With the publication of our annual Global London report, leading figures at US law firms in the City weigh up a volatile market
COMPELLING ALTERNATIVES
‘Global corporates, wherever they are headquartered, are increasingly recognising that we provide the same depth and quality as the Magic Circle in London but also with a global platform that extends into the US. Outside of the US, it is comparable with the Magic Circle. When you put that proposal to a global corporate, then we can provide a compelling alternative as we can speak in English and American accents.’
Nick Cline, London corporate co-chair, Latham & Watkins
UP IN THE AIR
‘Clients are worried about the implications if the UK does leave the EU. There is all the volatility in the oil and gas markets. We have a natural hedge – when the business world trudges along, then transactions represent more of the firm. But there are other opportunities where clients can, for example, switch to private placements.’
Jeffrey Trinklein, co-partner-in-charge, London, Gibson, Dunn & Crutcher
PURE ENERGY
‘Wherever there is volatility there are clients that prefer to take stock and play it safe but there are also those companies that have sovereign backing, or have some cash. There are lots of funds focused on distressed companies that need cash injections and funding. Hedge funds and alternative providers are eyeing up energy companies.’
Alex Msimang, London managing partner, Vinson & Elkins
MAGIC MYTH
‘Once upon a time, GCs would hear the Magic Circle say how they’ve got an office in the four jurisdictions relevant to a deal and be won over. Now they just don’t buy it at all. Unless those local offices compete against the best in that market, then they are not interested.’
Scott Simpson, co-head of global transactions, Skadden, Arps, Slate, Meagher & Flom
SIZE MATTERS
‘A number of US firms are comfortable with the size they are and being dependent on US colleagues. We’re following a different model and for that we need to be equally strong in London and New York. Fewer and fewer firms can say that.’
Allan Taylor, partner, White & Case
STAND ALONE
‘We’re taking a broader amount of work from top-tier clients and penetrating many more institutions. We’ve tripled the number of clients generating more than $1m in the London office over the last five years. The relationships are all anchored in London, which sets us apart from our rivals. We get some referrals from the US but 90% of the work is self-generated. We’ve performed well but relative to our position in the market we could double or triple revenue.’
Suhrud Mehta, London co-managing partner, Milbank, Tweed, Hadley & McCloy
FOLLOWING THE TREND
‘There’s no doubt a lot of firms are facing challenges. Legal services is not the indicator of a recession – we follow the trend. We’re all talking ourselves into it with fears around emerging markets and the EU. There is a confidence factor around Brexit but the UK is attracting huge amounts of inward investment work, particularly from the US, so we’re well positioned for those deals.
Roger Parker, EMEA managing partner, Reed Smith
TOUGH ASK
‘Some of the US firms have brought in partners for public M&A. If you are targeting FTSE 100 companies for public M&A, it’s hard because you are competing with the Magic Circle. We focus on our sector specialism, follow our clients and advise on their European transactions, as opposed to targeting FTSE 100 clients for top-tier work.’
Ronan O’Sullivan, London chair, Paul Hastings
HARD TARGET
‘If you are a serious US firm in London you will definitely be looking at mainstream M&A in Europe. US firms will need to but more importantly they will want to because they can see the competition and can see that they can compete.
We are not that big in London so we don’t need to create lists of targets. We just talk to each other. We are just using everybody’s strengths to grow the client base – be that funds, restructuring, private equity or litigation.’
Graham White, London managing partner, Fried, Frank, Harris, Shriver & Jacobson
PANEL BEATERS
‘The days of working for the UK plcs are over unless you’re Magic Circle as there’s a lot of procurement and panels. We’re not in a position to go on panels as the reward doesn’t work out. We’re currently focusing on needs of the market, working in the private equity and hedge fund space. But with only two [corporate] partners to support, we can’t grow in a way we would be content with. Internally our reputation is good: no-one is thinking: “We won’t give it to that dodgy London corporate team.”‘
Mark Stamp, partner, Milbank, Tweed, Hadley & McCloy