Legal Business

Trainee retention: Eversheds, Clyde & Co, CMS Cameron McKenna and Simmons reveal rates

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Trainee retention Clyde & CoCMSEversheds SutherlandSimmons & Simmons
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The number of training contracts being offered by City firms may have dropped by over 20% but the recently revealed retention rates of Eversheds, Clyde & Co, CMS Cameron McKenna and Maclay Murray & Spens remain high, although Simmons & Simmons has slid to 71%.

Eversheds, which yesterday (10 September) posted an 87% retention rate, offered 40 out of 45 newly-qualified (NQ) lawyers a permanent role at the firm, which 38 accepted. The figures mirror last autumn’s retention round, when the same number of NQs were kept on.

Angus McGregor, HR director at Eversheds, congratulated the successful NQs, commenting: ‘Our training contract is designed to extend the experience and skill sets of junior lawyers across multiple industries and sectors, preparing them for the modern legal world.’

Elsewhere, 1081-lawyer Clyde & Co has reported that it will retain 95% of its trainees, with 36 out of 37 trainees accepting a job at the firm. This follows an equally high retention rate of 94% this time last year.

Meanwhile, top ten LB100 firm CMS Cameron McKenna has announced it will hold onto 28 out of 34 NQs this September, equating to a retention rate of 82%. Of those retained, 23 will join the City office, while two will move to the insolvency and recovery group in Bristol. The others bolster the firm’s practice in Scotland, with one joining the real estate and finance practice in Edinburgh, a further lawyer heading to the Edinburgh office’s disputes department, and the last joining the employment team in Aberdeen. CMS unveiled a similar result last year of 84%.

However, Simmons & Simmons has revealed a retention rate of 71%, a drop on last year’s figure of 89%. The firm offered 17 out of a total of 24 trainees a position, with the vast majority taking on roles in the City.

Outside of the City firms, Weil Gotshal & Manges’ London arm has offered jobs to four out of six NQs, a retention result of 67%. This marks a slide on last year’s figure of 73%.

The beleaguered Scottish market has also seen Maclay Murray & Spens (MMS) offer 15 out of 19 NQ positions this year across its London, Glasgow, Edinburgh and Aberdeen offices.

MMS chief executive Chris Smylie said: ‘We are delighted to have been able to offer so many opportunities to newly qualified lawyers. It signals our confidence in the future, as we further build our strategy for growth, following last year’s root and branch review. This follows on from our recruitment of three lateral hires at partner level in August and the promotion of two partners from associate in June.’

However, at Dundas & Wilson, out of 21 trainees who applied for positions with the firm, 14 have accepted offers to stay after they qualify.

sarah.downey@legalbusiness.co.uk

Legal Business

Clydes and Charles Russell establish new footprints while Kinstellar snares 10-lawyer team from Dentons’ expanding Kazakhstan operation

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Middle East and Africa Charles Russell SpeechlysClyde & CoKinstellar
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The start of September has seen international firms reinvigorate their expansion plans, with Clyde & Co revealing an Indonesian alliance after joining forces with Indonesian law firm, while Charles Russell has extended its global footprint with the opening of an office in Qatar. Elsewhere, central and eastern European focused firm Kinstellar launched its seventh office located in Kazakhstan, hiring a team from Dentons, which has just opened a second office in the CIS state.

As no foreign firm can practise independently in Indonesia, Clyde & Co has signed a formal association with 30-year old domestic firm Lubis Ganie Surowidjojo (LGS). Heading the new Indonesian venture is Singapore-based projects and resources partner Michael Horn, an Indonesian market veteran who first moved to the region in 1992.

As part of the integration process, both Clyde & Co and LGS plan to place lawyers into each other’s offices. Clyde & Co’s Asia managing partner Michael Parker said: ‘LGS is an ideal partner for us, given its established, leading practice in the areas in which we specialise. For us, an established firm that has both history and vision makes an ideal partner.’

LGS has experience of working closely with large UK firms – the firm had a non-exclusive alliance with Norton Rose prior to the UK firm’s tie-up with Deacons to form Norton Rose Australia, which formalised its relationship with Susandarini & Partners in 2011.

‘As Indonesian business increasingly engages beyond Indonesian borders and international businesses expand in Indonesia’s regions, [the firms] offer the right combination of international and local reach,’ said LGS managing partner M. Idwan ‘Kiki’ Ganie.

Meanwhile, the primary focus of Charles Russell’s new office in Doha will be real estate and construction work and will seek to take advantage of the upsurge in construction activity throughout the Middle East.

The Qatar team will be led by the firm’s head of real estate and construction for the Middle East, Simon Green, and will officially open this month. It follows the firm’s move to larger office premises in Bahrain in early July.

Patrick Gearon, head of Bahrain office, said: ‘With the firm’s continuing expansion in the region, Qatar was the obvious choice for us. We maintain a long-term commitment to the Middle East region.’

Qatar is emerging as a serious competitor to Dubai as a prime Western-friendly legal hub and considered by many firms as an easier Launchpad into the Middle East. Backed by huge oil reserves, which have given the country the highest GDP per capita in the world and home to several large sovereign wealth funds, it is not hard to see the appeal. With the World Cup being held in Qatar in 2022 there has been a rush to improve infrastructure.

Finally, over in Kazakhstan, Dentons partner Joel Benjamin moved to CEE firm Kinstellar as part of a team of ten lawyers including debt and equity capital markets specialist Adlet Yerkinbayev who was made partner.

According to a Kinstellar statement, the new office ‘enhances the firm’s ability to meet client needs in emerging markets including, now, the resource-based economies of Central Asia’.

A former legacy SNR Denton partner, Benjamin has worked in Kazakhstan since 1993 and has also spent time at White & Case. Specialising in M&A, banking and capital market transactions, he will serve as managing partner in the new Almaty office.

Benjamin described the new venture as a ‘very attractive’ prospect, and said the firm intends to focus primarily on corporate work.

‘Dentons has taken a focus to become one of the mega firms in the world,’ he added. ‘That really was not for myself or Adlet [Yerkinbayev]. We didn’t see the benefits to us. This is much more attractive to us because the vision of Kinstellar and ours is very much aligned. We want to be independent with international quality and local counsel in this market. We enjoy that independence – it enables us to work on the highest quality deals.

‘We expect to get a lot of new clients – we have a reputation in the market. This increases our opportunity and enables us to work with other international firms without that fear that they’ll refer work to a competitor. In terms of mandates, we have a full pipeline at the moment that is following us.’

Newly merged entity Dentons has countered the loss of this team in Almaty with the launch of a satellite office in Kazakhstan’s capital, Astana, and will be headed by newly promoted partner and construction specialist Birzhan Zharasbayev.

Dariusz Oleszczuk, the firm’s Europe chief executive officer, said: ‘Kazakhstan is a rapidly growing economic hub in the CIS region, so strengthening our capabilities and presence in this country is of strategic importance to us.’

This move follows the firm’s decision to  close its Kuwait office in June, post the three-way merger of Salans, SNR Denton and Fraser Milner Casgrain to form Dentons earlier this year. Since then, managing partner of the now closed office Stuart Cavet has moved to the Abu Dhabi office, while corporate specialist Mary Ann Sharp works as a consultant in the Doha office. Two out of three associates within the Kuwait team are no longer at Dentons.

‘Following the closure of its office in Kuwait, Dentons can confirm that those lawyers who could and wished be re-assigned to other offices in the Middle East have now been,’ said a firm statement.

Sarah.downey@legalease.co.uk

Legal Business

Clyde & Co advises Olswang on claim arising from £460m Esporta sale

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Litigation Clyde & CoOlswang
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Clyde & Co’s professional financial disputes team led by rated team head Sarah Clover is advising Olswang on a multi-million pound claim stemming from the £460m acquisition by a Halabi family trust of fitness club chain Esporta from private equity firm Duke Street Capital.

Olswang in 2006 fielded a cross-disciplinary team to advise the Ironzar III trust on the high-profile acquisition, led by corporate partners Graham Barber and David Roberts.

The fitness group fell into financial difficulty and was placed into financial administration in 2007, taken over by its lender Societe Generale in a debt-for-equity-swap in 2009 and in 2011 Virgin Active acquired its 55 sites for £77.6m.

The trust has issued a claim for damages in the Queen’s Bench division of the Commercial Court, alleging failures during the due diligence process.  In a statement Olswang said: ‘We can confirm that the claim relates to the acquisition of Esporta from Duke Street Capital (a deal that occurred in 2007). Ironzar III Trust are the claimants.

‘Proceedings were issued just before the expiry of the limitation period without any prior notification or complaint to Olswang.

‘The main focus of the claimants’ allegations about the failed transaction is advice relating to the Esporta acquisition given by another professional.

‘The complaints against Olswang are peripheral to the main allegations and are highly speculative. We have reviewed the complaints made and are satisfied that we acted appropriately. The proceedings are on-going.’

Clover is a leading name in professional disputes and she has acted for many of the top 50 law firms. In December 2012 she helped Eversheds successfully defend itself against a High Court negligence claim from Newcastle International Airport.

Roger Stewart QC and Richard O’Brien at 4 New Square are acting for the trust.

jaishree.kalia@legalease.co.uk

Legal Business

RPC second City firm today to announce high double digit revenue increase

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Financial results 2013 Clyde & CoRPC
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Reynolds Porter Chamberlain has become the second City firm today (11 June) to announce a high double digit increase in revenue, with turnover up by 20% for 2012-13.

The top 50 LB100 firm has seen its revenue rise from £68m in 2011-12 to £82.1m this year. Its profits are yet to be announced.

The results come as top 20 City firm Clyde & Co also today revealed a hike in turnover of 17%, as the firm continues to reap the benefit of its 2011 merger with Barlow Lyde & Gilbert and following a period of international expansion.

The insurance focussed firm’s revenues have increased from £287m in 2012 to £336.6m in 2013, amidst a sluggish prevailing European economy. According to chief executive Peter Hasson, without including Barlow’s revenues, Clyde & Co would have reported a single digit growth of around 6%.

Clyde & Co has opened five new offices worldwide since the start of 2012, most recently in China (after obtaining a licence in Beijing), marking its eighth office in Asia. The firm also launched in Madrid with a four-partner insurance team from DAC Beachcroft in April, in Libya with the hire of local lawyer Albudery Shariha, and in Sydney and Perth after it hired an eight-strong local team from Allens.

Other UK firms to have revealed their 2012-13 results include Bird & Bird and Olswang. Bird & Bird has announced revenue growth of 6%, from £235m to £249m, marking 25 years of continuous growth. Profit figures are yet to be released although a firm spokesperson said that the expectation is that net profits will have risen again in 2012/13.

Meanwhile top 40 firm Olswang has reported a 3% growth in revenues, from £108m to £111.3m, slower growth than the 17% it posted last year. The 410-lawyer firm said that profit figures were subject to audit, it anticipated that its net income would be at roughly the same level as last year. However, this means average profit per equity partner will be around £510,000, down from £530,000 last year.

francesca.fanshawe@legalease.co.uk

Legal Business

Clyde & Co continues to reap benefits of Barlows merger with 17% hike in revenue

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Financial results 2013 Clyde & Co
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Clyde & Co has posted a 17% hike in turnover for 2012-13 as the firm continues to reap the benefits of its 2011 merger with Barlow Lyde & Gilbert.

The insurance focussed firm’s revenues have increased from £287m in 2012 to £336.6m in 2013, amidst a sluggish prevailing European economy. According to chief executive Peter Hasson, without including Barlow’s revenues, Clyde & Co would have reported a single digit growth of around 6%.

Meanwhile, profit per equity partner (PEP) is up by 4% from £558,000 to £580,000 during the same period. The profit margin at the firm remains static at 25%.

Last year Clyde & Co’s revenues shot up by 38% in the more immediate aftermath of its merger with Barlows but the firm’s PEP was down by 7% on the previous year.

Hasson said: ‘Our growth reflects in large part the success of the merger which was driven by our strategy of focussing on our core sectors across the markets where our clients operate.’

Asia was the firm’s fastest growing region, with the disputes practice performing particularly well. Nevertheless, the UK continued to generate the most revenue – around £200m – with the US and the Middle-East next in line, at approximately £50m each.

The results come after a period of international expansion for the firm, which has opened five new offices worldwide since the start of 2012, most recently in China (after obtaining a licence in Beijing), marking its eighth office in Asia. The firm also launched in Madrid with a four-partner insurance team from DAC Beachcroft in April, in Libya with the hire of local lawyer Albudery Shariha, and in Sydney and Perth after it hired an eight-strong local team from Allens.

However, last April saw the firm’s Hong Kong office lose seven former Barlow Lyde & Gilbert partners to the local offices of Reynolds Porter Chamberlain, Bird & Bird and Simmons & Simmons. The firm’s net headcount is up by 309 on 2012 figures.

jaishree.kalia@legalease.co.uk

Legal Business

Redundancy watch: Clyde and Eversheds confirm job losses as cuts keep coming

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Job cuts Clyde & CoEversheds Sutherland
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The run of gloomy news regarding job cuts continues with Clyde & Co and Eversheds this week confirming job losses as 2013 looks set to rival the deep run of cuts at major law firms seen in 2009.

Clyde confirmed that it has made eight support staff redundant after a consultation earlier in the year. The top 20 UK law firm declined to confirm reports that it had separately made two senior associates redundant in its Manchester office.

Eversheds confirmed today (24 May) that 116 staff would be made redundant across the firm. This follows a redundancy consultation that placed 166 jobs at risk, including 82 fee earners, at the beginning of the year. This was the UK law firm’s sixth redundancy round since 2007.

In a statement the firm said: ‘Following the restructuring that we announced in January, the final number of redundancies that occurred across the firm was 116. This was significantly lower than the 166 positions that were put at risk as a result of the consultation exercise.

‘We have been able to redeploy a number of our people into other parts of the business. Where redeployment was not possible, significant outplacement support was offered to all affected.’

The run of announcements come as a series of major law firms have announced impending or actual job losses including Berwin Leighton Paisner (BLP), CMS Cameron McKenna, Osborne Clarke, DWF, Olswang and Farrer & Co.

BLP in particular attracted attention for last week announcing a sweeping consultation that put more than 100 jobs at risk. The 720-lawyer firm is tipped to see a sharp fall in profitability for its 2012/13 financial year.

On current form, 2013 looks likely to see more than 1,000 job losses at major UK law firms – the deepest run of cuts since 2009 when around 2,500 legal jobs were shed in the wake of the banking crisis.

As yet, one difference is that leading London law firms have largely avoided the kind of sweeping job losses seen in 2009, when Linklaters, Allen & Overy and Clifford Chance all made more than 100 staff redundant in the UK. With law firm leaders generally gloomy over prospects for the second half of 2013, few are expecting the run of job losses to be over.

David.stevenson@legalease.co.uk

Legal Business

Clyde & Co to open Madrid office with DAC Beachcroft insurance team

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Spain Clyde & CoDAC Beachcroft
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Clyde & Co is to open a Madrid office following the appointment of a four-partner insurance team from DAC Beachcroft’s local office.

The team of nine lawyers, including insurance partners Ignacio Figuerol, Ricardo Garrido, Pablo Guillen and Miguel Relano, have resigned to establish the office for Clyde & Co, extending the firm’s international footprint to 29 locations across Europe, America and Asia.

Legal Business

Clydes opens in Madrid with DAC Beachcroft insurance team

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Spain Clyde & CoDAC Beachcroft
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Clyde & Co yesterday (16 April) confirmed it is to open a Madrid office following the appointment of a four-partner insurance team from DAC Beachcroft’s local office.

The team of nine lawyers, including insurance partners Ignacio Figuerol, Ricardo Garrido, Pablo Guillen and Miguel Relano, have resigned to establish the office for Clyde & Co, extending the firm’s international footprint to 18 locations across Europe, America and Asia.

The four partners are widely considered heavyweights in a firm thought to be a market leader in insurance law in the area. Figuerol also sits on the DAC Beachcroft management board.

The terms of the departures, including timings, are currently under discussion but DAC Beachcroft says that it will continue to provide a full-service insurance offering to the market in Spain under the leadership of Paulino Fajardo, Enrique Gich and Pablo Wesolowski.

The move to open in Madrid further reflects Clydes’ intention, since its merger with Barlow Lyde & Gilbert in 2011, to spread further internationally.

Last summer, the firm became the first to open in post-Gaddafi Libya after it recruited Libyan Investment Authority general counsel Abudery Shariha. In the same period it announced that it was to launch in Sydney and Perth with an eight-strong team hire from Australian heavyweight Allens, while in February this year Clydes announced its intention to form an alliance with an Indonesian firm.

James Burns, senior partner elect at Clyde & Co, said: ‘The DAC Beachcroft office in Madrid has had an excellent reputation for many years. We have known and worked with the partners there for a long time and are very pleased that we are now in a position to establish a Madrid presence with lawyers of the calibre of Ignacio, Ricardo, Pablo and Miguel.’

Paul Murray, managing partner of DAC Beachcroft, said: ‘Although we are obviously disappointed they have made this decision, DAC Beachcroft continues to be the leading insurance practice in Spain. DAC Beachcroft’s 60-strong team in Madrid will continue to serve its clients across all lines of work and we remain absolutely committed to investing in the development of the Spanish office and continuing to create a Latin American platform.’

Davies Arnold Cooper (DAC) established the Madrid office in 1989 and merged with Beachcroft in 2011, attracted by its Latin America group. Since then it has forged alliances internationally, most recently with an alliance with Colombian firm De La Torre & Monroy and Malaysia’s Gan Partnership.

Just last month US firm White & Case opened in Madrid following the appointment of Latham & Watkins’ corporate head in the country, Juan Manuel De Remedios.

francesca.fanshawe@legalease.co.uk

Legal Business

It’s all in a name: why branding matters

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Restructuring Clyde & CoCMSPinsent Masons
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Over the past few months CMS Cameron McKenna’s managing partner Duncan Weston has been on a charm offensive. Through lunches and presentations, he has been trying to convince the legal press that the European-wide CMS network is not just a disparate alliance, but is in fact one firm, no different to, say, Norton Rose or Squire Sanders.

Legal Business

Scams driving another bumper year for insurance firms

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Finance Clyde & CoHill DickinsonKeoghs
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Leading insurance firms that reported unprecedented revenue and headcount growth in their counter-fraud teams in 2011 expect this trend to continue in 2012.

Many firms have some capability in insurance fraud, however the biggest reported growth in the sector is undoubtedly within motor fraud. This is a practice area dominated by regional and national firms such as Keoghs, Hill Dickinson, DWF, Berrymans Lace Mawer, Weightmans and DAC Beachcroft. All saw sizeable increases within their teams in 2011.