Legal Business

Paul Weiss continues to add Kirkland alumni in London as TDR GC Holdsworth joins

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Revolving doors DechertLinklatersPaul, Weiss, Rifkind, Wharton & Garrison

Paul Weiss has continued its rapid London expansion with the hire of TDR Capital general counsel David Holdsworth, who is returning to private practice after less than two years at the private equity house

He is set to join as a partner in the US firm’s London private equity group, bringing the firm’s London partner headcount to 27, according to its website.

Holdsworth joined the London-based TDR in January 2023 after a 15-year stint at Linklaters, where he made partner in 2009, followed by six years at Kirkland & Ellis. At Paul Weiss he will be reunited with a number of his former colleagues from Linklaters and Kirkland, including London co-heads Neel Sachdev and Roger Johnson.

Johnson, who is global co-chair of the firm’s M&A practice, referenced the pair’s shared background at Kirkland in a statement, saying: ‘David is an exceptional lawyer, and I am delighted to once again have him as my partner.’

Paul Weiss chair Brad Karp (pictured, top) added: ‘David will be an excellent counselor to our private equity clients on their most complex transactions in the UK and Europe.’

Holdsworth’s move comes amid a flurry of additions to the US firm’s London office that have seen it repeatedly raid Kirkland. Asset management transactional specialist James King joined as partner from Kirkland in April, then at the beginning of August the firm announced it had recruited his Kirkland colleague Jeremy Leggate as European investment funds co-head.

This was quickly followed by the addition of investment funds partner David Pritchett, described as a ‘fantastic addition to our partnership’ in a statement by Karp, who also went on to say: ‘His experience working on complex fund formation matters will make him an exceptional asset to our growing global investment funds group.’

According to its website, the US firm now has around 150 lawyers in London, which, according to the most recent Global London ranking, puts it alongside firms such as Debevoise & Plimpton, Gibson Dunn and Cleary Gottlieb. The firm has a set itself a target of reaching 200 by the end of 2024 – a number which would place the firm among the top 20 Global London firms.

Other firms strengthening their partnerships include Dechert, which has bolstered its financial services ranks in Dubai with the addition of partner Amanjit Fagura from Morgan Lewis.

Dechert co-chair Mark Thierfelder said in a statement: ‘Ama’s global expertise and innovative approaches to fund structuring and investment transactions will be a tremendous asset to our clients.’

Fagura specialises in private funds and investment solutions for Middle East investors, including the structuring of Shari’a-compliant investments, while she also brings expertise in Sukuk issuances, and both conventional and Islamic financings.

Gus Black, co-chair of Dechert’s financial services practice group, added: “Ama’s arrival is a strategic enhancement to our global team and her expertise will significantly strengthen our capabilities in the Middle East region.”

In Sweden, Linklaters has boosted its leveraged finance offering  with the addition of senior partner and Legal 500 banking and finance Hall of Famer Magnus Wennerhorn, who will lead the firm’s banking and finance practice in Stockholm.

Wennerhorn’s move comes after 19 years at White & Case where he was most recently co-head of its debt finance practice. Rebecca Jarvis, Linklaters’ global co-head of banking, said in a statement: ‘We are excited to welcome Magnus to our banking practice where his skillset will strengthen a targeted area of growth, working closely with our network to service banks, financial sponsors and corporates both locally and globally, wherever they are in the world.’

In Riyadh, Latham & Watkins has hired Leen Zaza from independent Saudi firm Khoshaim & Associates (K&A) into its M&A and private equity practice. Zasa made partner at K&A in 2020 and is a Legal 500 next generation partner for commercial, corporate and M&A. She joined K&A as an associate in 2012. At that time, the firm had a cooperation agreement with pre-merger Allen & Overy, a deal which ended in December 2020.

‘Leen is a highly regarded practitioner with first-class technical skills and a wealth of experience advising on some of the region’s most significant strategic M&A and private equity transactions’, said Latham’s MENA region managing partner Salman Al-Sudairi in a statement. ‘Her broad practice spans important sectors that are central to Saudi Arabia’s ambitious growth plans, and she will be a terrific addition to our strong and growing team.’

tom.cox@legalease.co.uk

Legal Business

Sponsored Q&A: In conversation with Dechert Dublin’s managing partner – the case for a global law firm

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International Dechert

What are some of the challenges and opportunities you foresee for the investment funds industry in Ireland, and how is Dechert positioned to navigate them?

Legal Business

Sponsored briefing: What you need to know: Ireland’s Individual Accountability Framework (IAF)

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International Dechert

Introduction

The Central Bank (Individual Accountability Framework) Act 2023 (the Act) was signed into law on 9 March 2023 and provides for the introduction of Ireland’s IAF, which represents a significant development in Ireland’s regulatory landscape. The Act’s origins can be traced back to the Central Bank’s 2017 recommendation for enhancing senior individuals’ accountability within regulated financial service providers (RFSPs). It aligns with international efforts to mitigate misconduct risks and addresses cultural failings identified in RFSPs during the 2008 financial crisis.

Legal Business

Dechert unveils new global management team with longstanding leaders stepping down

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Leadership Dechert

Dechert has unveiled a new-look leadership team, with David Forti and Mark Thierfelder elected as new co-chairs, and Sabina Comis and Vincent Cohen set to become the firm’s inaugural global managing partners.

The new team, which will take office 1 July 2023, replaces Andy Levander, the firm’s chair since 2011, and Henry Nassau, the firm’s CEO since 2016.

Thierfelder and Forti already have experience in leadership roles. The former currently chairs the corporate and securities group from New York, as well as the private equity practice, while Forti co-heads the global finance and real estate practice from Philadelphia. The pair are also ranked as leading lawyers in The Legal 500.

Rounding out the new leadership group, Comis and Cohen will fill the newly-established global managing partner positions. Cohen leads the US white-collar practice from Washington DC, while Comis is co-managing partner of the Paris office. In addition to their existing roles, they will be charged with liaising with U.S. and EMEA managing partners.

The group will take responsibility for evolving the firm’s global strategy, driving growth as well as upholding commitments to diversity, innovation and pro bono work.

Forti paid tribute to his predecessors: ‘Mark, Vince, Sabina and I are excited to work with our colleagues across the firm to build on Andy and Henry’s achievements. We are grateful to have the opportunity to continue Dechert’s tradition of serving our clients at the highest level.’

Cohen added: ‘At Dechert, our people have a sense of community and purpose, and are recognised for their efforts. Our continued success as a firm depends on fostering the collaborative and supportive culture that our people have embraced, while delivering strong industry experience and client service.’

The new team takes the reigns after an eventful year for the firm. The London office has been dogged by controversy, after it and ex-partner Neil Gerrard were held to have breached their duty of care to mining giant and client ENRC by the High Court.

charles.avery@legalease.co.uk

Legal Business

Dechert condemns former partner Gerrard after High Court rules the firm breached ENRC client duty

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Commercial litigation Dechert

Dechert has strongly condemned retired white-collar partner Neil Gerrard after the High Court today (16 May) ruled that he and the firm itself breached their duty of care to mining giant and client ENRC.

The £70m claim brought in 2019 was heard by the High Court in an 11-week trial between May and September 2021. It centered around allegations that Dechert – which represented ENRC between 2011 and 2013 – colluded with the Serious Fraud Office (SFO) during an investigation into the company.  Gerrard led on the matter for Dechert, with ENRC specifically alleging he passed on confidential information to the fraud watchdog and the press.

Today’s judgment from Justice Waksman found that the ENRC’s allegations of misfeasance against the SFO had failed on balance. But the agency was only partially spared from another high-profile setback, as Justice Waksman upheld ENRC’s claim that the SFO induced breach of contract by encouraging Gerrard to leak confidential information.

The judgment made for scathing criticism – describing Gerrard’s actions as ‘extraordinary’ and ‘almost unimaginable.’ It detailed how Gerrard had told individuals associated with ENRC that he had been approached to become director of the SFO, with his Dechert online biography claiming as much until February 2016. However no evidence supported this claim, and Justice Waksman concluded: ‘At best, this was a considerable exaggeration of the reputation which he claimed he had at the SFO; at worst it is simply untrue. Either way, it was a misleading statement by a professional to potential clients.’

Justice Waksman additionally determined that Gerrard was ‘the instigator’ of three leaks of confidential ENRC information to the press, and also found that in doing so he had contrived to expand the scope of the SFO’s probe.

The ENRC alleged that this was to increase his own fees – according to the judgment, Dechert billed ENRC £13m for the 2011 to 2013 period, an amount ENRC deemed to be inflated by ‘unnecessary fees’ of £11m.

Justice Waksman also declared that the SFO had acted with ‘bad faith opportunism’ in following up on the relevant pieces of information wrongfully communicated to it by Gerrard.

A spokesperson for Dechert said: ‘We recognise fully the seriousness of the judge’s findings in relation to Mr Gerrard’s conduct. We are considering the judgment to see what we should learn from it. Trust among partners is integral to any partnership, and throughout this litigation, Dechert has always acted in good faith in reliance on the assurances given to us by our former partner.

‘The court has now found Mr Gerrard to have committed conduct that is completely at odds not only with our values, ethos, and culture as a firm, but also with the high ethical and professional standards adhered to on a daily basis by our lawyers the world over.’

Gerrard said in a statement:  ‘I and my family are devastated by today’s judgment. After over 30 untainted years as a solicitor I remain sure of the appropriateness of my actions, of my advice in relation to my former client and of my personal and professional integrity. I gave evidence to the best of my ability and believed I was telling the truth at all times. I would like to thank Dechert for their support. This is my only comment at this time.’

ENRC was represented by Hogan Lovells litigation partner Michael Roberts, who instructed Nathan Pillow QC, Tim Akkouh, Freddie Popplewell (Essex Court Chambers), Claire Montgomery QC (Matrix Chambers), Anna Boase QC, Matthew Hoyle, Alyssa Stansbury (One Essex Court), James MacDonald (7BR) and Jack Rivett (Erskine Chambers).

Clyde & Co disputes partner Richard Harrison acted for Dechert, instructing Andrew Onslow QC (3VB), Nicholas Purnell QC, Jonathan Barnard QC, Rachel Kapila (Cloth Fair Chambers), Michael Bools QC, Edward Harrison and Kyle Lawson (Brick Court Chambers).

The SFO fielded Eversheds Sutherland disputes partner Gary Pellow, who enlisted Simon Colton QC (One Essex Court), James Segan QC, Tom Richards, George Molyneaux, Tom Lowenthal (Blackstone Chambers), Rachel Scott (Three Raymond Buildings) and Joyce Arnold (One Essex Court).

Roberts commented: ‘Sadly, it is now clear that ENRC was betrayed and exploited as Dechert sought to maximise its own billings, even to the extent of leaking privileged material in order to prompt action by the SFO. Far from the integrity and fairness to be expected of a government law enforcement agency, the SFO was itself complicit in Dechert’s dishonest conduct.’

An ENRC spokesperson said: ‘We repeatedly urged both Dechert and the SFO to examine the evidence, and to draw the obvious conclusions. At every turn, we were rebuffed, and both Dechert’s and the SFO’s leadership chose, at great expense, to defend the indefensible. As much as ENRC welcomes today’s judgment, it is also profoundly concerned by the very serious implications for other Dechert clients and other subjects of SFO investigations.’

ENRC also confirmed it would be pursuing costs orders against both Dechert and the SFO, despite it claiming the counterparties refused ‘multiple invitations by ENRC to resolve the claims without the need for litigation.’

An SFO spokesperson said: ‘We welcome that the judge found against ENRC for the majority of its allegations against the SFO. We are considering the implications of this lengthy and complex judgement for the SFO and other law enforcement authorities.’

Tom.baker@legalease.co.uk

 

Legal Business

Life During Law: Adam Plainer

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Dechert

I didn’t want to be a lawyer. My father wouldn’t let me go to RADA. Acting is what I wanted to do but people from Leeds in 1984 didn’t go to acting school. My favourite uncle said: ‘You’re going to be a lawyer’. So I jumped on a conveyor belt and ended up becoming one.

My father was a taxi driver and mum was a housewife. All our holidays were in Blackpool, St Anne’s and Scarborough. Now everyone’s only allowed to go to those places.

Legal Business

‘Reloaded, but not in time’: Dechert defends revenue and profit dip as Mayer Brown inches past $1.5bn turnover

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Financial results 2020/21 DechertMayer Brown

As the financial reporting season for Global 100 firms gathers pace, some less eye-catching financial results have emerged, with Dechert seeing a 6% revenue and profit reversal and Mayer Brown growing turnover only marginally to exceed $1.5bn.

Mayer Brown grew global revenue a sedate 2% to $1.52bn from just shy of $1.5bn last year when the firm recorded 7% revenue growth, while revenue per lawyer saw a slight 1% dip to $900,000 in 2020. Profit per equity partner (PEP) numbers were more heartening, climbing 11% to $2m from $1.8m in 2019 in the context of a 2% uptick in partners to 657 from 646 last year. Total lawyer headcount increased 3% to 1,685 from 1,632 in 2019.

Chairman Paul Theiss was bullish despite the slower pace of growth, commenting:  ‘For Mayer Brown, 2020 was first and foremost about taking care of our clients as their trusted adviser and business partner, and about taking care of one another and our families during a difficult year. Against that backdrop, from a financial standpoint 2020 marked our eighth consecutive year of revenue growth, with a 75% increase in PEP during that period.’

Mayer Brown does not divulge its City performance. However, London managing partner Sally Davies noted that the office held up well and made a ‘significant contribution to the firm’s global results’.

Speaking to Legal Business recently, Davies was bullish about the office’s strategy and lateral additions in a challenging year. ‘We are quite clear on strategy, it hasn’t changed as a result of the pandemic. We are focused on finance, private equity, complex, high-stakes disputes, white collar and investigations. The addition of Trevor Borthwick from Allen & Overy has added gravitas to our banking and finance team.’

She also pointed to the hire of transactional real estate partner Simon Price from Linklaters and restructuring partner Barry Cosgrave from K&L Gates, all of whom she says have hit the ground running.

Davies was characteristically upbeat and insisted there are upsides to the coronavirus crisis. ‘My personal ambition is to not lose the positives we’ve gained and not to drift back to where we were before. In terms of ESG, we didn’t really need to do so much travel. The compensation process was more efficient by doing it remotely. I’m hopeful it will change the way we do business development so that we are more focused on what clients want and not what we think they want.’

Elsewhere, Dechert experienced a tougher year, revealing a 5.7% revenue drop in 2020 to $1.07bn from $1.14bn as PEP declined in kind to $2.8m from $3m in 2019. RPL saw a 4% decrease to $1.12m from $1.17m last year, as the number of equity partners remained flat at 154 and total lawyer headcount stood at  960 compared with 974 in 2019.

Dechert CEO Henry Nassau nevertheless defended the firm’s position: ‘We have seen 10 years of steady growth at an average annual rate of 5%. 2019 stood out with 11% revenue growth. 2020 was the third year with revenue greater than $1bn. The second half of 2020 was spectacular and this continued through into early 2021, with year-to-date revenue up 12%, and billings are up 16%. The 2020 drag was caused for a couple of reasons in the first half of the year. Over 20 matters were postponed due to court closures and two huge litigation matters drew to a close at the same time. We reloaded, but not in time for the snapshot when these figures were taken.’

The firm globally has won a number of significant mandates, including advising Cerberus on its private equity strategy in the US, Europe and Asia, including the sale of Covis to Apollo. It also counts KKR as a key client across real estate finance, asset-backed and fund finance, private equity, permanent capital, tax and litigation.

Dechert has made a concerted effort to bolster its financial restructuring group of late, with heavyweight Weil, Gotshal & Manges partner Adam Plainer joining as global co-chair of the group on 1 March. The firm also added London Shearman & Sterling restructuring partners Solomon Noh and Alastair Goldrein in 2020.

nathalie.tidman@legalease.co.uk

Legal Business

Revolving doors: Expansive Goodwin makes another City tech play as Dechert and Quinn hire further afield

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Strategic recruitment DechertGoodwin ProcterQuinn Emanuel Urquhart & Sullivan

Following a string of hires to expand its London office this year, Goodwin Procter has again added to its City technology and life sciences practice with the hire of partner Ali Ramadan from Orrick Herrington & Sutcliffe.

Ramadan has experience in venture capital, cross-border M&A and private equity transactions for technology businesses. He acts for start-ups, high-growth companies and investors operating in the technology, fintech, proptech and digital media industries.

Goodwin has been in full-on expansion mode in the City in recent months, in July adding a significant string to its bow in the form of a four-partner technology and life sciences team from Taylor Wessing.

That team hire of Taylor Wessing’s head of life sciences Malcolm Bates, David Mardle, Tim Worden and Adrian Rainey was another step in Goodwin’s stated ambition to bolster its London bench in this specialist sector.

Ramadan told Legal Business: ‘The attraction to Goodwin was really their technology platform. It’s a great firm with a great reputation in tech, at the cutting edge of all these deals. I’m looking forward to working together with UK and US teams in terms of helping to build out the lifecycle tech practice here in London.’

Co-chair of Goodwin’s technology practice Anthony McCusker told Legal Business: ‘We’ve seen the lifecycle practice in London and Europe develop closely to how we see it in the US.

‘We think we’re well positioned to gain market share and continue to be active. Investors and companies look to the people that are best positioned to help them. Our expectation is that if there’s less work to spread around, they’ll continue to work with a firm like ours. Whether there’s a slowdown in the market or not we think that not being aggressive to build for what the market needs would be a big mistake,’ McCusker added.

Also acquisitive recently has been Dechert, with the Philadelphia-headquartered outfit hiring Philip Dowsett to its private equity, corporate and investment funds practice in Dubai.

Dowsett was previously a partner at Morgan, Lewis & Bockius in Dubai and is a seasoned lawyer in cross-border mergers and acquisitions, joint ventures, private equity investments, disposals, restructuring and takeovers, as well as corporate governance and investment fund structuring.

He has represented and advised numerous private equity groups in the region over the last ten years, with clients including Dubai International Capital, NBK Capital Partners, Abraaj, Amanat Holdings, Greenstone Equity Partners and Sico Trucial.

Dowsett told Legal Business: ‘On the private equity, M&A and funds side, there’s really no better firm on those practices than Dechert in the region. The real estate practice is one of the leading ones in the region.’

Regional managing partner Chris Sioufi told Legal Business: ‘The market has been more difficult for the last two years in the region because of the geopolitical tensions. We have seen a slowdown in foreign money coming into the region but we have positioned ourselves to be able to take advantage of outflows of money and assist our regional clients who are either setting up or investing in funds in other jurisdictions or doing acquisitions out of the region.’

The hire of Dowsett follows those of real estate partners Stephen Kelly and Sarah Mahood last year in Dubai.

Elsewhere, Quinn Emanuel Urquhart & Sullivan has hired international arbitration partner Mark McNeill in New York at the expense of the London office of Shearman & Sterling.

McNeill has experience in advocacy and representing companies and states in numerous commercial and investment treaty arbitrations. He focuses on intellectual property, technology, nuclear construction, pharmaceuticals, business combinations, oil & gas, taxation, mining, insurance, and reinsurance.

McNeill told Legal Business: ‘Quinn Emanuel has some of the best trial lawyers in the world. If you like going to trial then it’s just a great place to be.

‘There’s a remarkable geographic shift to Asia in particular. You have more disputes arising from parties based in Asia. More cases in Africa and a lot of infrastructure projects which inevitably are giving rise to disputes. I see mining claims and still very high oil & gas claims,’ McNeill added.

Shoosmiths also grew its real estate team with the hire of planning and development partner Karen Howard from DLA Piper. She has experience in strategic planning on large regeneration schemes and advises across sectors including residential, offices, industrial, retail, hotels and leisure.

Howard commented: ‘I joined Shoosmiths because what motivates me is the ethos of teamwork here and pulling together with my colleagues across the UK. The people here are super-friendly and it’s inspiring to join Shoosmiths at a time when the firm is growing.’

muna.abdi@legalease.co.uk

Legal Business

Revolving doors: Dechert makes hires from Sidley and Hill Dickinson expands its commodities team

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Strategic recruitment DechertHill DickinsonStewarts

The lateral hires market has seen significant moves recently with Dechert hiring more partners from Sidley Austin, Crowell & Moring making another hire from Squire Patton Boggs and Hill Dickinson expanding the firm’s commodities team with two partners.

Dechert added to its global finance and litigation practices with the recruitment of Aparna Sehgal and Simon Fawell from Sidley, following structured finance partner John McGrath, who recently joined from the same firm. Furthermore, Dorothy Cory-Wright was appointed last year as head of disputes and is also from Sidley.

Sehgal is the fourth finance partner Dechert has hired in the last nine months and works with clients from financial institutions, alternative capital providers and corporates on issues concerning multi-jurisdictional transactions, intercreditor issues, acquisition and financing of performing and non-performing loan portfolios, insolvency and enforcement strategies.

Co-leader of the global finance practice group Richard Jones commented: ‘Aparna is a strong addition to our global finance team. Her extensive experience in real estate finance complements our existing capability and strengthens our offering to our financial services clients.’

Gus Black, global co-chair of Dechert’s financial services group, added: ‘Her appointment, which closely follows the additions of John McGrath and Simon Fawell, supports Dechert’s strategic growth plans in London to meet growing client demand.’

Crowell & Moring once again hired from Squire Patton Boggs, recruiting litigation partner Laurence Winston to co-head the firm’s international disputes resolution group. His appointment comes amid a turbulent period for Squires’ London arm, which has been depleted by a number of departures since the beginning of the year, most of which have decamped to Crowell & Moring.

Financial litigation partner and former City head Robert Weekes left for Crowell & Morning in January, and was later joined by insolvency partners Cathryn Williams and Paul Muscutt. Energy partner Robin Baillie and finance partner Andrew Knight also left Squires for Crowell & Moring in February.

Elsewhere, Hill Dickinson announced the hire of Mark Aspinall and Paul Sinnott from Eversheds Sutherland into the commodities team. This follows the recent hire of litigation partner Beth Bradley, previously of Clyde & Co, and takes the number of partners in the group to nine.

Aspinal has expertise in dispute resolution, transactional matters covering trade finance as well as physical trading of steel and non-ferrous metals, shipping fraud, asset tracing and seizure actions. Sinnott, a commodities lawyer in both the physical and derivatives markets working mainly for energy and metals industry clients, focuses on transactional and regulatory matters as well as disputes resolution.

Hill Dickinson head of commodities Jeff Isaacs told Legal Business: ‘We’ve seen a marked uptick in commodities work, particularly on the soft agricultural commodities front where we have a particular specialism. We have plenty to do and we have a strong influx of work and we’re confident about the future.’

Stewarts hired David Savage to its financial crime department from SG Kleinwort Hambros Bank, where he was group senior sanctions officer. Savage follows Richard Kovalevsky QC, who established the firm’s financial crime department in July 2018, and brings experience working in the financial crime within a bank.

Savage told Legal Business: ‘Financial crime compliance is becoming more and more costly. Regulators have cottoned on to the fact that this is a big ticket business that they can extract large sums of money, by way of fines, from various companies. It’s going to be, in the near-term, a huge cost for anyone involved in international business to combat financial crime.’

Finally, DLA Piper also announced a hire in the form of Marine Lallemand, who will join the litigation and regulatory practice in Paris from Orrick Rambaud Martel.

muna.abdi@legalbusiness.co.uk

Legal Business

Global London Focus: Dechert

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Focus Dechert

London headcount: 169 lawyers: 44 partners (26 equity, 18 non-equity)

Lawyer headcount change since 2013: +29%

London office management committee: Gus Black (chair) (pictured), Jason Butwick, Chris Field

Office specialities: private equity; deal finance and financial regulation; litigation/investigations.