From bumper pay cheques to internal politics and an extremely competitive lateral recruitment market, 2024 hasn’t been short of legal headlines.
But what do partners really think about what’s been happening? Here are some of Team LB‘s favourite anonymous quotes of the year, from partners who weren’t afraid to speak their mind. Continue reading “‘$20m isn’t much once you deduct the essentials’ – LB’s best quotes of the year”
From transatlantic mergers to dizzying new heights of competition in the war for talent at both associate and partner level, 2024 has been busy. To help you reflect on the year that was and what’s coming next around the corner, here are LB’s 20 most popular features of 2024, as voted for by you – our readers.
We’ll be back with much much more in 2025.
Market forces: Paul Weiss, Kirkland and the war for London talent
Paul Weiss’s audacious hiring spree in London got everyone’s attention, not least Kirkland & Ellis, whose ranks it repeatedly raided. In April, Elisha Juttla and Georgina Stanley analysed how the strategies of both firms are playing out.
Elite: The rise of the in-house lawyer in private capital
The City’s top private equity lawyers, from private practice and in-house, reflect on the rise of private capital, the evolution of the GC role at PE firms, and what the future might hold, as told to Cameron Purse in September.
When the going gets tough – Global London firms dig in as market reality bites
After years of rapid recruitment, uncertain times have slowed growth among Global London firms, but as Holly McKechnie observed in April, savvy firms are strategically preparing for a market revival.
In February, Elisha Juttla delivered a deep dive into Baker McKenzie’s leadership, which has earned praise for its clear strategy amidst tragedy and controversy, asking whether the sleeping giant has finally awoken.
‘If you build it’ – firms put together infra dream teams as market booms
London’s infrastructure lateral market has been sizzling, with US firms aggressively recruiting. This January, Harry Vercoe explored the key factors driving this trend/
‘I’ve called firms and asked why someone isn’t a partner yet’ – the female GCs shaking up PE
Female GCs at private equity firms from Carlyle to KKR and Apollo to Bridgepoint discussed culture, careers, and the challenges of succeeding in the tough world of private capital with Georgina Stanley in September.
‘How hard are you prepared to work?’ – partners who’ve made it on how they built a book of business
Corporate and private equity partners at various career stages shared tips with Elisha Juttla in December about how to build a book of business in London’s uber-competitive market.
The announcement of Herbert Smith Freehills proposed US merger with Kramer Levin made headlines this Autumn; in November, Anna Huntley examined the bigger picture behind the latest transatlantic tie-up.
Stress test – partners on how they deal with a life under pressure
City partners spoke to Elisha Juttla and Holly McKechnie in June about how long, unpredictable hours in transactional work take their toll on mental health, and why the industry still needs to change.
Laws of attraction: how elite firms are ramping up their talent retention tactics
With the battle to recruit and retain star partners becoming more intense, the world’s top firms are shaking things up to fend off the competition, as explored by Elisha Juttla in November.
Late bloomer: how Paul Weiss made up for lost time on the global stage
Paul Weiss has made more headlines than most this year with a new international strategy that has shaken up the market – Elisha Juttla looked back on how it all went down
From group actions to competition claims and ESG-related litigation, 2024 has been a year of complex and multifaceted disputes – Alex Ryan and Bethany Burns analysed the key trends and cases in April.
What Gen Z lawyers really want from their careers
Are ‘woke’ Gen Z lawyers tearing up the status quo? Alex Ryan set about to find out in June, speaking to lawyers of all levels of seniority on how attitudes to work are changing.
As ESG continues its rise up the agenda to business fundamental, LB looked at how the top firms are responding in October.
Marking a merger: how is BCLP’s transatlantic tie-up faring?
From hard facts to future plans, Tom Cox spoke to BCLP’s London leaders and market observers to get their verdict on how the transatlantic tie-up has gone down.
Doubling up: LB100 firms set 10% growth benchmark as more than half pull off double-digit hikes
2023-24 was a bumper year for the UK’s top 100 law firms with an average 10% increase in revenue, Ben Wheway dug into the LB100 data this December to see what was driving the growth.
Euro Elite 2024: Art of resilience
LB took its annual look at the Euro Elite this February, discovering the trends setting the agenda for Europe’s top firms.
Getting to know Kramer Levin – a guide to HSF’s merger partner
Everything you wanted to know about Kramer Levin (but were afraid to ask) – Alex Ryan set out all the details on HSF’s new US merger partner.
Global 100 defy gloom to pass $150bn
The world’s largest law firms defied gloomy predictions to crash through the $150bn mark in this year’s Global 100. Alex Ryan crunched the numbers to find out how.
Scaling up: a look back at the last ten years of disputes in London
A decade after LB’s first Disputes Yearbook, Bethany Burns and Alex Ryan checked in with London’s litigation elite in April to find out what has changed in the last ten years.
Meet Legal 500’s Green Ambassadors: the lawyers championing sustainability in major regions across the world.
From high-profile managing partners to leading GCs and barristers, the LB team interviewed dozens of the leading names in law about everything from mental health, to women in law to strategy in 2024. Here are our most popular interviews of the year.
The Private Equity Elite: Meet all the top general counsel in PE
What does it take to run the legal team at the world’s most profitable deal shops? Georgina Stanley and Cameron Purse spoke to 24 of the top London private equity GCs to find out about how they built their careers and how they thrive in the notoriously tough and hectic world of private equity.
This July marked Richard Youle’s first year as Skadden London head – Elisha Juttla spoke to him about scaling up, breaking down strategies, and fostering ‘Skadden Spirit’.
LB Management Partner of the Year Wim Dejonghe on mergers, money and his plans for life after law
This September, Wim Dejonghe was named Management Partner of the Year at the Legal Business Awards, capping off a distinguished 23-year career at Allen & Overy ahead of the firm’s merger with Shearman & Sterling – revisit Alex Ryan’s exclusive interview with Dejonghe on mergers, money, and his future plans.
Kirkland & Ellis’ Sara Pickersgill on trading opera for infrastructure law – Harry Vercoe caught up with her this January to discuss everything from career changes to why The Lion, the Witch & the Wardrobe holds key lessons for every City lawyer.
Vinson & Elkins London head Nick Henchie on mental health, seeking support, and supporting the next generation of lawyers – Elisha Juttla spoke to him for Mental Health Awareness Week about recognising struggles and the importance of openness in the legal profession.
Freshfields’ Mark Sansom on motorsports, email gaffes and competing on the global stage
Freshfields London managing partner Mark Sansom on motorsports, email blunders, and competing on the global stage – Georgina Stanley sat down with him this September to discuss his passion for racing, the lessons learned from turning down Oxford, and the importance of owning up to mistakes.
Life During Law: Richard Lever
Goodwin private equity partner Richard Lever on The Godfather, Jürgen Klopp’s leadership, and why disco’s still his jam – Legal Business caught up with him this February to talk career twists, unforgettable deals, and what makes him tick outside of law.
Life During Law: Scott Hopkins
Skadden corporate heavyweight Scott Hopkins recently hung up his skates after a long career at the US firm – Alex Ryan spoke to him in April about his journey from the hockey rink to the world of law, how martial arts shaped his approach to deals, and why timing, strategy, and a good tune were key to his success.
Ed Barnett this year took the reins as Latham & Watkins’ new City head – Anna Huntley caught up with him to talk about surviving partner exits, revving up recruitment, and how he plans to keep Latham ahead of the game in London’s high-stakes legal race.
‘We have a remit to build’- ex-Latham team open up on Sidley’s bold City lev-fin play
In their first interview since leaving Latham & Watkins, Jayanthi Sadanandan and Sam Hamilton spoke to Elisha Juttla in October about their plans to transform Sidley Austin’s leveraged finance practice into a powerhouse for private equity clients.
‘Doubling down’: CC’s London PE head sets out strategy as buyout partners predict uptick
Spencer Baylin stepped up as Clifford Chance’s new London private equity head in December following Christopher Sullivan’s high-profile exit – Elisha Juttla caught up with him in March to discuss his vision, doubling down on client relationships, and plans to grow the team as the PE market heats up.
In September, Hg GC Samantha McGonigle spoke to Georgina Stanley about her journey from private practice to in-house, the fast-paced challenges of private equity, and the importance of building a strong network.
‘I work with the best M&A lawyers in the world’ – Carlyle’s Heather Mitchell
In September, Heather Mitchell, Carlyle’s global GC for Investments, sat down with Georgina Stanley and Cameron Purse to chat about steering her powerhouse M&A and risk team. As Carlyle scales up, Heather revealed how creativity, collaboration, and thinking outside the box are her secret weapons for handling growth.
From a mining town to City partner, Greenberg Traurig’s Kathryn Garbett spoke to Elisha Juttla about overcoming gender bias, championing the next generation of women in law, balancing motherhood, and navigating a male-dominated legal world.
‘There are not many cases like this’ – the lawyers in Olympic boxer Imane Khelif’s corner
In a case that sparked a global debate on gender and eligibility, this year Withers represented Olympic boxer Imane Khelif. Tom Cox spoke with Libby Payne about representing Khelif pro bono after her disqualification from the IBA Women’s World Boxing Championships, while also discussing the need for clearer, fairer policies to protect athletes’ rights and privacy.
‘A PE firm is one of the most interesting places for an in-house lawyer’ – Cinven GC Babett Carrier
Georgina Stanley and Cameron Purse spoke to Babett Carrier this September about her journey from private practice to GC at Cinven, why private equity is the ultimate destination for in-house lawyers, and how she leads with a focus on risk, teamwork, and a passion for business.
Life During Law – Simon Levine
Simon Levine is handing over the baton as managing partner at DLA after a decade in the top role – Anna Huntley spoke to him this October about his leadership style, ripping up scripts and how running a law firm is a lot like running a mafia crew — without the killing.
Life During Law – Penny Angell
Elisha Juttla sat down with Hogan Lovells UK managing Penny Angell in October to discuss her love for negotiation, her evolving leadership style, and the time she picked beer over shoes in a high-stakes deal.
Following the announcement of Herbert Smith Freehills’ proposed merger with Kramer Levin, CEO Justin D’Agostino spoke to Anna Huntley about the deal’s strategic edge, its impact on HSF’s global reach, and why more mergers could be on the horizon.
‘Non-binary people aren’t going away, no matter how much hate is expressed towards us’
In June, Oscar Davies, the first openly non-binary barrister, spoke to Amy Ulliott about breaking barriers, the challenges of being a role model, the importance of allies, and why equal rights should be seen as complementary, not conflicting.
Bankim Thanki KC on epic trials, great movies and clients doing a runner
Fountain Court’s Bankim Thanki KC spoke to Alex Ryan in April about his journey, epic trials, the lessons learned along the way, and why, despite over two decades in silk, he still saw his legal career as ‘extended work experience.’
‘I liken myself to an octopus with many tentacles in different places’ – Apollo’s Seda Yalcinkaya
In September, Apollo’s GC Seda Yalçinkaya, one of the lawyers named in LB’s Private Equity Elite, discussed balancing high-stakes deals, managing multiple roles, and pushing for diversity, particularly for working mothers.
‘With an open checkbook, they’ll likely target top talent’ – Davis Polk London scale-up turns heads
Breaking into the lateral hiring war, Davis Polk recently made waves in London with four new partner hires in just six months. In November, Anna Huntley caught up with the firm’s senior leadership to discuss their strategy for attracting top talent, ramping up private capital, and reshaping the firm’s presence in the City.
After studying law at Oxford, where I was also a choral scholar, I joined Linklaters. As a trainee, I did a seat in Hong Kong, then six months in Moscow and two years in Singapore as an associate. When I made partner, National Grid was one of my most significant clients, stemming from my time in Singapore; I handled most of their significant deals. I built a practice acting for FTSE 100 and FTSE 250 corporates, a number of German corporates and various media companies. Overall, I had a brilliant, fulfilling career over my 27 years at Linklaters and the next 4 years as Global Vice Chair M&A at Paul Hastings.
After leaving full-time law, I planned to pursue a mix of paid senior advisory roles and voluntary work. When the news of my leaving Paul Hastings was out, Eversheds Sutherland asked if I’d be interested in working with them on a two-year contract. As a senior strategic advisor, my role was to help the firm with its M&A practice and am now thinking about offering similar support to other firms. It was interesting and good fun and they’re doing brilliantly. I’m also a senior advisor to legal recruitment firm Montresor Legal, helping firms and candidates with their strategies and careers, and I’ve been doing ad hoc consulting for former clients.
Some time ago I collaborated with Boris Johnson on the Mayor’s Music Fund, where I was director and trustee of a music education charity providing musical opportunities for underprivileged children in London. The focus wasn’t so much on achieving musical excellence, but rather about helping these kids use music as a tool to increase their confidence, and benefit from all the good things associated with music. I also was on various committees at the Royal Opera House; Sir Simon Robey, when he was global co-head of M&A at Morgan Stanley was also the Chairman of the ROH at that time, and he suggested I get involved, prompting me to join the ROH Advisory Committee and also the Development Committee. I was later asked to join the Board of the London Philharmonic Orchestra (I’m a former violinist) and I now Chair its Advisory Council.
When I was a trainee I dabbled in singing, but I often joke now that I would have been a very hungry singer if I pursued it professionally.
I’m really pleased to be actively involved in music, which has always been a passion of mine. When I was a trainee I kept up the singing, but I often joke now that I would have been a very hungry singer if I pursued it professionally. I know a lot of musicians and I understand the world they are in, to a degree, as I’ve done performances, recordings and tours. When I first joined the London Philharmonic Orchestra it was at a Royal Festival Hall rehearsal – when I introduced myself, I shared that the last time I stood on that stage I was doing a solo as a member of the National Youth Choir. It’s nice to know that rather than just being some bloke in a suit, the players recognise that I understand a bit of what they are about and their world.
Sheffield United are my boyhood football team. Through a connection made at a match, I had the opportunity to meet the CEO and then the Chairman, and I am now Vice President – a sort of senior advisor or non-executive ambassador role. Essentially, I’m part of a small group of people offering support in any which way needed, short of getting my boots on and getting on the pitch. As an ambassador, I go to a lot of the games and do my bit on behalf of the club. Last year in the Premier League was tough but interesting although we’ve made a good start this year. It’s a fascinating role and it’s my team – so there’s something very exciting about that.
I had one boss who essentially said to me ‘don’t ever book anything outside of work because you’ll never be able to make it’, which I thought was quite defeatist. Attitudes among partners towards outside interests vary; they can be frowned upon, or positively encouraged – in that it can make you a better lawyer if you’re sitting on boards and gaining new skills. Also, it’s a valuable networking opportunity; it’s a more organic way of building contacts. So, while there were many times when things were cancelled, or I couldn’t make it, I was always keen to try and keep things up if I could do.
Being a corporate lawyer, and having been in many different managerial positions, I’ve had the opportunity to see so much. Some still say that companies don’t like having lawyers on boards, fearing they will approach matters in too much of a narrow, legalistic way. They argue if legal advice is needed, they can go to their general counsel or external law firms. There are a lot of lawyers who I recognise do fit into that category, but there are many others as well – and I like to think I’m one of them – who can think much more broadly as a commercial advisor.
Many people in law reach the end of their careers without having thought at all about what they want to do afterwards. It’s a massive shock.
Leaving full-time law introduced a bit of uncertainty into my life. I read law at university and then went into a big firm, so I’d grown used to a certain amount of institutional support. So suddenly being essentially self-employed was a shift. However, I found enjoyment in taking the time out to have lots of conversations, pause and think about what I wanted to do. And so I was busy, but just in different ways.
Many people in law reach the end of their careers without having thought at all about what they want to do afterwards. They haven’t built up any hobbies or been on any boards, so then it’s a massive shock because they’ve gone from 100 miles an hour to ‘what now’? I think I was lucky – I had my passions and things I wanted to do. So it wasn’t so much a shock; it was more of a time to pause and choose what felt right for me.
There’s no denying the amount of time that needs to be devoted to the job. That said, I would encourage individuals to identify what they enjoy outside the job and the ways in which they can contribute to broader society. There are a huge number of organisations that need pro bono support; what I have found, particularly in the charity sector, is people recognise that you’re busy and are just grateful for whatever support you can give. A lot of people will not do it because they think they don’t have time, but if you’re upfront with people and give an honest view of the time and support you feel you are able to give, then what you’ll likely find is that they are incredibly grateful.
Law firms should actively encourage their people to get out and engage with the wider community, whether it’s business, charity, arts and culture or sport. This can only enhance your own effectiveness – you learn so much, and can meet a more diverse range of people. On the London Philharmonic Orchestra board, a third of our members are from the orchestra itself, so it’s really interesting to hear their perspective, as opposed to lawyers and bankers etc – it’s just a completely different diversity of thought.
My mantra is ‘can I make a difference, and will it be fun?’ So far, what I have been doing has certainly been fun, and hopefully I’ve been making a difference, and so that will continue to guide me in the next stages.
How does the HSF private equity team differentiate itself in the market?
John Taylor, partner and the head of the private equity practice in London: We have a multi-capability private equity practice, advising clients across the full lifecycle of investments from fundraising and capital deployment, supporting their investments all the way to exit. We work across all capital structures and execute extremely complex transactions and strategies in multiple jurisdictions. Our private capital team leverages our full-service offering and the multiple sector strengths within our wider firm.
Our team continues to grow strategically. In the past 12 months, our hires of Eleanor Shanks as head of international private equity in London, venture and growth capital partner Dylan Doran Kennett and leveraged finance partner Ambarish Dash have bolstered our private capital practice in London.
Dr Christoph Nawroth, partner, Düsseldorf: In Continental Europe, recent hires include private equity and venture capital partner Gregor Klenk in Frankfurt, as well as finance partners Dr Fritz Kleweta, Sergio Cires and Laure Bonin into our Frankfurt, Madrid and Paris offices respectively. The teams in continental Europe and London are fully integrated and offer our clients seamless advice wherever this is needed.
We’ve a strong client portfolio, advising the likes of EQT, Aquiline Capital Partners, H.I.G. Capital, GIC, and CPPIB on deals ranging across the likes of energy/renewables, infrastructure, TMT, life-sciences, and financial services.
Can you discuss some of the trends that are impacting your clients?
Joseph Dennis, partner, London (JD): In the UK, the recent stabilisation of interest rates has resulted in cautious optimism for sellers to begin work on exits that have been sitting patiently in the pipeline. As rates begin to ease, we expect to see the gap in pricing expectations beginning to close.
Christopher Theris, partner, Paris: In continental Europe, the sheer number of elections and similar political events has resulted in a cautious market. We’re also seeing the use of bilateral processes at the inception of deals, moving away from a more typical auction or auction/bilateral hybrid arrangement.
‘The City of London is arguably the top global financial centre and has a huge range of intrinsic advantages.’
JD: Our private equity team were first movers in identifying the trend towards funds specialising along sector lines. Some years ago, we positioned our private equity practice to be closely aligned with our top-tier sector focused M&A practices, along the same sector lines as our key sponsor clients and targets. We are now well positioned to advise multi-strategy and multi-geography sponsors active through their full investment lifecycle across each of the geographies in which we operate, and we and our clients are really benefiting from this approach.
What role do you see for continuation funds?
Jonathan Blake, head of international private funds strategy, London: Continuation funds are part of a broader growth trend in secondary opportunities. Although the global economy is showing positive signs of stability, achieving the exit multiples that GPs would expect for their high-performing assets is still uncertain in current market conditions.
Stephen Newby, partner, London: The structure of a continuation fund offers LPs an opportunity to either liquidate or continue to hold their position. It also offers an opportunity for secondaries investors to participate, often with one ‘anchor’ investor that underwrites the existing LPs that decide not to rollover.
These options give GPs a good alternative to a full exit, especially where the GP is confident in its ability to add further value to an asset that will help to achieve even greater returns over the medium term.
Michael Jacobs (MJ), partner, London:To compliment continuation funds, we are seeing more structured pre-exit syndication and introducing a wider pool of investors into later stage assets – in part to drive liquidity and partial exits, and also a consequence of the broader ‘private for longer’ theme. The ‘private IPO’ concept is part of this trend.
How is the industry reacting to the change in government and the new policies that affect private capital?
Eleanor Shanks, partner and head of international private equity in London: The private equity industry as a whole wants to play its part and will continue to make the case to governments of the sector’s significant contribution to the whole economy, including to growth and productivity. It is a significant driver of private investment in the UK as it is globally.
There are some specific tax policy proposals that were in Labour’s manifesto that the government are currently considering, and we all appreciate the complexity balancing the incentives and the country’s fiscal position – in driving that investment and growth which in turn drives receipts for the revenue.
MJ: The City of London is arguably the top global financial centre and has a huge range of intrinsic advantages – its competitiveness has been boosted in recent years with the Financial Services and Markets Act and the Edinburgh and Mansion House reforms, alongside the UK’s listing regime reboot. While it is hard for any individual policy decision to change this, we would caution the government to not take the City for granted.
Subject to unexpected circumstances, what might we expect for deal activity at the start of 2025?
David D’Souza, partner, London: The focus on Distribution to Paid-In Capital (DPI) means the UK pipeline continues to deepen. Reassuringly, it is also widening across sectors which may have been slower in the last few years.
Alberto Frasquet, regional head of corporate EMEA, Madrid: In Continental Europe, private equity funds are likely to continue to look at assets in the pharmaceutical/healthcare, infrastructure and energy (particularly data centres), education and software sectors – these appear to be the most attractive for investment.
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Ronan McLoughlin and Lisa Broderick report on DACB Dublin’s recent growth, with a busy last year and new hires, as well as the opportunities and issues expected for Irish law firms in the future
I didn’t grow up with law in my life. I come from a non-professional background and my parents didn’t go to university. When it came to choosing what to study at university, I was passionate about history, but my dad told me a history degree would limit me to teaching. Young and naïve, I took his word and explored other options. Continue reading “Life During Law – Simon Levine”
In my second year studying law at university, I fell in love twice. Not only did I meet my future husband, but I also did a vacation scheme at pre-merger Lovells and realised I had also found my career soulmate. Last year was quite special, as I celebrated my 30th anniversary at Hogan Lovells and my 25th wedding anniversary. Continue reading “Life During Law – Penny Angell”
As firms grapple with what it means to be global, while also managing intense pressure on costs, the question of whether less profitable international offices are still a justifiable expense is rising up the agenda for many.
This issue has been underlined by the recent news that both A&O Shearman and Hogan Lovells are making cuts to their international presence, with Johannesburg identified by both as a location which is no longer a necessity.
News broke at the start of September that A&O Shearman would be closing its 32-lawyer Johannesburg office, as part of a broader post-merger play that will include a 10% reduction in its global partnership, and the wind-down of its consulting business.
This was followed swiftly by the announcement that Hogan Lovells was to close three offices in Johannesburg, Warsaw and Sydney, marking a complete withdrawal from the Australian market, where it launched in 2015.
‘It’s very competitive at the top end of the top 20 law firms, and the pressure from US firms is getting increasingly intense. Many of the markets these firms traditionally operated in are no longer a priority.’
Duncan Weston, CMS
Hogan Lovells chief executive Miguel Zaldivar said the decision to close the offices had been driven by ‘a strategic review of our geographic footprint to focus on markets with the strongest client demand’, while emphasising key markets like London, New York, California and Texas. He also pointed to a move by the firm to focus on ‘the most complex, high-value work in major markets’, a strategy which helped drive a record-setting 20% hike in profits per equity partner in 2023.
A&O Shearman managing partner Hervé Ekué’s statement struck similar notes, describing the firm’s exit from Johannesburg, where it opened in late 2014, as ‘a difficult but necessary step’.
While the 2010s saw a stream of international firms move into South Africa, including Herbert Smith Freehills, Clyde & Co and Pinsent Masons, firms on the ground now acknowledge that competition for work is tough in what is a ‘saturated’ market.
Sally Hutton, managing partner at leading South African firm Webber Wentzel, which since 2013 has had an alliance with Linklaters, summed up the challenges firms face. ‘The South African legal market is a fairly saturated domestic environment dominated by well-established, full-service corporate law firms, making it challenging for smaller offices of international firms to compete here without a full suite of specialist services.’
The challenge is exacerbated by the pan-African service offered by many local firms, either via alliances or local offices, which enables them to handle work at much lower rates than international entrants – something which ‘further increases the difficulty for firms to compete’, as Hutton explained.
Reflecting on the historical strategies employed by international firms, Hutton noted that many entered the South African market by offering above-market salaries and undercutting prices to capture market share – tactics that have adversely affected profitability: ‘In 2015-16, many international firms entered the South African market with local offices. Now, nearly a decade later, it seems that the inherent challenges they faced are now being highlighted.’
‘There are two possibilities for such firms: either an office, albeit unprofitable, is so small by global standards that it flies under the radar; or alternatively, even a small office that is not sufficiently profitable is regarded as a diversion of management’s attention,’ she explained.
At CMS, which has had a presence in South Africa since 2019, executive partner Duncan Weston placed the withdrawals by A&O and Hogan Lovells in the context of the war for talent. ‘These cutbacks are driven by intense high-level competition. Firms are up against very tough competitors.
‘South Africa is a fairly saturated legal market dominated by well-established, full-service firms, making it challenging for smaller offices of international firms to compete.’
Sally Hutton, Webber Wentzel
‘It’s very competitive at the top end of the top 20 law firms, and the pressure from US firms is getting increasingly intense. Many of the markets these firms traditionally operated in are no longer a priority. Instead, they’re focusing on regions where they can maintain higher profitability,’ he expanded. ‘In markets like Johannesburg, there are strong local law firms, and the global firms likely feel they can rely on these local players when the occasional deal arises, allowing them to narrow their focus.’
While firms like A&O Shearman and Hogan Lovells are pulling back, other international entrants – including Norton Rose Fulbright, DLA Piper, Clydes, and White & Case – remain committed to South Africa. Peter Scott, co-global managing partner at Norton Rose Fulbright, points to the flexibility of their global structure compared to the more rigid models of firms like A&O and Hogan Lovells, which ‘puts certain parts of the business under stress to meet global metrics – one size essentially has to fit all’.
Similarly, Weston described CMS’s approach as more adaptable, allowing the firm to avoid profitability dilution. ‘Our structure allows us to operate in multiple jurisdictions across Latin America and Africa without impacting profitability in places like London.’
While the future for Hogan Lovells’ lawyers in South Africa is still uncertain, A&O’s Johannesburg team has quickly found a new home, with leading African firm Bowmans confirming that the entire group will be joining them in early January 2025, including eight partners and a further six lawyers who are set to join as partners.
In a statement welcoming the hires, Bowmans chair and senior partner Ezra Davids said that the move ‘aligns with our strategic objective of being the go-to African law firm for advising clients on their most complex legal challenges and opportunities across the continent’.
The question of how Bowmans will integrate the former A&O team is one that will be closely watched in the market, with pay alignment a key consideration. ‘The key question now is what internal disruption will occur for firms that absorb their salaried employees without adjusting their remuneration,’ said Hutton. ‘We know that some of them are earning above-market salaries, so it will be interesting to see how firms manage that,’ she explained.
While law firms leaving a market rarely looks like a positive development, for the law firms that remain in the South African market, there will now be opportunities to absorb talent and gain market share. As Weston summed up: ‘I believe we’re in a good position. With two of the biggest international law firms now out of the market, we’ve solidified our standing, and that’s a great place to be.’
In Hutton’s view, one closure is clearly more significant than the other. ‘The closure of the Hogan Lovells office will have little impact on our local legal market. However, the A&O Shearman office was larger, and its closure will have a more significant impact as they were a disruptive competitor – particularly in relation to paying above-market salaries to attract talent. This may help stabilise the market to some extent in terms of remuneration levels.’
And as to whether there will be more closures, Weston is circumspect. ‘We’re seeing more and more firms pulling out of certain markets – US firms have withdrawn from China, and now we’re seeing firms exit Africa, Central Europe, and Australia – regions where, frankly, they’re not seeing significant returns. But I don’t foresee a mass exodus from Johannesburg, at least not from the firms that are already established here.’
Ultimately, in an ideal scenario, the closures create a win-win situation for all firms, as the top-of-the-market firms boost profitability and the firms in the tier below pick up market share.
However, as major players narrow their focus, the question is whether they can sustain their success in an increasingly competitive landscape. As DLA Piper’s Simon Levine noted, while streamlining geographic footprints may improve profitability, ‘the narrower you go, the more you’re fighting over the same small piece of pie.’
Last Tuesday, former Allen & Overy senior partner Wim Dejonghe was named Management Partner of the Year at the Legal Business Awards, at a glittering ceremony at London’s Grosvenor House Hotel.
Dejonghe signed off from a 23-year career at the magic circle firm in May this year after pushing through the long-awaited, transatlantic merger deal with US firm Shearman & Sterling.
In this Life During Law interview, originally published in the run-up to the transformational deal going live, he looks back on his career at A&O, discussing lessons learned from previous merger talks, his future plans and his views on the ‘unhealthy’ levels of money in law.
Continue reading “LB Awards Management Partner of the Year: former A&O chief Wim Dejonghe”
Green Ambassadors: The Legal 500 unveils new research into the lawyers fighting for a sustainable future
‘I mistakenly thought severe anxiety was a good thing’ – Vinson’s London head on opening up about mental health
‘We know which lanes we want to run in’: Latham’s new City chief on pay, practice priorities and partner moves
‘Co-founding an investment firm was the biggest learning curve of my career’ – Hg GC Samantha McGonigle
‘As the only woman in the room, I would be asked to pour the tea’ – how legal life has changed for women