How the Global 100 has gone from turning over $71.6bn to $85bn in five years.
The world’s largest passenger plane, the Airbus A380, costs $403.9m dollars to buy. Mayer Brown, ranked 22nd in the Global 100, could buy one A380 with a year’s total equity partner profits. The equity partnership at Latham & Watkins and Skadden, Arps, Slate, Meagher & Flom could probably do a deal to buy three apiece – they almost earn enough cash.
Continue reading “Flying High – The Legal Business Global 100”
The market for the world’s largest law firms remains as reliably turbulent as ever. The group as a whole eked out a 4% hike in revenues to generate $84.9bn, a figure slightly flattering underlying growth due to a handful of sizeable mergers – including the creation of Herbert Smith Freehills and King & Wood Mallesons. Revenue per lawyer was flat. In real terms, the world’s legal elite is once again modestly shrinking and headline income growth slowed in comparison to the 2011/12 year. Conditions remain considerably better than seen during 2009/10 but are a long way from pre-2008 boom years.
It has been another year that has re-enforced the overall dominance of US firms, largely due to the strength of the US economy and a delayed revival in contentious work. Of course, the relevant performance of UK advisers since 2008 looks considerably worse due to the sustained weaknesses of sterling and the euro but by any measure, the Magic Circle has lost some ground. Compared to their mid-2000s’ heyday, the profits gap against key New York rivals has again ballooned out, while a group of broad-service US rivals are now challenging their scale and global reach.
Continue reading “The Asian century maybe but not the Asian decade for the Global 100”
‘It’s an extraordinary thing – hundreds of lawyers should have entered into damages-based agreements (DBAs) by now.’
So says Leslie Perrin, former managing partner and senior partner of Osborne Clarke, who is now chairman of litigation funding group Calunius Capital, with around £40m of capital to invest in disputes.
Instead, DBAs, which came into force under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) and entitle a lawyer to claim a percentage of their client’s damages by way of fees, have failed to take off at all. Perrin adds: ‘The confusion around the regulations has been such that I don’t think more than a handful of DBAs have been entered into all across the country. There’s so much ambiguity and grief for the first people going down that road and disputes lawyers are unanimous in holding this position.’
Squire Sanders has today announced the hire of US Dorsey & Whitney City-based corporate finance partner Matthew Doughty in a week that has also seen Pinsent Masons take on a new head of banking in Birmingham and Bird & Bird boost its finance capability in Frankfurt.
Doughty, who specializes in equity capital markets (ECM) with experience of the New York, Hong Kong, Amsterdam, Frankfurt and London Stock Exchanges, including AIM, was formerly a partner at Addleshaw Goddard’s City office, from where he joined Squire Sanders in June 2009. Continue reading “Revolving Doors: Squire Sanders, Pinsent Masons and Bird & Bird boost corporate and finance capability”
Clyde & Co’s professional financial disputes team led by rated team head Sarah Clover is advising Olswang on a multi-million pound claim stemming from the £460m acquisition by a Halabi family trust of fitness club chain Esporta from private equity firm Duke Street Capital.
Olswang in 2006 fielded a cross-disciplinary team to advise the Ironzar III trust on the high-profile acquisition, led by corporate partners Graham Barber and David Roberts.
The fitness group fell into financial difficulty and was placed into financial administration in 2007, taken over by its lender Societe Generale in a debt-for-equity-swap in 2009 and in 2011 Virgin Active acquired its 55 sites for £77.6m. Continue reading “Clyde & Co advises Olswang on claim arising from £460m Esporta sale”
The impact of the Australian downturn has once again been thrown into sharp relief after DLA Piper’s staff in the region were told not to expect pay rises and some partners to expect a drop in pay as the office failed to meet its targets.
As first revealed by RollOnFriday, an email from chief operating officer and stand in local managing partner Andrew Darwin told staff ‘for many…there will be no increase in base salary this year and for others there will only be a modest increase.’
Local partners, meanwhile, were told: ‘many partners will have no increases or, in some cases, a reduction in their remuneration.’ Further savings are also expected to be made on expenses. Continue reading “Asia-Pac continues to challenge new entrants as DLA Piper freezes Australia salaries”
Speechly Bircham has posted flat financials for the 2012/13 year following failed merger talks with Withers and a spate of partner exits.
The City-headquartered firm saw a slight drop in revenue to £57.5m from £57.6m in 2011/12, while profits per equity partner decreased from £299,000 to £293,000. Continue reading “Speechly posts flat financials but forecasts PEP boost next year”
So the first round of the Legal Education and Training Review (LETR) is complete. Julian Webb et al’s report is out and the dust can begin to settle. The research phase faced a number of problems. There are four I would emphasise:
The government’s plans to cut criminal legal aid and privatise parts of the court services appeared to edge one step closer yesterday following Chancellor George Osborne’s Comprehensive Spending Review, under which The Ministry of Justice (MoJ) will see its budget slashed by 10% over the next 18 months. Continue reading “Government spending review brings legal aid cuts and privatisation closer as MoJ’s budget cut by 10%”
Nicholas Medcroft has joined Wilberforce Chambers from Outer Temple Chambers in a week that has also seen Erskine Chambers welcome a three-barrister asset recovery team and leading sets 4 New Square and Essex Court Chambers take on a new head.
Medcroft is said by Legal 500 to be ‘the first person to turn to when it comes to matters relating to financial crime and banks.’ Specialising in professional negligence, business and banking, financial services and commercial fraud, he has worked on large scale litigation including acting for the Financial Reporting Council, alongside Fountain Court’s Tim Dutton QC, in the case against audit firm Deloitte over the collapse of the MG Rover Group. Continue reading “Nicholas Medcroft joins Wilberforce Chambers as Erskine makes key hires and two leading sets take on new head”
As international M&A catches the headlines, CMS Cameron McKenna has advised a consortium owned by Hong Kong tycoon Li Ka-shing on a HK$9.7 billion dollar acquisition of the Netherlands’ largest waste management group AVR Afvalverwerking.
CMS London corporate partner Charles Currier and Amsterdam partners Martika Jonk and Cecilia van der Weijden led the multi-disciplinary team advising Cheung Kong Infrastructure Consortium (CKI). Last year CKI acquired MGN Gas Networks for $1bn, also advised by CMS. Continue reading “Deal watch: CMS, Matheson and Akin Gump act on high-profile international deals”
Taylor Wessing’s long reputed head of inward investment David Kent is to join Field Fisher Waterhouse (FFW) in a week that has also seen Irwin Mitchell and TLT make strategic partner hires.
Kent is a corporate partner specialising in advising emerging growth and listed companies from the US, Canada and Europe on structuring, establishing and operating businesses in the UK and Europe, mergers and acquisitions and joint ventures, technology transfers, distribution and licensing agreements. Continue reading “Revolving Doors: Field Fisher hires Taylor Wessing’s David Kent as Irwin Mitchell and TLT make key hires”
Travers Smith has become the latest City firm to overhaul its lockstep for senior associates in a bid to incentivise and reward lawyers for their hard work and interruptions to family life as they approach partnership.
Led by managing partner Andrew Lilley and pensions partner Paul Stannard, a 10-month review has concluded that Travers should continue to operate a strict lockstep for junior and mid-level associates, under which they receive an annual bonus at the end of the year. However, a new, more merit-based system will now be introduced for senior lawyers, including an additional one-off payment for those that have experienced disruption in their personal lives and increased flexibility from the lockstep structure for associates with six years’ post qualification experience (PQE). Continue reading “Travers senior lawyers to be paid for interruptions to family life as firm adopts more merit-based model”
Kennedys has today announced a turnover increase of 9% after a year of both lateral hires and organic growth, with revenues up to £117m from £109m in 2011/12.
The results do not reflect the firm’s recent merger with aviation firm Gates and Partners on 1 June this year, which is expected to add £10m to the City-based insurance specialist’s bottom line. Continue reading “Kennedys unveils 9% turnover increase and signals further expansion to its network”
So far the wave of redundancies that have rippled through the UK legal profession has not been replicated across the Atlantic but that may be about to change with news on Monday (24 June) that Weil Gotshal & Manges is to cut around 170 staff.
The New York-based law firm announced the move internally in a package of cuts expected to impact on 60 associates, around 7% of its non-partner lawyer ranks, and 110 support staff, citing what it described as the ‘new normal’ of low growth.
In addition, Weil is to cut the compensation for some partners and the firm said it would be ‘de-emphasising’ its complex commercial litigation practice in Houston and Boston. Continue reading “Coming on like 2009 – Weil Gotshal becomes the first major NY firm to announce job cuts this year”
Freshfields Bruckhaus Deringer and Linklaters have landed two major corporate mandates advising Alibaba on what Reuters describes as ‘the most anticipated IPO since Facebook’ and Vodafone on its €7.7bn (£6.6bn) acquisition of Germany’s largest cable TV operator respectively.
Amidst much market speculation over roles and particularly the levels of fees that will be commanded, Freshfields is understood to be advising the China e-commerce giant on an IPO reportedly valued at as much as $100bn (64bn), with Hong Kong equity capital markets partner and Greater China head Teresa Ko understood to be leading the team. Continue reading “Corporate: Alibaba and Kabel Deutschland deals land roles for Freshfields, Linklaters and Hengeler Mueller”
A report touted as the most comprehensive review of legal education in the UK since the Omrod report of 1971 has finally been published today (25 June), three years after it was first announced.
The Legal Education and Training Review (LETR), which was undertaken on behalf of the Bar Standards Board (BSB), ILEX Professional Standards and the Solicitors Regulation Authority (SRA), looks at the educational requirements for entering the profession, continuing education including the obligations of law school providers and the impact of the Legal Services Act. Continue reading “Three years in the making: Legal education and training review unveiled”
Nabarro has defended its decision to freeze the salaries of its trainees, newly-qualified (NQ) lawyers and those with one to two years post-qualification experience (PQE), promising that those who shine at any level will receive a 5% increase on their salary and benefit from the firm’s generous bonus scheme. Continue reading “Nabarro points to bonus and high performance uplift as it freezes junior lawyers pay”
Dentons’ partnership has voted in favour of shutting its Kuwait office following a review, bringing to an end a turbulent chapter in the region.
The firm, which has had an office in Kuwait since 2008, only in January entered into a new association with local lawyer Jamal Ahmed Al-Shehab, replacing its association with International Legal Group. Continue reading “Middle East: Dentons ends period of upheaval in Kuwait with decision to close local office”
