30 years of LB100 – 1992-2002: Teen spirit

‘Thirty years ago, the legal press didn’t exist,’ says Pinsent Masons managing partner John Cleland. ‘Deals were sometimes reported and occasionally they would find their way into the newspaper – but very rarely would the law firm’s name be mentioned. Now firms and the legal press have a very active dialogue on things, ranging from analysis to commentary on trends. We never had that thirty years ago.’

Indeed, much has changed in the 30 years since Legal Business first asked firms to cough up their financial results. And calling it the LB100 then would have been wildly inaccurate, what with the first report only including some 35 firms. It was not until the following year that the report graduated into a truer reflection of the business of law. Continue reading “30 years of LB100 – 1992-2002: Teen spirit”

30 years of LB100 – 2002-12: A decade of two halves

More so than the decades which came before or followed, the years between 2002 and 2012 are defined as a stark binary between boom and bust for LB100 firms.

For many current law firm leaders who practiced throughout that decade (some of whom had just started their careers), the early 2000s was an intrepid time characterised by globalisation, with some firms more successful than others at embedding their brand across borders. Continue reading “30 years of LB100 – 2002-12: A decade of two halves”

30 years of LB100 – So much has changed but also shades of déjà vu

It is always educational and entertaining to view how the industry has evolved through the eyes of those veterans who lived it, and this – the 30th anniversary of the LB100 – presented the perfect opportunity to do that.

Some of the recollections from pundits on the 1990s speak of a time that appears far more archaic than seems likely of a mere three decades ago. RPC managing partner James Miller’s observation is a case in point: ‘When I joined RPC in 1995, we had a bunch of disconnected terminals, and we still had typewriters. You could also still smoke in the office – we had enormous ashtrays everywhere!’ Continue reading “30 years of LB100 – So much has changed but also shades of déjà vu”

LB100: Methodology and notes

LB100 LAW FIRMS

The firms that appear in the Legal Business 100 (LB100) are the top 100 law firms in the UK (usually LLP partnerships but also some alternative business structures), ranked by gross fee income generated over the financial year 2021/22 – usually 1 May 2021 to 30 April 2022. We call these the 2022 results. Where firms have identical fee incomes, the firms are ranked according to highest profit per equity partner (PEP). Continue reading “LB100: Methodology and notes”

LB100: The second 25 – Off the pace

If you only read the stats, you would be forgiven for thinking that the LB100’s 26-50 group has struggled this year. The numbers are uncharacteristically grim for the second quartile: profit per lawyer (PPL) dipped 8% from £79,000 to £73,000 and profit per equity partner (PEP) dropped 3% to £633,000.

Revenue metrics are more favourable – average turnover grew a solid 8% to £167m from £154.7m, while revenue per lawyer (RPL) was up 6% from £273,000 to £290,000. However, this pales in comparison to the blistering growth of the LB100’s top 25, and is a far cry from last year’s eye-catching 19% hike in PEP among the 26-50 group. Continue reading “LB100: The second 25 – Off the pace”

LB100: The second 50: City and Boutique – Living for the city

For the 23 City and boutique firms that fall into the second 50 in this year’s LB100, average turnover is up 11% to £53.4m, marking the largest growth across all groups.

‘A couple of years ago people were saying it was the death of the mid-market. We don’t buy that. We think that the mid-market is alive, strong and kicking,’ says Fladgate’s managing partner Grant Gordon. Continue reading “LB100: The second 50: City and Boutique – Living for the city”

LB100: The second 50: Regional view – Steadying the ship

The 27 regional and national firms occupying the 51-100 spots in this year’s LB100 come in with an average of 267 lawyers and 27 equity partners. But despite weathering Covid well, with average revenue increases of 11% and 13% in 2020 and 2021 respectively, our 2022 report sees growth flatten out, with average revenue up just 4% to £54.9m.

Alongside static revenues, profit per lawyer (PPL) fell 5% with average lawyer numbers up 7%. Meanwhile, although firms managed to make profit per equity partner (PEP) gains — with the average up 14% to £402,000, outpacing last year’s already robust 8% hike — this is coupled with a 10% decrease in average equity partner numbers. Continue reading “LB100: The second 50: Regional view – Steadying the ship”

LB100: Overview – Turning tides

‘There is a real mismatch in how gloomy the economy feels and how busy the legal professional feels,’ observes Deborah Finkler, Slaughter and May’s managing partner. ‘We’re incredibly busy and it wouldn’t surprise me that in the similar conversations you’re having with other managing partners, they will say the same. There is just a lot of work.’

When our 2021 Legal Business 100 (LB100) report was published, the profession was riding high on the back of booming deal flow that saw profits and revenues surge to previously unmatched levels. Fast forward 12 months, and the economic outlook is very different. Spiralling inflation, interest rate hikes and the macroeconomic issues resulting from Russia’s continued invasion of Ukraine have made discussions of ‘softening in the market’ commonplace. Continue reading “LB100: Overview – Turning tides”

30 years of LB100 – 2012-22: Don’t look now

Shifts that started with the financial crash galvanised in the decade that followed. Predictions of the rise of US firms were hastened by the reputational demise of banking clients and the acceleration of the private equity market. ‘Clients that were niche pre-financial crisis – the likes of Blackstone, KKR and Carlyle – became the successors of Wall Street. The shift from public capital to private capital helped the US firms. They tracked that change and broke open the market,’ recalls Sebastian Prichard Jones, senior partner of Macfarlanes.

This shook the Magic Circle pedestal. ‘The original Magic Circle no longer had the grip on the market. Instead, the market became broader, more open and no longer concentrated on the FTSE and the investment banks, making it a more interesting and diverse market for firms like ours,’ adds Prichard Jones. Continue reading “30 years of LB100 – 2012-22: Don’t look now”

Ireland focus – The thunder rolls

To a London hack hitting the streets and the meeting rooms of Dublin for the first time since coronavirus struck, Ireland’s capital is abuzz, perhaps more so than usual. Somewhat inexplicably, there are excited hordes of Americans wherever you turn, many of whom look as if they’ve just stepped off the set of a spaghetti western.

All becomes clear in the first coffee meeting of the day. ‘Garth Brooks is playing five shows at Croke Park,’ laments one managing partner, with an eye-roll. ‘It’s bloody desperate.’ Clearly not a fan. Continue reading “Ireland focus – The thunder rolls”

Strategic recruitment: Kirkland takes four from the Magic Circle as global players make moves in Madrid

The beginning of autumn has seen the lateral hiring merry-go-round intensify after the more muted summer months, as UK and international firms secured substantive reinforcements in corporate, funds, tax and infrastructure.

The headline City arrival came as Kirkland & Ellis brought in Allen & Overy (A&O)’s global co-head of infrastructure Sara Pickersgill. Ranked in The Legal 500’s Hall of Fame, Pickersgill is an established market leader in infrastructure, energy and renewables corporate transactions, having been with the Magic Circle firm for more than 20 years. Pickersgill was swiftly followed to Kirkland by infrastructure funds partners James Boswell and Paul Sampson, who arrived from Clifford Chance and A&O respectively. Then in October they were joined by infrastructure M&A partner Toby Parkinson, who had been co-head of CC’s infrastructure sector. Continue reading “Strategic recruitment: Kirkland takes four from the Magic Circle as global players make moves in Madrid”

Stick or twist? City firms battle it out in NQ salary brinkmanship after Allen & Overy freezes rates

The war for junior talent at the top end of London’s legal market entered a new phase of brinkmanship this year, as firms jostled for position after Allen & Overy (A&O)’s decision to freeze its associate rates.

A&O froze its newly-qualified (NQ) salaries in late June, citing a ‘more challenging business environment’. The firm typically reviews pay later in the year, but A&O decided to bring the decision forward. Continue reading “Stick or twist? City firms battle it out in NQ salary brinkmanship after Allen & Overy freezes rates”

‘Never say never’: KPMG legal chief Nick Roome on law firm buyouts and supercharging lateral recruitment

At a watershed moment in the Big Four’s protracted entrance into the UK legal market, KPMG’s head of legal remains bullish about making a big impact

A provocative 2017 Legal Business cover, featuring EY’s UK legal head Philip Goodstone, questioned: ‘Big Four, Big Threat?’ At the time it felt like a pressing question. These days it feels more rhetorical. Continue reading “‘Never say never’: KPMG legal chief Nick Roome on law firm buyouts and supercharging lateral recruitment”

Partner promotions: Kirkland unveils largest ever class as US firms reveal 2022 cohorts

Oliver Brettle

The first wave of US firms has announced their latest round of partner promotions, as Kirkland & Ellis, White & Case, Goodwin, Morgan Lewis and Covington & Burling revealed their classes of 2022.

Kirkland & Ellis has minted 193 lawyers in a new record for the expansive juggernaut, following the 151-strong round announced last year and the 145 promotions unveiled in 2020. Continue reading “Partner promotions: Kirkland unveils largest ever class as US firms reveal 2022 cohorts”

Baker McKenzie breaks up UAE alliance following homophobic tweets

Baker McKenzie in September announced that it is ‘parting ways’ with Dr Habib Al Mulla, name partner of member firm Habib Al Mulla & Partners, following a series of anti-gay Twitter comments.

Confirming that the ‘separation process is underway’, the firm said in a statement that it ‘strongly believes that however much we may disagree with the beliefs and personal views of others, we must find ways to disagree respectfully, encourage inclusive dialogue and to ensure an inclusive work environment for all.’ Continue reading “Baker McKenzie breaks up UAE alliance following homophobic tweets”

EU parliament eyes litigation funding regulation

The EU is gearing up to regulate the third-party litigation funding market following an EU parliamentary vote in favour of the resolution.

The regulations are intended to increase transparency, fairness and proportionality in the market, which until now has escaped formal regulation. Among the proposals is a 40% cap on the percentage of a court award or settlement that funders can claim, requirement for disclosure of third-party financing and for court awards to be sent directly to claimants. Continue reading “EU parliament eyes litigation funding regulation”

Global 100 firms expand in Asia as Dentons and Goodwin establish new bases

Joe Andrew

Dentons has become the first global law firm to combine with a law firm in India, as it finalised its tie-up with full-service firm Link Legal in October.

Link Legal has five offices across India in Mumbai, Delhi, Bengaluru, Chennai and Hyderabad, as well as an existing New York office, which it launched in February 2022. It is ranked across nine practice areas in The Legal 500’s Asia-Pacific guide, with top-tier rankings in aviation and projects and energy. Continue reading “Global 100 firms expand in Asia as Dentons and Goodwin establish new bases”

The Client profile: Claire Holdsworth, Marathon Asset Management

‘Frankly, what’s a boardroom compared to a regiment of soldiers?!’ Claire Holdsworth is philosophical about her journey from army officer to motorbike-riding GC of Marathon Asset Management.

Some say getting your foot in the door of a top law firm is often the hardest part for aspiring lawyers, but Holdsworth’s journey to her training contract interview definitely casts that sentiment in a whole new light. Continue reading “The Client profile: Claire Holdsworth, Marathon Asset Management”