The total revenue generated by UK-based legal services increased by 7.7% last year to a total of £47.1bn, according to a new report released today (10 December).
The report, ‘UK legal services 2024: Legal excellence, internationally renowned’, is the 13th annual report from industry body TheCityUK, which represents UK-based financial and professional services businesses, and is produced in partnership with Barclays.
‘As a firm, we are driven, ambitious and innovative, and we thrive in competitive markets like London,’ says Latham & Watkins’ new City head Ed Barnett, as he sits down to discuss his first 100 days in the role and his vision for the future of the office.
Since taking over from Stephen Kensell in September, Barnett – who joined the US firm from Allen & Overy eight years ago – has had his hands full; juggling not only his M&A practice and new leadership role but also managing an out-of-character knock to Latham’s London play – a series of high-profile partner exits.
Paul Weiss is set to close its Beijing office by the end of the year, becoming the latest in a series of major US law firms to scale back operations in China.
The New York-headquartered firm has had an office in Beijing since 1981, which marked its first office outside the US. The firm will continue to operate Asia offices in Hong Kong and Tokyo, which opened in 1983 and 1987 respectively.
‘We remain committed to having a strong presence across Asia, including in Hong Kong and Tokyo, and will continue to provide the highest-quality service to our clients in all of our global offices,’ a spokesperson for the firm said in a statement.
According to the firm’s website, the Beijing office currently has one partner, one counsel, and two associates. The Hong Kong office has eight lawyers, while the Tokyo office is staffed by ten lawyers.
Many other international law firms have been reducing their presence in China, citing geopolitical tensions, strict data privacy laws, and regulatory challenges. Just last month, WilmerHale closed its Beijing office following similar moves by Dechert, Morrison Foerster, Weil and Akin, all of which closed their Beijing offices in the past year.
Paul Weiss chair Brad Karp told Legal Business in October that the firm was ‘continuing to monitor Asia closely.’ While there has been speculation about a potential launch in Singapore, Karp confirmed that there are no current plans to open a new office in Asia.
The firm has been expanding internationally over the past year and a half, re-launching its London office and opening an office in Brussels. It now has 10 offices worldwide, including five in the US.
For more on Paul Weiss’ international strategy, see LB’s feature Late bloomer: how Paul Weiss made up for lost time on the global stage.
Latham & Watkins, Jones Day, and Wachtell, Lipton, Rosen & Katz are advising on Anglo American’s sale of its Australian steelmaking coal business to US coal mining company Peabody Energy, in a deal worth up to $3.775bn.
The transaction value comprises $2.05bn at completion, deferred cash consideration of $725m over four years after completion, a price-linked earnout up to $550m, and a further $450m contingent on the reopening of the Grosvenor mine.
BDB Pitmans has completed its rebrand as Broadfield, joining as the founding member of a planned global network of mid-market firms established by US turnaround firm Alvarez & Marsal (A&M).
Broadfield officially launched this week (2 December) after signing up BDBP as its first earlier member this summer.
BDBP, which has four offices in London, Reading, Cambridge and Southampton, was formed by the 2018 combination of Bircham Dyson Bell and Pitmans. It is known to have been considering expansion options for some time, including holding merger talks with Womble Bond Dickinson.
Broadfield UK managing partner John Hutchinson – who became managing partner at BDBP last October after 30 years at the UK firm – told Legal Business that Broadfield is now expecting to announce a second member firm in the first quarter of 2025, and that it ‘may well be’ a US firm.
Earlier this year, he told LB that discussions with a New York firm were underway, and it is understood that those talks are still ongoing.
Hutchinson estimated that there would be a period of around six months between a firm agreeing to join Broadfield and becoming an official member, although this could vary depending on the firms involved.
The Broadfield venture was unveiled this July. An A&M subsidiary, SHP Legal Services (SHPLS), has been set up to support the Broadfield network. In a statement announcing the launch, Broadfield said that SHPLS will provide ‘management services to law firms joining Broadfield in the areas of technology, operations and talent acquisition.’
Member firms will have access to a technology stack maintained by SHPLS, although Hutchinson confirmed that while some tech improvements would be immediate, full access to the stack would not be available until a period within the next financial year.
In a statement, Broadfield said that SHPLS will provide management services to law firms joining the network “in the areas of technology, operations and talent acquisition.”
SHPLS is led by former McDermott Will & Emery chair Peter Sacripanti as CEO, alongside US lead John Hendrickson, also a former McDermott partner, with former EY financial services UK managing partner Christopher Price leading UK and EMEA operations.
In an interview earlier this year, Price told LB that Broadfield is hoping to add three other firms to the network – including at least one in the US and another UK firm – in the first twelve months.
With the exception of the US, there will be only one Broadfield firm per jurisdiction; as such, any UK firms that join would merge into Broadfield UK.
Firms signing up to the network will retain their own governance, although there will be planning boards that determine the overall direction of Broadfield.
For more on the deal, see Broadfield of dreams: BDB Pitmans signs up for new Alvarez & Marsal legal venture
Lewis Silkin has been appointed to lead an investigation into TV presenter Gregg Wallace, after historical allegations of misconduct were made against the MasterChef host.
Topping this week’s major moves, Phil Cheveley has joined Covington & Burling’s cross-border M&A practice group in London as a partner. Cheveley departs Sidley Austin, bringing a wealth of experience from top firms, including legacy Shearman & Sterling, where he served as EMEA and Asia M&A head, as well as his previous role as M&A head at Travers Smith.
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.
Kirkland & Ellis and A&O Shearman are advising Swedish battery maker Northvolt as it enters Chapter 11 restructuring proceedings, with court filings stating that a total of $5.84bn in total funded debt obligations has left the company in a ‘dire’ liquidity position.
Kirkland & Ellis has hired long-time Clifford Chance fund finance specialist Andrew Husdan as a partner in London, according to sources familiar with the matter.
