Legal Business

Clydes, DAC and Kennedys named as AXA finalises UK claims roster

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Adviser reviews Clyde & CoDAC BeachcroftKennedys
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The UK legal arm of French Insurer AXA has finalised its UK claims roster, with Clyde & Co, DAC Beachcroft, Horwich Farrelly, Kennedys, Keoghs and Taylor Rose all winning spots on the panel.

Commenting on the review, which was held in-house, a spokesperson for AXA said: ‘We are delighted to have completed the review of our claims legal panel and look forward to working with our new roster in the future. Claims are at the very heart of our business and having the right legal representation in this area is fundamental to our continued success.’ The panel will remain in place for two to three years.

Last year it emerged that AXA was set to look at its relationships with Magic Circle and international firms and how they can work more effectively for the company. It followed a review of the UK specific ‘business-as-usual’ panel, which was cut from seven to two firms and compromises Pinsent Masons and DAC Beachcroft.

Headed up by longstanding group general counsel (GC) Edward Davis (pictured), the objective was to explore new efficiencies with the premium fee firms it currently works with – including Clifford Chance, Linklaters, Hogan Lovells and Norton Rose Fulbright was sparked after the 35-lawyer AXA UK legal team carried out a substantive review during 2014.

Led by Davis and department heads, chief counsel AXA healthcare Sam Patel, chief counsel AXA insurance Mark Gardner, and general counsel wealth Emily Coupland, the team achieved a 10% reduction in external legal spend and, internally, a 20% reduction in the number of full time equivalent staff.

An ongoing feat, AXA UK’s legal function has reduced its external legal spend by 35% annually since 2011 with total legal spend currently less than £10m and around 70% of that spent in-house.

Recent panel reviews include Lloyds Banking Group, which finalised its UK legal roster in a review which saw DLA Piper and Norton Rose Fulbright losing their spots as the bank’s core panel shrunk from ten to eight firms.

kathryn.mccann@legalease.co.uk

Legal Business

‘No mood for a contested election’: Clydes opts for stability with new senior partner Konsta

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Insurance head steps up as Burns switches roles

The partnership at Clyde & Co has avoided a divisive leadership contest as global head of insurance Simon Konsta won an uncontested election to become the firm’s new senior partner last month.

Legal Business

‘Ready for the next phase of our growth’: former Barlows head Konsta elected Clyde & Co senior partner

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Clyde & Co‘s insurance head Simon Konsta will become the firm’s new senior partner, following an uncontested election, on 1 November.

Konsta (pictured) will chair the firm’s global management board and will work closely with Clydes’ regional boards, the current global management team and chief executive Peter Hasson.

The cut-off date for senior partner nominations came last week, Legal Business understands, with the election sparked by James Burns’ decision last month to stand down from his role to become head of the Americas on 1 November. Elected for a three-year term, Burns has held the senior partner role since November 2013. His new role will see him based in the US and responsible for overseeing the further expansion and integration of Clyde & Co’s business in Canada, the US and Latin America.

Konsta, who currently sits on the firm’s global board, will be familiar with his new role having previously been senior partner at Barlow Lyde & Gilbert and led the firm into its significant merger with Clyde & Co in 2011. He was elected into the position at Barlows in 2008 but settled for a place on Clyde & Co’s senior management board after Clydes former senior partner Michael Payton took up the position at the merged entity. He has also been global head of the firm’s signature insurance practice group since 2013.

‘To have been elected senior partner of a firm of the calibre of Clyde & Co is an enormous privilege,’ said Konsta. ‘One of the great strengths of this firm is that it has long been committed to a clear sector-based growth strategy. My primary focus will be on maintaining that while broadening out our client programme across all sectors and regions so that we are ready for the next phase of our growth.’

Hasson added: ‘Simon has been at the heart of the leadership of Clyde & Co for a number of years and, as global head of insurance, has led the development of our largest global sector group. He has been appointed senior partner on the back of unanimous support from the global board as well as strong backing from across our regions and practice areas.’

Burns, who said Konsta will ‘make an excellent senior partner’, is to remain on the global management board and continue to lead a number of global projects and act as a relationship partner for some of the firm’s largest clients. In addition the firm’s chief strategy officer, William Isaac, will also relocate to the US.

Since the 2011 merger, Clyde & Co has rapidly expanded, in 2015 merging with 45-partner Scottish firm Simpson & Marwick which added around £30m to the Global 100 firm’s top line. Earlier this year, the firm continued its growth into America, opening a new Miami office with the acquisition of five partner litigation firm Thornton Davis Fein.

With Barlows having posted revenues of just £95.5m in the financial year preceding its merger with Clydes, the global firm has gone on to improve its financial performance year-on-year with an impressive 13% climb in revenues to £447m for the 2015/16 financial year. The firm also managed to bolster its PEP by 8% year-on-year to £649,000.

madeleine.farman@legalease.co.uk

Legal Business

‘Not a decision I’ve taken lightly’: Burns vacates senior partner role as he targets US business for Clyde & Co

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Clyde & Co senior partner James Burns is to step down as senior partner to take on a new board-level role at the firm, becoming head of the Americas on 1 November.

A successor for Burns, who has held the senior partner role since November 2013, will be announced next month following an election. A partner at the firm told Legal Business head of insurance and global board member Simon Konsta was a frontrunner and the firm was waiting to see whether anyone else would stand against him.

Elected on a three-year term, Burns has opted vacate the post and take up the new position, which will see him based in the US and responsible for overseeing the further expansion and integration of Clyde & Co’s business in Canada, the US and Latin America.

Burns told Legal Business that stepping down from the senior partner role was ‘not a decision I’ve taken lightly but something I’ve been reflecting on over the summer’, adding: ‘This new board-level role reflects our ambitions for the region and also the greater level of responsibility we are giving to our global regions.’

As head of the Americas, Burns will continue to serve on the global management board and play a significant role in the management of the firm. He will also continue to lead a number of global projects and act as a relationship partner for some of the firm’s largest clients. In addition to Burns’ new role, the firm’s chief strategy officer William Isaac will also relocate to the US.

In a statement, the firm said the Americas is one of its fastest-growing regions and a target for growth for many of its largest clients. In addition to six offices in the US, as well as two in Canada, it also has offices in Venezuela and Brazil. Last year the firm’s operation in the region grew by 19% and contributed 15% of firm’s £447.1m global revenues.

Chief executive Peter Hasson said: ‘James has been an inspirational senior partner and the management board and firm are grateful for his leadership over the last three years. At the same time, having James as head of Americas, a region that offers significant prospects for growth, is an exciting development. He has long been one of the architects of our approach to the Americas and having him full time on the ground demonstrates our commitment and ambition for the region at a time when clients increasingly want their advisors to demonstrate not only international connectivity but real strength at the local and regional level.’

Clyde & Co’s development has been dramatic over the last five years and Burns has been central to this success. Replacing the popular and long-serving leader Michael Payton in 2013 was never going to be easy, especially as the firm’s 2011 merger with Barlow Lyde & Gilbert had left the firm on a stronger footing strategically and financially.

Year-on-year financial performance has been impressive, geographic expansion has been noteworthy and Burns is widely considered to have delivered well, and was named Management Partner of the Year at this year’s Legal Business Awards. During Burns’ tenure, the firm has added a flurry of new offices including in the US, Australia, Africa and the Middle East, as well as a significant tie-up in Scotland with Simpson & Marwick, but Burns has ensured that the firm hasn’t grown too rapidly at significant cost to the bottom line. During 2015/16, while revenues grew 13%, the firm still bolstered PEP by 8% year-on-year to £649,000.

mark.mcateer@legalease.co.uk

Legal Business

Revolving doors: Post-summer hiring spree continues with Eversheds, Pinsents and Clydes adding to their ranks

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The post-summer hiring spree continued in earnest this week, with Eversheds, Pinsent Masons, Clyde & Co, Gibson, Dunn & Crutcher and Dentons bolstering their benches with new partner hires.

Ashurst lost another partner this week, this time to Dentons in Italy, which strengthened its corporate, M&A and private equity practice in Rome with the hire of Aian Abbas along with associate Alma de Rosa and trainee Violetta Cozzone.

Abbas, who has a particular focus on corporate finance and leveraged finance transactions, has advised Oakley Capital on the acquisition of Facile.it and Mutui.it and assisted Quercus and Swisslife on the acquisition of ASI.

Federico Sutti, Dentons Italy managing partner said the hire was a step forward in the firm’s strategy to expand their corporate M&A practice. Dentons’ Rome office opened in July 2016.

Stefano Speroni, head of the corporate and M&A group in Italy added: ‘Aian’s addition to the team will significantly deepen our service offering to our clients, particularly in the private equity area, positioning our firm at the highest levels of this sector which will be crucial to our success in the years to come.’

Further afield, Pinsent Masons has added to its Australia offering with the hire of Ewan Robertson, a partner at Piper Alderman. Robertson’s main focus is on corporate and commercial work with an emphasis on transactional and projects work, M&A and joint ventures, particularly in the energy and resources sectors.

Head of Pinsent Masons Australia, David Rennick, said: ‘We’ve had an active first year of operation and have quickly developed to be one of the most experienced team of legal advisers in the Australian infrastructure market. Ewan’s expertise will broaden our corporate offering and strengthen our M&A capabilities.’

Meanwhile in the City, Gibson Dunn has continued its London expansion with private equity partner James Howe from Proskauer Rose, while Rob Ireland has returned to Clyde & Co as an aviation partner from Kennedys.

Ireland is a leading lawyer in the aviation sector, who previously spent nine years at Clyde & Co, including five at Beaumont and Son. He specialises in all aviation related liability issues, advising a range of insured clients and their insurers on claims, from those related to major catastrophes, to issues related to baggage, cargo, hull, and personal injury. He has extensive experience in litigation in England and Wales and has worked across legal systems globally.

Commenting on the hire of Ireland, Maria Cetta, a partner at Clyde & Co commented: ‘We’re delighted to welcome Rob back to Clyde & Co as he has an exceptional track record and reputation in the aviation industry, which will further add to our already market-leading position.’

Finally, Eversheds has taken two project finance partners from Norton Rose Fulbright, with energy and infrastructure duo Mark Dennison and Conrad Purcell both joining the firm.

kathryn.mccann@legalease.co.uk

Legal Business

Dealwatch: Clyde & Co and SullCrom win roles on Arch Capital’s £3.4bn bid for AIG unit

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Clyde & Co, Sullivan & Cromwell and Cahill Gordon & Reindel have won roles advising on Arch Capital Group’s bid to acquire American International Group’s (AIG) mortgage-guarantee unit for $3.4bn, in a deal which would create the largest private mortgage insurer in the world.

Insurer AIG struck a deal with Bermuda-based Arch Capital after the company revealed earlier this year it would spin off its mortgage insurance business which includes United Guaranty Corporation (UGC) and AIG United Guaranty Insurance (Asia) Limited. The deal is expected to close between late 2016 and early 2017.

Both Clyde & Co and Cahill Gordon & Reindel are advising Arch Capital while long-time adviser Sullivan & Cromwell is guiding AIG through the deal.

In the US, Sullivan & Cromwell’s team included corporate partners Robert DeLaMater and Jared Fishman. In the City London-based partners Eric Wang and Juan Rodriguez also advised AIG for Sullivan & Cromwell.

Clyde & Co fielded an international team of partners including New York-based partner Vikram Sidhu and Hong Kong’s Joyce Chan.

Sullivan & Cromwell acted for AIG during the financial crisis in connection with its $85bn emergency funding plan with the US Federal Reserve and subsequent $30bn equity capital commitment facility.

The deal is a significant one for Clyde & Co, which earlier this year advised global metals group Liberty House in its bid to acquire Tata Steel’s UK assets.

madeleine.farman@legalease.co.uk

Legal Business

Revolving doors: Clydes, Paul Weiss and Halebury strengthen offerings with international hires

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Strategic recruitment Clyde & CoHaleburyPaul, Weiss, Rifkind, Wharton & Garrison
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Last week saw a trio of firms bolster their international offerings through lateral hires, including Clyde & Co, US firm Paul, Weiss, Rifkind, Wharton & Garrison, and New Law provider Halebury.

Clyde & Co made a re-hire with commodity and trade finance specialist Robert Parson who returns to the firm from Reed Smith, where he served as a partner in the energy and natural resources group. Prior to joining Reed Smith, Parson spent six years at Clydes.

A specialist in commodity and trade finance law; structuring deals and complex cross border financing arrangements for major banks and traders, Parson returns to the firm’s London office to ‘further enhance [its] global trade finance team.’

Meanwhile, as regulators continue to tighten the rules on deals that pose a threat to competition, US firm Paul Weiss added a quartet of antitrust lawyers to its roster in Washington DC from rival Cadwalader, Wickersham, & Taft to meet client demand.

The four-strong team includes partner Rick Rule who once led the antitrust division of the US Justice Department. Rule will serve as co-chairman of the firm’s antirust practice and will be joined by Jonathan Kanter, Joseph Bial and Andrew Forman.

Paul Weiss chair Brad Karp said: ‘With today’s heightened regulatory scrutiny of M&A transactions, intense regulatory focus on antitrust enforcement and increased private antitrust litigation, a top-flight merger clearance team and world-class antitrust litigators are indispensable assets.’

Lastly, in the UK, alternative legal services provider Halebury announced it has hired three in-house lawyers including Jan Hawgood from Chevron, Katherine Kennedy from payment systems company VocaLink and Neeta Mashru from the BBC.

The firm, which provides specialises in providing senior legal resourcing solutions for listed corporations and fast-growing SMEs, now houses 31 lawyers.

Transactions lawyer Hawgood spent eight years in-house at Chevron, where she was based in the UK and Asia Pacific. Commercial lawyer Kennedy spent eight years at VocaLink which operates the UK infrastructure for payment systems including Bacs and LINK. She negotiated the execution or renewal of most major contracts.

Mashru, having joined in May, spent 17 years at the broadcaster as a commercial lawyer and acted as lead lawyer on multimillion pound outsourcing procurements including television playout services. She was also responsible for drafting and negotiating a number of commercial agreements and worked on the structured financing of BBC Broadcasting House.

Halebury chair Janvi Patel said: ‘Crucially, they all have a strong commercial mind-set and will offer not just legal advice but strategic business intelligence.’

sarah.downey@legalease.co.uk

Legal Business

‘Deepening ties’: Clyde & Co enters Germany with Düsseldorf hires

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Just two months after announcing it will open an office in Miami, Clyde & Co has revealed it will open another international office in Düsseldorf.

Five lawyers from local firm Noerr have joined Clyde & Co to open the firm’s first office in Germany. With a particular focus in insurance, partners Henning Schaloske and Tanja Schramm lead the team which covers insurance work across financial and professional lines, property, product liability, cyber, warranty and indemnity and regulatory coverage. The team has also holds experience advising on defence work and general commercial disputes.

Clyde & Co global head of insurance Simon Konsta, said there was a gap in the firm’s global network without a base in Germany. He added: ‘Having an office in Dusseldorf, in Germany’s industrial heartland and the home of many domestic and international insurers, will enable us to better support our international clients, form deeper ties with our German clients and increase our share of outbound work from Germany.’

The office’s new head, Schaloske, said: ‘The landscape of risk is changing. Risks are becoming increasingly interconnected and increasingly global. Against this backdrop insurers need advisers that can offer advice across business lines and across geographies. Clyde & Co is pre-eminent in that space.’

In May Clyde & Co confirmed it would open an office in Miami, taking on five partner strong litigation firm Thornton Davis Fein (TDF). The acquired firm, which also specialises in the firm’s traditional insurance focus alongside aviation, marine, liability and construction will be joined by Clyde & Co partner Ricardo Lewandowski who will relocate to the new office from London to launch a Latin American liaison service in Miami.

Pinsent Masons has also opened in Düsseldorf this year, hiring a three-partner team from KPMG’s legal arm. The firm revealed it had hired Clifford Chance employment partner Peter Christ this week, bringing its German headcount to 70 lawyers including 22 partners.

madeleine.farman@legalease.co.uk

Legal Business

Financials 2015/16: Clyde & Co posts double-digit revenue growth and record PEP

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Financial results 2015/16 Clyde & Co
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Clyde & Co has posted an impressive 13% increase in turnover, topping last year’s 9% revenue boost amid a year of slow growth for many LB100 firms.

Turnover was up to £447.3m on last year’s £395m while profit per equity partner (PEP) climbed to £665,000 from £600,000.

The firm has expanded across the past 12 months boosting its headcount to 3300 globally across 45 offices. Alongside its merger with six office Scottish firm Simpson & Marwick in September of last year, the firm has also acquired a 30 lawyer team from Sydney based Lee & Lyons.

The firm continues to expand as Clyde & Co gears up to open the doors to its new Miami office in July with the acquisition of five partner strong, 40 lawyer litigation firm Thornton Davis Fein. The team will be joined by Clyde & Co partner Ricardo Lewandowski who will relocate to the new office from London to launch a Latin American liaison service in Miami.

Clyde & Co senior partner James Burns (pictured), who was named Management Partner of the Year at the 2016 Legal Business Awards said: ‘Law firms face a more complex array of pressures than ever before. To achieve double digit growth in this market while improving profitability is a very good result. It stems from our clear strategy, a constant focus on meeting the needs of our clients and an unwavering commitment to execution.’

Pinsent Masons, Nabarro and Watson Farley & Williams have all posted more subdued figures for this financial year. With revenue up 5% from £362.4m to £382.3m Pinsent Masons has also posted a modest 2% increase in PEP from £538,000 to £550,000.

Nabarro has increased turnover by 3.5% to £130.4m, while preliminary figures show profit per equity partner (PEP) will be up by 1.7% to £586,000. Watson Farley & Williams has also grown revenues by 5% to £131.2m.

madeleine.farman@legalease.co.uk

Legal Business

Clyde & Co acts for Liberty House in bid to acquire Tata Steel’s UK assets

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Clyde & Co is advising global metals group Liberty House Group, one of the key UK bidders looking to acquire Tata Steel’s UK assets.

In May, Liberty House confirmed it had formally submitted its bid for Tata Steel’s UK assets, including its biggest UK plant, Port Talbot Steelworks. The company has already successfully acquired Tata Steel’s Scottish plate-making facilities in Lanarkshire. The company is one of two UK firms to have submitted a bid, the other being management buyout group Excalibur Steel.