London headcount: 132 lawyers, 28 partners
Lawyer headcount change since 2015: + 25%
London managing partner: Private equity partner Jason Glover (pictured) sits on the 12-strong executive committee
Office specialities: Funds, private capital, M&A, finance
Representative matters:
– KKR’s acquisition of Coty/Wella Beauty Business.
– CVC VIII fundraising (the largest ever private equity fundraising by a European private equity manager).
– Apax’s sale of idealista.
– The consortium including Global Infrastructure Partners and Brookfield Asset Management on the acquisition of a 49% stake in the gas pipeline assets of Abu Dhabi National Oil Company.
– IPO of Calisen.
‘Simpson Thacher has strong institutional relationships with KKR and Blackstone, but is that really a strategy? The firm has been guilty of being less dynamic than some other US firms in London. A bit… boring.’
Natural rivalry of two US firms in London aside, this opinion from a rival senior corporate partner does speak to a common perception among peers of a New York firm that has appeared content with conservatism in London.
Simpson Thacher’s London managing partner Jason Glover admits to the cautious reputation. Indeed, It is borne out by 25% growth in lawyer headcount over five years which could – perhaps uncharitably – be measured against Latham & Watkins’ 56%, Kirkland & Ellis’ 103%, to say nothing of Goodwin’s stratospheric 329% five-year ascent.
However, Glover challenges the client question in part by pointing to an enviable list of mandates that goes far beyond private equity favourites KKR and Blackstone. And then there is the sudden change of tack that has seen a 27% spike in lawyer headcount since 2019, outpacing peer firms by a long way.
The addition of a London restructuring practice to serve Europe is something of a coup, coming as it does at a time when market observers are predicting an increase in distressed transactions on the back of the coronavirus downturn. Importantly, the move deprives Freshfields Bruckhaus Deringer of one of the most influential partners of its restructuring practice in the form of Adam Gallagher to lead a practice many see as a natural adjunct to Simpson Thacher’s solid finance offering.
Similarly audacious are plans to open an office in Brussels to capitalise on client demand in the region post-Brexit and the enhanced regulatory challenges surrounding it. In January, the firm hired Antonio Bavasso, Allen & Overy’s veteran co-head of global antitrust, to its London antitrust and trade regulation practice.
Law firm leaders may be reticent to shout their good performances from the rooftops as in previous years – it is easy to come across as tone deaf in publicising such things while much of the world is still in the grip of the coronavirus pandemic. However, Simpson Thacher has cause for quiet cheer, having grown London revenue an impressive 14% from $200.6m in 2019 to $232m on the back of outperforming funds and leveraged finance practices.
And, given the office last made real waves in the lateral market back in 2018 with the addition of Clifford Chance (CC) private equity star Amy Mahon, six laterals in less than a year is an impressive feat. Other additions in 2020 include tax partner Yash Rupal from Linklaters and corporate partner James Howe from Gibson Dunn, while CC investment management regulatory partner Owen Lysak joined this year.
Glover is assured about the moves: ‘The good thing is that each of the laterals we’ve gone for has been initiated and targeted by us. We are managing to get the people we are targeting – they are our first choices.’
He explains the rationale of starting a European restructuring practice: ‘In the States we have a good, albeit small, restructuring practice with four partners that focuses on the debtor/creditor side but we are not an established player. There is a desire to create a top-three player for restructuring. We are ambitious and looking at scale in Europe with five to seven partners over time. It will act as a catalyst for potential growth in the US.’
Glover is clear that the Brussels office is driven by antitrust and will not be the start of a pan-European operation. ‘It was clear that to operate effectively with EU antitrust legislation, we couldn’t do that just out of London. In time we will have two or three partners and ten people in total in Brussels.’
And, all being well, the acquisitive streak looks set to continue: ‘We are always mindful of hiring great talent when it is additive as well as providing opportunities for internal candidates. In addition to the laterals, we made three people up to partner. We are definitely planning to add to the restructuring practice, so watch this space.’
Glover concludes by underlining the importance of good governance as the foundation for success. ‘Law firms have two assets – clients and staff. People always focus on the clients but our staff is just as important. We did not furlough anyone. You have to take the rough with the smooth.’
And with that attitude, the smooth for Simpson Thacher’s London office looks set to continue for some time to come.