Legal Business

Hogan Lovells triples Australian partner headcount with new hires

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Strategic recruitment Hogan Lovells
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Having long voiced its intention to boost revenues in the Asia-Pacific region Hogan Lovells has recruited four new partners to expand its operations in Australia, hiring Scott Harris from DLA Piper, Richard Hayes from King & Wood Mallesons (KWM), and Gilbert & Tobin duo Andrew Crook and Ros O’Malley.

The hires will bring the firm’s partner headcount to six in Australia where they will ‘help spearhead the growth of the firm across a number of key practice areas.’

Harris served as DLA Piper Australia’s restructuring group head in Sydney, and previously worked for Hogan Lovells in London for five years; while finance specialist Hayes was the ‘lead contact’ for the acquisition and leveraged finance practice at KWM in Australia. He has previously worked at Allen & Overy’s London office and with White & Case as a partner in New York. Crook and O’Mally join from local firm Gilbert & Tobin, where they specialised in private equity and project finance respectively.

Hogan Lovells Asia Pacific and Middle East managing partner Patrick Sherrington said: ‘We have deliberately taken our time to choose the right partners that are the perfect strategic and cultural fit. This is a long term investment that demands considered and not hurried decisions.’

Global chief executive Steve Immelt said the new partner hires are ‘executing a strategy that brings together the best people in the market’.

He added: ‘Hogan Lovells’ entrance into the Australian market is informed by a clear and consistent strategy to build a focused practice with ambitious and collaborative partners who are at the top of their game. Australia is an economy that has real significance for clients globally and, in particular, throughout the Asia Pacific region.’

Immelt has previously expressed his intention to better revenues across the firm’s Asia & Middle East offering, which is headed by disputes partner Sherrington and has significantly lagged behind. The region made up only 7% of total billings in 2015, the same as the year before.

The firm established a presence in Australia last March with former Allens partners Nicky Lester and Tim Lester in Sydney and Perth respectively. At the time the firm said it wanted to target Australian entities extending their operations into emerging markets such as Africa and to ‘allow the firm to leverage opportunities’ from cross-border trade flows to and from Australia from South East Asia, Japan and China.

sarah.downey@legalease.co.uk

Legal Business

Revolving doors: KWM adds one in London while Hogan Lovells makes key international hire

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Strategic recruitment Hogan LovellsKing & Wood Mallesons
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Despite axing 24 partners from its legacy SJ Berwin practice, King & Wood Mallesons (KWM) has hired one in London, while Hogan Lovells has made a key appointment in the US.

KWM has added to its London office with the hire of a new corporate partner, M&A and ECM specialist Greg Stonefield. Joining from Mayer Brown’s corporate and securities practice, Stonefield has wide sector experience across a range of industries including real estate, oil and gas, mining and metals and telecoms. Senior partner of Europe and Middle East Stephen Kon said Stonefield’s appointment will add depth to help the firm achieve its ambition to be one of the global elite. He said: ‘Greg’s hire supports the core strategic areas for the firm and our clients, and will further enhance our international reputation in European capital markets and corporate M&A.’

In international appointments news, Julie Brill will join Hogan Lovells’ Washington DC office as partner and co-director of the privacy and cybersecurity practice following her term as a commissioner at the Federal Trade Commission. Prior to serving on the Commission, Brill was an Assistant Attorney General in the states of North Carolina and Vermont for over 20 years. Co-director of the firm’s privacy and cybersecurity practice Marcy Wilder commented: ‘Julie brings immense substantive knowledge, enormous energy, and great enthusiasm to our privacy practice.’

Meanwhile, Matthew Getz will join Boies, Schiller & Flexner’s London office as partner in its international disputes and regulatory practice. Joining from Debevoise & Plimpton and qualified in both England and New York, Getz has advised large multinational companies in some of the world’s biggest ant-corruption internal investigations. With the expectation investigations and white collar practice will continue to be a core focus of the firm in future years, managing partner Jonathan Schiller noted Getz’s hire is part of a substantial increase to the resources the firm devotes to government investigations and internal investigations.

madeleine.farman@legalease.co.uk

Legal Business

Revolving doors: Linklaters, Hogan Lovells, Mayer Brown reach into lateral hire market

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Strategic recruitment Hogan LovellsLinklatersMayer Brown
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In a busy week for Global 100 firms, Hogan Lovells, Mayer Brown, and Linklaters have all added to their partner ranks across a diverse range of practice areas.

Hogan Lovells has made two laterals as it strengthens its executive compensation and share incentives capability. Paul Randall joins the firm as its new co-head of the executive compensation and share incentives team. He was previously at Ashurst where he was head of employee benefits and incentives. Hogan Lovells has also hired Allen & Overy’s Stefan Martin, who has joined as partner.

The firm’s head of London employment, Elizabeth Slattery, said: ‘Stefan and Paul are well-respected in the London market and very experienced. Their arrival significantly bolsters our employment and executive compensation and share incentives offering and they will be a tremendous asset to our UK and global teams.’

Meanwhile US firm Mayer Brown has again added a City finance partner in Kieron Dwyer from Gowling WLG, where he was partner and head of international energy and natural resources and established the energy and infrastructure finance practice at legacy firm Wragge & Co.

Co-head of the global finance practice at Mayer Brown, Dominic Griffiths, said: ‘We are seeing an increasing appetite from our clients for structured finance expertise in the energy market and Kieron’s in-depth experience in this sector and project finance in Europe, Africa and the Middle East will further boost our global offering.’

Finally, Linklaters has hired white-collar crime and civil litigator Adam Lurie as a partner in its US dispute resolution practice. Joining from Cadwalader, Wickersham & Taft, he will head Linklaters’ Washington litigation and government investigations practice.

The head of Linklaters’ global US practice Scott Bowie said Lurie’s hire was one of a series of moves.

‘As US law in the context of increasingly complex regulatory regimes is progressively shaping and governing cross-border transactions and disputes, building a strong and global US platform is integral to our strategy. Adam’s hire is a key development in progressing Linklaters’ global ambitions to strengthen further our government risk, FCPA and civil litigation offering.’

Elsewhere, Travers Smith has confirmed the appointment of partner Edward Smith, who joins the firm’s restructuring and insolvency practice. Smith joins arrives from K&L Gates, where he was a partner in the firm’s bankruptcy/insolvency practice group.

The firm’s head of finance, Matt Ayre, commented: ‘Edward is a hugely experienced restructuring lawyer, who will add further depth to our existing capabilities. His arrival demonstrates our commitment to providing clients with first-class specialist restructuring expertise and will strengthen our position in the marketplace.’

madeleine.farman@legalease.co.uk

Legal Business

‘There’s a flat legal market’: Hogan Lovells blames low revenue and profit growth on currency fluctuations

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Financial results 2015/16 Hogan Lovells
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Nearly six years on from its transatlantic union Hogan Lovells continues to post modest financial growth as its results today (16 February) showed revenue for the calendar year increased by 2.3% to $1.82bn in 2015 from $1.779bn in 2014 while profit per equity partner (PEP) increased by 2.7% to $1.250m from $1.217m.

Meanwhile revenue per lawyer (RPL), decreased by 4% to $723,698 in 2015 from $753,974 in 2014. Notably last year chief executive Steve Immelt (pictured) said he aimed to increase the firm’s RPL figure ‘so that it’s tracking more closely our increase in revenue.’

The firm said in a statement that with more than 40% of billings in London and continental Europe, the stronger dollar and weaker euro and sterling adversely impact results when reported in dollars. Factoring out the impact of currency on the results, revenue increased by 8.2%.

Immelt said: ‘We’re pleased to have revenues up but you really have to take into account the currency effect that underlines that – only half of our billings are in dollars so when other currencies go down it dampens our dollar reporting. Our PEP is also affected by the number of markets we operate in. We succeeded our targets.’

‘We continue to work on the profitability of the firm – that’s like saying the sun is coming up tomorrow. It’s important we continue to be focused on levels of profitability and focus on RPL. Globally the sense is there’s a flat legal market – it’s very different to how it was ten years ago.’

Another senior management figure at the firm told Legal Business: ‘One of the issues when you’re full service, and in most places, doing most things, you get the advantages of that, but not the complete highs it brings to people in certain economic conditions. You can’t fully utilise opportunities compared to those firms who specialise.’

It is the second consecutive year of disappointing financials after last year the firm posted a modest revenue increase by 3.6% to $1.779bn from $1.718bn in 2013, while PEP was flat with a 0.8% uptick to $1.217m.

Geographically, a revenue breakdown showed the Americas represent approximately 50% of total billings, while London and Continental Europe together made up 43%, and Asia and the Middle East totalled 7%. Immelt added that the firm has no plans to open any offices this year.

By practice, corporate represented approximately 32% of total billings, while the litigation, arbitration and employment group made up 28%, followed by government regulatory at 16%, finance with 14% and IP, media and technology generating 10%.

Internally the firm promoted 24 last January and another 24 this year, as well as an additional 35 lateral partner hires globally in 2015 – of which a third were recruited in Asia. The firm intends to make ‘further significant investments there in 2016.’

sarah.downey@legalease.co.uk

Legal Business

Revolving doors: Nabarro, Pinsents and Hogan Lovells make key hires

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Strategic recruitment CMS UKHogan LovellsPinsent Masons
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Several firms have made noteworthy strategic appointments in the past week, with Nabarro, Pinsent Masons and Hogan Lovells all adding to their benches.

Nabarro is building up its construction practice with the dual hire of partners from Irwin Mitchell and Pinsent Masons. The firm has added David Parton, Irwin Mitchell’s head of construction, as well as Chris Hallam who was a partner in Pinsent Masons’ transactional construction team. Nabarro senior partner Graham Stedman said: ‘Investing in our four sectors is a fundamental commitment as part of our strategy. This is proof of that commitment and focus.’

Going the other way, Pinsent Masons has taken three lawyers from Watson Farley & Williams (WFW). The firm has appointed energy and infrastructure planning specialist Gareth Phillips and two of his team members. Phillips had led the planning practice at WFW and joins as part of a major targeted investment into Pinsents’ planning and parliamentary team which now has over 100 lawyers in the UK including over 40 specialists based in London.

Allen & Overy, which suffered the exit of an eight lawyer team to BonelliErede last week, will also farewell Dusseldorf partner Birgit Reese, who is joining Hogan Lovells. Reese is an M&A lawyer who focuses on insurance and reinsurance companies. She is expected to start at Hogan Lovells this month.

Hogan Lovells global head of corporate David Gibbons said: ‘Birgit considerably enhances our leading Germany practice and illustrates our on-going commitment to one of our key markets. Her strong reputation for providing practical solutions to complete complex transactions is right in line with how we serve clients.’

Finally, the world’s second biggest law firm by revenue, Baker & McKenzie, has made a high-profile hire with the appointment of former Canadian Attorney-General Peter MacKay. MacKay joins as partner in the firm’s Toronto office from today (1 February). He has more than 20 years of experience as a member of the House of Commons and has served in senior roles in the Canadian government.

victoria.young@legalease.co.uk

Legal Business

Cash levels drop at Hogan Lovells as PEP dips below £700,000

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Financial results 2015/16 Hogan Lovells
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The international arm of Hogan Lovells, which covers all offices outside the Americas, suffered an 11% fall in profits per equity partner (PEP) in 2014/15 as revenue and profits suffered.

Revenue generated by Hogan Lovells International dipped 2% from £604m to £591m in the 12 months to 30 April 2015, with operating profit down 8% to £184m as a result.

While the firm maintained its debt free position, cash flow was heavily impacted by the drop in income, with cash at the end of the year 84% below the £57m balance at the end of 2013/14. On 30 April 2015 it was just £9m. Nonetheless, the group’s £60m bank facility remained untouched.

Costs also rose, with staff expenditure up £3m to £254m last year despite a drop in the number of employees. With profits dented, PEP across the group fell by 11% to £698,000. Key management took an even bigger hit, with take-home pay across the firm’s biggest earners down 12% to £7.9m.

The filing also shows that partners injected £7.2m over the period to take members’ capital to £48.8m. This is largely due to the tax changes imposed on non-equity partners at LLPs, introduced by UK HM Revenue & Customs which impacted the majority of UK law firms.

The international arm is off the pace compared to its US unit, which carried the firm towards global growth in 2014. The firm said in its filing that ‘there remains an on-going risk of the economic environment having an adverse impact on some of our clients’.

The accounts state: ‘Our underlying business performance over the year has been satisfactory, exhibiting the benefits of our global capability, the continued demonstration of the strength of our client work across our practice areas, industry sectors, regions and the positive effects of tight cost control in the current economic conditions.’

tom.moore@legalease.co.uk

Legal Business

Fintech play: Hogan Lovells hires Pinsent Masons financial services chief Salmon

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Strategic recruitment Hogan LovellsPinsent Masons
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Hogan Lovells has made a key hire in the City with Pinsent Masons financial services chief John Salmon, in a bid to better position itself for opportunities in the burgeoning financial technology (fintech) market.

Salmon will sit in the firm’s corporate practice and serve as an ‘active member’ of the financial institutions and TMT sectors.

A partner at Pinsent Masons since 1999, Salmon was appointed to head its finance practice in 2012, and before this served as insurance head. Having acted for clients including AXA, Royal London, Aviva and Zurich, Salmon focuses on advising financial institutions on innovative digital projects including IT procurement, outsourcing, cyber security, and digital payments.

Hogan Lovells global head of financial institutions Rachel Kent said: ‘The UK and Ireland is currently the fastest growing region for Fintech investment making this the ideal time to grow our Fintech practice with the hire of John, whose experience complements perfectly that of our regulatory, commercial, and cyber teams.’

The firm established a strategic partnership with Innovate Finance, the UK’s fintech trade association, in November, as firms respond to provide resources for the growing industry.

In November Legal Business also revealed Hogan Lovells’ appointment of Dubai-based Latham & Watkins corporate duo Charles Fuller and Andrew Tarbuck, along with finance partner Anthony Pallett.

sarah.downey@legalease.co.uk

To read more on the fintech industry see: ‘Comment: UK’s fintech boom is set to dazzle but advisers are still struggling to respond’

Legal Business

New year promotions: Hogan Lovells upgrades City quintet to partnership in 24-strong round

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Partnership promotions Hogan Lovells
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Hogan Lovells today (5 January) announced 24 associates have joined the partnership, including five in London, mostly across the firm’s corporate, disputes and government regulatory practices.

The figures remain steady and match those of last year, when 24 associates were made up to partner, including five in the City.

Of the City promotions, three – John Connell, Richard Diffenthal and Faye Jarvis – were from the corporate team, while Rebecca Wales and Matthew Bullen were made up from the litigation and arbitration practice.

Effective from last Friday, the promotion round brings the firm’s partnership headcount to more than 800, while the newly promoted partners include nine in corporate, seven in its litigation, arbitration and employment group, five in the government regulatory practice, two in finance, and one in intellectual property.

Geographically there were 12 promotions across Europe including Brussels, Düsseldorf, Frankfurt, Hamburg, London, Milan, Munich, and Paris; ten in the US including Denver, Miami, New York, and Washington DC; and a two in Tokyo.

Additionally, the transatlantic firm made 45 new appointments to the role of counsel.

Yesterday US firm Akin Gump Strauss Hauer & Feld announced the promotion of 12 lawyers to its partnership, with a quarter residing in London and constituting the largest ever number of promotions in the City.

sarah.downey@legalease.co.uk

The full list of partner promotions:

Meaghan Atkinson, government regulatory, New York

Matthew Bullen, litigation and arbitration, London

Kevin Burke, corporate, Denver

Frederick Ch’en, IP, media and technology, Tokyo

Filippo Chiaves, litigation and arbitration, Milan

John Connell, corporate, London

Brian Curran, government regulatory, Washington DC

Richard Diffenthal, corporate, London

Vincent Fidelle, finance, Paris

David Foster, litigation and arbitration, Washington DC

Maile Gradison Hermida, government regulatory, Washington DC

Norbert Heier, corporate, Hamburg

Faye Jarvis, corporate, London

Tim Joppich, litigation and arbitration, Düsseldorf

Stefanie Kern, corporate, Munich

Christine Lane, corporate, Washington, DC

Susan Lee, government regulatory, Washington, DC

Allen Pegg, litigation and arbitration, Miami

Sebastian Polly, litigation and arbitration, Munich

Edward Purdon, finance, Washington, DC

Jacky Scanlan-Dyas, corporate, Tokyo

Falk Schöning, government regulatory, Brussels

Matt Thomson, corporate, Washington, DC

Rebecca Wales, litigation and arbitration, London

Legal Business

Property panel: Hogan Lovells, Wragges and CMS Cameron McKenna take places on M&G Real Estate roster

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Adviser reviews CMS UKGowling WLGHogan Lovells
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Prudential investment arm M&G Real Estate has finalised its external legal panel with places going to Hogan Lovells, Wragge Lawrence Graham & Co (WLG), and CMS Cameron McKenna following a tender process.

The panel review for M&G, which holds £22.5bn of assets under management, was conducted by its head of legal, Chris Brierley.

Hogan Lovells is a longstanding adviser to M&G, and this year was shortlisted for real estate team of the year at the Legal Business Awards for its work on M&G’s acquisition from EY as administrators of 500,000 square feet of prime Manchester office space. The deal involved the purchase of two properties, on behalf of two separate funds for over £300m and was one of the largest ever regional office deals in the UK.

Other recent transactions Hogan Lovells advised M&G on include the property investor’s £55 million acquisition of The London Fruit & Wool Exchange building in London’s Spitalfields earlier this year, the purchase of 375,000 square feet of office space in Madrid’s central business district for £125 million and M&G’s acquisition of WLG’s Birmingham headquarters for £140m in September last year.

CMS has also worked with M&G in the past, having been instructed for an asset swap deal in relation to the Friary Guildford Shopping centre in 2013.

Brierley’s panel exercise was part of Prudential’s tender of its own legal roster that has seen some of the leading Global 100 firms compete for places.

Last assessed in 2011, firms including Linklaters, Baker & McKenzie, and legacy Norton Rose won spots after a five-month competitive tender led by Prudential’s former group general counsel Margaret Coltman. 

Coltman has since retired from her role within the business and is succeeded by company secretary Alan Porter who is understood to be reviewing the final panel.

Other recent panel reviews saw Ashurst, RPC, Shoosmiths, and Lewis Silkin retain places on Coca-Cola Enterprises UK legal panel, with the drinks company selecting Devereux Chambers as its preferred barristers set ahead of a review of its internal legal function.

sarah.downey@legalease.co.uk

 

 

Legal Business

International hires: Hogan Lovells brings in key Hong Kong arbitration lateral as Mayer Brown expands German practice

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Strategic recruitment Hogan LovellsMayer Brown
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Hogan Lovells and Mayer Brown have announced significant international recruitment today (9 December). Hogan Lovells has improved its disputes practice with the hire of Baker & McKenzie’s Hong Kong head of international arbitration James Kwan, while Mayer Brown has hired a three-lawyer team from Clifford Chance (CC) in Frankfurt to expand its M&A and restructuring practice.

Kwan is a high-profile arbitration practitioner whose work spans a wide range of industries including energy, infrastructure, life sciences, and technology.

Timothy Hill, head of the projects (engineering and construction) group of Hogan Lovells in Asia said: ‘With investment and trade rising in Asia as a result of globalisation, international arbitration is an increasingly important issue for companies doing business in the region.

‘James’ extensive practice across a wide range of industries will be a tremendous asset to our international arbitration team in Hong Kong and Asia, which counts some of the world’s largest companies in many sectors as its clients.’

The move follows Hogan Lovells’ hire of New York arbitration partner Samaa Haridi from Weil, Gotshal & Mange in June.

Meanwhile, Mayer Brown has hired CC partner André Schwanna, who departs the firm after seven years. With him, Schwanna brings senior associate Benjamin Büttner who joins Mayer Brown as partner, and counsel Alexander Täumer.

The team advises financial institutions and industrial companies in Germany and abroad on M&A transactions and corporate reorganisations, restructurings and crisis management, as well as tax structuring and other corporate matters.

Global corporate & securities practice co-leader Marc Sperber said the arrivals build on momentum after the firm hired Cleary Gottlieb Steen & Hamilton partner Klaus Riehmer earlier this year to head the firm’s Frankfurt and Düsseldorf corporate and securities practices.

victoria.young@legalease.co.uk