Harbottle & Lewis maintained its status as one of London’s fastest growing law firms last year, with the West End firm continuing its recent trend of double-digit growth and proving itself as a Legal Business 100 (LB100) standout. Overall revenue increased by 26% to £35.5m, up from £28.1m last year, while profit per equity partner (PEP) increased by 32% to £670,000 from £509,000 last year when the PEP figure suffered 2% decrease. Over the last five years, the firm has seen revenues grow 48% and profit by 86%. The favourable figures also saw Harbottles hustle its way into the top ten fastest-growing LB100 firms in both PEP and overall turnover, no mean feat considering the sharp-elbowed nature of London’s legal market.
The tip of Harbottles’ spear remains its private client and media and entertainment practices, recently strengthening the latter with the hire of ex-Barclays managing director Jonathan Burt from Harcus Sinclair, as the two practices saw a significant pick-up over the last 12 months contributing to strong growth at the firm.
In the media finance, the firm advised New Sparta Films on the financing of an array of feature films including Miss You Already, Brimstone and The Limehouse Golem. The firm also advised Hat Trick on the financing of new television production Doctor Thorne, as well as advising Carnival on financing and production aspects of acclaimed TV dramas such as The Last Kingdom and Jamestown.
The firm can also count Legal Business’ current Management Partner of the Year Glen Atchison (pictured at the Legal Business Awards 2018) as an asset, with the private client heavyweight bringing in needed changes at the firm, which he has led for more than a decade since being elected aged just 37. Under his leadership Harbottles revamped its remuneration structure, replacing its previous rigid lockstep model with a more meritocratic approach. Indeed, Atchison has remained top of the pile over the last three years, with the managing partner also heading up the firm’s private capital group as its highest-billing partner.
‘US firms took Magic Circle partners just through numbers; now our more flexible remuneration structure has allowed us to attract the best people.’
Glen Atchison, Harbottle & Lewis
If the performance of the last five years continues, Harbottles may yet demonstrate to City players the route from low profile to highly-rated, as the firm combines talent with strategy to be an LB100 pacesetter.
What have been the main drivers behind the firm’s success last year?
Glen Atchison: Last year was almost a perfect combination of market needs playing to our strengths. Our leading technology, media and entertainment guys were very busy both because of GDPR and a range of other transactions, and on the private capital side, our private clients and their family offices kept us extremely occupied in dealing with the wholesale changes in the compliance and regulatory landscape. We also saw the very significant impact of the family team that joined at the end of the previous year.
What has been the overall strategy at the firm to ensure growth continues?
Atchison: To develop our two core areas of focus – technology, media and entertainment and private capital – recognising that we are fairly unique in terms of the extent of the overlap between the two areas. The strategy has been to grow multiple complementary practices that are integrated in terms of marketing and client service, rather than the more traditional stand-alone groups. To help achieve this, we have looked to bring in the best-of-breed in the areas we’re working in.
How important has the change in remuneration structure been to attract new talent?
Atchison: It’s been integral. Many years ago, the US firms came in and took out Magic Circle partners just through numbers; our more flexible remuneration structure has similarly allowed us to attract some of the very best people from the very best teams.
Is there anything about the future you are cautious about?
Atchison: I’m more cautious than a year ago, and I was more cautious then than two years ago. I expect that there will be some sort of Brexit correction, and I don’t think anything is immune to it – we’ve not even started to see the full effects yet. We appreciate that we’ve had two very good years, but we are far from complacent and don’t assume that it will just be a case of the same as last year or the year before that.