Global 100 firm goes alone after warning alliance firms to integrate
DLA Piper’s split from South African associate firm Cliffe Dekker Hofmeyr two months ago has spurred the world’s second largest law firm into action, deciding to go it alone in Africa through launches in Morocco and Johannesburg.
The moves mark DLA’s first on-the-ground presence in Africa, having enjoyed a relationship with firms on the continent through its Africa group since 2006. The office in Casablanca is already open for business, while Johannesburg will launch by March 2016. The launches follow a warning to its associated firms that failure to integrate with the rest of the network could result in broken relationships and a competitor instead of a friend.
In Casablanca, DLA has hired Clifford Chance counsel Christophe Bachelet to manage the office and lead its first venture in Africa. The Morocco managing partner will be joined by litigation partner Mehdi Kettani, who joins from local boutique Kettani Associés, and counsel Mohamed Mahjoubi, who relocates from DLA’s Paris office.
Meanwhile, after a decade working alongside DLA as Cliffe Dekker’s former chief operating officer, Michael Whitaker has been recruited to oversee the opening of the Johannesburg office.
The new launches mark a change in approach among international firms, with DLA joining a growing band of law firms no longer content to operate in Africa through referral networks and focused on putting down their own roots. DLA global co-chief executive Simon Levine said the openings are ‘the next steps in our plan to truly establish the DLA Piper brand across the continent’.
With 14 firms currently members of its Africa group, which covers the likes of Burundi, Kenya, Tanzania and Zambia, Levine is optimistic that the launch of its own African offices will result in better relations and more referrals between DLA and its African network. ‘I’m not ruling out that those firms will become fully integrated but it’s not an immediate necessity. They are firms we’ve worked with for a while and we’ve chosen them and they’ve chosen us. In the short term we will be working on becoming even closer together to bring more opportunities for all parties.’
As international law firms plough investment into South Africa and Morocco, which are viewed as distinct economic hubs and gateways into the continent, local law firms face increased competition for clients and talent. Levine says it is not hard to attract high-quality CVs and suggests the South African legal market is undergoing the same consolidation process seen in Australia and Canada.
‘It looks like a large number of the better quality lawyers in South Africa are taking the view that being part of a global organisation would be a better bet for them and their clients,’ Levine said.
But tasked as the man to bring increased profitability to the firm after years of pursuing revenue growth under his predecessor Sir Nigel Knowles, Levine says the offices will only grow to ‘what client demand makes it’.
‘There is a bit of first-mover advantage but that wasn’t part of the rationale. We’ve had a lot of growth in Africa over the last few years and, in truth, the launch was nothing more inspirational than client demand.’
tom.moore@legalease.co.uk