Legal Business

Slaughters and Addleshaws follow Simmons in developing fintech funds

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Innovation Addleshaw GoddardSlaughter and May
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Slaughter and May and Addleshaw Goddard are targeting the fintech market, following in Simmons & Simmons’ footsteps to develop funds that back free legal advice to fintech clients.

In May Simmons launched a £100,000 fund to cover free advice for up to four fintech start-ups. In November Slaughters upped the ante, putting £300,000 forward for its initiative. Meanwhile, Addleshaws has also announced it will provide up to £500,000 worth of legal mentorship and advisory programmes for up to 16 selected start-ups over the next 12 months.

Legal Business

Yes to Scotland: Addleshaw partners vote through HBJ Gateley merger adding £20m to top line

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Scotland Addleshaw Goddard
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Addleshaw Goddard has finally voted through a Scottish merger, with managing partner John Joyce getting enough partner votes needed to approve a union with HBJ Gateley last Tuesday, ahead of the ballot closing today (28 November).

Addleshaws will takeover HBJ Gateley’s three Scottish offices in Aberdeen, Edinburgh and Glasgow. The combination was subject to approval by both partnerships, with Gateley also voting through the merger last week. To approve the tie-up, 75% of Addleshaws partners who voted had to say yes to the merger. While Addleshaws achieved this the firm would not say how many partners abstained.

HBJ Gateley, which is not part of the English PLC due to rules around Alternative Business Structures in Scotland, had turnover of £21.9m in in 2015/16, making it the eighth biggest Scottish firm.

Added to Addleshaws’ top-line revenue of £201.8m in 2015/16, the deal will create a business worth around £220m. However the firm has been clear that it wants to make £250m in fee income by the financial year 2017/18, which this takeover will help achieve.

The union will go live before 1 June 2017 and see HBJ Gateley chair Malcolm McPherson join Addleshaws’ board. Joyce will retain his role as managing partner and Charles Penney will remain senior partner at the firm.

A HBJ partner will also join each of the executive teams leading each of Addleshaws’ four operating divisions: corporate, finance, litigation and real estate.

Addleshaws has long wanted a presence in the Scottish market, with merger talks between the firm and Maclay Murray & Spens called off in February this year. In May, the firm turned to the US for a potential merger partner, and is in talks with Virginia-based Hunton & Williams.

Joyce (pictured) said: ‘We have for a while had an ambition to be present in Scotland and so are delighted with the overwhelmingly enthusiastic response from the partners, clients and staff of both firms.  Overall, it’s a great fit for our clients and our people and we are looking forward to realising the collective benefits of our enhanced geographical reach, increased practice and sector bench-strength and flexibility in our delivery approach.’

McPherson, chairman of HBJ, said: ‘The combination of two such capable and growing firms is extremely good news for our clients, our people and our partners. The overwhelming majority of partners at both firms clearly saw the many benefits of the merger strategy and the fact that it positions us very well for further strong growth.’

According to the latest AmLaw 100, Hunton & Williams has 696 lawyers and 167 equity partners across 19 offices in the US, Europe and Asia. In 2015 it posted gross revenue of $528m, a 7% drop on 2014.

Addleshaws saw a turnaround this financial year, after a period dominated by internal discord, management changes and falling revenues. The last year saw the firm post revenue growth of 12%, up from £171m in 2013/14 to £193m – the highest levels since 2007/08. Profits per equity partner (PEP) was up 26% to £491,000.

kathryn.mccann@legalease.co.uk

Legal Business

Updated: Addleshaws confirms merger plans with HBJ Gateley

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Legal mergers Addleshaw Goddard
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Following failed merger talks with Maclay Murray & Spens, Addleshaw Goddard is making another play for the Scottish market, seeking to acquire HBJ Gateley‘s three Scottish offices in Aberdeen, Edinburgh and Glasgow.

Both firms confirmed the discussions today (14 November), and said in a statement the merger was subject to approval by both partnerships, which will reach a decision in coming weeks.

HBJ Gateley, which is not part of the English PLC due to rules around Alternative Business Structures in Scotland, had turnover of £21.9m in in 2015/16, making it the eighth biggest Scottish firm.

On Friday (11 November) Gateley confirmed that the relationship between the English and Scottish businesses would end in May next year. Gateley Plc and HBJ Gateley first joined forces in 2006.

A spokesperson for Gateley said: ‘Gateley Plc in England and HBJ Gateley in Scotland have announced today that their long-standing business relationship will come to an end in May next year. Until then, both firms will continue to work together in the best interests of all clients.’

Added to Addleshaws’ top-line revenue of £201.8m in 2015/16, the deal has the potential to create a business worth around £220m, which is unlikely to propel Addleshaws much further up the LB 100. However the firm has been clear that it wants to make £250m in fee income by the financial year 2017/18, which a HBJ Gateley takeover would help achieve.

Addleshaws managing partner John Joyce said: ‘A combination would deliver on both firms’ aspirations for improved client and sector offerings across the whole of Great Britain. We are culturally aligned and bringing both businesses together will enhance each firm’s bench strength, give greater flexibility and provide a more robust platform from which to establish stronger market positions across core practice areas and in the financial services and real estate sectors in particular.’

Addleshaws has long wanted a presence in the Scottish market, with merger talks between the firm and Maclays called off in February this year.

In May, the firm turned to the US for a potential merger partner, and is believed to be in talks with Virginia-based Hunton & Williams.

According to the latest AmLaw 100, Hunton & Williams has 696 lawyers and 167 equity partners across 19 offices in the US, Europe and Asia. In 2015 it posted gross revenue of $528m, a 7% drop on 2014.

Top 25 UK firm Addleshaws saw a turnaround this financial year, after a period dominated by internal discord, management changes and falling revenues. The last year saw the firm post revenue growth of 12%, up from £171m in 2013/14 to £193m – the highest levels since 2007/08. Profits per equity partner (PEP) was up 26% to £491,000.

kathryn.mccann@legalease.co.uk

Read more in: ‘Welcome to the John Joyce show: Addleshaws’ head aims to push national firm centre stage’

Read more in: ‘Better together? – Those Anglo-Scots unions in focus‘

Legal Business

Revolving doors: Addleshaws and Hogan Lovells boost ranks as Matrix targets Freshfields and Olswang construction head exits

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Strategic recruitment Addleshaw GoddardHogan LovellsMatrix Chambers
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In a busy week for laterals, Addleshaw Goddard, Hogan Lovells and Herbert Smith Freehills (HSF) have boosted their international ranks, while Matrix Chambers and Penningtons Manches have hired in the City.

Addleshaws has developed its Asia corporate focus with the hire of Andrew Yang in Hong Kong. Yang, who joins Addleshaws from Goodwin Procter, advises on all aspects of M&A and commercial transactions for small to medium enterprises, listed companies, venture/growth funds and other financial institutions based throughout the Asian region.

Nigel Francis, head of Addleshaws’ Asia practice said: ‘The continuation of outbound investment from Chinese organisations as well as the promised economic reform that will ultimately lead to investment in China’s state owned enterprises represent exciting future opportunities. Andrew’s experience aligns perfectly with these plans and means our Asia practice will be well placed to capitalise as these opportunities arise.’

Meanwhile Hogan Lovells has continued its Australia expansion with the hire of Matthew Johnson, who joins the firm from Clayton Utz. Johnson, who was closely involved with Clayton’s China practice, will focus on private and public M&A, private equity, equity capital markets and corporate advisory in addition to working with the firm’s energy and resources sector teams.

Closer to home, HSF has bolstered its Paris offering, hiring real estate partner David Lacaze from Paul Hastings. Lacaze’s clients include financial institutions and investment funds. Donald Rowlands, head of HSF real estate UK/EMEA said: ‘The addition of David to our Paris team will be crucial to helping us deliver on our ambitious plans for the growth of our European real estate practice and will complement the investments we have made in Germany and Madrid to augment our top-tier UK and French practices.’ However, going the other way, HSF lost two associates and a special counsel to White & Case down under, following the US firm’s 10 partner hire to launch in Australia, earlier this year. HSF senior associates Adeline Pang and Ged Cochrane, and of counsel Michelle Keen will be made up to partner when they join White & Case later this year.

In the City, Penningtons Manches has expanded its construction and infrastructure practice with the addition of Francis Ho from Olswang.

Ho was head of construction at the firm. Recent deals include the redevelopment of Battersea Power Station, the construction of a major new Premier League stadium in London and the redevelopment of The Langham Hotel in Marylebone.

Finally, Freshfields Bruckhaus Deringer has lost two high-profile names this week. In addition to the departure of M&A partner Ben Spiers to Simpson Thacher & Bartlett, Matrix Chambers hired Raj Parker, head of the firm’s insurance and reinsurance team as an associate member.

David Scott, partner at Freshfields said: ‘Whilst he is retiring from Freshfields Bruckhaus Deringer, he is not retiring full stop, as he is going to return to the Bar and he will practice at Matrix Chambers. I have no doubt that Raj will have a very interesting and varied mix of work whilst he is there and we wish him all the best for his future career around the corner at Matrix Chambers.

kathryn.mccann@legalease.co.uk

Legal Business

Addleshaws launches arbitration against former real estate chief Haywood

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Litigation Addleshaw Goddard
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Management at Addleshaw Goddard has launched arbitration proceedings against former head of real estate Mark Haywood, two years after he quit for Nabarro.

High-profile real estate specialist Haywood was recruited by Nabarro for the launch of its Manchester office, alongside partners Nathan Jansen and Monica Brij in 2014.

Nabarro, which recently confirmed it is set to combine with CMS Cameron McKenna and Olswang, has agreed to cover the costs of the dispute, which is valued at approximately £5m.

Details of the case emerged in a firm board report circulated by Addleshaws managing partner John Joyce in October.

Addleshaws has instructed XXIV Old Buildings’ Alan Steinfield QC, while Haywood is represented by Lewis Silkin and Serle Court’s John Machell QC. The usual grounds for suing partners for damages include loss of future revenue or loss of a key client.

A former Addleshaws partner said the advantage of using arbitration in this instance is that it is ‘inherently confidential, so you don’t wash your dirty laundry in public’.

‘Whatever the pluses and minuses are, he was Addleshaws man and boy, and they put him on gardening leave for a whole year. What does it show? A lack of confidence in the business. He had good clients and was a good operator, but nothing exceptional.’

They added: ‘Why would you do it? That’s John’s way. If you step outside what John can deal with, that’s the reaction. You should let people leave. Clients don’t like it. It shows a huge lack of confidence that you’re so worried about something like this.’

Since Haywood’s departure, Addleshaws has tightened the rules around partner exits. The firm’s original partnership deed had a ‘bottleneck provision’, which meant no more than seven equity partners could leave without board consent in one financial year. However, earlier this year the firm changed the provision to extend it to fixed-share, or ‘category A’ partners. Other changes include the introduction of ‘bad leaver’ provisions and restrictive covenants relating to fee-earners.

Addleshaws and Nabarro declined to comment.

sarah.downey@legalease.co.uk

Read more in: ‘Welcome to the John Joyce show: Addleshaws’ head aims to push national firm centre stage’

Legal Business

Addleshaws launches arbitration against former real estate chief Haywood

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Litigation Addleshaw Goddard
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Nabarro to cover costs of defending claim two years after lateral hire

Management at Addleshaw Goddard has launched arbitration proceedings against former head of real estate Mark Haywood, two years after he quit for Nabarro.

Legal Business

Addleshaws restarts salary review for all staff and pledges to backdate increases

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Salaries Addleshaw Goddard
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Addleshaw Goddard has restarted its delayed salary review for all staff, including the annual review of fixed profit share for salaried partners, and the next profit distribution for equity partners.

In August the firm said it would freeze its salary review until the autumn as a result of Britain’s vote to leave the EU. The decision to restart the review was made at a board meeting last Thursday (20 October).

An Addleshaws spokesperson said: ‘We said we would re-visit this around the half year point when we expected to have a more complete picture and given levels of activity and improvements we have seen of late we are sufficiently confident to press ahead. We will be backdating all increases to 1 September.

He added: ‘Individual decisions will be communicated during early November and any salary increases including backdated payments will be processed in the December payroll.’

Last week Legal Business revealed that senior management at the firm was in talks to delay staff salary reviews further, while divisions were challenged to cut internal travel costs by 50%.

It was understood that the delay on salary reviews would have left associates hardest hit, with discussions as to whether they would see salaries backdated to September, and whether any new salaries would potentially only go live from 1 January or later.

In addition, divisions within the firm have been told to cut internal travel in half, with travel costs between the Leeds and Manchester offices and the London office being closely scrutinised.

Last month Gowling WLG restarted its delayed salary review, which was backdated to July 2016 and was applicable to all staff excluding fixed share and equity partners.

Berwin Leighton Paiser has also decided to freeze its pay and bonuses until November. In June managing partner Lisa Mayhew told staff in an email the reason was ‘political and financial uncertainty in the UK following the recent vote to leave the EU.’

kathryn.mccann@legalease.co.uk

Legal Business

Addleshaws mulls delaying salary reviews again as divisions told to halve travel costs

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Salaries Addleshaw Goddard
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Senior management at Addleshaw Goddard is putting further cost-cutting measures in place, with talks to delay staff salary reviews further, while division heads have been told to cut UK travel costs by 50%.

It is understood that the delay on salary reviews will particularly impact associates, who are unlikely to see their salaries backdated to September, as any new salary only potentially going live from 1 January 2017 or later.

In addition, divisions within the firm have been told to cut internal travel in half, with travel costs between the Leeds and Manchester offices and the London office being closely scrutinised.

An Addleshaws spokesperson said: ‘We have seen an encouraging uptick in activity across the business and will be going back to staff by mid-November, when we’ve said we should have as good a picture as we can get about the year and therefore be in a position to decide our approach to salary increases, including partner remuneration.

‘As for the travel, we’re always being challenged to deliver operational efficiencies, including travel spend, through alternatives like video conferences, but there is no moratorium on travel, just encouragement, as always, to be thoughtful.’

In August Addleshaws confirmed it had frozen its salary review until the autumn as a result of Britain’s vote to leave the EU. The delay includes an annual review of fixed profit share for salaried partners, as well as the next profit distribution for equity partners.

The move followed Berwin Leighton Paisner’s decision to freeze pay and bonuses until November. In June managing partner Lisa Mayhew told staff in an email the reason was ‘political and financial uncertainty in the UK following the recent vote to leave the EU.’

Meanwhile, last month Gowling WLG restarted its delayed salary review, which was backdated to July 2016 and was applicable to all staff excluding fixed share.

kathryn.mccann@legalease.co.uk

Legal Business

Perspectives: Mark Hastings

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Profile Addleshaw Goddard
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I always wanted to be a criminal barrister. I grew up watching Rumpole.

At university I read classics, did the conversion and worked out I didn’t want to be a barrister at all. They’re a different breed to me – I enjoy people and interaction. It was obvious to me it suited me better to be a solicitor.

Legal Business

Brexit blues: Addleshaws and Gowling WLG freeze pay as a result of referendum vote

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Brexit Addleshaw GoddardGowling WLG
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Both Addleshaw Goddard and Gowling WLG have frozen their August salary reviews until the autumn as a result of Britain’s vote to leave the EU.

As first revealed by RollOnFriday, Addleshaws will freeze salary reviews for staff but will also delay its annual review of fixed profit share for salaried partners, as well as postponing the next profit distribution for equity partners. However, staff bonuses for last year’s performance, which saw the firm hit the £200m revenue mark for the first time, as well as a 38% jump in profits per equity partner (PEP) from £491,000 to £679,000, will still be paid out in September.

A spokesperson said: ‘Like many other businesses in the UK, we have seen Brexit have an impact on activity levels in the short period since the referendum. As a consequence we have decided to defer decisions on staff salary reviews and partner remuneration – usually scheduled for August – until early autumn, when we will have clarity on anticipated improvements in activity.’

Similarly Gowling WLG has also confirmed it will delay its 2016 salary review until the autumn, but added that bonus payments, for 2015/16 for those eligible were paid as usual in the July payroll and summer promotions had gone ahead as planned.

The move follows Berwin Leighton Paisner’s decision to freeze pay and bonuses until November. In June managing partner Lisa Mayhew told staff in an email the reason was ‘political and financial uncertainty in the UK following the recent vote to leave the EU.’

Earlier today it was revealed Simmons & Simmons has made lawyer cutbacks in its London office, with the firms real estate practice the worst hit. A spokesperson for Simmons refused to say how many redundancies had taken place.

kathryn.mccann@legalease.co.uk