Legal Business

Adviser review: Clifford Chance, Hogan Lovells and Ashurst lose out on FCA panel

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Adviser reviews AshurstClifford ChanceHogan Lovells

RPC, Norton Rose Fulbright (NRF) and Squire Patton Boggs have won panel spots at the expense of rival City outfits with places on the Financial Conduct Authority’s (FCA) roster of skilled advisers.

Clifford Chance (CC), Hogan Lovells and Ashurst all lost out on the panel, which was finalised on 1 April.

NRF won places on three lots to advise on client assets, business conduct and financial crime. Squires won a place for advice on financial crime and RPC won a role to act on business conduct matters.

CC had previously held positions in four lots on the panel, for client assets, governance controls and risk frameworks, financial crime and deposit takers.

A total of six law firms were appointed to the panel which includes accountants, financial and public relations advisers. DLA Piper, Eversheds Sutherland, and Macfarlanes all retained places, while RPC, Squires and NRF were the new additions.

One City partner at a panel firm said: ‘The FCA looks at quality and quantity, experience, pricing and project management capabilities. It’s a quite a competitive process.’

The FCA’s last panel was revamped in 2013, with the current roster set to until 2021.

CC has recently acted against the FCA in the so-called ‘London Whale’ case advising executive Achilles Marcis in a recent Supreme Court hearing.

Other recent adviser reviews have seen the Crown Commercial Services legal panel trimmed back, with its roster cut from 40 firms to 18. Meanwhile, the government has launched a tender process for a £90m finance panel.

matthew.field@legalease.co.uk

Legal Business

Hogan Lovells makes major Silicon Valley play with Weil Gotshal corporate team

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Strategic recruitment Hogan LovellsWeil, Gotshal & Manges

While the transatlantic firm has repeatedly stated its aim to bulk out its corporate weight, Hogan Lovells is expected to land a veteran team of former Dewey & LeBoeuf partners to its Silicon Valley office following a partnership vote.

Hogan Lovells is set to take on Richard Climan and a team of three other corporate partners from Weil, Gotshal & Manges, a heavyweight team that previously held talks with Greenberg Traurig and Reed Smith during their move from a collapsing Dewey in 2012. Freshfields Bruckhaus Deringer were even reportedly tempted to launch on the West Coast at the prospect of signing the team.

However Climan is now understood to be moving again, along with partners Keith Flaum, John Brockland and Jane Ross.

Climan joined Dewey in 2011 from Fulbright & Jaworski and was previously at Cooley until 2009.

Climan’s practice focuses on M&A, hostile takeovers, defensive strategies and leveraged buyouts, with specialities in the technology sector and in life sciences.

Recent clients have included Oracle on its acquisition of Responsys for $1.5bn and acting for Illumina on takeover defence against Roche in a $6.7bn bid.

While the rainmaking team are on significant pay packets, Hogan Lovells pay system has a degree of flexibility for bringing in high-profile hires, with an equity spread of around 10:1 and a 15% bonus pool.

Hogan Lovells has made clear its ambitions to reinforce its corporate offering since its 2010 merger, with early aims to bulk out its transactional capacity in London and New York.

The team move would be the most significant corporate hire for Hogan Lovells in recent years. The firm recently added three life sciences M&A specialists into its Philadelphia office, Steve Abrams, Rachael Bushey and John Duke, all from Pepper Hamilton.

Weil and Hogan Lovells both declined to comment.

matthew.field@legalease.co.uk

Legal Business

News in brief – March 2017

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Legal mergers Eversheds SutherlandFieldfisherFreshfields Bruckhaus DeringerHogan Lovells

FRESHFIELDS SIGNS 20-YEAR LEASE ON NEW HQ

Freshfields Bruckhaus Deringer has signed a pre-let agreement on a 20-year lease in February to move from existing premises in Fleet Street to 100 Bishopsgate in 2021. The Magic Circle firm will reduce its London real estate by roughly a third when it takes out 255,000 sq ft of office space.

 

Legal Business

Paris plays: Reed Smith hires eight lawyers from Winston, as Hogan Lovells and Olswang partner pair open office for Ogletree

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Europe Hogan LovellsReed Smith

In a busy week for Paris team hires, Reed Smith has taken on three partners from Winston & Strawn, while US firm Ogletree Deakins has launched its first French office with partner hires from Hogan Lovells and Olswang.

Reed Smith announced today (2 March) that it has hired an eight-lawyer team in Paris. The move includes three partners, Jean-Pierre Collet, Florence Bilger and David Colin, alongside three counsel, one associate and one jurist all joining from Winston & Strawn.

This brings Reed Smith’s Paris office to 66 lawyers, including 22 partners, and expands the Paris tax practice from eight to 16 lawyers. Collet was Winston’s head of tax in Paris, while Bilger and Colin focus on investment funds and entrepreneurs, providing tax advice on corporate transactions, as well as disputes and general tax advice.

The move comes after Reed Smith hired 18 lawyers from King & Wood Mallesons (KWM) in January this year. The firm rebuilt its ranks in Paris after last year it lost several partners in that office, including corporate partners Lucas D’orgeval and Emmanuel Vergnaud, now co-founders of Volt Associes, Alexandre Tron and Stephane Letranchant who also left later in the year to join Volt, and Anker Sorensen who left to join De Gaulle Fleurance & Associates.

‘Following on from our recent hires across corporate, tax and private equity from KWM, these additions of talented French lawyers help us provide a truly cross border transactional service to our clients,’ commented Tamara Box, managing partner for Europe and the Middle East (pictured).

Meanwhile, Olswang and Hogan Lovells partners Karine Audouze and Jean-Marc Albiol will open a third European office for US law firm Ogletree Deakins, alongside a team of 11 lawyers and staff. The firm’s presence also includes Berlin and London.

Audouze, an employment lawyer, will be the office managing partner, and was at Cleary Gottlieb Steen & Hamilton before joining Olswang. The launch comes as Olswang’s Paris office was closed this week following the three-way merger announced in September. In 2015 the office turned over £5m, and lawyers from the office had been without permanent accommodation after the lease expired at the start of this year. Several other lawyers have already left, including tax partner Julien Monsenego, who joined Gowling WLG, while office head Guillaume Kessler joined Orrick, Herrington & Sutcliffe.

georgiana.tudor@legalease.co.uk

Legal Business

‘Enduring strength’: HSF, BLP and Mayer Brown advise as £1bn offer made for the Cheesegrater

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Property Berwin Leighton PaisnerHogan LovellsMayer Brown

Herbert Smith Freehills (HSF), Berwin Leighton Paisner (BLP) and Mayer Brown are leading as Chinese Investment Group CC Land is in advanced talks to buy one of London’s landmark buildings, the Leadenhall building (known as the Cheesegrater) for over £1bn.

If completed, the deal will be one of the largest Chinese purchases of UK real estate.

The HSF team is advising joint owner Oxford Properties with a team led by real estate partner Richard Forsdyke.

Mayer Brown is acting for the other 50% owner, British Land, through real estate partners Jeremy Clay, Caroline Humble and corporate partner Richard Page.

BLP team is advising the potential buyer, CC Land, with a team led by head of real estate Chris de Pury.

Forsdyke said: ‘We are delighted to have helped Oxford over the last five years on its participation in this venture. This sale is important and shows the enduring strength of the central London business district real estate.’

HSF also advised Oxford Properties in 2011, when the £340m development of the Cheesegrater started, while SJ Berwin advised British Land.

In 2015, British Land unveiled its first panel, listing firms including Freshfields Bruckhaus Deringer, Addleshaw Goddard, HSF, Jones Day, King & Wood Mallesons, Mayer Brown and Simmons & Simmons as advisers. Last month, it added also Hogan Lovells to its roster of firms.

georgiana.tudor@legalease.co.uk

Legal Business

Trainee retention: HSF and Hogan Lovells post rates as Macfarlanes joins top of the class at 100%

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Trainee retention Herbert Smith FreehillsHogan LovellsMacfarlanes

Herbert Smith Freehills (HSF) has posted a spring trainee retention rate of 77%, compared to a rate of 94% this time last year when the firm recorded its third straight score of more than 90%.

HSF held on to 27 applicants which joined the firm as newly-qualified (NQ) lawyers, as 28 out of 33 applicants received offers, from a cohort of 35.

Hogan Lovells posted an 79% retention rate this spring. The firm had 29 qualifiers, 26 applied for the role and 23 were made offers, which were all accepted. This is similar to Hogan Lovells’ last retention round in August 2016 when its rate was 80%.

Meanwhile, Macfarlanes joined Mayer Brown and Slaughter and May as firms with 100% spring retention rates. Macfarlanes offered an NQ contract to all six trainees qualifying this March.

Macfarlanes partner and head of graduate recruitment Sean Lavin said: ‘It is always our aim to find roles for all our trainees upon qualification and we are obviously delighted to have been able to offer 100% retention for our March 2017 intake.’

Other firms to announce rates so far this spring include White & Case, which retained 88% of trainees, and Trowers & Hamlins which posted a rate of 92%. At the bottom of the table so far are Berwin Leighton Paisner (BLP) and Clifford Chance (CC) with 55% and 67% respectively. BLP only retained 11 out of 20 trainees, while CC kept 31 out of its 46 applicants.

georgiana.tudor@legalease.co.uk

Legal Business

Hogan Lovells ousts NRF to join Bond Dickinson on Crown Estate energy portfolio

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Adviser reviews Hogan LovellsWomble Bond Dickinson

The Crown Estate has awarded the legal mandate for its energy, minerals and infrastructure portfolio to LB 100 firms Hogan Lovells and Bond Dickinson.

The panel was last reviewed in 2013 when Norton Rose Fulbright was given a spot alongside Bond Dickinson. General counsel (GC) Rob Booth oversaw the tender process, which was commenced in September 2016. Booth replaced previous GC Vivienne King in May 2016.

The appointments will see Hogan Lovells advising the Crown Estate’s renewable energy business, including its offshore wind portfolio which supplies 5% of the UK’s annual electricity.

Bond Dickinson will offer advice to the Crown Estate’s minerals and infrastructure business, which covers marine aggregates and subsea cables and pipelines.

Hogan Lovells client relationship partner and chair, Nicholas Cheffings said: ‘We have acted for The Crown Estate for a number of years now and it is a treasured relationship. To win this mandate, we had to display a compelling combination of real estate, energy and infrastructure expertise.’

Booth (pictured) added: ‘We are very happy to announce these appointments, which support our continued delivery of a best in class legal service across The Crown Estate. We have great confidence in Bond Dickinson and Hogan Lovells; advising on this highly strategic portfolio of assets.’

The Crown Estate oversees an eight million square ft £7bn central London commercial property portfolio including all of Regent Street and a large portion of St James’s.

In January 2017, The Crown Estate awarded the sole mandate for this portfolio to Berwin Leighton Paisner (BLP).

Upon Booth’s appointment in May 2016, it was announced that the Crown Estate will be overhauling its sets of legal advisers.

tom.baker@legalease.co.uk

Read more: ‘A buyers’ market – The trends and traumas in adviser reviews’


Legal Business

‘Plenty of challenge’: Hogan Lovells earns 6% revenue uptick to hit $1.9bn as partner profits stall

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Financial results 2016/17 Hogan Lovells

After years of lacklustre growth, Hogan Lovells has seen a boost in global turnover of 6% up to $1.93bn for 2016. At like-for-like rates the firm said results were up around 8%, while in sterling the firm experienced an almost 20% boon due to the falling pound.

Profit per equity partner (PEP) was static at $1.3m while revenue per lawyer increased only 2% to $738,000 for 2016 from $724,000. The increase was a positive step compared to a previous RPL fall from 2014 to 2015 of 4%.

Hogan Lovells chief executive Steve Immelt told Legal Business: ‘It was a year of plenty of challenge, but we are happy with how we ended up and optimistic about 2017.’

The firm’s turnover breakdown saw the Americas bring in 52% of total billings as London and Europe together contributed 41% and Asia and the Middle East provided 7%.

Hogan Lovells’ London office enjoyed a solid year, with revenue growing 7% from £263m in 2015 to £282m in 2016.

While some former partners have questioned the potency of the London corporate offering with the imminent loss of long-term client SAB Miller following its acquisition by Anheuser-Busch InBev last year. Immelt said: ‘Our corporate practice was strong this year with London participating in the SAB Miller transaction while the US had major deals for Dell and Lockheed Martin. Clients get bought and sold, it’s an important and long-standing relationship but we are not dependent on any particular client as we’ve a diversified practice.’

Immelt (pictured) added: ‘The overall legal market has not been encouraging, but there is more complexity in work than ever before and clients need sophisticated advice and a deep sector understanding.’

The firm has continued investment in legal services, adding a new back office centre in Louisville Kentucky, which now has around 70 employees, in addition to its service centres in Birmingham in the UK and Johannesburg in South Africa.

Hogan Lovells added four new partners in the UK last year, including Pinsent Masons fintech partner John Salmon. In total, Hogan Lovells added 40 lateral partners in 2016.

Practice breakdown saw corporate handling around 32% of billings, while litigation, arbitration and employment earned 28%, government regulatory 16%, finance 14% and intellectual property, media and telecoms took in 10%.

Yesterday saw US giant Latham & Watkins post similar growth compared to the market average, growing revenue 7% to $2.8bn. PEP broke the $3m mark for the first time, while revenue per lawyer rose 2% to $1.23m

matthew.field@legalease.co.uk

 

Legal Business

Staying put: Hogan Lovells halts London office HQ search

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Hogan Lovells

Hogan Lovells has opted against moving its London headquarters, preferring to stay in its long-term home of Atlantic House instead. However, the firm is persisting in its search for new space for its offices at 21 Holborn Viaduct and Meridian House.

The decision comes after the firm was able to negotiate a favourable deal with its existing landlord, Deka Immobilien Investment.

Last year, Hogan Lovells began a search for a new headquarters, instructing Cushman & Wakefield to find 350,000 sq ft of office space.

But the firm, which recently posted an 8% increase in turnover outside the US, has halted the search in favour of remaining in its Atlantic House HQ, which it has occupied since 1977.

Hogan Lovells’ managing partner for the UK and Africa Susan Bright said in a statement: ‘After looking at a number of options in the market and having had positive discussions with our landlord, Deka Immobilien Investment, we have decided to remain in Atlantic House until our lease expiry in 2026, during which time we plan to undertake a refurbishment to ensure the space best meets the future needs of our business.

‘We continue to consider our options for 21 Holborn Viaduct and Meridian House.’

In addition to the increase in turnover covering the firm’s operations outside the US, Hogan Lovells has also seen a significant boost in PEP for the 2016 financial year. Equity members took home on average £879,000 this year, a 26% increase from 2015’s figure of £698,000.

The firm began 2017 with 29 partner promotions, with three new partners in London. The new City partners were Richard Goss in banking, Nathan Searle in international arbitration and Tarek Eltumi in project finance.

tom.baker@legalease.co.uk

 

Legal Business

Hogan Lovells International posts 26% PEP boost as firm moves to pay down pension liability

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Financial results 2015/16 Hogan Lovells

Hogan Lovells International, which covers the firm’s operations outside of the US, has seen an 8% increase in turnover compared to the previous year, according to the firm’s filings on Companies House. This saw revenue jump from £591m in 2015 to £638.2m for the year ended April 2016.

An increase in turnover has coincided with a boost in profit per equity partner (PEP). Equity members took home on average £879,000 in 2016, a 26% increase from 2015’s figure of £698,000. The average number of members at the firm has remained effectively the same, increasing to 303 from 302.

For the calendar year 2015, Hogan Lovells’ global PEP was £817,000. This means PEP outside the US is 8% higher than the firmwide figure.

There was also a rise in the number of fee earners at the firm. An increase from 1,531 in 2015 to 1,564 in 2016 saw staff costs rise 4% from £254m to £264m.

Partners at the firm are also set to pay in additional capital as part of a drive to boost Hogan Lovells’ capital reserves. These payments will increase by 8% per year until 2021, equating to around £10m each year.

According to the accounts, the firm last valued its pension scheme in April 2015 and the valuation showed a deficit of £5.1m. The firm paid deficit contributions of £1.5m for the year ended 30 April 2016, and has plans to pay £1.9m until April 2019 and £0.6m in May 2019.

At the start of the year, the firm promoted 29 new partners, including three in London. This round of promotions is an increase on 2016’s figure, where 24 lawyers were promoted to partner.

tom.baker@legalease.co.uk