate finance Laurence Rogers.

Rogers joins the 4,036-lawyer firm alongside commercial real estate partner Richard Hopkinson-Woolley and corporate tax partner Neville Wright.

Rogers’ departure, which comes days after Adam Dann was appointed as BLP’s head of finance, specialises in all aspects of property finance including investment, development and structured finance, both on UK and pan-European deals for the syndicated and securitisation markets.

Hopkinson-Woolley, meanwhile, advises a range of clients, from international investors and developers, banks and real estate funds to small private property companies and high-net-worth individuals.

Wright specialises in property tax and has experience in M&A, structured finance and corporate reorganisations.

Sir Nigel Knowles, global co-chief executive, said: ‘We are delighted to welcome Richard, Laurence and Neville to DLA Piper. The real estate market both in the UK and internationally has been growing steadily for the last year and this trend looks set to continue. The addition of this impressive team is a significant step in the implementation of the firm’s strategic commitment to the real estate sector.’

The appointments follow a run of lateral hires from BLP by top 10 Global 100 firm Jones Day, which this month took on its former head of restructuring and insolvency Ben Larkin, the third BLP partner to join Jones Day in under six months after private equity partners Raymond McKeeve and Michael Weir.

David.stevenson@legalease.co.uk

Legal Business

US financial results 2013: DLA achieves record revenue of $2.48bn as growth slows

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The highest-ever gross turnover but reduced growth figures was the message that came out of DLA Piper’s financials today (28 February), as the top Global 100 firm revealed a 1.7% increase in revenue to $2.48bn, while revenue per lawyer rose 3.3% to $625,000.

Profit per equity partner rose just 1% to $1.325m, while the global firm’s net income slipped 0.3% to $602m, although that still constitutes a significant improvement when compared with 2011 figures of $563m.

Equity partner head count dropped 1.7% to 454, as the firm’s profit margin also decreased 1% from 25% to 24%. The latest results illustrate a notable slowing of growth, albeit from a high base after two successive years of above average growth with revenue increases of 14.6% and 8.6% in 2011 and 2012 respectively.

The firm’s international limited liability partnership accounts in February revealed that the firm’s underlying debt position has improved, with net debt down by 32% from £47.5m at the end of 2011/12 to £32.4m at the end of last financial year. The firm’s cash in the bank dropped nearly 15% from £35m to £29.9m.

The results follow a period of strategic expansion over the last twelve months, during which DLA has enhanced its presence in north, southern, and eastern Africa with the addition of three new member firms to its roster. Algerian firm B L & Associés, Rubeya & Co Advocates of Burundi and Namibian firm Ellis Shilengudwa joined the 4,200-lawyer firm’s Africa Group as of 1 October 2013.

It is also now well-established that DLA is focused on creating a presence in Canada, having recently entered into talks with the now-defunct local firm Heenan Blaikie, talks which subsequently collapsed earlier this month.

Key mandates secured by the firm last year included advising on the £300m sale of iconic footwear brand Dr Martens alongside Clifford Chance, and scoring a significant victory and $28m in damages for its client China Southern Airlines (CSA), after representing the airline in the High Court last summer over a contract dispute brought by commodity trader Tigris International.

The Legal Business Law Firm of the Year 2014 also recently announced a reshuffle of its senior management, with co-chief executive Nigel Knowles set to replace Tony Angel as global co-chairman, while London IP and technology partner Simon Levine has been proposed to serve as global-co CEO.

Other internal changes at the firm, which maintains two profit pools for its US and European/international businesses, saw a pay freeze imposed on staff in Australia in June last year, while last year was the first full year since its decision to move to an all equity partnership in May 2012.

Other international LB100 firms to announce their 2013 financials this month include transatlantic firm Hogan Lovells, which yesterday (27 February) unveiled its highest post-merger global financial results, posting a fee-income increase of 5.2% while profit per equity partner (PEP) and revenue per lawyer (RPL) increased by 10% and 3.7% respectively.

Sarah.downey@legalease.co.uk

Legal Business

American without tears – succession planning at the increasingly transatlantic DLA Piper

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So the experiment ends as a qualified success. News of the early-timed succession planning at DLA Piper confirmed that well-regarded IP and technology partner Simon Levine is to assume Nigel Knowles’ role as co-chief executive, with Knowles next year taking on the role of co-chair in place of Tony Angel.

Angel, of course, had been recruited two and a half years ago to sharpen up DLA Piper’s governance, financial management and improve links with its US business. Recruiting the former Linklaters managing partner was pretty much unprecedented in the profession in terms of hiring a c-suite executive from one major firm to another, and very different institutions at that. The official message was that Knowles had spontaneously pressed his old mate to join Team DLA. There was a degree of spin in that. While the pair had long been friendly, there was pressure from the US – which had grown weary over a series of missteps in Europe and the Middle East – for Angel’s appointment.

Legal Business

DLA Piper, Slaughters and Vodafone shine in 2014 Legal Business Awards

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In what has proved the largest Legal Business Awards ever held, DLA Piper, Slaughter and May and Vodafone were last night (13 February) among the winners of major prizes in front of well over 1,000 guests.

DLA Piper was named Law Firm of the Year, ahead of a shortlist including RPC, Holman Fenwick Willan, Mishcon de Reya, Stewarts Law, PwC Legal and Axiom in the wake of two years of renewed global growth and ambition.

The night was also marked by the return of Legal Business’ GC Power List report in an expanded format, with a reception held alongside the main awards to mark the report’s 2014 launch, attended by 100 corporate counsel from bluechip companies.

The report highlighted 101 rising stars working in-house.

In the main awards, Vodafone was named In-House Team of the Year, edging out a shortlist including BT, ITV and Shell. A new category – Rising Star In-House Counsel of the Year – was won by ITV’s Barry Matthews.

The awards, now in their 17th year, were held at London’s Grosvenor House with the distinguished broadcaster Jeremy Vine hosting the evening. Other flagship awards saw disputes leader Quinn Emanuel Urquhart & Sullivan named US Law Firm of the Year, while Burness Paull won for best regional player. Leading German independent Noerr was named International Firm of the Year.

In the practice awards, Slaughters was named Corporate Team of the Year for its work on the most high-profile privatisation in a generation for Royal Mail. Disputes Team of the Year was handed to Jones Day and Memery Crystal, who stood out for their work successfully representing separate defendants in a high-profile $1.6bn claim brought by Excalibur.

RPC was named Competition Team of the Year, while Allen & Overy and Clifford Chance respectively secured awards for finance and private equity.

In the individual awards, 2 Bedford Row’s Maura McGowan QC won Lawyer of the Year for her work as Bar Council chair combatting cuts to legal aid, while DWF’s Andrew Leaitherland was named Management Partner of the Year for work in driving his firm’s dramatic growth in recent years.

Other winners included Freshfields Bruckhaus Deringer for CSR and Eversheds for Real Estate Team of the Year, while Simmons & Simmons, Mishcon de Reya and Weil, Gotshal & Manges also picked up practice awards.

The awards were held after 12 months of sustained expansion at Legal Business including a total overhaul of its website, sustained editorial investment and the launch of its acclaimed iPad edition, which now has more than 1,000 subscribers.

The Legal Business Awards and GC Power List will return in 2015 in expanded and updated format.

alex.novarese@legalease.co.uk

 

2014 winners

TMT Team of the Year – Wragge & Co

Finance Team of the Year – Allen & Overy

Restructuring Team of the Year – Weil, Gotshal & Manges

Employment, Pensions & Benefits Team of the Year – Hogan Lovells

Real Estate Team of the Year – Eversheds

Insurance Team of the Year – Simmons & Simmons

Energy & Natural Resources Team of the Year – Pinsent Masons

Competition Team of the Year – RPC

Lawyer of the Year – Maura McGowan QC, 2 Bedford Row

International Firm of the Year – Noerr

In-House Team of the Year – Vodafone

Rising Star In-House Counsel of the Year – Barry Matthews, ITV

Private Client Team of the Year – Mishcon de Reya

Dispute Resolution Team of the Year – Jones Day and Memery Crystal

CSR Programme of the Year – Freshfields Bruckhaus Deringer

Legal Technology Team of the Year – Taylor Wessing

Corporate Team of the Year – Slaughter and May

Private Equity Team of the Year – Clifford Chance

US Law Firm of the Year – Quinn Emanuel Urquhart & Sullivan

Management Partner of the Year – Andrew Leaitherland, DWF

National/Regional Firm of the Year – Burness Paull

Law Firm of the Year – DLA Piper

Legal Business

Asia round-up: DLA Piper, Hogan Lovells and Stephenson Harwood move to bolster regional networks

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Asia DLA PiperStephenson Harwood
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Despite the bearish mood that last year gripped many international law firms regarding Asia, and sustained tremors this year running through emerging market securities, a host of major advisers have kicked off 2014 with significant investments in the region, including DLA Piper, Hogan Lovells and Stephenson Harwood.

DLA Piper has hired O’Melveny & Myers partner Mark Fairbairn to head its restructuring group in Asia. Fairbairn was based in O’Melveny’s Hong Kong arm, having joined in 2008 following a five-year tenure at White & Case.His focus is on distressed and alternative investments, financial restructurings and insolvency. Counsel Ashley Bell also joins the Anglo-American giant’s restructuring group from O’Melveny. This is the third recent hire that DLA Piper has made from O’Melveny, as corporate partner Timothy Tan joined the firm’s Bangkok office last month.

Hogan Lovells, meanwhile, has scored a high-profile recruit with the appointment of Herbert Smith Freehills’ head of litigation in south-east Asia, Maurice Burke. Burke, who is set to join Hogan Lovells in May, has extensive experience on a range of commercial litigation, contentious regulatory and investigation matters throughout Asia. He will work alongside Singapore-based international arbitration partners Jonathan Leach and Paul Teo, a team that is rated in the top-tier of the recently released edition of The Legal 500 Asia Pacific 2014.

Commenting on Burke’s arrival, Stephen Immelt and Michael Davison, global co-heads of Hogan Lovells’ litigation, arbitration and employment practice, said: ‘Singapore has established itself as a hub for resolving disputes in south-east Asia. As one of the leading practitioners in the region, Maurice will further enhance our top-tier offering to clients across south-east Asia.’

Elsewhere, Jones Day has announced that David Carden, the US’s first ambassador to the Association of Southeast Asian Nations will re-join the firm as partner-in-charge of Asia. He was a partner based in New York and co-head of Jones Day’s securities litigation and SEC enforcement practice before his ambassadorship in March 2011.

Finally, top-50 UK practice Stephenson Harwood has hired DLA Piper’s Seoul office head Michael Kim as a partner in the marine and international trade practice to aid the firm’s launch in the much-touted economy. Kim will be based in the firm’s London office initially but with a planned opening in South Korea soon, Kim will be the managing partner of the new office.

He is experienced in ship finance and litigation, as well as arbitration matters. Both Kim and the firm share some clients including Export-Import Bank of Korea, STX Corporation, Daewoo Shipbuilding & Marine Engineering and Hyundai Merchant Marine.

‘As the world’s twelfth-largest economy and one of the largest in Asia, Korea is a key market for Stephenson Harwood. Michael’s appointment further strengthens our Korea practice and provides us with the opportunity to apply for a licence for an office in Korea, and in doing so, extends our Asia network,’ said Sharon White, chief executive of Stephenson Harwood.

Whatever the doubts about Asia’s medium-term prospects, it is clear that the queue of ambitious law firms looking to forge potent practices in Asia shows no sign of shortening during 2014.

david.stevenson@legalease.co.uk

Legal Business

O Canada! DLA Piper in talks with Heenan Blaikie partners to set up in Toronto and Calgary

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Long having eyed a Canadian presence, DLA Piper confirmed today (7 February) that it is in talks with a group of partners from the Toronto and Calgary offices of top-tier local firm Heenan Blaikie, which announced earlier this week that it is to wind down its operations following a wave of partner departures.

The discussions, which come as a management re-shuffle at the top 10 LB100 firm announced this week will see current co-chief executive and managing partner Sir Nigel Knowles take over from Tony Angel as co-chair, could provide a long sought after entry to a market that has in recent years seen the arrival of firms such as Norton Rose Fulbright (NRF) and Clyde & Co.

NRF announced its Canadian launch with a tie-up with local practice Ogilvy Renault in November 2010, while top 20 UK firm Clyde & Co merged with insurance specialist Nicholl Paskell-Mede the following year.

Although a ‘deal is not yet done’ with Heenan Blaikie, a DLA spokesperson told Legal Business: ‘We can confirm that we are in discussions with a group of Toronto and Calgary-based lawyers at Heenan Blaikie.’

Heenan Blaikie, which had been running for over 40 years with 500 lawyers and 600 staff across nine offices in Canada along with a branch in Paris, announced earlier this week an orderly wind-up of its operations following a wave of partner departures.

Other firms to show an interest in the departures include Dentons, which has hired around five real estate lawyers and three corporate lawyers in Toronto and Montreal.

The discussions comes as partners at DLA heard on Tuesday 4 February that DLA’s co-chief executive (CEO) Nigel Knowles will replace Tony Angel as global co-chairman in a senior management shake-up which has also seen London IP and technology partner Simon Levine proposed as global co-CEO.

Current Americas co-chair and corporate and finance practice head Roger Meltzer has been put forward to sit alongside Knowles (pictured) in the global co-chair role, while, Americas co-chair Jay Rains has been proposed as joint global CEO alongside Levine.

On the same day, the firm filed its international accounts at Companies House revealing net debt decreased by 32% while cash in the bank dropped almost 15% from £47.5m at the end of 2011/12 to £32.4m at the end of last financial year, with the 4036-lawyer firm’s cash position also down from £35m to £29.9m.

Turnover at DLA Piper International – which includes all the firm’s activities outside the US including its share of joint ventures – increased from £788m in 2011/12 to £800.4m in the last financial period, while profit available for discretionary allocation among members dropped almost 3% from £269m to £261.5m during that period.

francesca.fanshawe@legalease.co.uk

Legal Business

Updated: Management shake up for DLA Piper as Knowles takes over as global co-chair and Levine put forward for co-CEO role

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DLA Piper’s co-chief executive (CEO) Nigel Knowles is to replace Tony Angel as global co-chairman in a senior management shake-up which has also seen London IP and technology partner Simon Levine proposed as global co-CEO, partners at the firm heard this afternoon (4 February).

Current Americas co-chair and corporate and finance practice head Roger Meltzer has been put forward to sit alongside Knowles (pictured) in the global co-chair role, while, Americas co-chair Jay Rains has been proposed as joint global CEO alongside Levine.

Former Linklaters managing partner Angel will continue as senior partner until his term expires in 16 months as the international managing partner role which Knowles currently holds will be phased out.

Levine’s recommendation, which has been put forward by the executive board, needs to be approved by the international partnership and will take effect from 1 January 2015.

At a meeting today to discuss the changes Knowles said: ‘It’s about putting us in the best possible shape. Like every good global business we’re looking to innovate and evolve. After 20 years it is the right time for me to change my role. You want to go out when you feel you can do something else for the firm and I will be focussing on clients, markets and sectors, which is very much my sweet spot.’

Angel joined DLA in 2011 as the 1,300 partner firm took steps to climb up the value chain. Last year it became the largest firm in terms of revenue with income up 9% to $2.44bn, while profit per equity partner (PEP) was up by 6% to $1.3m.

He has been significant in helping to re-shape the top 10 LB100 firm – which now has nearly 80 offices worldwide – with profit per lawyer (PPL) also up 10% annually to around $150,000 as the number of lawyers decreased by 3% to 4,036 firm-wide.

DLA launched a review of its UK practice in 2012, which led to the closure this spring of its ten-partner Glasgow office and the centralisation of its UK document-production team, which is expected to lead to around 100 job losses.

The partners at today’s meeting were keen to emphasise that the management reshuffle is being put in place now to create a seamless transition. Angel said at the meeting: ‘Large global corporates plan their succession a year out to stay on track with their vision. The board made its recommendations for succession, which we feel is the right approach for us.

‘This is a collective effort and I’m pleased with what we’ve achieved. The work is never done, however.’

While it was always unlikely that Angel would stand for a further term, privately questions have been raised over the sustainability and longterm buy-in among partners of an external senior management appointment such as Angel’s.

Francesca.fanshawe@legalease.co.uk

Legal Business

LLP latest: DLA Piper’s net debt down 32% as RPC posts 21% increase in fee income

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Financial results 2012/13 DLA PiperRPC
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DLA Piper International’s net debt decreased by 32% while cash in the bank dropped almost 15% according to its most recent limited liability partnership (LLP) filed at Companies House.

Net debt was down from £47.5m at the end of 2011/12 to £32.4m at the end of last financial year, with the 4036-lawyer firm’s cash position also down from £35m to £29.9m.

Turnover at DLA Piper International – which includes all the firm’s activities outside the US including its share of joint ventures – increased from £788m in 2011/12 to £800.4m in the last financial period, while profit available for discretionary allocation among members dropped almost 3% from £269m to £261.5m during that period.

The UK, meanwhile, saw revenue decrease by 3.4% from £287.3m to £277.5m, while operating profit also fell 7.5% from £102.9m to £95.2m at the end of 2012/13.

However, both Continental Europe and the Asia Pacific saw turnover increase by around 4% to £290.1m and £210.2m respectively. Operating profit in Continental Europe grew 2.7% from £107m to £110m but in Asia Pacific it fell by 9.4% from £65.7m to £59.5m.

The biggest boost came from activities in the Middle East, where turnover increased 15.5% from £18.8m in 2011/12 to £21.7m in 2012/13, while operating profit was up from £158,000 to £2.8m in the same period.

DLA’s move to an all-equity partnership on 1 May 2012 resulted in a boost in member’s capital of £27.6m during the year, although 29 members internationally elected to remain as non-equity partners, eight of which were in the UK.

The highest paid partner received £1.8m in 2012/13, 3.3% more than the previous year.

Elsewhere, RPC posted an above average 21% increase in fee income from £67.4m to £81.7m. Costs including non-member partner profit shares rose 27%, which, the top 50 firm said, reflect significant one-off costs associated with setting up two new offices.

Profits available to members increased during the year by 8% to £26m while staff costs increased by 21% to £36.2m from £28.5m in the 2011/12 financial year.

At 30 April, the firm’s net debt stood at just over £5m – a 123% increase compared to £2.3m the previous year, while bank loans of £4.8m (£3m in 2012) are repayable by equal monthly instalments until 2017 and a further bank loan of £833,333 (£412,905 in 2012) was due for repayment in October 2013.

The estimated profit attributable to the highest paid member stood at £928,018 compared to £789,282 the previous year. The average monthly number of fee earners rose from 196 to 252 at the firm, which has invested solidly in lateral hires over the last year, including Davenport Lyons former head of banking and finance Sukh Ahark, former SJ Berwin corporate partner Anthony Shatz, and Wragge & Co former managing partner and corporate head respectively, Richard Haywood and Maurice Dwyer.

francesca.fanshawe@legalease.co.uk

sarah.downey@legalease.co.uk