Legal Business

Bakers launches low-cost hub in Florida… just after redundancy consultation with 300 City staff

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Baker McKenzie

Baker McKenzie has announced plans for its third low-cost centre two weeks after putting what is thought to be more than 300 City business staff under consultation in a global efficiency drive.

The firm’s new global hub in Tampa, Florida, will be operational in 2020 and create more than 300 roles – a similar headcount to the firm’s London professional and business services (PBS) staff put under review earlier this month.

Again similarly to London’s PBS staff, the new roles will cover legal services, finance, IT, knowledge management, operations, business development, marketing and communications. The firm’s two other low-cost hubs are in Manila and Belfast.

‘We were looking for an exceptional pool of talent, a meaningful cultural fit and a global outlook that will work well with our business needs – Tampa ticked all those boxes,’ said the firm’s former Washington DC and New York chief operating officer, Jamie Lawless, who will now lead the new hub.

Global chair Paul Rawlinson (pictured) added: ‘Our centres, and our plans to grow them, show we are serious about innovating to provide faster, more efficient and more cost-effective services.’

Bakers announced a three-year global reorganisation of its service delivery earlier this month. A decision has yet to be reached as to how many City roles will go as a result of the process.

Making Bakers more profitable is a long-stated aim of Rawlinson, while the firm has an unofficial goal to bring its profits per equity partner (PEP) to $2m. It made significant headway in that direction this year, as partner profits rose 13% to $1.44m amid 8% revenue growth to $2.9bn.

Such moves underline the spirit-dampening trend sweeping global law of business service staff being axed and jobs relocated to cheaper locales in efficiency drives, while lawyers are left largely untouched.

A number of firms have put their City support staff under review amid increasing pressure to maximise efficiency. In July, Ashurst slashed 54 of its 100-strong secretarial team and Ince & Co announced 32 redundancies.

Hogan Lovells cut 54 of around 500 business services roles in June, moving most of them to low-cost hubs in Birmingham, Johannesburg and Louisville.

Cynics will note that such moves happen at the same time law firms are loudly trumpeting initiatives to expand their skills beyond the law.

marco.cillario@legalease.co.uk

For more analysis on Baker McKenzie see ‘Waking the giant’ (£)

Legal Business

Review of Baker McKenzie #MeToo incident finds ‘shortcomings’ but details scant

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Regulatory Baker McKenzie

An under-wraps independent review of Baker McKenzie’s approach to a sexual misconduct incident six years ago has concluded there were ‘a number of shortcomings’ but details are scarce.

Bakers appointed Simmons & Simmons in February  to review the way the firm had handled accusations that one of its London partners sexually assaulted an associate in 2012 .

The associate left the firm after reaching a settlement and Bakers has faced criticism for allowing the partner in question to stay at the firm and take on subsequent senior roles. After news of the incident came to light in February this year the firm announced the partner would leave and acknowledged it should have handled the incident better.

Bakers on Monday (8 October) filed the report to the Solicitors Regulation Authority (SRA), which is investigating the incident and its response. However, the firm has refused to disclose the content publicly amid a non-disclosure agreement (NDA) signed at the time of the incident that prevents identification of the victim. Instead, the firm opted to issue today (11 October) an anonymised statement from a ‘spokesperson’ noticeably lacking in details that poses more questions than it answers. The firm declined to make any further statement or release a copy of Simmons report.

‘Simmons commented that as a firm we had been particularly open and transparent in our desire to ensure that we got to the root of the problem and to learn from our mistakes,’ said the spokesperson. ‘The report concluded that there were a number of shortcomings in the way the incident was handled at that time which we very much regret…The SRA investigation is ongoing, as is our commitment to protect the privacy of the former associate, as she has requested.’

A special committee including a group of senior Bakers partners worked on the review alongside Simmons, carrying out more than three dozen interviews and analysing documents.

The review recommended a series of initiatives which the firm will be introducing over the next few months, such as the introduction of a ‘first point of contact’ role in every office – a partner, associate or other professionals trained to deal with concerns around inappropriate conduct. The firm will also introduce mandatory workplace behaviour training.

Responsibility will now fall heavily on the SRA to take the lead and decide the extent to which Baker McKenzie needs to be held to account for its actions to avoid any accusation of a whitewash.

marco.cillario@legalbusiness.co.uk

For more on the issue of City law’s handling of NDAs, see ‘Draining the swamp’ (£)

Legal Business

City job cuts loom as Bakers puts 300-plus business staff under consultation in efficiency drive

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Job cuts Baker McKenzie

Support roles in the City are under threat again as Baker McKenzie has launched a review of its entire London professional and business services (PBS) staff, estimated to include around 350 people.

Kicking off at the end of this month as part of the firm’s drive to improve profitability, the consultation will affect Bakers’ finance, business development, knowledge management, human resources, marketing and communications teams. A spokesperson for the firm said a decision had yet to be reached as to how many roles will be impacted.

A three-year global reorganisation of the firm’s services delivery will also include investment in tech and the creation of new roles in its low cost hubs in Manila and Belfast, as well as the launch of new services centres in North and South America.

Chief operating officer Jason Marty said that while the firm’s PBS function had grown organically over time, the firm now needed a more ‘modern and agile’ team.

He added that the firm’s priority was to become ‘a more efficient organisation with competitive and sustainable profitability’.

A spokesperson for the firm said: ‘We will be consulting as widely as possible in London with PBS teams and representatives will be elected for all teams in line with the UK legal and regulatory framework.’

Making Bakers more profitable is a long-stated aim of global chair Paul Rawlinson, while the firm has an unofficial goal to bring its profits per equity partner (PEP) to $2m. It made significant headway in that direction this year, hiking partner profits 13% to $1.44m amid 8% revenue growth to $2.9bn. But it still lags the Global 100 average PEP of $1.76m.

Bakers is the latest in a number of firms to put its City support staff under review amid increasing pressure to maximise efficiency. In July, Ashurst slashed 54 of its 100-strong secretarial team and Ince & Co announced 32 redundancies, including 25 business services staff and seven fee earners.

Hogan Lovells cut 54 of around 500 business services roles in June, moving most of them to low-cost hubs in Birmingham, Johannesburg and Louisville.

marco.cillario@legalbusiness.co.uk

To learn more about Paul Rawlison’s strategy, see ‘Waking the giant’ (£)

Legal Business

‘The giant is awakening’: Baker McKenzie adds $230m to revenue as partner profits surge 13%

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Financial results 2017/18 Baker McKenzie

Baker McKenzie has posted one of its best financial performances in recent history as revenue hit $2.9bn and partner profits reached $1.44m in the year to 30 June 2018.

An upbeat chair Paul Rawlinson claimed his firm was winning more higher value work as revenue rose 10% in constant currency and 8% in dollar terms from last year’s $2.67bn. The result confirmed Bakers as the third highest billing firm in the world, behind Kirkland & Ellis and Latham & Watkins.

Rawlison said the firm was climbing up the value chain in the mandates it acted on, pointing to the 13% growth in profits outpacing the increase in revenue.

‘The giant is awakening,’ he added, referring to Legal Business’ feature on Bakers last year. ‘We are going up the market, there is no question about that.’

He saw the results as an endorsement of its strategy of focusing on the key money centres – London, New York and China – as well as integrating the global giant and pitching to clients around industry sectors.

EMEA had a particularly strong year and accounted for 39% of turnover. Americas were a close second at 35% despite a flat Latin American market due to the ups and downs in the local economies. Asia Pacific brought in the remaining 26% of revenue.

Rawlinson singled out the capital markets practice, which saw a significant increase in IPO activity, the international trade group, which was particularly busy advising on sanctions, as well as the employment and antitrust practices. However, he added: ‘You really have to be firing on all cylinders to make sure there is this steady growth across the firm.’

Bakers has been on an unusually high number of large mandates in recent months, such as Chinese internet giant Tencent’s €2.1bn acquisition of videogame publisher Ubisoft from Vivendi and Turkish freight shipping operator UN Ro-Ro’s €950m sale to DFDS. It also advised German company Knauf on its $6bn proposed takeover of USG Corporation as well as DK Telekommunikation and a Macquarie-managed consortium on the $6.7bn takeover of Danish telecoms business TDC.

The year also saw Bakers make a highly significant step towards its stategic goal of integrating along three profits centres in Europe, America and Asia by 2020 as it agreed a deal to unite the bulk of its EMEA business into a single pool. Although Germany and France stayed out of the grouping, Rawlinson said the ‘overwhelming majority’ of the partnership wanted a more integrated firm and promised there would be updates on that front within the next 12 months.

As well as opening its ninth US office in Los Angeles in March, the firm made considerable additions to its partnership over the year with 53 laterals and 64 promotions.

‘The investment in the key financial centres is starting to pick up with a lot of interesting candidates who are increasingly interested in our platform,’ Rawlinson said.

The double-digit revenue growth is particularly good news for a firm that has consistently failed to gain real momentum after the banking crisis.

The five-year performance now looks rosier, with the firm hiking revenue 20% since 2012-13. Profits per equity partner (PEP) still lags the Global 100 average of $1.76m, but this year’s double-digit rise is a good step ahead towards the unofficial target of $2m.

Rawlison admitted that compared to the other giants in the world’s top three the firm has a profitability challenge but concluded: ‘I am optimistic that we can keep this pace. We are beginning to show we can make strides in profitability.’

marco.cillario@legalease.co.uk

Legal Business

Baker McKenzie makes up six in London amid scaled back global promotion round as the firm claims largest female partnership

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Partnership promotions Baker McKenzie

Baker McKenzie has promoted six in the City as part of a scaled down global promotion round which saw 68 lawyers minted, 15% fewer than last year’s 80.

Together with 53 laterals during this financial year, the promotions mean partner numbers at the firm hit 1,600.

Of the new partners, 40% are women. With more than 400 women among its global partnership ranks, the firm claimed it had the largest female partnership of any law firm.

Global chair Paul Rawlinson (pictured) told Legal Business that for a firm of the size of Bakers the numbers were only marginally down on last year’s round. He added that what made the firm’s approach to promotions special was its distribution of partners across offices: ‘I don’t think any other firm has this approach of seeking to be a dominant player across Asia and the Americas in the same way that we do. It is a pretty strong makeup of partners across the world.’

The firm’s traditionally strong tax practice saw the largest intake at 14, but M&A was a close second with 13 getting the nod, in line with Rawlinson’s push to beef up the firm’s transactional ranks. Disputes saw the number of new partners halved, with eight minted compared to last year’s 16.

‘M&A, disputes and tax are our three core areas,’ said Rawlinson.

Despite global promotions being down this year, the number of lawyers promoted in the City was up by one on last year.

Richard Needham was promoted in the M&A team and Jeremy Levy in banking, while the tax group saw two minted – Jessica Eden and David Jamieson. London promotions also included Jessica Le Gros in IP and Jonathan Sharp in employment.

‘This a significant number of new promotions for London which, alongside our recent lateral hires, reflects that we are well and truly in growth mode,’ said London managing partner Alex Chadwick.

The firm’s London office also added a number of partners laterally this year, including former Clifford Chance corporate partner Kathy Honeywood.

The promotions in North America took effect on 1 January 2018 while the others will take effect on 1 July 2018

The full list of the newly elected partners is as follows:

Antitrust & Competition
Fang-Yi Jen (Taipei)
Joost Haans (Brussels)
Catherine Koh Stillman (New York)

Banking & Finance
Kullarat Phongsathaporn (Bangkok)
David Cooper (Sydney)
Jeremy Levy (London)
Juan Carlos Gonzalez Novo (Chicago)

Capital Markets
Ivy Tun Kei Wong (Hong Kong)
Kowit Adireksombat (Bangkok)
Kammalard Urapeepatanapong (Bangkok)
Steve J. Park (Houston)
Ora Wexler (Toronto)

Dispute Resolution
Tjen Wee Wong (Singapore)
Robert Lee (Taipei)
Luca Beffa (Geneva)
Dr. Nicolai Behr (Munich)
Anton Mikel (Riyadh)
Cristina Mejia (Bogota)
Jennifer B. Seale (Washington, DC)
Ahmed Shafey (Toronto)

Employment & Compensation
Pamela Tsai (Taipei)
Stephen Hardy (Sydney)
Kellie-Ann McDade (Melbourne)
Jonathan Sharp (London)
Margarita Fernández (Madrid)
Nadège Dallais (Paris)
Christopher Burkett (Toronto)

International Commercial & Trade
Kerry B. Contini (Washington, DC)
José Hoyos-Robles (Mexico City)
Richard L. White (Dallas)

Intellectual Property
Jessica Le Gros (London)
Matt Dushek (Washington, DC)
Benjamin (Ben) B. Kelly (Dallas)
Carlos Alberto Vela-Treviño (Mexico City)

IT & Communications
Dr. Michaela Nebel (Frankfurt)

Mergers & Acquisitions
Jeremy Ong (Hong Kong)
Stephanie Phua (Kuala Lumpur)
Ee Von Teo (Kuala Lumpur)
Olha Demianiuk (Kyiv)
Sergei Lomakin (Moscow)
Jingjin Guo (Geneva)
Dr. Björn Simon (Frankfurt)
Caner Elmas (Istanbul)
Duygu Gultekin (Istanbul)
Richard Needham (London)
Elodie Duchêne (Luxembourg)
Aurélie Govillé (Paris)
Christina M. Bullock (Chicago)

Private Equity
Omar J. Iqbal (Riyadh)

Projects
Kate Phillips (Melbourne)
Samir S. Desai (Tokyo)

Real Estate
Taijiro Suzuki (Tokyo)
Olivier Ducrey (Geneva)
Brian Zurawski (Chicago)

Tax
Michael Nixon (Singapore)
Jason Wen (Fenxun Beijing)
Simone Bridges (Sydney)
Kirill Vikulov (Moscow)
David Jamieson (London)
Jessica Eden (London)
Rodrigo Castillo Cottin (Bogota)
Paul F. DePasquale (New York)
Tatyana Johnson (New York)
Victor Alejandro Morales-Chavez (Mexico City)
Jonathan Welbel (Chicago)
Joshua Nixt (New York)
Andrew C. O’Brien-Penney (Chicago)
Ivan Tsios (Chicago)

For more on Paul Rawlinson’s strategy for Baker McKenzie see Waking the Giant

marco.cillario@legalease.co.uk

Legal Business

‘I like new challenges’: Bakers securitisation veteran exits for Ashurst

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Strategic recruitment AshurstBaker McKenzie

The rebuild at Ashurst following a complicated end to 2017 in which three key partners left in a fortnight has gained some traction with the hire of a senior City lateral from Baker McKenzie.

Bakers’ former global co-head of securitisation Jonathan Walsh will leave the firm today (31 May) after 13 years and take a place in Ashurst’s securitisation team from next Monday (4 June).

A City veteran, Walsh was previously head of international securities at legacy Norton Rose until 2005, and went on to co-lead Bakers’ securitisation operations until January, when he stepped down from the role now held by Philippe Steffens.

‘I like new challenges and Ashurst is a fantastic international firm with a great platform,’ Walsh told Legal Business, adding that the move gave him the opportunity to help build his new firm’s securities capability.

He also looked forward to being reunited with his former colleague and fellow securities lawyer Martin Kaiser, who joined Ashurst in Frankfurt from Bakers in August last year: ‘I consider him an excellent lawyer, a very good colleague and friend.’

‘Jonathan is the missing piece to complete our core securitisation team for Europe,’ Michael Logie, head of Ashurst’s global markets practice told Legal Business. He pointed to Kaiser in Germany and younger City partner Tom Picton, who joined from Clifford Chance last month. ‘We were looking for someone with a senior pedigree and a track record for building securitisation practices. Jonathan ticks all those boxes amazingly well.’

For Bakers, Walsh’s departure comes at a time when the firm is busy building up its City transactional capabilities, most recently with the appointment of former Clifford Chance partner Kathy Honeywood to its energy, mining and industrials practice. The firm appointed three partners in its structured capital markets and banking teams last month, including former White & Case partner Michael Doran.

Ashurst is beefing up its City ranks after being hit by three big losses in November last year, with corporate partners James Wood and Dominic Ross leaving for Sidley Austin and White & Case respectively, while disputes stalwart Ben Giaretta joined Mishcon de Reya.

But the firm began 2018 with some City appointments, including litigator Alison Hardy from Squire Patton Boggs.

marco.cillario@legalease.co.uk

Legal Business

Revolving Doors: City laterals pick up pace as Baker McKenzie and DWF make moves while Reed Smith expands in the US

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Strategic recruitment Baker McKenzieDWFReed Smith

City recruitment kept pace last week as a trio of firms made City hires, led by Baker McKenzie’s corporate hire from Clifford Chance, while Reed Smith made big plays in the US.

Baker McKenzie added to its London bench with the hire of Kathy Honeywood to its energy, mining and industrials practice. Honeywood joins from Magic Circle firm Clifford Chance, bringing experience in M&A transactions, corporate finance and joint ventures.

Baker McKenzie London managing partner Alex Chadwick (pictured) commented: ‘With almost 20 years of M&A experience and strong client relationships, Kathy is well placed to enhance our Corporate EMI practice and to capitalise on the huge opportunities in the energy industry. This plays straight into our strategy of bolstering and growing our key transactional practices in London.’

Meanwhile, London independent Wedlake Bell bolstered its corporate and capital markets practice with two senior hires from Watson Farley & Williams in Nigel Taylor and Martin Thomas. Taylor specialises in private equity transactions, M&A and corporate structuring while Thomas works on IPOs and secondary offerings of equity and debt on the London capital markets.

Martin Arnold, managing partner of Wedlake Bell, said: ‘They will add real value and depth to our thriving corporate and capital markets practice. These appointments reflect the firm’s commitment to growth and the further strengthening of our specialist offering in key sectors to meet client demand.’

DWF also made hires in the City, bolstering its real estate arm with the hire of Andrew Edwards from American firm Greenberg Traurig. Edwards will work with DWF’s regional clients and particularly private equity houses, fund managers, property companies and high net worth individuals.

Elsewhere in the UK, Womble Bond Dickinson (WBD) recruited competition partner Andrij Jurkiw from Mishcon de Reya, where he had been since 2013 and served as head of competition. Jurkiw will join WBD in Bristol, and focuses on UK & EU competition law, with particular experience in food, building materials, pharma and real estate.

Meanwhile in the US, Reed Smith made a spate of hires which brought five new partners to its Washington, Austin and New York offices, all from Norton Rose Fulbright.

In Washington, the firm landed Frederick Robinson and Lesley Reynolds in its litigation practice. Further south in Texas, the firm recruited Ben Koplin and Jeff Layne. Layne has experience in government and internal investigations and related litigation, representing health care and life sciences companies. Koplin, meanwhile, focuses on health care compliance and the regulation of health care providers. The pair’s arrival sees Reed Smith add a new office in Austin.

Rounding off the hires, Reed Smith brought in Cori Goldberg in New York. Goldberg has experience handling Food and Drug Administration (FDA) and regulatory compliance issues, as well as government and internal investigations.

Commenting on all the hires, co-chair of the firm’s life sciences group Scot Hasselman said: ‘This is a fantastic group of lawyers. It will bring together two historical health care and life sciences practices with the accompanying relationships and experience.’

thomas.alan@legalease.co.uk

Legal Business

Kirkland and Baker McKenzie chart course for €950m sale of Danish shipping giant

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Corporate Baker McKenzieKirkland & Ellis

Kirkland & Ellis and Baker McKenzie have secured key roles as Turkish freight shipping operator UN Ro-Ro launched its sale to Danish shipping and logistics company DFDS in a deal worth roughly €950m.

The Kirkland team, spearheaded by London corporate partner David Arnold, advised Actera Group and Esas Holdings, while the Bakers team was led by Charles Whitefoord (London) and Eren Kurşun (Istanbul).

Legal Business

Come together – Bakers unites UK and EMEA under single profit pool but Germany and France stay out

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Financial management Baker McKenzie

Integration has long been one of the key issues for Baker McKenzie, a firm with heritage as a franchise and a long fight against the much-loathed ‘McFirm’ tag. A sign that things are changing came in February, when Legal Business reported that the firm is to bring London and eight of its offices in Europe, the Middle East and Africa (EMEA) into one profit pool – a landmark step towards full financial integration in the region.

Global antitrust chief Fiona Carlin has been elected to lead the integrated business, uniting 1,000 lawyers in the City, Brussels, Amsterdam, Stockholm, Madrid, Barcelona, Johannesburg, Bahrain and Qatar.

Legal Business

City of angels: Baker McKenzie launches in LA with Hogan Lovells team hire

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Strategic recruitment Baker McKenzie

Baker McKenzie has opened its ninth US office in Los Angeles after recruiting a five-partner employment and litigation team from rival global firm Hogan Lovells.

As the firm looks to beef up its numbers in the region as part of its 2020 strategy, two of Hogan Lovells’ former partners will launch the new office today (08 March).

Hogan Lovells local head of employment Robin Samuel will operate from the office, alongside litigator Barry Thompson and Hogan Lovells counsel Joe Ward.

Two other disputes partners the firm has hired from Hogan Lovells, Mark Goodman and Ethan Miller, will operate out of Bakers’ existing San Francisco base.

‘We are solidifying our roots in a market where many California-based Fortune 500 companies have a presence,’ said the firm’s North American managing partner Colin Murray. ‘Los Angeles is also an increasingly important gateway for our clients in Asia.’

He added: ‘Our new partners will take on significant commercial and employment litigation as well as class action cases for clients across multiple industries.’

Previously operating as separate profit pools, Bakers moved to bring its North American outposts into an integrated business five years ago, but had to draft special deals for its Dallas and Washington DC arms before these agreed to join the grouping.

marco.cillario@legalase.co.uk

For more on Baker McKenzie, read ‘Waking the giant’