Benelux firms have to contend with global competitors as geopolitical uncertainty hangs over the region
The Benelux countries have experienced mixed fortunes over the last year, with Belgium and Luxembourg recovering from Brexit-related instability to begin economic acceleration. In the Netherlands, a fragmented political landscape threatens such recovery, although the economy is noticeably stronger than this time last year.
Despite the prospect of a four-party coalition after an inconclusive general election result, managing partner of Dutch firm De Brauw Blackstone Westbroek, Geert Potjewijd, blames Brexit for sluggish financials: turnover was down 2% from €152m to €149.4m. ‘Revenues are slightly lower than last year, but 2015 was a particularly good year. We are 2% down, primarily because corporate was a bit slower than in 2015. We tend to blame Brexit for that!’
But Willem Jarigsma, managing partner of the largest firm in the Benelux region – Loyens & Loeff – is upbeat despite 2016 revenues dipping 1% from €302.3m to €298.9m. He says ‘it was still a very good year’, particularly in real estate. ‘There’s a lot of interest in real estate in the Netherlands. That has really been booming. Some of them are distressed portfolios that have been transferred. Most of the money is coming out of the US.’
In Belgium, where Loyens also has a strong local presence, Jarigsma says there is a steadily improving M&A market with an emerging private equity presence.
‘The Belgian market has been much better than we expected. It seems like M&A is picking up. There are a lot of family-owned businesses there that need to go into succession. Traditionally that was a closed market but now you can see private equity moving into that area. We’re opening up for outside investors.’
Local firm Liedekerke Wolters Waelbroeck Kirkpatrick saw some significant transactional activity in the last year, advising longstanding client Befimmo in the granting of a 99-year leasehold to investment fund CBRE Global Investors in March in a deal worth €122m.
Meanwhile the Luxembourg market, which primarily focuses on fund formation, is dominated by two firms domestically: Arendt & Medernach and Elvinger Hoss Prussen. Arendt is a 325-lawyer firm that saw revenues grow by a healthy 7% in 2016 to €114m.
However, as with Dutch firms, Arendt frequently combines with global firms on significant corporate work. It worked with Freshfields Bruckhaus Deringer in December 2016 on UBS’ combination of its wealth management business into UBS Europe.
In terms of the wider economy, Luxembourg is healthier than its Dutch neighbour, with the financial services sector benefiting from favourable stock market conditions and the unemployment rate falling since 2014.
Arendt managing partner Jean-Marc Ueberecken attributes this to a stable political system, while the economy has benefited from the French alternative funds market: ‘These funds have become much more sophisticated and international. When they start selling into Europe, they prefer to do it from Luxembourg.’ LB
tom.baker@legalease.co.uk
| Firm | Country | Total lawyers | Total partners | No. of offices |
| Loyens & Loeff | Netherlands | 815 | 103 | 13 |
| NautaDutilh | Netherlands | 408 | 72 | 6 |
| Stibbe | Netherlands | 393 | 75 | 7 |
| De Brauw Blackstone Westbroek | Netherlands | 360 | 65 | 7 |
| Arendt & Medernach | Luxembourg | 325 | 42 | 7 |
| Houthoff Buruma | Netherlands | 286 | 52 | 5 |
| Van Doorne | Netherlands | 171 | 39 | 2 |
| Elvinger Hoss Prussen | Luxembourg | 170 | 36 | 2 |
| Pels Rijcken & Droogleever Fortuijn | Netherlands | 159 | 35 | 1 |
| Liedekerke Wolters Waelbroeck Kirkpatrick | Belgium | 130 | 31 | 3 |
| Hoyng Rokh Monegier | Belgium | 90 | 43 | 7 |