Hello and welcome to the Fides Weekly Update. Take a look at this week’s key trends, moves and developments in the UK legal sector.
Tweet us @Fides_Search to let us know your thoughts.
This week:
1). No-deal Brexit to cost the UK legal sector £3.5bn according to The Law Society
As part of the UK-EU future partnership and legal services report released on Thursday, the cost of a no-deal Brexit on the UK’s legal sector would be £3.5bn according to The Law Society.
The findings estimate that the UK legal sector would see a 10% decrease in turnover, as well as 10,000 job cuts, if the UK leaves the European Union on 31 October without a deal.
This is due to a crackdown on the access provided by EU Lawyers Directives, impacting the trade surplus for legal services with the EU27 that exists currently.
At present, a UK qualified lawyer can provide legal advice on English law, EU law and local law to individual and business clients across the EU, and work without a visa or a residence permit in other member states on a temporary or permanent basis.
They can also re-qualify in another member state after 3 years of practicing there or after taking a qualifying exam in the local laws. However, these rights would be removed if no deal was retained.
Last year the UK legal sector brought £27.4bn into the economy, 1.4% of total GDP.
The total tax contribution of legal and accounting activities in 2018 was estimated to be £19.1bn, another reason as to why it is critical for the UK government to negotiate a future agreement to enable UK solicitors to maintain their right to practise in the EU.
Without this agreement, the UK will be negotiating legal services market access with 31 regulatory regimes, hampering its productivity according to the report.
2). Movers & Shakers
Panel Watch
A&O Bags Trophy Freshfields Client Tesco on Multi-Billion Pound Banking Mandate
HS1 Railway Kicks Off Legal Panel Tender
Appointments
Sports Direct Appoints New Head of Legal Amid Financial Turmoil
Tom Piper has simultaneously been appointed company secretary and Head of Legal on July 1. He joined the company’s property arm in 2017, and prior to that was an associate at U.S. firm Faegre Baker Daniels
BT creates new legal transformation role
Dave Hart has been named BT’s Director of Transformation, in charge of delivering the technology vision for the function and managing its operations globally
Moves
Clifford Chance Investigations Director Jumps to US Firm
CC’s investigations director Zoe Osborne has left the Magic Circle firm to join U.S. outfit Steptoe & Johnson, following the departure of white-collar star Judith Seddon to Ropes & Gray last year
Former magic circle duo join new City boutique Avonhurst
Founded last month by ex-Jones Day partner Jonathan Bloom, leveraged finance partner Ian Frost and project finance partner James Wyatt join from Vinson & Elkins and Linklaters respectively
Six-Strong Norton Rose Team Defects to DAC Beachcroft
The team of insurance lawyers includes partner Kirsty Hick, legal directors Rebecca Bailey and Sarah O’Connell, and senior associates Jack Holling, Natasha Marshall and Cathryn Teverson
Funds Heavyweight Among Further London O’Melveny Defections
Jonathan Blake is among the latest to have resigned from the firm, which remains in merger talks with A&O. He becomes the fifth O’Melveny lawyer to join Akin Gump this year
Latham’s chair Trobman heads Stateside after spearheading City growth
After nearly 20 years at the forefront of Latham & Watkins’ expansion in London, firm chair Richard Trobman is set to relocate back to the US to focus on growth across the Atlantic.
Mergers & Alliances
Dentons Continues Global Expansion with New Zealand Merger
Office Openings & Closings
Hogan Lovells Restructures South African Arm
Financials
Hill Dickinson PEP Rockets 27%, But Insurance Disposal Shrinks Revenue
DWF Grows Revenue 15% as IPO Cost Revealed
HFW PEP Drops to 11-Year Low As Profits Slide 9%
Inclusion and Diversity
Baker McKenzie and Gary Senior Referred to SDT Over Historical Allegations
Other
Wedlake Bell Launches Redundancy Consultation for Senior Associate in Disputes and Real Estate
SRA could drop skills test from super-exam Part One after first pilot
Hello and welcome to the Fides Weekly Update. Take a look at this week’s key trends, moves and developments in legal and compliance.
Tweet us @Fides_Search to let us know your thoughts.
This week:
1). Cubism Law becomes first New Law venture to enter Administration
Following mass lawyer departures to rivals Keystone Law and Gunnercooke, new law outfit Cubism Law entered administration on Wednesday, with insolvency specialist Quantuma LLP and Pinsent Masons handling the wind-down.
This follows news that emerged last month that a 16-lawyer team departed to join Gunnercooke, with an additional six consultants moving to Keystone Law. Since then, other Cubism lawyers have departed to boutiques around London, including charity specialist Bates Wells Braithwaite, commercial outfit Laytons, white-collar boutique Eldwick Law in Mayfair and Marylebone-based Kyriakides & Braier.
The new law market in which Cubism was based has expanded in recent years and comprises non-traditional law firms looking to offer more affordable legal services using innovative internal structures and enhanced technology.
Established in 2007 by ex-Fieldfisher disputes partner Andrew Pena, the firm was set up to recruit senior lawyers with established clients and provide the branding and office infrastructure they needed.
The consultancy basis upon which Cubism operated saw lawyers have oversight of their own practices, and the implementation of a fee-sharing model which allowed consultants to retain a proportion of the income they made.
However, the firm faced a tough few years financially, with records showing debts at the firm increased from £1.6m to £2.3m for the 2018 financial year. The average monthly number of people employed by the company also increased from 29 to 38.
This shows that despite the innovation and efficiency displayed by these firms to support clients, they are still prone to falling short in the highly competitive UK legal market.
2). Movers & Shakers
Moves
KPMG Appoints Australia-Based New Head of Global Legal Services
Former King & Wood Mallesons global managing partner Stuart Fuller will soon lead the KPMG’s worldwide legal offering, which includes 2,300 legal professionals across 76 jurisdictions
Travers’ Former Managing Partner Joins Deloitte Legal
Andrew Lilley, who was the City firm’s managing partner for five years until 2015, will be the head of the employment law practice at the Big Four operation
Allen & Overy Hires Funds Partner in Paris From Dechert
Antoine Sarailler advises French and international financial institutions on the structuring, setting-up and marketing of institutional and retail investment funds, as well as on a wide range of regulatory matters
White & Case Hires Milan Partner Duo from Latham & Watkins
Andrea Novarese, the European head of Latham’s automotive industry group, and M&A partner Maria Cristina Storchi are set to join White & Case’s Milan office
Orrick Adds White-Collar Defence Partner in Milan
Jean-Paule Castagno joins from Clifford Chance, where she was of counsel
King & Spalding Hires Baker McKenzie Banking and Finance Partner in Paris
Anne Vrignaud, who advises on acquisition finance, real estate finance and debt restructuring work, is the fifth partner to join King & Spalding’s Paris office since mid-2018
Clyde & Co Picks Up Pinsent Masons Construction Pair in Singapore
Pinsent Masons’ Singapore office joint head Jon Howes and senior associate Sean Hardy join Clyde & Co as partners
Financials
Gordon Dadds Grows Revenue By Two-Thirds as Acquisitions Pay Off
Addleshaws Revenue and PEP Growth Cools as Profits Hit £100M
Linklaters Matches Fellow Magic Circle GDL Grant Hikes
Shoosmiths Posts Modest Revenue and Profit Upticks
Two Bristol-based Firms Close In on £100m Revenue Mark
Stewarts PEP continues to plummet from sky-high £2m figure
Osborne Clarke’s PEP falters as revenue hits €300m
Baker McKenzie Ramps Up Europe Financial Integration
Inclusion and Diversity
Would Mandatory Psychologist Appointments Reduce Burnout in Big Law?
Reed Smith Adds On Even More Perks for Associates
Depression and Anxiety Prevalent at Small and Medium-Sized Australian Firms
Harassment Complaints to the SRA Soared by Nearly 500% Last Year
Technology and Innovation
Simmons & Simmons Strikes Latest Legaltech Deal
Other
Litigation funder launches sector’s first-ever training contract
Hello and welcome to the Fides Weekly Update. Take a look at this week’s key trends, moves and developments in legal and compliance.
Tweet us @Fides_Search to let us know your thoughts.
This week:
Consolidation of the legal tech market continues as HighQ is the latest software to be bought
Thomson Reuters announced this week it has acquired project management and collaboration platform HighQ, set to combine one of the most popular law firm cloud-based platforms with Thomson Reuters’ global footprint and sizeable bank of market intelligence.
Purchased for an undisclosed fee, HighQ is a targeted investment made by Thomson Reuters which supports its strategy to remain focused on the organisation’s core offering of business information services. The deal will provide existing clients with a platform easily integrated into other services already delivered by Thomson Reuters.
HighQ has gained great success amongst the global law firm market since its inception in 2001, with over 50% of Global 100 law firms in its client roster. The tech company was accepted into A&O’s Fuse programme this year, an incubator which has housed market-leading startups including AI platform Kira and capital markets blockchain startup Nivaura.
Consolidation in the legal tech space is growing, as firms begin to snap up some of leading technologies in the market. Whilst law firms are purchasing stakes in some of the startups housed within their incubators, companies such as the Big Four are consolidating through acquisitions. In August last year, EY announced its acquisition of managed services firm Riverview Law, which runs the esteemed virtual assistant software Kim Technologies. Another market-shifting deal was iManage’s acquisition of AI platform RAVN in May 2017, which recently hired former Reed Smith innovation expert Alex Smith into its ranks.
A further development in the legal tech market this week was the announcement of a mega funding round for ContractPodAI, a contract lifecycle management software that raised $55 million in Series B funding. The London-based firm offers an end-to-end tool, powered by artificial intelligence through IBM’s Watson. The company says the investment is Europe’s largest legal tech Series B fundraise and the largest Series B round for any contract lifecycle management provider globally.
Movers & Shakers of the week
Appointments
Latham & Watkins names new head of office for Madrid following the passing of Juan Picón
Moves
Cooley strengthens its white collar capabilities in London
Partner Tom Epps has joined Cooley’s London office from Brown Rudnick to build out the firm’s white collar and investigations practice
Waste management company Biffa has hired Sarah Parsons as its new general counsel. She was previously senior legal counsel at manufacturer Rotork
Paul Hastings grows through PE team hire
Paul Hastings has made three partner hires into its corporate department from Hogan Lovells, including the firm’s London head of private equity Ed Harris. Alongside Harris will be counsel Leanne Moezi, who is set to join the London office as a partner. Additionally partner Adam Brown will be joining the firm in its Washington DC office.
HSF looks in-house to boost its regulatory practice
Former Deutsche Bank general counsel Joseph Longo will join Herbert Smith Freehills in the firm’s Perth office as a senior adviser. Longo spent 17 years at the bank, which included a stint as GC for UK and EMEA.
HSF bolsters energy and infrastructure team
Partners Lorenzo Parola and Francesca Morra will head HSF’s energy and infrastructure practice in Milan, bringing with them four associates. The team joins from Paul Hastings’ Milan office.
Simmons expands its Qatar offering
Simmons & Simmons has hired George Vlavianos, along with four associates, into its dispute resolution practice in Doha. He was previously managing partner and head of arbitration at Bennett Jones
Financials
Clyde & Co posts a PEP hike of 4.5% to £690,000 and a rise in profits by 7.5% to £151.1 million
Diversity & Inclusion
UK Law Firms Dominate Stonewall’s List of Top Global LGBT Employers
Almost half of the list of 14 multinational institutions were top commercial law firms
Technology & Innovation
Elevate acquisition pays off in deal with magic circle firm
Hello and welcome to the Fides Weekly Update, your digest of this week’s key legal trends, moves and developments from across the globe.
Tweet us @Fides_Search to let us know your thoughts.
This week:
1). Norton Rose launches legal operations consultancy with the hire of Barclays MD
Former Barclays legal executive Stephanie Hamon has joined Norton Rose Fulbright to launch a legal operations consulting practice.
The division, which will launch in August, is part of the firm’s innovation programme NRF Transform, and will offer advice to in-house legal teams on strategic legal consulting, legal operations and legal operations delivery.
Previously Managing Director and Head of External Engagement at Barclays, Hamon joined the bank from Clifford Chance in 2015 where she was head of business development in the Hong Kong office.
She is known for transforming Barclay’s legal purchasing process, cutting the bank’s roster from 400 to 140 firms in 2016, and again to under 100 firms in 2018 before the bank phased out its legal panel process altogether.
The framework she implemented – known as ‘active relationship management’ –
established defined expectations against which legal advisers were assessed and pushed the use of ‘effective fee arrangements’ (EFAs) ahead of hourly rates. Alongside alternative pricing structures, law firms were also assessed on their use of innovation and progress on diversity and inclusion.
Based on this model, the new practice will operate with no hourly rates, with Hamon telling Legal Business NRF’s openness to alternative fee arrangements was one of the main factors in her decision to join the firm.
When commenting on the move, she said: ‘There is a growing need in the market for legal operations advice and there are not many people delivering it.’
‘In my view legal operations it is all that helps [GCs] run their legal department like a business. From analytics, demonstrating the value your team can bring to the company, to pricing and relationship management. Some companies already have legal ops teams but the level of maturity can be very different.’
NRF’s move into consulting is a challenge to the Big Four and other alternative legal services providers as firms look to expand their offering.
Last month, Eversheds Sutherland launched its new law offering Konexo, whilst Deloitte Legal hired Bruce Braude from BCLP as its first Chief Technology Officer earlier this week.
2). Movers & Shakers
Moves
Three partners to exit Greenberg’s London office
Real estate partners Tim Webb and Emma Maher are leaving the firm for KPMG, while corporate finance partner Kate Eades is moving to KPMG’s legal services business
Kirkland UK Tax Partner Departs for Private Debt Provider ICG
Mark Ingram, who was made up to partner in 2017, will make the move in August
Jones Day Partner Leaves to Set Up Boutique Firm
Capital markets and funds partner Jonathan Bloom has left the U.S. firm’s London base to found a new three-lawyer boutique firm Avonhurst, with PwC Legal’s former head of banking and finance Laetitia Costa, and Nigel Heilpern, head of London real estate at King & Spalding until he left the firm last year
Milbank adds first new City partner of 2019 from A&O
Sarbajeet Nag, senior associate in A&O’s leveraged finance and capital markets team, is to join the London office of Milbank as a partner
Ex-Barclays Exec Stephanie Hamon Resurfaces at Norton Rose
Former Barclays legal executive Stephanie Hamon is joining Norton Rose Fulbright to launch a legal operations consulting practice for in-house teams
Greenberg Traurig Expands in Amsterdam with Norton Rose hire
Greenberg Traurig has expanded its labour and employment practice capability in Amsterdam, hiring partner Thomas Timmermans from Norton Rose Fulbright
Jones Day Makes Rare London Partner Hire
Jones Day has made a rare hire in its London office with the addition of construction litigation partner James Pickavance from Eversheds Sutherland
Baker McKenzie Picks Up Third White & Case London Partner This Year
White & Case tax partner Prabhu Narasimhan is set to make the move to Bakers to grow the firm’s corporate, banking and finance, private equity, capital markets and tax practice
Mergers & Alliances
Ince France Rebrands After Merger Search Frustrates
The 32-lawyer former Ince branch has offices in Paris, Le Havre and Marseille and will now be known as Stream
Financials
Travers Smith Joins NQ Pay War as Revenue Jumps 10%
Macfarlanes PEP Flat as Revenues Edge Up 7%
Bird & Bird Adds £24M to Top Line as PEP Growth Slows
Ashurst PEP Rockets by Nearly a Third Amid Strong Global Growth
Macfarlanes PEP stabilises after last year’s jump to £1.7m
Pinsents PEP stumbles after a year of global expansion
Pay War Reaches Mid-Market as Stephenson Harwood Raises NQ Salaries
Linklaters Rebounds With Double-Digit Profit and PEP Growth
A&O Posts 5% Rise as Magic Circle Firm Revenues Align
Inclusion and Diversity
Leading lawyer ‘bullied suicidal young employee’
Half of young judges are women
Technology and Innovation
BLM Launches New Business Consultancy Arm
How Machines Could Help Build Legal Panels
Hello and welcome to the Fides Weekly Update, your digest of this week’s key legal trends, moves and developments from across the globe.
Tweet us @Fides_Search to let us know your thoughts.
This week:
1). Clifford Chance and Freshfields Report Financial Results
The season of law firm financial reporting is upon us, with magic circle firms Clifford Chance and Freshfields Bruckhaus Deringer being among firms revealing their 2018-19 figures this week.
At Clifford Chance, revenue and profit per equity partner (PEP) both hit record highs, although growth at the firm was much smaller than in previous years. Revenue at the firm increased 4.3% to £1.69 billion, whilst PEP increased 1% to £1.62 million. This is compared to a 16% growth in PEP reported last year.
Global managing partner Matthew Layton attributed slowing growth to several significant investments in technology, such as e-billing and data management in line with client demands.
The firm is also scaling up its six best delivery hubs – which aim to improve client services via legal technology – with the with the Newcastle low-cost service centre (formerly of the collapsed construction giant Carillion) now fully integrated into the business.
Magic circle competitor Freshfields meanwhile posted a flat revenue growth of 5%, equalling figures posted last year. By adding £70 million to its top line, total revenue at the firm now stands at £1.47 billion. PEP also increased by £96,000 (6%), totalling £1.84 million.
Both firms took the decision to increase their newly qualified lawyer pay to £100,000 last month.
Global firms Hebert Smith Freehills and Simmons & Simmons also reported their financial results this week. Revenue at HSF grew 4% to £965.7 million, while PEP grew to £949,000, an 11% growth. Simmons posted a 6% revenue growth to £374 million, with PEP rising 4% to reach £710,000.
2). Movers & Shakers
Panel Watch
Utilities giant Severn Trent kicks off legal panel review
Appointments
Freshfields lawyer becomes first GC of HSBC-backed fintech startup
Following a $20m cash injection from HSBC and Goldman Sachs, UK fintech startup Bud has turned to Freshfields senior associate Ryan Taylor to fill its newly-created general counsel position
Kraft Heinz Appoints New EMEA General Counsel
Food and beverage giant Kraft Heinz has named Thomas Loest as its new general counsel for EMEA, joining from personal care corporation Kimberly-Clark
Charles Russell Speechlys Appoints New Managing Partner
London-based restructuring and insolvency partner Simon Ridpath will stand as managing partner for a four year term from May 2020
Rio Tinto Strikes Appoints New General Counsel
Barbara Levi Mager, long time in-house leader for Swiss pharmaceutical company Novartis International AG, is set to join Rio Tinto in January 2020
Dentons Names New Benelux Managing Officer
Marien Glerum will be responsible for the management and financial oversight of the Amsterdam, Brussels and Luxembourg offices
DLA Piper appoints new head of its Birmingham office
Real estate partner Trevor Ivory to become the new managing partner of DLA’s Birmingham office
Moves
Deloitte Legal raids BCLP for its first chief tech officer
Bruce Braude, BCLP’s director of legal operations solutions for EMEA, is joining Deloitte Legal as the firm’s first chief technology officer
Dentons Hires Fieldfisher Cyber Heavyweight
Dentons has hired Fieldfisher cyber and security law head Antonis Patrikios
Crowell & Moring Hires Seventh Squire Patton Boggs Partner in London This Year
Disputes partner Nicola Phillips is set to make the move to Crowell as the firm continues to bolster its London office
Akin Gump Adds White & Case Partner as London Hiring Spree Continues
Akin Gump Strauss Hauer & Feld has continued its spate of London hires with the addition of White & Case M&A partner Gavin Weir
Stephenson Harwood Partner Joins Proskauer
Proskauer Rose has hired Stephenson Harwood corporate finance partner Warren Allan as a partner in its London office, reuniting him with several former King & Wood Mallesons colleagues
Deloitte hires Head of Innovation from Taylor Wessing
Laura Bygrave has been appointed Head of Innovation at Deloitte Legal, marking the Big Four’s first key legal hire since Allen & Overy banking partner Michael Castle was brought in last January as managing partner
Reed Smith Bolsters Paris IP Offering with Dentons Team Hire
Reed Smith has bolstered its Paris intellectual property practice with the hire of a three-strong team from Dentons led by partner Marianne Schaffner
Goodwin Procter hires White & Case Restructuring Partner in Paris
Goodwin Procter has recruited White & Case restructuring partner Céline Domenget Morin as a partner in Paris to lead its financial restructuring practice
Kennedys Departures to Insurance Rival Hit 27
Kennedys departures to insurance rival Plexus Law have now hit 27 in recent months, two years after the firms held merger talks. A Kennedys team comprising seven partners, 11 associates, three trainees, a consultant and five support staff are due to be making the move
Eversheds Bulks out Dutch Offering with Trio of Hires
Corporate partner Jeroen Hoekstra and commercial partner Benjamin van Kessel join Eversheds from local firm Nineyards Law, while corporate lawyer Elmer Veenman joins from De Brauw Blackstone Westbroek, where he was a senior associate
Reed Smith Recruits Simmons & Simmons Beijing Office Head
Eric Lin joins Reed Smith as an energy and natural resources partner, the latest in a string of partner hires by the U.S. firm in China and Hong Kong in recent months
Paul Weiss ramps up NY corporate team with Kirkland hire
Sarah Stasny is joining Paul Weiss from the Manhattan office of Kirkland & Ellis
Partner Promotions
KWM Promotes 42 to Partner in Global Round
Financials
Freshfields Revenue Growth Stays Steady as PEP Inches Up
Clifford Chance Revenue and PEP Hit Record Highs, But Growth Slows
Herbert Smith Freehills PEP Jumps 11% as Revenues Pick Up
Simmons & Simmons Adds £20M to Top Line as Growth Slows
HSF Ups Available NQ Pay Package to £105,000
Macfarlanes Joins Fight for NQ Talent With Salary Uplift
Linklaters Matches Magic Circle Rivals’ NQ Rate
DAC Beachcroft Pays Out £8.7M in Bonuses As PEP Continues to Climb
Technology and Innovation
Exigent launches ‘evergreen’ fund for legal tech
DAC Beachcroft reinvigorates innovation strategy with group launch
Hello and welcome to the Fides Weekly Update, your digest of this week’s key legal trends, moves and developments from across the globe.
Tweet us @Fides_Search to let us know your thoughts.
This week:
1). Eversheds launches new law offering Konexo
This week, Eversheds Sutherland confirmed the launch of its own global alternative legal services and compliance provider Konexo, to host the firm’s advisory, interim resourcing and managed service offerings. Initially owned by the partnership, Eversheds intends to make it a separate corporate structure with the potential to attract external investment.
According to the firm, the advisory, interim resourcing and managed service segment already accounts for £40 million of annual revenue. It encompasses three teams, known as ES Consulting, Corporate Secretarial and Volume Insolvency, which together saw business grow by 38% last year. The goal is to increase this to £100 million in annual revenue and for the firm to be granted its ABS license.
“This is in response to what we’re seeing as a clear client demand,” said Eversheds Sutherland co-CEO Lee Ranson. There was “a constant theme” in conversations with clients around using technology and moving away from the traditional legal model for “repeatable-type” legal work, he said. Although Eversheds is already doing this in several areas, under Konexo’s structure, each service comes together in a central package offered to clients.
Konexo has about 300 staff, of which half are contractors, and will be headed by financial services partner Graham Richardson. The business is set to launch in Kuala Lumpar shortly, and in the US in September, making it one of the only alternative legal services provider that’s global.
Several other international firms have launched their own entities in recent years to compete with ALSPs.
This month, Greenberg Traurig launched a subsidiary called Recurve, which plans to partner with artificial intelligence providers, staffing firms and others to guide clients toward solutions for their needs beyond traditional legal services.
Pinsent Masons flexible lawyering arm Vario expanded to Hong Kong earlier this year, bringing on Axiom’s former Asia head to lead its Asia presence, whilst Lawyers on Demand, which British firm Berwin Leighton Paisner spun off in 2012, was bought by a private equity firm Bowmark Capital LLP. This week, BCLP also confirmed its service delivery business was set to relaunch this year.
2). Movers & Shakers
Panel Watch
King’s College London Opens Tender for Inaugural Legal Panel
Appointments
A&O’s former Peerpoint CEO lands new role at Thomson Reuters
Allen & Overy’s former CEO of Peerpoint, Richard Punt, is joining Thomson Reuters as chief strategy officer
Bryan Cave Leighton Paisner Elects New Chair, Ends Female-Led Run
BCLP re-elects Lisa Mayhew with fellow co-chair Therese Pritchard replaced by legacy Bryan Cave partner Steven Baumer
Moves
HSF raids Paul Hastings in belated Italian push
An eight-strong team is led by partners Lorenzo Parola and Francesca Morra will join HSF alongside six associates
US firm Scott+Scott Expands in Amsterdam
A month after the firm opened in the city, Damiën Berkhout, Stefan Tuinenga and Marianne Meijssen join to boost the firm’s litigation and competition law practice
‘New Law’ Outfit Facing Uncertain Future Following Mass Defections
Founded by former Fieldfisher partner Andrew Pena, the Holborn-based corporate new law firm Cubism Law stands to lose about 16 lawyers to ‘challenger’ corporate boutique Gunnercooke
Dechert Strikes Again with Third Sidley Partner Hire This Month
Real estate finance partner Aparna Sehgal has joins Dechert after 14 years at Sidley
Two Eversheds Energy Partners Join Hill Dickinson
Highly rated energy partners Mark Aspinall and Paul Sinnott have left Eversheds Sutherland to join Hill Dickinson’s commodities team. They were formerly co-partners in charge of the London office of Arbis Sutherland, pre 2016 the merger with Eversheds.
Fifth Taylor Wessing Partner to Join Goodwin Procter
Goodwin Procter has hired head of tax Rob Young from Taylor Wessing in London, marking the U.S. firm’s fifth lateral pick-up from the outfit to emerge this week
Former Ashurst Managing Partner Joins Squire Patton Boggs
Squire Patton Boggs has hired former Ashurst managing partner James Collis, as the U.S. firm looks to rebuild its London operation following several departures
Crowell & Moring Adds Sixth Former Squire Partner in London in Six Months
Litigator Laurence Winston officially joined Crowell this week as co-head of international dispute resolution
Office Openings & Closings
Simmons & Simmons Opens Office in Shenzhen, China
Eversheds Sutherland takes on the Big Four with high-stakes New Law launch
Baker McKenzie Cuts 46 London Staff Positions
Partner Promotions
Bakers unveils largest City promotions round since 2010
Trowers appoints 12 in real estate-heavy promotions round
Financials
A&O Raises NQ Pay to At Least £100,000
Inclusion and Diversity
Baker McKenzie Sets Six-Year Target For Gender Diversity
Unconscious Bias Biggest Blocker to Gender Parity, Says Law Society Report
Jones Day Bias Claims Spread to Atlanta, New York as More Accusers Go Public
Kennedy’s Ditches Annual Appraisals For Partners and Staff
Innovation and Technology
Eversheds Launches Legaltech Training For All Partners
Legal Market Insights
Survey: Most Companies Will Reduce Legal Spend in the Next 2 Years
In five years, Chinese firms are expected to make up two-thirds of the Asia Pacific Top 50
Hello and welcome to the Fides Weekly Update, your digest of this week’s key legal trends, moves and developments from across the globe.
Tweet us @Fides_Search to let us know your thoughts.
This week:
1). Unpaid client invoices total a third of combined revenue at top UK law firms, research finds
Law firms have increasingly large amounts of unpaid bills sitting on their balance sheets, which is hurting their cash position, according to an analysis of the top 50 LLP accounts by Legal Week in conjunction with Smith & Williamson.
The top 50 LLP’s (excluding Slaughter and May) had £5.6 billion due from clients at the end of the last financial year, marking a 9% increase on 2016-17 despite dwindling cash reserves at law firms.
According to the data, the top 50 firms collected £17.3 billion in fees during this time, meaning that unpaid invoices amounted to almost a third of their total combined revenue.
Allen & Overy had the highest value of unpaid client bills, with £538.5 million due to the firm, where Browne Jacobson had the lowest at £19.3 million. CMS had the highest percentage change year on year, with a 91% increase in unpaid bills to £186.3 million after its three-way merger went live in September 2017. Full breakdown of the firm’s accounts are available here.
U.K. firms have traditionally been slower to chase payments than U.S. firms operating in the City, with clients taking on average 121 days to pay U.K. top 50 firms last year. Of this, Travers Smith were the fastest to turn around bills with an average turnaround time of 73 days last year, where Irwin Mitchell were the slowest, with clients taking on average 268.8 days to pay their bills.
Combined, the top 50 firms had £1.325 billion in cash on their balance sheets at the year-end, alongside bank loans and overdrafts totalling £875 million, leaving them with about £450 million in net cash.
However, monthly staff costs came in at £610 million, meaning that firms are relatively thinly capitalised and vulnerable to volatile market conditions – something that faster client bill payments could help to offset.
Nick Randall, associate director at Smith & Williamson, said: “Law firms are and have always been notoriously bad at their lock-up cycle, which is fairly obvious as seen by measuring the balance sheet against the turnover at these firms.
“If clients were to stop paying the law firms for a couple of weeks or a month because there were shocks to the economy, and because firms may hold onto their cash and not pay suppliers, some of these law firms could face significant cashflow problems because it’s all wrapped up in things that clients could withhold.”
However, head of professional services Giles Murphy continued to add that, based on the analysis, if firms were able to reduce their outstanding bills by just 10% by the year-end, that would more than double their net cash positions.
2). Movers & Shakers
Panel Watch
Lloyds Advisers Gear Up for Fight As Process to Cut Panel Begins
Legal team cuts expected at Centrica
Appointments
Nokia Chief Legal Officer Heading to ABB as Her Replacements Are Named
Maria Varsellona to become group General Counsel at ABB, a Switzerland-based robotics and technology company
Eversheds Sutherland Appoints New Europe Leader To Spearhead Growth
Eversheds Sutherland has appointed longstanding partner Helen Thomas to the new position of European Managing partner
BAML European legal chief departs for EY
The long-serving EMEA general counsel at the Bank of America Merrill Lynch Sajid Hussein has stepped down after 14 years to join Big Four accounting firm EY.
Moves
Pinsent Masons Partner Exit is Seventh This Year
Belfast infrastructure partner Adrian Eakin moves to Riyadh for a new role at the Kingdom of Saudi Arabia National Centre for Privatisation
Another Partner Leaves Squire in London
Real estate partner John Danahy is to leave Squire’s London office for King & Wood Mallesons
Goodwin Procter Hires Heavyweight Taylor Wessing Life Science Team
U.S. firm Goodwin Procter has hired a heavyweight four-partner team from Taylor Wessing, led by international corporate co-head David Mardle. Three additional partners – Malcolm Bates, Tim Worden, and Adrian Rainey – are due to join upon completing their notice periods.
Linklaters Hires Freshfields Milan Partner To Lead Local Practice
Roberto Egori joins Linklaters to lead its Milan based tax practice
Clifford Chance Loses Two More Lawyers in Australia
Former partner Jennifer Hill and former counsel Sean Houthuysen have left the firm, leaving the Magic Circle firm’s Perth office with two partners
A&O’s consulting arm hires 3VB’s sole female silk
Catherine Gibaud QC, the only female silk at 3 Verulam Buildings, is leaving to join Allen & Overy Consulting on a part-time basis
Weil Gotshal targets Deloitte Legal for Warsaw team hire
A team led by tax partner Leszek Tokarski, including tax specialists Maciej Kostrzewski and Artur Ciechomski, and several associates joined the US firm’s Warsaw office early this month.
City O’Melveny exodus continues as Akin Gump hires private equity funds duo
Private equity funds lawyers John Daghlian and Mary Lavelle set to join US rival Akin Gump Strauss Hauer & Feld
Mergers & Alliances
Eversheds Bolsters Russian Presence Via Local Firm Merger
Financials
Fieldfisher Records Third Successive Year of Double-Digit Revenue Growth
Stephenson Harwood Breaks £200M as PEP Growth Recovers
CMS Grows Global Revenue, Rolls Out New Management Structure
Pinsent Masons Raises NQ Pay Across UK Offices
Slaughter and Pay: £100k for NQs
Inclusion & Diversity
Hogan Lovells Launches Mandatory Anti-Bullying and Harassment Training In UK
Freshfields’ Ryan Beckwith to Face Full SDT Hearing
‘A Partner Tricked Me Into His Hotel Room’ – The Unseen Victims of Law’s #MeToo Problem
One in Three General Counsel Plotting Enhanced Diversity Targets For Advisers
Mayer Brown launches scheme for senior-level mentoring
Innovation & Technology
‘Crazy Ideas’ Welcome: How Orrick Is Working to Build an Innovation Culture
Other
City Reacts to Untimely Death of Corporate Heavyweight Juan Picon
Top 50 Firms Have £5.6BN Of Unpaid Client Invoices
Freshfields Frankfurt Office Raided Again
Hello and welcome to the Fides Weekly Update, your digest of this week’s key legal trends, moves and developments from across the globe.
Tweet us @Fides_Search to let us know your thoughts.
This week:
1). Law firms embrace tech portal to drive applications from disadvantaged backgrounds
A group of ten law firms have signed up to use Vantage, a web portal launched by contextual recruitment company Rare, to match firms with talented students from low-participation schools.
The portal targets the UK’s 100 ‘high low schools’, where only one in 40 students achieving an A at English A-level go on to apply to the legal profession.
This compares to one in three students with the same grade who apply to become a lawyer from elite schools, a 12-fold increase in applicants.
Vantage allows firms to see candidates’ achievements on the portal within the context of how they gained those achievements, taking into consideration aspects of their background including postcode, school quality, eligibility for free school meals, refugee status, and any time spent in care.
The portal aims to double the number of applicants from this pool in the next three years, and was launched in collaboration with the following firms: Baker McKenzie, Clifford Chance, Eversheds Sutherland, Herbert Smith Freehills, Hogan Lovells, Linklaters, Macfarlanes, Pinsent Masons, Slaughter and May and Travers Smith.
2). Movers & Shakers
Appointments
White & Case Creates New Role, Improves Gender Split In Leadership Committee
Clydes Senior Partner to Step Down Two Years Early
Thomas Cook GC moves over to FTSE 100 developer
Moves
Dechert Hires Sidley City Partner Duo
Funds partner John McGrath and litigation partner Simon Fawell are set to join Dechert next week
Stephenson Harwood Hits US Firm For Rare City Hire
Litigation and investigations partner Justin McCelland joins the London office of Stephenson Harwood after seven years as a partner at Winston & Straw
Former Kaye Scholer City Head Quits Merged Firm to Lead Rival Practice
The former London head of legacy firm Kaye Scholer Andrew Harris, is leaving the firm’s London office to lead the European corporate and private equity arm at Vedder Price
London Disputes Partner Exits King & Spalding For Kobre & Kim
King & Spalding City partner Nick Cherryman has left the firm to take up a post at a fast-growing litigation U.S. rival
US Firm Cuts London Partner Loose After 18 Years’ Service
Well known Duane Morris litigator Jonathan Cohen is understood to be leaving the firm
Simmons revives PE ambitions in Paris with Gowling WLG trio
Partner Jérôme Patenotte, who was at Gowling WLG for nine years, will lead Simmons’ new private equity practice. He joins the firm along with of counsel Sophie Mesnier-Teissedre and senior associate Savina Jouan
Mergers & Alliances
Top Australia-Listed Plaintiffs Law Firms Discussed Merger, Report Says
Penningtons Manches is to merge with Thomas Cooper
Office Openings & Closings
UK Firms’ Seoul Offices Safe as Britain Signs Trade Deal With Korea
DWF Adds 40 Partners Via Latest European Association
Andersen Global Bolts on German Law Firm
Dentons continues Africa push with Zimbabwean tie-up
Partner Promotions
Morgan Lewis promotes London lawyer in US-heavy round
Financials
Eversheds Sutherland PEP Hits Record High
Kennedys Revenues Smash £200M Barrier for First Time
White & Case Boosts Trainee Salaries as Pay War Intensifies
CC Boosts NQ Pay to £100,000 Amid Associate Pay War
Skadden NQs get £15,000 pay rise
Inclusion and Diversity
Slaughters, CC Among Firms Supporting New Student Social Mobility Drive
Ashurst Global Board Member Dismissed Over Conduct
HSF faces SRA scrutiny after claims of aggressive behaviour
Technology and Innovation
Linklaters Launches Free ‘Digital’ Internships for UK Students
Stephenson Harwood associates told to innovate under new scheme
Hello and welcome to the Fides Weekly Update, your digest of this week’s key legal trends, moves and developments from across the globe.
Tweet us @Fides_Search to let us know your thoughts.
This week:
1). Gender Diversity for a New Generation – Key Insights
On Wednesday, I had the pleasure of attending the Institute for Inclusion in the Legal Profession’s (IILP) event Gender Diversity for a New Generation in a Global Legal Profession – UK and US Perspectives, hosted by LexisNexis.
Six panels across the day tackled unspoken issues of generational divide, impact of intersectionality, and the judgement, stereotyping and bias against women in law firms.
Insights were given from some incredible contributors, both male and female, from private practice and in-house, who have reached levels of leadership across their firms or succeeded in the law despite great levels of adversity.
This blog post seeks to share their insight and give a fresh perspective on how to tackle gender inequality in the legal sector.
1). Impact of Intersectionality
Intersectional individuals – such as black women in the UK or Latina women in the US – face multiple challenges in the workplace, the reality of which needs to be recognised by organisations.
These two groups of women continue to be amongst the most underrepresented in the law, with retention rates and gender pay gaps within these populations remaining stagnant or actually increasing.
The most alarming aspect of this debate is that many intersectional individuals do not feel psychologically safe to be their authentic selves at work. Tales of women changing how they speak, dress, and hiding their backgrounds, interests and family lives from their colleagues in order to conform were rife throughout the day. An example given of single mothers feeling uncomfortable about attending women’s affinity group meetings is a case in point as to how diversity initiatives can fail when intersectionality has not been taken into account.
2). Mindset matters
Much has been published on the importance of having a growth mindset – individuals are more successful, more resilient and bounce back better from failure. Our mindset, or the mindset of leaders, impacts our response to stereotypes and bias. But despite this, little has been published on the impact of mindset on the culture of organisations.
“Small interventions have a big impact” according to Linda Bray Chanow, who suggests the following for law firm leaders:
This is incredibly important for leaders and male allies who may feel they are not ‘qualified’ to sponsor women or other minority groups.
3). Just ask
A lot of awkwardness exists around D&I in law firms, especially when it comes to ethnicity and disability. Gender has become the major focus because it is easy to measure and the majority of entrants into the profession are women. But as discussed, this does not equal inclusion for the many intersectional women and men in modern organisations.
Therefore, emphasis on the day focused on being bold, making an effort, acting and learning how to interact with people different from yourself. Whether this means facilitating conversations about how to help a colleague with a visible disability with access, or a BAME lawyer about the challenges they face, if everyone in a law firm did this, it would foster the psychological safety needed for inclusion in law firms to really progress.
2). Movers & Shakers
Appointments
Ex-Latham Partner Takes New General Counsel Role
Financial services provider Apex Group has appointed Andrew Macklin as its first-ever general counsel, less than a year after he was installed as interim head of legal at digital bank Monzo.
Accenture appoints new General Counsel
Joel Unruch will become general counsel and chief compliance officer for the company, replacing Chad Jerdee who has been in the role since 2015
Close Brothers ends search for new GC with RateSetter hire
Angela Yotov will take on the general counsel role at the bank in early August, replacing incumbent Elizabeth Lee. She joined RateSetter as the company’s first ever general counsel and head of legal in early 2016
Baker Botts Switches Up Middle East Management
London head Mark Rowley set to take the helm in the Middle East
Freshfields names New York partner as first Client Sustainability Chief
Global M&A partner Tim Wilkins appointed to address client’s growing concerns about environmental issues and social responsibility
Moves
DWF’s post-IPO ambitions dealt a blow as senior Freshfields hire exits
The chief executive officer of DWF‘s managed services business Anup Kollanethu is set to leave the newly listed firm
Eversheds Sutherland Hires First Singapore Partner Since Harry Elias Merger
Banking and financial services partner Gerard Ng joins Eversheds Harry Elias after six years with RHTLaw Taylor Wessing
Simmons Turns to EY for Tax Hire
Simmons & Simmons has bolstered its tax practice with hire of Tomoko Ikawa from Big Four accountancy firm EY. She joins the firm’s London office as a non-lawyer partner
King & Spalding looks to Brussels in revived European push
King & Spalding has hired trade partner Marie-Sophie Dibling to kickstart operations in Brussels, following hot on the heels of Cooley’s Brussels launch earlier this year.
RPC brings in Clifford Chance operations leader as new COO
RPC has hired Clifford Chance‘s London-based general manager Alistair Johnson, who will refinine the firm’s strategy alongside managing partner James Miller
Mergers & Alliances
Allen & Overy to Hold Open Ballot if O’Melveny Merger Progresses
Bird & Bird Consultant Arm Swells via Merger with Management Consulting Business Valeocon
Office Openings & Closings
Herbert Smith Freehills to Close 10-Lawyer Berlin Office
Financials
Dentons turnover boosted by panel wins, Carillion fees and KKR mega-deal
Innovation and Technology
PwC Announces Cohort for New Legal Tech Incubator
US and EU to Negotiate E-Evidence Agreement
Singapore Steps Up Legal Tech Push With Asia’s First Startup Accelerator
Ashurst signs up with alternative provider to boost NewLaw unit
Hello and welcome to the Fides Weekly Update, your digest of this week’s key legal trends, moves and developments from across the globe.
Tweet us @Fides_Search to let us know your thoughts.
This week:
1). Consolidation in Italy as top firms agree to merge
On Saturday, the partnership at BonelliErede, Slaughter and May’s Italian best friend firm, unanimously voted to merge with litigation and corporate independent Lombardi e Associati, growing its headcount to 750 to make it the largest firm in Italy.
From July, the firm will take on around 70 legal professionals, including 21 partners, across litigation, corporate, banking and administrative law. This includes Lombardi’s head Giuseppe Lombardi, who will co-lead Bonelli’s litigation team.
The move was not without some fallout however, with a team of 15 corporate lawyers led by partners Antonio Segni and Andrea Mazziotti leaving Lombardi for Gianni Origoni Grippo Cappelli & Partners, Bonelli’s main rival.
Private equity specialist, Gattai Minoli Agostinelli & Partners also recruited an eight-strong team from Lombadi, including energy and infrastructure partner Carla Mambretti and co-head of project finance Nicola Gaglione.
Alongside Gianni and 300-lawyer Chiomenti, Bonelli is regarded as one of Italy’s top three independent firms. Key mandates the firm acted on in recent months include the €50bn merger between French lens manufacturer Essilor and Italy’s Luxottica.
Engineered to strengthen Bonelli’s litigation offering, the merger is a rare exception in the Italian market characterised by individualism rather than instances of consolidation.
However, the boutique-led nature of the Italian market has also meant firms have traditionally been over-reliant on one or two top partners to secure their success, making it difficult to grow. Despite expanding abroad, especially in the Mediterranean, Africa and the Middle East, Bonelli’s revenue has remained flat at an estimated €160m.
2). Movers & Shakers
Panel Watch
Three Firms Drop Off TfL Legal Panel
Appointments
Monzo brings in Barclays legal head to lead new product strategy
Withers appoints Geneva chief as its second female chair
Linklaters appoints new Global practice head for Competition and Antitrust
Linklater’s Asia COO returns to London as Director of Legal Operations
Moves
Dentons grows London finance team with Simmons hire
Dentons has further bulked up its banking and finance practice with the hire of Simmons & Simmons partner Simon Middleton.
Eversheds Sutherland Launches in Chicago With Double Hire
Eversheds Sutherland has launched in Chicago with Marc Benjamin from White & Case and Kirkland & Ellis partner Susan Kai
Baker McKenzie Expands in Singapore With Linklaters Hire
Former Linklaters capital markets counsel Xavier Amadei joins Baker McKenzie Wong & Leow as a local principal
DLA brings in Taylor Wessing operations chief for new role
DLA Piper has hired former Taylor Wessing chief operating officer Rachel Reid in a newly-created position
DLA Piper Picks Up Projects Partner in Singapore From Freshfields
Former Freshfields Bruckhaus Deringer counsel Vincent Seah joins the global legal giant as a partner
PwC Loses Partner in Sydney to Australia’s HWL Ebsworth
Employment law specialist Tim Frost leaves Big Four for Australian local firm
WorldRemit GC exits for new fintech start-up after three years
GC at online money transfer business WorldRemit Sam Ross exits for new role at FinTech start up ComplyAdvantage
Mergers & Alliances
US Investment Giant Buys 8% Stake in Gordon Dadds Group
Ince Gordon Dadds Rebrands as ‘Ince’
Partner Promotions
Debevoise Makes Up Largest Ever London Partner Cohort
Schillings promote three to partnership
Financials
New York firms dominate the RPL rankings as US firms hit new London revenue high
Inclusion & Diversity
Kirkland Hires Lawyer Turned Therapist to Lead New Wellness Effort
Is The Gender Pay Gap Working as Well as Intended?
Is the Legal Industry Ready for a Culture Shift on Mental Health?
Technology and Innovation
DLA Piper Becomes Latest Target in Email Scam Surge
The Top Tech Programmes: A Firm-By-Firm Guide
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