Legal Business

‘We can compete’: A&O breaks lockstep again for new Manhattan finance team

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Financial management Allen & Overy

Allen & Overy (A&O) has broken lockstep again for a New York finance team hired last week, about six months after it used its rejigged remuneration system to bring in a four partner leveraged finance team.

Legal Business understands the firm broke its lockstep for the hire of a three partner finance and securities team from Paul Hastings including heavy hitter Bill Schwitter.

While the firm declined to comment on which hires the lockstep was broken for or how much they would be paid, it is a clear statement of the firm’s ambition and commitment to the US market.

A spokesperson for the firm said: ‘We don’t comment on individual partners’ remuneration packages, but would point out that we are confident that our compensation system provides us with the flexibility and firepower we need in the marketplace. This group of appointments is indicative of the fact that we can compete with US firms financially.’

Schwitter will become the firm’s global co-head of high-yield and arrives alongside high-yield partner Michael Chernick and capital markets partner Jeffrey Pellegrino. The new recruits bring A&O’s New York leveraged finance partner headcount to 12.

The new team follows A&O’s lockstep-breaking hire of a four partner team in New York in July last year. The team is led by global co-head of leveraged finance Scott Zemser, who joined with Alan Rockwell and Judah Frogel from White & Case. Rajani Gupta came to A&O from Proskauer Rose, while associate Todd Koretzky joined from Milbank, Tweed, Hadley & McCloy. Koretzky was made up to partner in the move.

A&O introduced a performance-related bonus pool, separate to its lockstep, to both help retain and bring in leading talent in 2015. The firm’s overall lockstep remained unaltered running from 20 points, up two points each year, to a maximum of 50.

In terms of rewarding lateral hires with the bonus, the sponsoring partner will put a proposal to a committee which will then decide whether or not to award the lateral with extra points. This remains subject to a full partnership vote when bringing in any lateral hire.

A&O banking co-head Philip Bowden (pictured) told Legal Business earlier in the year: ‘Our challenge is that we have the leading finance practice everywhere except New York, but we are actively involved in follow-up investment. The focus for the US piece is still in New York. We are looking at potential lateral hires in restructuring, high yield and leveraged finance.’

madeleine.farman@legalease.co.uk

Read more: ‘The Finance View – A&O’s new practice chiefs on repositioning the City’s top finance shop’

 

Legal Business

A&O continues US spree with three finance partners from Paul Hastings

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Strategic recruitment Allen & Overy

Allen & Overy (A&O) has continued its US push picking up a three partner finance and securities team from Paul Hastings. The team brings A&O’s US lateral hire count to six since the start of the year.

Former Paul Hastings leveraged finance head Bill Schwitter will join A&O’s New York office and will become the firm’s global co-head of high-yield. He joins alongside high-yield partner Michael Chernick and capital markets partner Jeffrey Pellegrino. The new recruits bring A&O’s New York leveraged finance partner headcount to 12.

Schwitter primarily focuses on high-yield bonds and private equity while Chernick has combined syndicated lending and high-yield bond expertise. Pellegrino advises on high-yield bonds and a wide variety of other debt and equity capital markets transactions.

Senior partner Wim Dejonghe (pictured) said: ‘This strategic hire of three leading New York finance partners demonstrates our commitment to the continued expansion in the US across key practice areas. Our ability to hire these highly-regarded attorneys in such a fiercely competitive market shows the increasing attractiveness of our New York finance platform.’

A&O co-head of global leveraged finance Scott Zemser:  ‘I don’t think there’s been a leveraged finance team of eight partners of this level and now 12 leveraged finance partners in total in New York that have made a move like this either side of the border.’

The hires follow A&O’s lockstep-breaking hire of a four partner team in New York in July last year. The team is led by global co-head of leveraged finance Scott Zemser, who joined with Alan Rockwell and Judah Frogel from White & Case. Rajani Gupta came to A&O from Proskauer Rose, while associate Todd Koretzky joined from Milbank, Tweed, Hadley & McCloy. Koretzky was made up to partner in the move.

Earlier this month the firm announced the hire of Eugene Ingoglia to its investigations and litigation practice in New York. In January A&O confirmed Gregory Mocek and Anthony Mansfield would join the Magic Circle firm’s Washington DC office from Cadwalader, Wickersham & Taft.

Read more: ‘The Finance View – A&O’s new practice chiefs on repositioning the City’s top finance shop’

 

Legal Business

A&O continues US expansion with third litigation hire in a month

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Litigation Allen & Overy

Allen & Overy (A&O) has continued its expansion in the US with the appointment of Eugene Ingoglia to its investigations and litigation practice in New York, its third litigation hire in the US in a month.

Ingoglia (pictured) joins from US firm Morvillo Abramowitz Grand Iason & Anello. He previously served as a federal prosecutor at the United States Attorney’s Office for the Southern District of New York for nine years and was a member of the Securities and Commodities Frauds Unit.

Ingoglia focuses on high-profile matters involving government regulatory and criminal investigations, including allegations of insider trading, securities fraud, money laundering and tax evasion, as well as regulatory compliance and complex, trial-ready civil litigation.

Head of US investigations and litigation Michael Feldberg said: ‘White collar investigations and criminal and civil litigation relating to financial institutions have grown in size, complexity and importance in recent years. The addition of Gene’s expertise in this area further strengthens our capabilities in regulatory enforcement and anti-corruption matters.’

Last month A&O confirmed Gregory Mocek and Anthony Mansfield would join the Magic Circle firm’s Washington DC office from Cadwalader, Wickersham & Taft. The pair previously served in the Division of Enforcement of the US Commodity Futures Trading Commission as the leader of its domestic and international investigations and litigation and its chief trial attorney respectively.

Mocek advises on a broad range of issues, including regulatory, government investigations, internal investigations, the Dodd-Frank Act, litigation, compliance, and operational risk. Mansfield is focused on commodities, securities and related derivatives litigation, complex commercial litigation and regulatory/enforcement matters.

madeleine.farman@legalease.co.uk

Legal Business

The Finance View – A&O’s new practice chiefs on repositioning the City’s top finance shop

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Finance Allen & Overy

Victoria Young and Madeleine Farman talk to new heads on the US, high yield and China.

While in recent years Allen & Overy (A&O) has been probably the most confident of the City’s leading banking shops, it remains a fast-evolving world for even the most potent of banking teams. Since the market turned in 2008, Magic Circle firms have faced tight margins and the increasingly ominous incursion of US-dominated finance products in Europe’s credit markets.

Legal Business

Revolving doors: Greenberg hires to support new KWM team as A&O and Fieldfisher add to their benches

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Strategic recruitment Allen & OveryFieldfisherGreenberg Traurig

Greenberg Taurig has made another lateral play in the City to build on its real estate funds hires from King & Wood Mallesons (KWM) as Weightmans, Paul Hastings, Mayer Brown, Allen & Overy (A&O) and Fieldfisher have all made new appointments.

Greenberg has hired rising star Dani Martin from Reed Smith as a partner to work alongside its new recruits from KWM’s European practice. Martin will work alongside funds heavyweight Steve Cowins and five other partners who moved to Greenberg as a team. Martin worked in the real estate team at Reed Smith and was promoted to partner in 2013. Her key clients include M7 Real Estate Limited, Starwood Capital, Trinity Investment Management, Goldman Sachs, Oaktree Capital. Last week Greenberg confirmed new clients for the firm include CBRE, Westfield and British Airways’ Pension Fund, following the team’s hire. 

Meanwhile Paul Hastings has also benefited from downfall of KWM’s European arm, with the hire of Jean-Louis Martin to its Paris real estate team.

Martin, who moves with associates Arielle Messawer, David Bensimon and Quentin Jobard, was head of real estate at KWM in Paris.

Paul Hastings chair Seth Zachary said: ‘His reputation with clients in the real estate and private equity funds sectors mirrors our own strengths in our European and global offices.’

Fieldfisher has appointed Thomas Lenné as a partner in its Brussels office. Lenné joins from Baker & McKenzie, bringing 11 years of experience in the private equity, construction, aviation, banking energy and TMT sectors.

A&O has announced the appointment of David Shen to its international Intellectual Property (IP) practice. He joins from AstraZeneca where he has held the role of general counsel for China. Shen, who will join A&O’s China practice, has a comprehensive background in patent litigation and regulatory and compliance issues related to the life sciences sector.

Weightmans has hired Helen Brown as partner for the firm’s local government team in Leeds, joining from Langleys. Brown was Langley’s deputy head of insurance law and head of the public sector unit.

Mitchell Holzrichter has re-joined Mayer Brown, being appointed as a partner in the government practice and global infrastructure group in Chicago. Holzrichter’s reunion with the firm comes after a tenure as deputy chief of staff for Illinois governor Bruce Rauner’s office. He had worked at Mayer Brown in the past, from 2008 to early 2015.

In in-house news, Airbnb has hired Fiona Dormandy as general counsel (GC) for the EMEA region. Dormandy who departed Betfair in March 2016, replaces former GC Aoife McArdle, who is director of business.

tom.baker@legalease.co.uk

Legal Business

A&O management sees a 7% increase to pay amid modest revenue growth

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Salaries Allen & Overy

Allen & Overy‘s (A&O) c-suite including its senior partner and managing partner, global practice heads and support directors took home £13.6m in 2015/16, up 7% on last year’s £12.7m, the firm’s accounts reveal.

A&O’s revenue rose by 2% to £1.31bn for the last financial year while profits per equity partner remained stable at £1.2m following last year’s 8% jump. Profit before tax slid 1% to £562m, which the firm attributed to an increase in fee earner headcount during the first six months before a levelling off in client work in the second half.

According the Magic Circle firm’s LLP filings profit distributions increased by about 5% with partners at the bottom of its 20 to 50 lockstep ladder receiving £745k while those at the top took home £1.9m. The highest paid partner will receive £2.8m which remains relatively steady compared with 2015’s £2.9m.

The average number of partners at the firm reduced slightly with a headcount of 523, five fewer than the year previous. The average number of full partners was down by six to 434.

Staff costs increased by 6% last year sitting at £457m which matched an increase in overall staff numbers. Lawyers and other fee earners rose by 107 to 2,327 while support staff numbers increased by three to 2,205.

In July last year A&O’s senior management, managing partner Andrew Ballheimer and senior partner Wim Dejonghe (pictured), told Legal Business the firm’s intentions were to grow across US, China and Europe, with the duo setting their sights on funds, finance, private equity, TMT and regulatory compliance as sectors they would be looking to bulk up.

A&O has also worked on a joint venture with Deloitte, the first between a Big Four accountant and a Magic Circle law firm. The new service – dubbed MarginMatrix –deploys automation to help banks address incoming global regulation of the $500trn over-the-counter derivatives market. A&O runs the programme and provide legal input, while Deloitte provides project management to large teams of negotiators in multiple jurisdictions.

madeleine.farman@legalease.co.uk

 

Legal Business

Swings and roundabouts: A&O gains two in the US as former partners move to Simmons and Gibson Dunn

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Strategic recruitment Allen & OveryGibson, Dunn & CrutcherSimmons & Simmons

As it continues its push for US expansion, Allen & Overy (A&O) has appointed two partners to its investigations and litigation practice in Washington DC. Meanwhile, a former A&O partner who had retired has resurfaced at Simmons & Simmons, while a team of four moved to Gibson, Dunn & Crutcher in Paris this week.

Gregory Mocek and Anthony Mansfield join A&O’s Washington DC office from Cadwalader, Wickersham & Taft. The pair previously served in the Division of Enforcement of the US Commodity Futures Trading Commission as the leader of its domestic and international investigations and litigation and its chief trial attorney respectively.

Mocek advises on a broad range of issues, including regulatory, government investigations, internal investigations, the Dodd-Frank Act, litigation, compliance, and operational risk. Mansfield is focused on commodities, securities and related derivatives litigation, complex commercial litigation and regulatory/enforcement matters.

However in the same week A&O has lost the head of its global technology group to Gibson Dunn. Ahmed Baladi joins the US firm with counsel Vera Lukic and associates Emmanuelle Bartoli and Adélaïde Cassanet. Baladi advises on issues relating to information technology and digital transactions, outsourcing, data privacy and cybersecurity. He joined A&O as an associate in 2001 and was made up to partner in 2010.

Simmons has also taken on former London based capital markets partner Jonathan Mellor. Mellor, who had retired at the end of last year, advises a wide range of underwriters and issuers on all types of capital markets issuance with a particular focus on the equity-linked market, building up a significant practice advising a range of issuers and financial institutions.

In November, Freshfields Bruckhaus Deringer also boosted its US platform with a Cadwalader hire in, taking corporate partner Aly El Hamamsy.

madeleine.farman@legalease.co.uk

Legal Business

Turning Japanese: Freshfields and A&O act as Asahi makes €7.3bn play for five AB InBev beer brands

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Corporate Allen & OveryFreshfields Bruckhaus Deringer
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Freshfields Bruckhaus Deringer, Allen & Overy (A&O) and Hogan Lovells have all advised as Asahi Group Holdings buys a group of eastern European beer brands from Anheuser-Busch InBev (AB InBev) for €7.3bn.

Japanese beer giant Asahi won a bidding process which included five potential buyers. Swiss investment firm Jacobs Holdings, Czech investment firm PPF, Bain Capital and Advent International were also vying for the brands.

The divestment, which follows the mega merger between SAB Miller and AB InBev, will see Asahi pick up brands including Pilsner Urquell, Tyskie, Lech, Dreher and Ursus in the largest deal in its history.

AB InBev returned to Freshfields for advice with a team led by corporate partner Bruce Embley. Hamburg based corporate partner Natascha Doll and Brussels antitrust partner Andreas von Bonin also acted on the deal.

SAB Miller’s preferred adviser Hogan Lovells worked on the due diligence for AB InBev with corporate partner Andrew Pearson taking the lead.

A&O corporate partner Richard Hough led the firm’s team advising Asahi which included competition partner Alasdair Balfour, the head of the firm’s London commercial group Jim Ford and the head of its global corporate lending group Trevor Borthwick. Partner Lydia Challen provided tax advice and partner Sarah Henchoz provided employment advice while partner Nick Wall led its Tokyo team.

Freshfields’ Embley told Legal Business: ‘It’s been a long process. This has been the final piece of the antitrust puzzle relating to the SAB Miller deal with a number of divestments before the deal closed. This is the one that it had committed to the European Commission that it would do after closure. There are quite different and interesting dynamics compared with your typical M&A deal.’

Freshfields has advised AB InBev through the merger and its related divestments while A&O advised Asahi on its bid to acquire SABMiller’s well-known European beer brands including Peroni and Grolsch worth €2.55bn. Hogan Lovells advised for SAB Miller.

madeleine.farman@legalease.co.uk

 

Legal Business

A&O and HSF take lead roles as 21st Century Fox tunes in on anticipated Sky takeover

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Corporate Allen & OveryHerbert Smith Freehills
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Allen & Overy (A&O) and Herbert Smith Freehills (HSF) are lead advisers in 21st Century Fox’s takeover bid for Sky, as a ‘possible offer’ valuing the company at £18.5bn was agreed ‘in principle’ on Friday (9 December).

The cash offer values Sky shares at £10.75 each, £18.5bn in total, which is 36% more than its market close price on 8 December. 21st Century Fox already owns 39.1% of Sky, and according to reports it would pay approximately £11.25bn for full ownership.

The offer is subject to approval from Sky’s shareholders, excluding 21st Century Fox shareholders, as ‘certain material terms’ are still to be agreed, according to a release by the international media giant.

As lead advisers to 21st Century Fox, A&O’s team was led by co-head of antitrust Antonio Bavasso, corporate partner David Broadley and M&A partners Seth Jones and Simon Toms.

Also advising 21st Century Fox are M&A New York partners Howard Ellin from Skadden, Arps, Slate, Meagher & Flom and Simpson Thacher & Bartlett partners Patrick Ryan and Sinead O’Shea.

Meanwhile UK satellite broadcaster Sky is understood to be advised by HSF, with a team led by head of corporate Stephen Wilkinson.

News Corp made an £8bn takeover bid for Sky back in 2010, which was then retracted in 2011 while the hacking trial was conducted. Regulatory concerns regarding media ownership have also been raised regarding combining Rupert Murdoch’s News Corporation media giant with Europe’s biggest pay television broadcaster.

HSF and A&O also led for Sky and 21st Century Fox respectively in 2014, when Sky (then called BskyB) concluded a deal worth up to £7.4bn to buy European sister companies Sky Deutschland and Sky Italia from 21st Century Fox.

Both HSF and A&O declined to comment.

georgiana.tudor@legalease.co.uk

Legal Business

Allen & Overy PE heavyweight Bernhardt joins Milbank in Frankfurt

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Corporate Allen & OveryMilbank
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Milbank, Tweed, Hadley & McCloy has confirmed private equity (PE) partner Michael Bernhardt will join the firm’s corporate department in Frankfurt from Allen & Overy (A&O).

Bernhardt had moved with a team to A&O in 2011 after five years at Willkie Farr & Gallagher. He has over 15 years’ experience and is focused on corporate M&A and PE transactions.

Described by The Legal 500 as a practitioner with ‘deep business sense,’ Bernhardt’s client base included Deutsche Beteiligungs AG and capiton AG.

Milbank chairman Scott Edelman said: ‘His addition to the team is another strategic step in expanding our private equity and M&A capabilities in Germany and Europe. As we expect private equity to continue to be a particularly active area of M&A in the years ahead, he will play an important role in continuing to position the firm at the forefront of legal advisers to private equity houses with investment interests in Germany and all over Europe.’

The move is the second major play Milbank has made for A&O talent in recent weeks. In November, Milbank took on a three-partner team from A&O in New York, including the firm’s US senior partner Kevin O’Shea.

A&O’s growing private equity team had a solid year last year, topping Dealogic’s European PE table after advising on 31 deals across the 2015 calendar year. This was equal to 21% of the European buyout market last year, amounting to $23.95bn worth of deals including the biggest leveraged buyout deal of 2015.

georgiana.tudor@legalease.co.uk