Legal Business

Comment: Picking up the New Law gauntlet – CC’s City head calls for a new approach to training the lawyers of the future

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New entrants to the legal profession will be competing head on against Kim, the virtual assistant from Riverview Law, and Ross, IBM Watson’s ‘super-intelligent’ attorney, in delivering services to clients. Ross, unlike most of us, has the ability to research every resource of legal knowledge in seconds, and, even more impressive to the older ones among us, remember it.

There’s no doubt that clients will always value negotiating skills, judgement, ethical standards and reassurance from their lawyers but if the apprentice style of learning at the expert’s knee is going to be overtaken by Kim and Ross, how will the profession generate the experienced advisers that clients seek to consult?

Clients seek good value for money from their law firms and those expectations change over time. In the past, certain tasks were seen as good value for money. Now, as tasks become more familiar, technology enables a more efficient delivery.

What is more, speed of communication increases expectations of 24/7 availability and delivery by lawyers. Lawyers have to respond swiftly and in the most efficient way, which increasingly involves co-ordinating delivery from the legal team, as well as external and internal specialist providers such as disaggregators and technology applications. Young lawyers are under a lot of pressure to deliver both innovative legal and process solutions.

So what can law firms offer to their junior lawyers to achieve the goal of meeting their clients’ immediate expectations in the most efficient way while also training those lawyers in the skills they will require in the future to become trusted advisers?

First and foremost, expectations need to be made clear and law firms needs to champion visible role models. This particularly is an issue exacerbated by technology. Current partners are rarely best placed to take advantage of, let alone promote, agile working practices. It is trite but true that work is something you do, not somewhere you go, and younger lawyers need to see their elders embrace the possibilities offered by new technology.

At Clifford Chance (CC), whenever we ask our people what they like most about working in the firm, they tell us the quality of the work, the quality of the clients, and the brand and reputation of the firm. But most of all they love the team culture. Having the best and most engaging people is key.

So how do you make sure that you can recruit and retain the best? You need to take pay off the table. Few motivated professionals derive real satisfaction from their pay cheque, but they can derive enormous dissatisfaction if they perceive they are being underpaid for the effort they are putting in.

You need to provide exceptional facilities: when I joined the profession having a swimming pool, squash court, gym etc was perceived as extraordinary but then, frankly, so would 24/7 document production and reading e-mails in bed. Ambitious professionals need to know they are getting the best training. Not just improving their legal skills but their broader business skills. This commercial nous helps to reassure clients that they have exceptional people advising them with a deep understanding of the issues that they face.

There needs to be absolute clarity about how the young professional is progressing in their career. Everyone needs at least an annual appraisal and ad-hoc feedback on performance. This also requires some honesty where it becomes apparent that a lawyer is not progressing as hoped. Most people do not join an organisation with an anticipation that they will work there forever but rather that they will acquire valuable and transferable skills that will set them up well for the long term. That long term is not necessarily in the place that you train.

Law firms’ whole environment needs to be accepting. Diversity is not just a human right, it’s a business imperative. It’s important that people are able to be themselves at work so that they can apply all their energies to doing their job to the best of their ability rather than dissembling about who or what they are. This is also one of the benefits of extensive pro bono and CSR programmes. Although some firms seem to think that pro bono is something done for political acceptability, that overlooks that most lawyers need (yes, I do mean need) to make a positive impact on the communities around them.

Finally, we try to give our teams the tools to be resilient, including helping them understand time management and self-organisation, sleeping, exercise and nutrition. We even provide mindfulness/meditation training. While the image of a room full of CC lawyers learning to chant may be funny, it’s important to remember that, while our clients’ business is very serious, it doesn’t mean that we have to be so all the time. I am sure Kim and Ross don’t have souls.

David Bickerton is London managing partner at Clifford Chance.

Legal Business

Keeping up with Ross and Kim – the work to do on shaping the legal stars of tomorrow

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CC’s David Bickerton says the profession is yet to master training the lawyers of the future

New entrants to the legal profession will be competing head on against Kim, the virtual assistant from Riverview Law, and Ross, IBM Watson’s ‘super-intelligent’ attorney, in delivering services to clients. Ross, unlike most of us, has the ability to research every resource of legal knowledge in seconds, and, even more impressive to the older ones among us, remember it.

Legal Business

Clifford Chance secures position on Serco panel as Ashurst and Linklaters miss out

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Following a recent review, outsourcing company Serco has announced its UK legal panel with Clifford Chance, Clyde & Co, Pinsent Masons, Bird & Bird, Addleshaw Goddard and DWF all securing places.

Clifford Chance will take up the position as the listed company’s lead corporate firm with the remaining five firms taking up work across Serco’s legal practice areas, supported by some ‘additional specialist firms’.

Former preferred legal advisers Ashurst, Linklaters and RPC have missed out on appointments to the formal panel.

Serco said in a statement the new panel ‘meets the changing needs of the business and ensure best value for money. This is in line with industry best practice and our commitment to continuous improvement.’

The last panel review carried out by Serco was carried out in 2012 and while former panels have run for three years, Serco said it had not set a date for the next review.

The review is the first carried out by group general counsel (GC) and company secretary David Eveleigh who joined the FTSE 250 company in 2014, taking on a new expanded role overseeing all the group’s general affairs. Eveleigh was previously a GC at BT, having sat on BT’s Global Services legal leadership team.

Meanwhile in other panel news, Yum! Brands, the company behind KFC, Pizza Hut and Taco Bell, has announced its new trimmed down legal panel with Eversheds, Burness Paull, Squire Patton Boggs, Whiting & Purches, TLT and Wright Hassall winning spots on the panel.

Land Securities also refreshed its panel in recent weeks, adding Pinsent Masons alongside Berwin Leighton Paisner, CMS Cameron McKenna, DAC Beachcroft, Eversheds, Herbert Smith Freehills, Hogan Lovells and Nabarro.

madeleine.farman@legalease.co.uk

 

Legal Business

Magic Circle trainee retention: Clifford Chance, Allen & Overy and Linklaters post lower rates

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Clifford Chance has retained 80% of its March trainees, with 43 out of a cohort of 54 accepting positions at the Magic Circle firm. The rate comes as rivals Allen & Overy and Linklaters also posted lower retention rates than the year prior.

The figures for Clifford Chance are worse than the firm’s spring 2015 retention rate of 91% when 41 offers made to a 45-strong cohort were accepted. The rate is also the worst of the Magic Circle this spring so far, after all bar Freshfields Bruckhaus Deringer have released their rates.

At Allen & Overy, 39 of the firm’s 43 trainee intake have accepted roles – a retention rate of 91%. All offers that were made to trainees by the firm were accepted. This is also lower than the spring before when 43 of 46 or 93% were kept on.

With 45 of 49 offers accepted, Linklaters secured an 83% retention rate of its March trainees, after keeping on 91% of a larger 54-strong cohort in February last year.

Meanwhile back in January this year, Slaughter and May posted a retention rate of 95%, when 38 of the firm’s 40 qualifying trainees accepted newly-qualified positions. The intake was an improvement on Slaughter and May’s autumn 2015 figure of 33 of 37 trainees, and ahead of its 2015 spring intake when 88% of a 42 strong cohort accepted offers.

Elsewhere, Berwin Leighton Paisner has posted a 70% retention rate for March. With a markedly smaller trainee cohort of 20, 14 of the 16 positions that the firm offered were accepted. The new trainee intake will be spread across the firm’s finance, real estate, corporate, litigation and corporate risk practices.

Our sister website The Lex 100 has created a retention rate table which will be updated as more figures are announced.

madeleline.farman@legalease.co.uk 

Legal Business

Freshfields makes key competition hire as Clifford Chance City partner to relocate to lead Hong Kong practice

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Freshfields Bruckhaus Deringer has hired Clifford Chance’s Alastair Mordaunt to become the new competition head of its Hong Kong practice.

Mordaunt joined Clifford Chance in 2011 as a partner and has been based in the London office, but the new role will see him relocate from the City to lead Freshfields Asia’ competition team.

Before Clifford Chance, Mordaunt spent five years at the UK’s Office of Fair Trading, most recently as director of a competition enforcement team and director of the mergers group before that.

Mordaunt returns to Freshfields where he previously was a solicitor for eight years from 1999 during which he worked in the London, Brussels and Washington DC office.

Asia managing partner Robert Ashworth said: ‘Alastair’s background as a regulator combined with our distinctive competition litigation expertise in Hong Kong will provide a compelling offering to local and international clients doing business in Hong Kong, where enforcement will take place largely through a contentious tribunal system.’

‘In terms of the global regulatory environment in competition and antitrust, Hong Kong is a very exciting place to be,’ Mordaunt said. ‘Very rarely do companies have to come to grips with an entirely new regime in such a sophisticated market. In that sense, the Hong Kong competition regime poses some unique challenges for companies doing business in the jurisdiction.’

The hire comes weeks after Freshfields hired Kirkland & Ellis’ capital markets partner Andrew Hagan in London who will join the Magic Circle firm in April.

jaishree.kalia@legalease.co.uk

Legal Business

City and Hong Kong members join Clifford Chance’s partnership council

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Clifford Chance‘s partnership has elected City energy partner Jeremy Connick and corporate partner Neeraj Budhwani, who is based in Hong Kong, to its partnership council.

The two new recruits replace outgoing council members; corporate partner Katherine Coates and litigator Simon Davis who have both completed two terms.

Connick and Budhwani join a team of eight including committee chair senior partner Malcolm Sweeting, along with energy and infrastructure Kate McCarthy and foreign legal consultant Tim Wang, who were re-elected to serve a second three-year term.

The remaining partnership council members, finance partner Giuseppe de Palma based in Italy and Munich based finance partner Barbara Mayer-Trautmann are mid-way through their terms.

The new joiners come after the firm’s managing partner Matthew Layton made a pledge to trim the firm’s unwieldy governance structure after he assumed the head role in May 2014. The move saw the firm phase out the regional and practice head elections in favour of an appointment by the managing partner.

The firm retains a vote for the managing partner role, senior partner role, and members of its partnership council, its main oversight body and puts more matters to a full partner vote than most peers. Clifford Chance has a separate 12-strong management committee, which according to the firm’s latest LLP accounts, took a 7% pay decrease while the firm’s revenue and profit fell. That committee was also trimmed from 16 to 12 members in the last financial year.

The two new members will join the council on 19 March.

jaishree.kalia@legalease.co.uk

For more on Clifford Chance’s management subscribers can read: ‘Clifford Chance – The shoulders of giants’

The partnership council members are:

Neeraj Budhwani – Hong Kong, Corporate

Jeremy Connick – London, Finance

Giuseppe de Palma – Milan, Finance

Barbara Mayer-Trautmann – Munich, Finance

Kate McCarthy – Washington, DC, Finance

Tim Wang – Beijing, Corporate.

Jane Barker – external member

Legal Business

Linklaters and Clifford Chance take roles on latest lender float as Metro Bank lists

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Magic Circle duo Linklaters and Clifford Chance have advised British lender Metro Bank on its float on the London Stock Exchange. 

The challenger bank managed to raise £400m in equity capital ahead of its initial public offering (IPO) today (7 March) which values the bank at around £1.6bn – which is estimated to come in around two times its book value.

Linklaters acted for Metro Bank on the equity capital raise with a team led by capital markets partner Jason Manketo and corporate partners John Lane and Charlie Jacobs.

Clifford Chance acted as counsel to the sponsor RBC Europe and private placement advisers, with capital markets head Adrian Cartwright and US securities partner John Connolly representing.

The float comes after the bank reduced the size of its proposed IPO following a sell-off of shares in the banking sector at the beginning of this year.

The IPO marks a return to the stockmarket for banks after in January both Clifford Chance and Linklaters, alongside Allen & Overy and King & Wood Mallesons all won roles advising on Clydesdale and Yorkshire Bank’s proposed IPO as its owner National Australia Bank announced a cut-price share offer ahead of the float.

Linklaters is also advising property developer Countryside Properties as it prepares to float, in a listing expected to value the housebuilder at around £1bn. Countryside, which is owned by private-equity firm Oaktree Capital Management, is planning an initial public offering (IPO) to raise £114m.

At the end of 2014, Legal Business reported that Eversheds and Hill Dickinson won spots on Metro Bank’s lending and securities panel alongside 12 other firms following the last review in 2012.

The tender process, which began in June 2014 and was finalised in early November of that year, has resulted in 14 firms being named on the new roster.

jaishree.kalia@legalease.co.uk

Legal Business

Latham targets Asian private equity market with hires from Clifford Chance and Freshfields

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After making significant investment into its European private equity practice to transform it into one of the region’s biggest private equity players, US firm Latham & Watkins has set its sights on Asia with a triple hire and two relocations.

Having kick-started its drive into European private equity market with the hire of Clifford Chance’s private equity chief David Walker in 2013, Latham returned to the Magic Circle firm to hire Hong Kong deal doer Simon Cooke as it turns its attention to Asia. Cooke leaves Clifford Chance after two decades at the firm, the last nine of which have been as a partner.

Having so far struggled to gain a strong footing in the Asia market, Cooke arrives as part of a triple hire into Asia with Freshfields Bruckhaus Deringer counsel Amy Beckingham joining as a partner and Hogan Lovells leveraged finance partner Gary Hamp also joining in Hong Kong.

Latham, which has built its global expansion around cornerstone private equity and capital markets practices, is applying the same formula to its expansion in Asia as PE takes off in the region. Asian tycoons have historically shut out private equity firms and preferred to make direct investments but that appears to be changing, with US consultancy firm Bain reporting that PE in the Asia-Pacific region broke out of a sobering two-year slump in 2014 as deal values broke previous records and more funds were raised.

Cooke and Beckingham, M&A lawyers with a track record of selling companies through IPOs, are expected to work closely with leveraged finance specialist Hamp. Also arriving in Asia are high yield partner James Burnett and restructuring partner Josef Athanas, who relocate to Hong Kong from London and Chicago respectively.

Latham chair and managing partner Bill Voge said: ‘Latham has been deeply involved in the development of private equity and leveraged finance markets in the United States and Europe, and there are clear signs that those markets are growing and evolving in Asia. The arrival of these partners in Hong Kong, along with the talented team in London, New York and other global financial capitals, puts us in place to capitalise on these trends.’

Cooke added: ‘Latham has had significant success in its other markets and the firm’s commitment to achieve the same market stature in Asia, together with its incredibly strong finance platform, is very attractive to me.’

Bryant Edwards, Latham’s Asia chair, said the firm ‘saw strong growth in private equity and related finance in London and Europe 10 years ago’ and is ‘seeing the same patterns in Asia today, in particular where high yield has grown to become a significant part of leveraged finance’.

tom.moore@legalease.co.uk

Legal Business

Magic Circle play: Dentons hires Clifford Chance veteran Voisey

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Dentons continues to build its City offering through lateral recruitment, confirming the hire of Clifford Chance (CC) senior capital markets partner Peter Voisey (pictured) in a bid to capture greater market share.

The firm has also hired Freshfields Bruckhaus Deringer projects lawyer Alistair Black who joins as a partner and will work within the firm’s energy, transport and infrastructure practice (ETI).

Voisey retired from CC’s partnership at the end of April last year after 15 years at the firm, having joined its securitisation practice in 2000 from Hogan Lovells.

He will now work alongside Dentons structured finance partner Ed Hickman, who joined the firm in 2012 from Linklaters, to further grow the practice.

Black, meanwhile, joins from Freshfields where he was a senior associate. He specialises in LNG, oil and gas, conventional, renewable and nuclear power and petrochemicals sectors, and his skillset covers project development, project finance and corporate M&A.

Dentons London head of banking & finance Paul Holland said: ‘The recovering markets, increasing regulatory cost of capital and rise of alternative sources of finance all present an opportunity for us to build out a high quality structured finance practice in London. As the market continues to evolve away from traditional loan financing Peter’s arrival will help us to move up the quality ladder and secure more complex transactions from our existing banking relationships.’

London head of ETI Matthew Hanslip Ward said: ‘The global energy markets offer huge opportunities for Dentons. The confluence between the gas and oil and electricity generation industries, and shift towards renewables, means that those firms with a real energy pedigree and a seamless global network are well-placed to capture work in this strategically important sector.’

Dentons has recently made multiple hires to boost its UK offering, including Pinsent Masons corporate partner Stephen Levy earlier this month, while in January it hired Matthew Arnold & Baldwin’s 75-strong banking and finance litigation team, including 11 partners and 64 fee earners. Last year Nikolas Colbridge and Martin Mankabady joined the firm from Skadden, Arps, Slate, Meagher & Flom and Clyde & Co respectively.

sarah.downey@legalease.co.uk

See ‘The pitch’ for our in-depth analysis of Dentons.

Legal Business

‘A valuable contribution’: all change Down Under at CC as founding duo depart firm

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Two of the founders of Clifford Chance‘s (CC’s) Australian arm, including the firm’s Sydney managing partner, are stepping down from their roles at the Magic Circle firm. 

Today (9 February) CC confirmed Sydney managing partner Mark Pistilli and Danny Simmons, who had also helped launch the office, were departing.

Although Australian media reported the pair will be on gardening leave until the end of June, a CC spokesperson told Legal Business they will continue to be ‘in and out of the office’ until then.

Pistilli will be succeeded in the managing partner post by partner Diana Chang, who joined the firm with Pistilli from Chang Pistilli & Simmons, one of two boutique firms taken over by CC five years ago for its Australia launch.

CC and Allen & Overy were the first major UK firms to enter Australia, seeking to hone in on opportunities afforded by the mining boom, with both establishing offices in Sydney and Perth in 2011 and 2010 respectively.

The team currently has 17 partners and over 70 lawyers focusing on cross-border M&A and complex financial and capital-markets transactions, as well as disputes and Australian antitrust and regulatory matters.

The firm has tripled the number of lawyers in its Australian practice over the past four years while it also made up two Australia-based partners in its 2015 promotions in Perth and Sydney.

A statement from the firm said: ‘Mark and Danny have made a valuable contribution to the firm over the past five years as, together, we have established a strong and growing practice in Australia. They have now decided that the time is right for them to step down to pursue new opportunities outside the firm.’

‘Our Australian offices play an important role in the firm’s global and regional strategy and we will continue to develop our capability, building on the significant investments we have made since opening in 2011.’

sarah.downey@legalease.co.uk