Herbert Smith Freehills and Simpson Thacher each announced the launch of a new office in Luxembourg this week, with both firms attempting to capitalise on a lively and growing private capital market.
Speaking to Legal Business, Mike Flockhart, global co-head of corporate at HSF, explained the attraction of Luxembourg for many firms: ‘Luxembourg is an important European hub for capital markets, particularly for funds work, corporate formation, and tax structuring, all of which often have a Luxembourg angle. It’s a natural fit for firms with strong private capital practices—or those looking to build one.’
Flockhart described private capital as ‘a key strategic priority’, explaining: ‘We’ve increasingly focused on this area in recent years, developing a private capital strategy for the UK and EMEA. A cornerstone of that strategy was Luxembourg, which we identified 18 months ago as a Year 3 target. However, we were able to make progress much more rapidly than anticipated.’
‘On day one, we will have corporate, funds, and tax expertise, which forms the core of what we need in this first phase,’ Flockhart continued. ‘That said, this is by no means the limit of our ambition. We want the team on the ground to be co-architects of our growth strategy, working alongside us to explore next steps.’
When asked if this launch was planned alongside the recent news of the firm’s proposed combination with Kramer Levin, announced earlier this month, Flockhart described the two developments as ‘serendipitous rather than deliberate’, explaining that ‘both initiatives align with our global ambition to be a leading firm and to consolidate our position in core markets. Kramer’s strong private equity franchise complements what we’re building around private capital globally.’
Meanwhile, Simpson Thacher executive committee chair Alden Millard said in a statement: ‘We are excited to support Luxembourg as the destination of choice for funds offering streamlined access to European markets’.
He continued: ‘Our Luxembourg office will harness the Firm’s more than 40 years of experience and exceptional client service in advising asset managers on the formation of cutting-edge investment vehicles.’
Each firm will launch with hires from A&O Shearman. HSF brings over funds counsel Joanna Pecenik Vergès d’Espagne and private capital and M&A counsel Marc Tkatcheff, a Legal 500 leading associate for corporate and M&A, both as partners. Jean-Dominique Morelli, a tax partner from Maples & Calder, will also join the team.
Simpson Thacher also opens with three new partners: regional co-head of funds and asset management and Luxembourg investment funds head Jean-Christian Six and partner Yannick Arbaut from A&O Shearman, and Paul Van den Abeele from Clifford Chance.
All three partners are individually ranked in the Legal 500 for investment funds: Van den Abeele and Six as leading partners and Arbaut as a next-generation partner.
According to the firm’s website, the moves leave A&O Shearman with 126 lawyers in Luxembourg, including 16 partners – six in funds and five in M&A. The departures come after the newly merged firm announced in September that it will cut 10% of its total partnership.
Van den Abeele also marks the second significant departure for CC this week, after fund finance specialist Andrew Husdan moved to Kirkland in London.