A decade in the life... Legal Business Partner Focus: 1994-2004 July/August 2004
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The Legal Business partner focus: 1994-2004
A decade in the life... Partners’ lives have been transformed over the last decade. They’re now working in a highly pressured cauldron of insecurity and 24/7 communications. The financial rewards provide comfort. Is it enough? CHRIS CROWE
50 Legal Business July/August 2004
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PARTNERSHIP CAREERS ARE GETTING shorter and more intense. Wireless technology puts partners on call 24 hours, 365 days a year. But is life worse now than it was a decade ago? Legal Business checks the progress of some stars of the class of 1994, and contrasts the challenges facing today’s crop.
fluidity of the modern legal market does not sit well with job security. As firms attempt to maximise financial performance within organisations that have
A partner at a US firm in London recently negotiated a £54,000 salary cut for himself: it’s not everyone’s idea of a great deal, but he simply wanted to alleviate some of the pressure. This former Denton Wilde Sapte lawyer expressed relief to an old colleague that he’d grabbed a sliver of life back. For those partners who are unwilling to take pay cuts, the future is less secure. The
‘Today’s partners have become much more mercenary. Their loyalty is now more towards themselves than their firms.’
Illustration ANNE CAKEBREAD
mushroomed in size and complexity, insecurity levels among partners are soaring. In return, for management comes the grim realisation that partner loyalty cannot be depended upon. ‘The relatively new trend of firms firing underperforming partners, or
Jon Garrett, director, GMK Legal Recruitment
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The Legal Business partner focus: 1994-2004
> de-equitising them, has come into play,’ Jon Garrett, director of GMK Legal Recruitment, says. ‘The flip-side is that today’s partners have become much more mercenary. Their loyalty is now more towards themselves than their firms.’ Partners elected in 1994 have had a decade of the most phenomenal and
CLASS OF 1994 HOTSHOTS
profound change in the legal market. We interviewed some of that year’s stars, and contrasted their lot with that of a partner being made up ten years later. The biggest hurdle, of course, is to make partner in the first place. ‘You have to wait a bit longer these days, but the attrition rates are huge, so if you’ve made it, you are
CLASS OF 1994 HOTSHOTS
probably of the right calibre,’ Yvonne Smyth, Hays Legal director, says. ‘Making partner in a firm like this is the aim and the high point,’ Susan Howard, partner and former head of corporate at Allen & Overy, confirms. Howard earned
CLASS OF 1994 HOTSHOTS
JAMES PALMER
JOHN REYNOLDS
SUSAN HOWARD
Firm: Herbert Smith Made partner: 1994 Palmer has etched out a significant profile at Herbert Smith with his enthusiasm and articulate delivery. He is regularly touted as a future Herbert Smith senior partner, although he is adamant that management and administration are not his favourite parts of the job.
Firm: McDermott, Will & Emery Made partner: 1994 After making partner at Herbert Smith, Reynolds, an ambitious litigator, worked under David Gold. In 1999 Reynolds joined the US-based McDermott, Will & Emery, gaining an earnings hike in excess of £100,000. His earnings are now plateauing.
Firm: Allen & Overy Made partner: 1994 Howard was just six years’ PQE when she made partner. Seven years later, she was made head of corporate in the UK. After a three-year term, she has now re-set her sights on private equity work where her clients include Englefield Capital and Charterhouse Group International.
He says: ‘Size is not the real issue for firms, it’s about culture and excellence. As you get bigger it does require more effort. McKinsey & Company has a true culture of excelling, so does Goldman Sachs. Size is not innately wrong, it just creates challenges.’
He says: ‘US firms discourage full-time management. You don’t want to be sucked into management during your early 40s; it’s not necessarily a good thing. I prefer fee-earning, I came to the law to be a lawyer.’
Legal Business says: Tipped by many as a future leader, Palmer is somewhat old school in his views on the legal profession. He sees excellence as the highest accolade a firm or individual can have – he makes known his respect for Slaughter and May. A technically excellent lawyer, his contemporary pragmatic style has won him a great name at Herbert Smith’s corporate practice.
Legal Business says: Having stepped out from the shadow of the pre-eminent Gold, Reynolds has built up a reputable litigation practice at McDermott and even completed a stint as its London managing partner. He played a key role in securing McDermott’s merger with Italy’s Carnelutti in 2003 and is now head of the international disputes group
She says: ‘Allen & Overy does give you credibility, but I am convinced that clients go for the individual rather than the firm. It’s probably more true with private equity because it’s a smaller market and you get to know people better. The pace with which one operates is that 20 years may be enough. This is a hell of a pace of life.’
52 Legal Business July/August 2004
Legal Business says: Howard has made it by remaining loyal to one firm. Specialisation was key to her rocketing career. Her emergence coincided with Allen & Overy reinventing itself as a corporate adviser alongside its leading banking practice.
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WHAT THE RECRUITERS ARE SEEING ‘The relatively new trend of firms firing underperforming partners, or de-equitising them, has come into play. The flip-side is that today’s partners have become much more mercenary. Their loyalty is now more towards themselves than their firms.’ Jon Garrett, GMK Legal Recruitment ‘Having had to kick out a number of unprofitable partners and close down whole departments, firms have evolved into businesses rather than traditional practices, keeping a beady eye on bottom line and profitability.’ Dominique Graham, Graham Gill ‘A minimum of £1m [revenue per partner] is the starting point for most these days. In fact, many
firms talk of wanting to get to a level where their partners are responsible for revenue of £2m-plus each, and, therefore, there is a paranoia that any lateral will dilute the equity revenue.’ Andrew Caulfield, Caulfield Search ‘The concept of becoming a partner for life is one that no longer exists.’ Andrea Grossman, Garfield Robbins
‘Retirement age is dropping in comparison to the US firms where senior partners are actually senior.’ Charles Elderton, Chadwick Nott ‘Because of the current state of the economic cycle there is a tendency to scrutinise partner progression to equity much more carefully.’ Adrian Fox, Fox Rodney Search
‘Partners who survive must be political animals.’ Dominique Graham, Graham Gill
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HOW TO MAKE PARTNER IN 2004 We asked some of the UK’s top law firm partners to spell out the key qualities a lawyer needs to make it as a partner in 2004. This is what they came up with. EXPECTATIONS ‘We expect management skills, including team building skills, financial awareness and an understanding of the firm as a business. New partners must also have strong sales skills.’ David Gray, managing partner, Eversheds ‘The acid test was, and is, can you do the job in a way that enables your clients and colleagues to trust you and think you care?’ Dick Tyler, managing partner, CMS Cameron McKenna ‘Partners need to meet financial targets but also competencybased objectives, which involves objective measurement of progress from a professional perspective.’ Roger Parker, managing partner, Richards Butler ‘It’s tough to make it to partner in Linklaters today: you have to have first-rate technical skills, that gets you off first base, but you must have a much broader range of skills.’ Tony Angel, managing partner, Linklaters SPECIALISATION ‘To get a profile these days you need a special string to your bow.’ Richard Bond, senior partner, Herbert Smith SHELF LIFE ‘Not every partner wants to stay past 60, but we do see a number of our partners who are beyond that age. In terms of wisdom, leading on deals and marketing abilities, they can contribute to the firm in many ways beyond the number of chargeable hours they put in. Our modified lockstep system allows that.’ Mel Immergut, chairman, Milbank, Tweed, Hadley & McCloy ‘One of the advantages of a meritocracy is that we don’t have a mandatory retirement age. If the contribution to the firm drops we scale back earnings to reflect what their contribution is.’ Bob Link, chairman, Cadwalader, Wickersham & Taft BUREAUCRACY ‘In all entrepreneurial firms there is room for rainmakers when clients are looking for a sophisticated service.’ Trevor Watkins, managing partner, Lewis Silkin ‘We were very UK-centric, but now we’re an international business. There is a need for partners to be aware of different cultures.’ Richard Bond, senior partner, Herbert Smith
54 Legal Business July/August 2004
average six years after qualifica£6,500 on qualification: today she draws tion in the early 1990s. Now, around 100 times more than that, though, the average is eight according to Legal Business 100 figures. years, and the class of 2004 will Equity partnership remains astonishingly be fixed-share equity partners lucrative, but it’s getting harder and for three years before taking harder to achieve. Many of 2004’s newly elected partners are not full equity partners. Initiation CLASS OF 1994 HOTSHOTS processes often encompass a spell – sometimes indefinite – as a salaried or fixed-share partner. With partners being elected later in their careers and often taking equity status even later still, many are getting a full share of the profits five years later than their colleagues who made partner in 1994. At Herbert Smith, partners elected this year were, on average, eight years’ qualified. They become B partners who are considered for full equity after three or four years. ‘You’re not a B partner unless we’re confident that you will become TIM EMMERSON an A partner,’ Herbert Smith senior partner Richard Bond Firm: Milbank, Tweed, Hadley & McCloy explains. B partners will earn Made partner: 1994 between £150,000 and £200,000 Emmerson joined Milbank, Tweed, Hadley & – some way below average McCloy in 2003, having been a partner at partner profits of around Freshfields Bruckhaus Deringer for nine £740,000. years. He qualified at Norton Rose in 1987. ‘You don’t have people being Emmerson, a respected corporate lawyer, is held at salary partner level,’ currently advising Goldman Sachs and Merrill Hays Legal’s Smyth says. ‘If you Lynch, financial advisers to Philip Green’s bid are made a partner at Linklaters vehicle to acquire Marks & Spencer. He also that means something.’ Partners worked on the sale of Bass Breweries to elected this year at Linklaters Interbrew. were on average nine years’ PQE. Of those made up, several He says: had been partners at other law ‘I can market to any of the investment banks firms before joining Linklaters now, some of them were off-limits to me at associate level. before. I think I had done most of what I Despite immediately could do on the track I was on. I was getting becoming equity partners and a little tired of banging the same drum over joining a strict ten-year up-orand over again.’ out lockstep, Slaughter and May’s 2004 crop of new partners Legal Business says: are on average just seven years’ Emmerson is a prime example of someone PQE. However, only four were who made a name for himself at a leading made up: a measure of how hard corporate practice in London, but was it is to make it at one of the yearning to return to a smaller, and – in world’s most tightly held equity some eyes – more collegiate partnership partnerships. than the Anglo-German behemoth that is Similarly, Richards Butler Freshfields today. partners were made up on
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CORPORATE PARTNER - TO LEAD THE MIDLANDS FUNCTION
Midlands
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Our client is a substantial, driven, innovative and highly regarded commercial law firm. Well known for the quality of its work within the corporate sector as well as the dedication and enthusiasm of its fee earners, both clients and peers talk of a firm that "punches well above its weight" with very impressive "mid-cap and AIM credentials." Now, following a period of streamlining, strategic growth and careful investment, the firm is seeking to recruit a senior corporate lawyer to work alongside the existing corporate partners and play a pivotal role in the development of the Midlands office. In short, our client is seeking an outstanding individual to lead its corporate function in the Midlands. With profitability and turnover at an all time high, the successful individual will help develop, manage and further grow a well established and highly regarded corporate team, safe in the knowledge that they can draw upon impressive corporate and commercial strength in depth.
For a confidential discussion about this position
Already an existing partner or a senior lawyer seeking partnership you will have a solid reputation within the field of corporate law, an ability to build a rapport with existing clients and colleagues alike and possess a hunger for engineering and developing client relations to a very high standard.
please contact James Barrow or Rachel Bellard on 0121 233 9933 or 07977 553 746 (Evenings/Weekends) or write to them quoting reference 3 09 zp-334 at Braybrooke & Barrow, Three Sovereign Court,
In addition, you will possess two personal qualities that mirror the firm: passion and great entrepreneurial flair. This is a high profile and front-line position in a dynamic
Graham Street, St. Paul’s, Birmingham, B1 3JR. Alternatively you can e-mail James at james.barrow@braybrookebarrow.com quoting the above reference.
and profitable law firm. This assignment is being handled exclusively by Braybrooke & Barrow and all The question is.......are you the person to drive it?
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direct and third party applications will be forwarded to them for consideration.
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The Legal Business partner focus: 1994-2004
CLASS OF 1994 HOTSHOTS
contrast to Allen & Overy’s Howard, who became a full equity partner in 1994, at six years’ PQE.
CLASS OF ‘94: WHO STAYED No of partners made 1994
Firm
No of partners that have left
Shelf life
TREVOR SOAMES Firm: Howrey Simon Arnold & White, Brussels office Made partner: 1994 Competition specialist Soames was made partner at Norton Rose in 1994 and subsequently headed up the firm’s Brussels office. When he chose to join Howrey Simon Arnold & White in 2002, he was put on a lengthy gardening leave stint. According to one competition partner at a US firm, Howrey was so eager to get Soames on board that it struck a deal with the City firm to buy him out of his gardening leave term. He says: ‘The legal profession is much more pressurised than it was ten years ago. It is difficult to carve out time for oneself, family or friends.’
Legal Business says: Soames is a voracious writer, speaker and academic. Far from a City stereotype, he is famed for his unusual dress sense, something that he admits has increased his profile in Brussels. He is credited with establishing Howrey Simon’s competition practice in Europe and recently acted for Rockwell Collins, an avionics competitor to Honeywell, in the antitrust case of the decade, GEHoneywell. Other clients include Caterpillar, DuPont, Intel and SAS.
> equity. For many trainees qualifying this year, the expectation of a share in the firm’s profits is well over a decade away – in stark
56 Legal Business July/August 2004
Few UK partners over 50 remain at the Magic Circle and top City firms – and most that do so have a management role. Careers are being squeezed – often to the relief of those who’ve worked under such pressure for a couple of decades. Firms – in particular UK outfits – have noted that seniorlevel partners take a greater share of profits while not always contributing significantly more than their younger colleagues. It’s a consequence of lockstepinfluenced remuneration structures. Younger partners cost a firm less money, and can be making far more cash for the partnership. You start to feel old pretty quickly. In the battle over ageism, US firms provide more flexibility, in general, than their British counterparts. James Croock, 53, a South African who spent 25 years at Linklaters, moved to Dechert in 2002 to become co-head of international M&A. Cleary Gottlieb Steen & Hamilton retains a hearty group of over-60s, despite the firm having a lockstep remuneration structure. Addleshaw Goddard has four partners who have obtained an extension beyond the retirement cap of 62: all four are in the top equity band of 100 to 150 points (worth a potential £390,000). Addleshaws film finance partner Jonathan Blair – who was elected in 1994 – points out that at his former firm, Mishcon de Reya, Lord Mishcon has enormous gravitas: he’s 92 and still practising. Famously, Princess Diana instructed the firm on the basis of Lord Mishcon’s reputation, Blair says.
NATIONALS Eversheds 10 DLA 8 Hammonds Addleshaw Goddard DLA has the highest percentage of departees 13
6 5
MAJOR GLOBALS Clifford Chance 16 Freshfields Bruckhaus Deringer 14 Allen & Overy 13 Linklaters Clifford Chance’s partners are more loyal than current events would have you believe
2 3 0
7
4 3 1 2 1
0 4 0 3
ENTREPRENEURS Olswang Taylor Wessing Charles Russell Lewis Silkin Osborne Clarke Employment specalists Lewis Silkin lost its 1994 duo
0 0 0 2 0
PURE EQUITY Ashurst 8 Slaughter and May 6 Cleary Gottlieb Steen & Hamilton 5 CMS Cameron McKenna Stability rules at these rock solid partnerships 10
7 4 2
4 4 5
0 0 0 0
THE RICH Cadwalader, Wickersham & Taft Macfarlanes Milbank, Tweed, Hadley & McCloy Half of Macfarlanes’ class of 1994 have gone BIG CITY PLAYERS 17 Herbert Smith Lovells Norton Rose Simmons & Simmons 25% moved on from a fast-expanding Herbies
1 2 0
4 0 0 3
Source: Legal Business
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The Legal Business partner focus: 1994-2004
>
‘Many UK firms are getting it wrong,’ Addleshaws managing partner Mark Jones comments, referring to the shortened shelf-life of senior partners. Those making partner this year must consider their career prospects carefully. At many City firms, their careers will be cut short and, by 50, it’s often hard to find a home willing to recognise fully the experience garnered. Hays Legal’s Smyth says: ‘The ideal profile is a partner in their early 40s at the height of their fee-earning capacity, but not at the top of equity. People always say: “I’m pleased I’m on the right side of 50.”’ Hanging around is proving risky.
Collegiality Many international firms are of a size once way beyond the imagination of some of the partners who now running them. The term ‘partnership’ has become an anachronism, with many partners resembling highly-paid employees rather than playing a role in the firm’s vision, strategy and management. Eversheds’ Paris managing partner Colin Brown is an enthusiastic management figure at one of the world’s more dynamic firms. He notes generational shifts. ‘The upstream communication is much better now,’ Brown says. He recalls being told to belt up, after voicing opinions to his elders, when just a junior partner at what was Norwich’s Daynes Hill & Perks (now Eversheds). ‘Younger partners bring new ideas to the firm,’ he says.
THE 2004 STAR PROMOTION Italy. He has an MPhil in international relations from Peterhouse, Cambridge. Clients include Alcatel, BP, Hutchison Whampoa, BG and the governments of the Philippines and Kenya.
CONSTANTINE PARTASIDES
He says: ‘I’m not expecting things to change radically. As a senior associate, it was supposed to be about developing a practice and then, being selected as a partner, one should continue with that. I am joining a large partnership, but a partnership that knows who you are. The process by which you are confirmed into the partnership, it brings all the new partners together. It’s also impressive how well the management knows me and got to know me.’
Firm: Freshfields Bruckhaus Deringer Made partner: 2004 An international arbitration specialist, Partasides learnt his trade under Freshfields’ celebrated head of international arbitration, Jan Paulsson. Partasides has represented Hutchison International in ICC proceedings regarding third generation UMTS mobile telephony investment in
Legal Business says: Any firm in the world would take Partasides on board. He is a renowned intellectual and has an impressive track record in noteworthy international arbitrations. He’s an example of the exceptional calibre that Freshfields and rivals are expecting from new partners – regardless of the economic cycle.
Big is big The increasing bureaucracy inherent in the largest firms is frustrating for many. Some act on it: Milbank, Tweed, Hadley & McCloy’s Tim Emmerson made partner in 1994, in what he terms a ‘tight
Freshfields partnership’. In 2003 he abandoned a firm that had grown exponentially and profoundly across Europe. ‘The partnership ethic has been drastically reduced by UK law firms expanding,’ Emmerson says. ‘I didn’t want to move to a US firm so that I could work until 85. It was about building something at a US firm in London.
OUTSIDE INFLUENCES Opinions vary on that eternal issue for law firms – the management of a partnership by those from outside the legal profession. It’s certainly a pressing issue: according to a report published by Gracechurch Consulting, entitled ‘Legal Futures’, the global market will be worth $36bn (£20bn) in 2007, an increase of 47% on current estimates. Gracechurch’s paper indicates that firms will prime themselves for a new battle over a further expanding global market, but it’s not just about flags on maps, they’ll be managing for profit rather than turnover. Nick Jefferson, of human capital specialist Couraud Consulting, says: ‘We know firms that just can’t bite the
58 Legal Business July/August 2004
bullet, and it poisons the well as far as more junior partners are concerned.’ The tactic of using professional managers rather than management by a long-serving partner is also slowly gaining popularity. ‘Some were thinking about it pre 9/11. The downturn put a stop to some of these plans,’ Simon Chadwick of Chadwick Nott explains. He believes that UK regional firm Shoosmiths has improved its position with a non-lawyer chief executive. ‘Paul Stothard has been careful to draw up clear parameters for his role,’ he says. ‘He went to the partners and told them that the firm needed to invest and this was going to have
a hit on the profits. It had poor financial results in 2003, but in 2004 there was a paradigm shift in performance. A good chief executive has had a direct effect on profit.’ The chief executive experiment hasn’t always provided the desired results. Richards Butler tried it and has now reverted to a managing partner. (Until 2000, the firm was headed by a former accountant, chief executive Chris Schulten.) No consensus exists across the profession. ‘I think understanding a law firm’s business will always require a partner who has been through the business,’ Lawrence Graham managing partner Penny Francis says.
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For partners
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The Legal Business partner focus: 1994-2004
GROWTH SPURT: GLOBAL FIRMS’ TRANSFORMATION 1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2,238
2,350
£582m
£647m
3,531
3,612
£983m
£978m
2,420
2,570
£740m
£800m
Allen & Overy Fee-earner numbers 590
595
646
704
826
£116m
£127.5m
£138m
£167m
£219m
1,203
1,237
1,348
1,459
1,626
1,165
1,460
1,912
Turnover £250m
£494m £332m
Clifford Chance Fee-earner numbers 1,856
2,029
2,868
Turnover £215m
£230m
£282m
£310m
£377m
707
755
819
932
£937m
£432m £587m
Freshfields Bruckhaus Deringer Fee-earner numbers 635
2,030 1,208
1,397
Turnover £131.5m
£138m
£154.6m
£182m
£232m
779
797
862
922
1,028
£162m
£173m
£187m
£213m
£266m
£625m
£280m £380m
Linklaters Fee-earner numbers 1,161
1,360
2,000
2,390
1,400
Turnover £290m £395m
£500m
£640m
£720m
Source: Legal Business
> You can’t do that at UK firms because they are so mature.’ There are upsides to such expansion: namely that you can sell a vision. The Class of 2004 has much wider prospects – geographically speaking at least. In 1994, firms had only just begun to branch out overseas with real gusto. Now, building a profile in a smaller overseas office is an attractive prospect to some junior partners.
62 Legal Business July/August 2004
Herbert Smith’s Tokyo head Steve Lewis was made up in 1994 after moving out to Japan. ‘When they opened Tokyo and asked people to go out there, a lot of people said no. But of course I got a specialisation for Japanese clients that no one else had,’ Lewis says. ‘Everyone can do the work hard bit, but spotting these niche areas is
more important. It was luck that the firm chose me.’ Lewis thinks young partners have serious scope now. Choosing a firm with overseas offices that carry clout, though, is key. ‘If I was at a US firm, I think I’d feel I was more part of a branch office,’ Allen & Overy Hong Kong partner Stanley Chow explains. ‘A lot of our work is originated in Hong Kong and we have our own infrastructure here.’ Chow, who was made up in 2000, has worked on a
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Legal Recruitment
The Zarak Group
LONDON, PARTNER LEVEL RECRUITMENT Hugh Kelly heads up the Zarak Group’s partner-level recruitment practice. Formerly the Head of HR at Ashurst for six years, Hugh left the firm in 1995, spending the next eight years as a Director of Kellyfield Consulting. He has experience at all levels of legal recruitment for private practice and investment banks, specialising particularly in senior level resourcing. Hugh has also had considerable experience of advising clients on international mergers, team moves within international law firms and providing management consultancy to the legal profession.
Hugh Kelly
RESTRUCTURING/INSOLVENCY
$1.5M
INTERNATIONAL SECURITIES
£800,000
Without doubt one of the leading Wall Street law firms, our client has a genuine need to hire a first rate restructuring/insolvency partner – a following is not a pre-requisite. This is a premier US firm with a rock solid London office, requiring a top class lawyer who has the international experience to deal with financial difficulties, often of a global nature. Outstanding remuneration is a given – the most attractive aspect is the quality of the firm, its people, and its clients.
Pre-eminent US firm which has been increasingly seen as one of the US practices to challenge traditional London firms offers opportunity for international equities partner. You will almost certainly come from one of the Top Ten City practices and have the ability to exploit a huge work potential afforded by the firm’s institutional financial and corporate client base. The London office is already well established, offering a mix of UK and US expertise.
PROPERTY FINANCE
PRIVATE EQUITY PARTNER
to £900,000
$1.5M
This is a top flight City firm with an excellent and entirely merited reputation in the commercial property and (particularly) banking/finance area. In recognition of the increased complexity of international property financing deals, they now wish to invest at partner level with a specialist keen to join this already substantial but growing department. You will recognise this as a strategic and challenging career opportunity, relishing a collegiate environment and the requisite back-up at assistant level.
Expanding London office of major US firm, with flourishing private equity practice, seeks high-profile UK Partner looking for a new challenge. Successful candidates will relish the demands of helping to grow a practice with the backing and profits of a major Wall Street player behind them. Serious about its English Law capability, the firm views this position as pivotal in the future development of its European operations.
EMPLOYMENT PARTNER
PRIVATE EQUITY/FUNDS
£400,000
Highly regarded ten fee-earner strong employment department in this long established City firm seeks to invest at partner level to join this close knit team. The majority of the workload in this department is self generated representing employers in the financial and industrial sectors as well as high profile individuals, including enforcement of restrictive covenants, gardening leave and TUPE matters. Genuinely outstanding opportunity for a partner and possibly a small team, currently at a London or regional practice which seems unable to offer commitment to future investment in this fast developing sector. Genuinely collegiate atmosphere will appeal to focused partners having/or beginning to make a name for themselves in this field.
circa £500,000
Without doubt one of the leading growth sectors in corporate law, private equity within the investment funds and investment management arenas has been identified by this large City firm as a development ‘must’. Already possessing a reputation in this sector, they seek a partner with the experience and enthusiasm to assist in taking the team to the next level. Ideally with a credible list of contacts from which to develop new business, the new partner will also enjoy a burgeoning amount of homegrown instructions from a variety of financial and corporate institutions who are regular clients of the firm.
The above represents a small selection of the instructions we currently hold on our books. For an informal discussion, please contact Hugh Kelly on 020 7539 0135, email: hugh.kelly@zarakgroup.com Write to Zarak Legal, 4 Crown Place, London, EC2A 4BT or visit our website at: www.zarakgroup.com
We are committed to equal opportunities and positive cultural diversity
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The Legal Business partner focus: 1994-2004
> string of high-profile transactions alongside Hong Kong’s leading corporate lawyer, Michael Liu. His view tallies with the fact that US firms Cravath, Swaine & Moore and Dewey Ballantine closed their offices in Hong Kong last year. Of course, not all UK firms are as secure as Allen & Overy. Many of Denton Wilde Sapte’s former partners in Asia complain that London offered little support prior to the decision earlier this year that signalled the demise of the Asian offices. Recruitment consultants strike a further word of caution. ‘If you go abroad, is there a route back?’ asks Fiona Bennett of Hays Legal. ‘You can be at the coalface in Hong Kong and making money, but what can you offer back in London? You will want to stay on the same equity level, but you won’t have the business to sustain that level,’ she
PEP: THEN AND NOW LEGAL BUSINESS TOP TEN, BY PEP Allen & Overy Slaughter and May Linklaters Ashurst Freshfields Bruckhaus Deringer Macfarlanes Clifford Chance Mishcon de Reya Lovells SJ Berwin
1994
adds. Going overseas can put partners on the periphery of influence – and in such an insecure profession, you need all the influence you can muster.
2003 £675,000 £886,000 £734,000 £590,000 £700,000 £735,000 £639,000 £211,000 £558,000 £402,000
£382,000 £371,000 £350,000 £298,000 £295,000 £272,000 £269,000 £260,000 £256,000 £246,000
Moving on So partners will at times consider moving firms, a daunting prospect for minds trained in law to be risk-averse. Often firms will be looking for a substantial book of business.
A DECADE OF CHANGE: ENTREPRENEURIAL FIRMS 1994
1995
1996
1997
1998
1999
2000
200
171
£26.4m
£30m
2001
2002
203
203
£35.6m
£41.7m
2003
Charles Russell Fee-earner numbers
94
109
107
120
115
£12.3m
£13.3m
£14.3m
£16.9m
£21.5m
92
92
242
Turnover
£43.8m
Mishcon de Reya Fee-earner numbers 120 81
86
£12.5m
£12.5m
98
102
102
110 98
Turnover £12.2m
£12m
£14m £15.2m
£15.8m
£17.34m
£20.09m
£21.3m
255
274
£46.5m
£49m
Olswang Fee-earner numbers ENTERS LB100 IN
53
ENTERS LB100 IN
£9.9m
65
86
205 109
139
Turnover £46.1m £14.4m
£18.2m
£23.7m
£35.1m Source: Legal Business
64 Legal Business July/August 2004
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Inside Information Partners & Teams Funds
City US firm that has growing corporate and funds practice seeks additional partner or possibly very ambitious associate already on track in current firm. Candidates may well be working for another US firm in London and if not it is likely that one would need to have international experience including US related deals. Capability already exists to handle a broad range of funds including property, hedge and private equity and those with emerging markets funds experience would be of interest. Candidates will have more transactional and corporate experience as opposed to pure regulatory and this offers the opportunity to join a firm that has attractive profitability levels, a crossselling initiative that works and the reputation for a conducive working environment. Ref. 763A/AS
Property Finance City London office of Scottish firm seeks associate or junior partner to develop property finance function in the firm. The firm already has an established property practice that deals with a broad range of work and also a developing banking practice that handles a broad range of banking and lending work, and as a result of increased activity in both Scotland & London the need has arisen for additional resource in this area. Candidates likely to be at senior associate or junior partner level with both excellent experience and sufficient contacts to assist the firm in generating new work. An immediate following is not prerequisite but good contacts would be seen as evidence of commercial acumen. Excellent opportunity to join genuinely friendly firm. Ref. 962A/AS
Energy City Mid-sized US firm with established London practice seeks a partner with experience of energy law with an emphasis on LNG. The firm has a strong US presence and also a number of international offices with a reputation for energy law. The London office has corporate, project and structured finance capability including deals done in the area of natural resources including transactional, corporate and litigation work. Work originates from a number of emerging market locations and the work that the London office is broad offering wide opportunities for partners to handle a cross section of work and not being too specialist. Candidates likely to be energy partners based in London firms with broad international experience to include LNG. Ref. 311A/AS
Property (Partner + Associate) City London office of small - mid sized UK/Regional firm that is well established in London and noted for its conducive working environment seeks a partner and possibly small team for reasons of succession planning. The department is well established and stand alone and works alongside corporate and litigation as well as servicing the needs of partners who refer work into the London office from other UK jurisdictions. The current partner is starting to wind down his career and this could be viewed as an 'heir apparent' role although if a more senior partner were presented they would consider bringing in a new head of department. The department presently has excess work and ideally they also seek an associate with 4-5 yrs pqe so this could be ideal for a small team. Ref. 927 A/AS
Telecoms City US firm that has recently set up London office seeks to make first UK lateral appointments and one of the key areas where they have natural synergies with the US practice is the communications practice that handles telecoms and IT transactions. Partners who have a background in assisting communications companies in all aspects of their telecoms and broadband strategies along with IT and Internet transactions from a corporate rather than a regulatory perspective are likely to have compatible skill set. Also essential is proven business building ability although those partners with a name and reputation in the market are likely to attract work accordingly. Excellent opportunity to join true merit based firm where the successful will excel financially. Ref. 935A/AS
Insurance/Reinsurance
IP Litigation
FSA City Mid-sized US firm with rated securities litigation practice in the US that defends corporates and individuals in breach of SEC regulations and matters pertaining to white collar crime seeks partner or senior associate with FSA enforcement experience gained in private practice or in-house. The firm is handling a number of high profile matters originating out of the US & UK where cross border matters are involved. Candidates will be well experienced in acting on behalf of companies/individuals in breach of the Financial Markets Act and who may be facing criminal proceedings. Excellent opportunity to join a firm that does have a cross-selling strategy that works well and very respectable profitability levels and a reputation for a pleasant working environment. Ref. 761A/AS
PFI/Projects City London office of Scottish firm that has a strong and rated Projects practice in Scotland seeks to appoint a senior solicitor at or close to partner level into its established London office that has is now going to expand in line with overall firm strategy. The firm has core capability in London including corporate, property and dispute resolution/litigation and it is in a position where there is an increasing demand, and excellent further potential for cross-referral of deals across the network. Candidates will have broad PFI and commercial projects experience along with a strong base of client connections. The aim is to assist in handling existing work but also to tap the potential for further work from both Scotland and the London office. Excellent opportunity in friendly office. Ref. 963A/AS
City Fast growing US firm that has set up London LLP seeks to appoint first UK partner in London.The firm is rising swiftly up the US league tables in both size and profitability and it is also broadening and developing its client base as well. It operates a merit based partnership that rewards those who perform well which would suit entrepreneurial partners who are confident in their business building abilities. The key area that needs to be addressed is the area of IP both hard and soft and there is huge potential to tap the firm's existing client base that includes clients from life sciences, pharma and healthcare. Many have increasingly active European businesses. A great opportunity for very entrepreneurial partners who are money driven. Ref. 928A/AS
Partner Mid-sized firm with fast expanding London practice seeks to appoint partner to handle domestic and pan-European corporate insurance matters with some emphasis towards reinsurance. The firm already has a strong client connection in London Market and also the US market and there is a strategic need for a partner to develop the practice further.Partner will demonstrate the ability to handle significant deals and to demonstrate to clients the ability to handle and oversee larger scale projects and deals. There is enormous potential and the ideal partner is probably with a leading City insurance practice and is seeking a fresh challenge with the opportunity to take head of department status and to take responsibility for the future growth and direction of the practice. Ref. 554A/AS
For further information, in complete confidence, please contact: Anil Shah (Managing Director) DD: 020 7269 6804 Email: anil.shah@partnersandteams.com
Tel: 020 7430 1199 Fax: 020 7831 1001
LPA LEGAL RECRUITMENT 7 GRAY’S INN SQUARE LONDON WC1R 5AZ
WWW.PARTNERSANDTEAMS.COM
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The Legal Business partner focus: 1994-2004
CITY SLICKERS: MANAGING TEN YEARS OF TIGHT EQUITY PARTNERSHIPS 1994
1995
1996
1997
278
296
334
1998
1999
2000
2001
2002
2003
729
783
£185m
£197m
754
776
761
£162m
£175.5m
£174m
Ashurst Morris Crisp Fee-earner numbers 247
532
603
685
373 Turnover £51m
£55.5m
£62.1m
£66m
£90m £105m
£130m
£155m
CMS Cameron McKenna (Cameron Markby Hewitt and McKenna & Co up to 97, Cameron McKenna from 1998) Fee-earner numbers 292
292
302
302
£46.8m
£47m
£50m
£45.9m
568
578
577
661
690
718
£102m
£117.5m
£136m
569
569
Turnover
Slaughter and May Fee-earner numbers
600
606
633
682
715
Turnover £117m
£126m
£133m
£242m
£140m £152m
£162m
£248m
£243m
£190m Source: Legal Business
> ‘There is no doubt that significant client relationships which have, or are capable of producing, sizeable practices – around three times plus what the partner expects to draw – are necessary to get through the competition,’ says Penny Terndrup, a director at EJ Legal. ‘However, an intelligent working out of a business plan early on in the process of considering a move is vital.’ Of course, firms are increasingly recognising how hard it is to prise away clients from former employers. Cadwalader, Wickersham & Taft’s chairman Bob Link explains the financial demands for recruitment: ‘You will want to increase those [profit] averages and we will look to people who can do that. But most firms will tell you they don’t buy business – we certainly don’t.’ On average, Cadwalader’s revenue generation
66 Legal Business July/August 2004
equates to some $4m (£2.2m) per partner; its PEP stands at $1.6m (£874,000). ‘There are different ways of contributing,’ Link notes. ‘Not everyone is contributing $4m to the bottom line.’
Price of risk The rewards are tantalising, but modest in comparison with the immense pay-outs that successful investment bankers receive. Derivatives specialists, with a mere three years’ experience at investment banks, can earn bonuses of up to $1.5m (£819,000) according to a report by Armstrong International, the financial services recruitment specialist. Bankers,
of course, can retire early with these windfalls, and compare unfavourably in terms of job security. But that said, the once rock-solid security of partnership is being eroded, as are pension funds and confidence in the prudence of the Exchequer. ‘London was a grim place in the 1980s,’ points out an unsentimental Herbert Smith senior partner Richard Bond. ‘As a city it has improved dramatically.’ But to capitalise on the manifold enjoyments of being a high earner in London or elsewhere in the UK, partners must now achieve a consistent level of performance that is scrutinised as never before. It’d be nice to get nostalgic, but there’s simply not enough time. LB chris.crowe@legalease.co.uk Additional research by Stephen J Doggett and Kate Ranson
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www.garfieldrobbins.com/jobs/lb
In-House International UK Private Practice Partners & Mergers
Senior Appointments & Mergers Garfield Robbins International is a specialist legal recruitment consultancy established since 1989 and we are now part of BNB Resources PLC, one of the world’s leading providers of human resource and communications solutions. Our Senior Appointments and Mergers team handles Partner placements throughout the UK and internationally and law firms use the merger service to research and target specific law firms for a merger in the UK and worldwide marketplace. Our fee is based on a retainer and success fee. The Team consists of some of the most experienced consultants in the marketplace today:
Nicholas Robbins - Managing Director
John Freeman - Senior Consultant
Nick was the founder of Garfield Robbins International and
John has a rare combination of skills - he is a qualified
set up the London office in 1989. He subsequently went on
accountant, who also holds an MSc in Human Resources.
to establish offices in Australia and Hong Kong, building
His background includes working in an advisory capacity at senior
the company into a significant worldwide legal recruitment
management level within a number of law firms including Sidley,
player. Nick handles senior appointments and merger
Austin Brown & Wood, Middleton Potts, RadcliffesLeBrasseur
assignments worldwide in both the private practice and
and Hextalls. His experience has included the introduction and
in-house sector. He is a business head of BNB Resources PLC
implementation of several law firm mergers. As well as working
following GRI joining the BNB Resources Group in
with Garfield Robbins international, John is a lecturer at BPP in
September 2003.
finance and management for law firms.
Email: nicholas.robbins@garfieldrobbins.com
Email: john.freeman@garfieldrobbins.com
Helen Bryant - Director
Andrea Grossman - Director
Helen is a Director and heads up the UK Private Practice
Andrea qualified as a solicitor in 1993 and worked as a litigator
Division of Garfield Robbins International, having joined the
at Clifford Chance and subsequently at Olswang. She has been a
company as a consultant in 1998 from Allen & Overy where
Director of the group since January 2000, prior to which she
she worked as an assistant specialising in corporate finance.
spent a year heading up Garfield Robbins International in
She specialises in the recruitment of lawyers into London and
Sydney. Andrea handles the recruitment of senior lawyers and
London-based international law firms, together with senior
partners into UK private practice firms, together with various law
appointments and merger assignments.
firm merger assignments. Andrea is currently on maternity leave.
Email: helen.bryant@garfieldrobbins.com
Email: andrea.grossman@garfieldrobbins.com
For more information on our services please contact Nicholas Robbins Garfield Robbins International (Head Office) 5 Wormwood Street, London EC2M 1RQ Tel: +44 (0) 20 7417 1400. Fax: +44 (0) 20 7417 1444 Email: nicholas.robbins@garfieldrobbins.com
Garfield Robbins International is a group company of BNB Resources Plc.