Legal Business

Dechert’s new PE duo lead for Mid Europa on €533m Romanian supermarket deal

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Corporate Dechert
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Dechert has picked up work from key White & Case client Mid Europa Partners, as new partners Ross Allardice and John Markland took roles on the private equity house’s €533m acquisition of supermarket Profi Rom Food.

Allardice (pictured) and Markland, who joined earlier this month from White & Case and Kirkland & Ellis respectively, have advised on the largest ever PE deal in Romania, in a first time instruction for Dechert. The duo have both advised Mid Europa in the past. 

Allen & Overy’s (A&O) Romanian office led for the seller, Polish Enterprise Fund VI. RTPR Allen & Overy managing partner Costa Tărăcilă advised on the deal, while A&O co-head of private equity Stephen Lloyd also acted for the fund.

Allardice advised on M&A aspects, while Markland, who left Kirkland after 12 years, advised on private equity finance. Debt partner Giles Belsey also acted on the deal.

Allardice, whose client base also includes HgCapital, Better Capital and Nordic Capital, said: ‘It has been an exciting opportunity to be part of this highly innovative deal and to demonstrate the firm’s private equity credentials on a competitive auction process and our ability to successfully advise clients on complex cross-border transactions.’

Markland has advised clients including Palamon Capital, Bain Capital, and had founded Kirkland’s European debt finance team.

Dechert’s London office has looked to expand recently to boost its global private equity and finance offering. The firm most recently had revenues of around £44m for 2015 in the City.

matthew.field@legalease.co.uk

For more on the City’s leading private equity teams see: ‘ABC – the brutally simple world of a private equity lawyer’

Legal Business

‘A transition year’: Dechert chief executive confident despite 10% drop in City turnover

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Financial results 2015/16 Dechert
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The highest take-home pay at Dechert‘s City office rose by nearly 9% last year to £2.9m, while income at the firm’s City office slid by 10%.

London income at Dechert dropped by 10% from £49m in 2014 to £44.1m for the year ended 31 December 2015, according to filings at Companies House. The fall in revenue aligns with a decrease in partners by 9%, as partner numbers dropped from 43 to 39 partners in 2015, according to the Global 100.

Overall, the fees generated within Dechert’s UK LLP, which includes some income from overseas offices, dropped nearly 9% to £61.2m. Profit available for distribution also dropped to £24.5m from £28.4m.

Dechert’s newly-appointed chief executive officer Henry Nassau (pictured) said while performance was down, since the reporting period the financial fortunes of the firm had changed. He added: ‘There has been an active and dramatic turnaround and I’m feeling quite good about London this year.’

‘It’s all down to time and transition, a number of lawyers have departed, litigation hasn’t picked up and we view 2015 as a transition year. We are now focusing on the new managers in the office and turning it around, combine that with strong recent laterals we think 2016 will be a very good year.’

In July 2016 Dechert announced its London office will be led by a committee with corporate partner Camille Abousleiman serving as chair alongside partners Gus Black and Miriam Gonzalez alongside existing managing partner Jason Butwick.

According to the accounts, there was an increase in the number of lawyers working across the network to 226. The number of associates and counsel dipped further by just over 10%, from 76 lawyers in 2014 to 69 lawyers last year. Despite this, the amount of administration staff rose from 60 to 66 and staff costs remained fairly steady, increasing by just under 2%, amounting to £18.4m.

While, in 2015 Dechert’s London office saw several high-profile departures including exits to Jenner & Block and White & Case, last week it hired White & Case’s Ross Allardice and Kirkland & Ellis partner John Markland in private equity and finance to boost its presence in the City, while in August it bolstered its finance team with the hire of two DLA Piper partners Philip Butler and David Miles.

georgiana.tudor@legalease.co.uk

Legal Business

Double hire for Dechert as White & Case PE player Allardice exits with K&E finance partner

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Strategic recruitment DechertKirkland & EllisWhite & Case
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Dechert has strengthened its private equity and finance practices hiring White & Case‘s Ross Allardice and Kirkland & Ellis partner John Markland to boost its presence in the City.

Private equity partner Ross Allardice (pictured) joins from White & Case having moved from Kirkland in 2013. Recently, Allardice has advised HgCapital on its £200m acquisition of The Foundry from Carlyle. He also guided Mid Europa through its acquisition of Danube Foods Group BV and Clates Holding which had combined revenues of more than €400m in 2014. Other clients include Better Capital, Arle Capital, Nordic Capital and Rhone Capital.

Markland has been with Kirkland for 12 years after making the move from Weil, Gotshal & Manges and founded the firm’s European debt finance team. Markland has advised clients such as Palamon Capital Partners, Mid Europa Partners and Bain Capital.

Chair of Dechert’s London office management committee Camille Abousleiman said: ‘The London office is expanding and adding some very dynamic partners. With the addition of John and Ross as a team, we have significantly enhanced our private equity and global finance offerings both in London and on the continent.’

In August, the Philadelphia headquartered firm bolstered its finance team in the City with the hire of two DLA Piper partners, Philip Butler and David Miles. Miles was DLA’s head of debt finance in London while Butler was head of finance and projects, and global co-chair in the firm’s financial services sector. Going the other way, Dechert recently lost real estate partner Jeremy Trinder to Latham & Watkins in July this year.

Dechert posted global robust revenues growing 6% from $839.5m in 2014 to $890m in 2015 driven by strong growth in the firm’s litigation practice which was up 17%. The firm’s PEP also grew by 8.5% from $2.32m to $2.5m. The firm has 127 fee earners in the City, and its partnership ranks in London fell 9% to 39 partners in 2015.#

madeleine.farman@legalease.co.uk

For more on Private Equity in the City see: ‘ABC – the brutally simple world of a private equity lawyer’


 

Legal Business

Revolving doors: Dechert, Mishcon and Squires strengthen the ranks

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Strategic recruitment DechertMishcon de ReyaSquire Patton Boggs
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Following the post-summer hiring spree, the latter half of September only brought single lateral hires in criminal, corporate, tax and intellectual property (IP).

Mishcon de Reya’s business crime group announced this week the appointment of the Grillo sisters’ defence lawyer Richard Cannon. With effect from 5 October, Cannon will be the seventh lawyer in the two-partner business crime group established in 2014.

Cannon joins Mishcon de Reya from boutique criminal law firm Janes Solicitors, where he was a partner for 16 years focusing on defence of serious and complex fraud.

Commenting on his appointment, group head Alison Levitt QC said that ‘Richard brings to the firm a wealth of experience and expertise in criminal defence litigation at the top level’.

On the corporate side, Squire Patton Boggs also continues the European expansion of its global practice by confirming Kashif Siddiqui as its new partner in the London office. Joining from Trowers & Hamlins, Siddiqui focuses on cross-border M&A, disposals, joint ventures and reorganisations. Commenting on Siddiqui’s appointment, EMEA chair of the global corporate practice Jane Haxby said the hire is in line with the firm’s international focus and expansion of their UK practice. Siddiqui’s appointment follows last month’s hire of Bart Vanderstraete as partner in the Brussels office. Earlier this month Squires announced it would hold elections by the end of the year as its long-standing leader, Europe and Middle East managing partner leader Peter Crossley, steps down.

Meanwhile, Dechert added Sabina Comis to its benches as tax partner in the firm’s Paris office. Joining from Mayer Brown, part of Comis’ role will be focusing on advising French and international companies on tax structuring and dispute resolution. Dechert international and domestic tax group chair Daniel Dunn said Comis has an ‘impressive track record’ whilst head of tax in France. Last month the firm announced a ramp-up of its London office with the hire of long-serving DLA Piper financial services global co-chair Philip Butler.

georgiana.tudor@legalease.co.uk

Legal Business

Bankrupted Russian oligarch wins injunction barring Dechert from acting in $180m dispute

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Litigation Dechert
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A High Court judge has ruled Dechert was wrong on the law relating to legal privilege, barring it from acting for its client in a $180m dispute.

Russian businessman Mikhail Shlosberg last month secured an injunction against Dechert acting for creditor Avonwick in the case, which has set a precedent on legal privilege.

Legal Business

Dechert hires insolvency partner Fleming from DLA Piper

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Strategic recruitment DechertDLA Piper
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US firm Dechert frequently turns to DLA Piper for its City hires and has done so again, recruiting insolvency partner Paul Fleming.

Fleming, who counts Big Four accountancy firms PwC, KPMG and Deloitte as key clients, departs DLA Piper after 20 years at the firm. Fleming follows a well-trodden path between DLA Piper and Dechert’s London offices, with Neil Gerrard arriving as deputy chair of global litigation in 2011 and Miriam Gonzalez joining as co-chair of international trade and government regulation a year later. Jonathan Pickworth is another to make the transition, arriving at Dechert’s Blackfriars office in 2011, but has since moved on to join White & Case.  

When financial crisis created a flood of restructuring and insolvency work in 2007, Fleming became a central City figure in handling the fall-out from the collapse of Lehman Brothers. During this period he acted for PwC on the administration process of Lehman, including £7bn worth of claims over estates, pensions liabilities and shareholders’ liability. 

Fleming, who made partner in 1999, is known for his work advising HSBC, Credit Suisse and the Irish National Asset Management Agency (NAMA). Earlier this year, he led on NAMA and Duff & Phelps restructuring and sale of five property companies with hotels and apartments across Kensington, Earls Courts and London Bridge to Starwood Capital Group for £206m.

Dechert’s London income dropped by 4% from £50.97m in 2013 to £48.98m for the year ended 31 December 2014, according to filings at Companies House. Fleming’s arrival follows a period of high profile exits from the US firm’s City office, with finance partner Corinna Mitchell joining Pemberton Asset Management as general counsel in June and London arbitration head Daniel Gal departing for Skadden, Arps, Slate, Meagher & Flom last November.

tom.moore@legalease.co.uk

Legal Business

Dechert results: revenue slides by £2m in London as highest earner takes home £2.7m

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Financial results 2014/15 Dechert
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The highest take-home pay at Dechert’s London office rose by 16% last year to £2.69m, despite income at the City office sliding by 4%.

London income at Dechert dropped by 4% from £50.97m in 2013 to £48.98m for the year ended 31 December 2014, according to filings at Companies House.

Overall, the fees generated within Dechert’s UK LLP, which includes some income from overseas offices, dropped 1% to £66.96m. Profit, however, rose by £1.4m to £29.1m in 2014. 

While partner numbers across the UK LLP stayed steady at 41, there was a fall in the number of lawyers working across the network. The number of associates and counsel dipped by 8%, from 83 lawyers in 2013 to 76 lawyers last year. Despite this, the amount of administration staff rose from 55 to 60 people.

The filing also detailed a new operating lease for its London office near Blackfriars, with the firm agreeing to pay its landlord at least £20.31m between now and 2023.

Dechert’s London office has seen a string of high profile exits during 2015, with litigation partner Jonathan Pickworth switching to White & Case and four litigation lawyers moving to Jenner & Block to launch the Chicago-based firm’s first overseas office in London.

In June partner Corrina Mitchell left and joined Pemberton Asset Management as general counsel, while in March Paris arbitration partner Pierre Mayer moved to set up his own boutique. 

tom.moore@legalease.co.uk

Legal Business

On trend: White & Case launches London white-collar practice with Dechert hire

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Strategic recruitment DechertWhite & Case
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White & Case is preparing to meet the next wave of regulatory and enforcement investigation work as it launches its first City white collar practice with the hire of white collar and securities litigation partner Jonathan Pickworth from Dechert.

The hire comes as blue-chip corporates continue to face greater scrutiny from global regulatory authorities from both the US and the UK. Pickworth has experience of advising clients on regulatory and internal investigations, compliance and risk – with a focus on corruption, market misconduct, fraud, tax fraud and money laundering.

A spokesperson for White & Case said:  ‘The addition of Jonathan strengthens our global white collar capabilities and enhances the firm’s position as a recognised leader in global investigations and corporate crime. He brings a wealth of knowledge and experience at a time when the demand for his skills is increasing.’

He also has experience in the handling of investigations by government agencies including the Serious Fraud Office, the Financial Conduct Authority and HM Revenue & Customs, into allegations of market misconduct such as Libor and FX benchmark manipulation, insider trading and similar matters.

Pickworth joined Dechert in 2011 from DLA Piper, alongside fellow partner and former global co-head of litigation and regulation Neil Gerrard. Pickworth worked at DLA Piper for nearly 12 years where he was the EMEA head of corporate crime and investigations. Before this, he was an associate at Magic Circle firm Linklaters.

The hire comes as many City practices look to beef up their regulatory offering, especially after the government launched its long-awaited UK Anti-Corruption Plan – a disparate collection of initiatives aimed at improving the UK’s transparency, strengthening investigation powers and toughening enforcement options – which will mean an increasing workload for defence lawyers and further overhaul of companies’ compliance regimes.

In April, Ropes & Gray launched its City commercial litigation practice with the hire of K&L Gates disputes partner Thomas Ross, as the firm looked to Ross to advise clients on dispute-related issues in its government enforcement practice – particularly around regulatory and compliance issues, internal investigations and white collar crime – as well as support its transactional and business restructuring practices.

White & Case lost partner Charlie Lightfoot early this month who exited the firm after 16 years to head Jenner & Block’s litigation and arbitration practices in London. 

jaishree.kalia@legalease.co.uk

Legal Business

‘Of strategic importance’: Dechert enters Saudi Arabia with Hassan Mahassni association as Shearman opens in Dubai

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Middle East and Africa DechertShearman & Sterling
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After Saudi Arabia’s liberalisation of its capital markets, Dechert has established a presence in the Kingdom by forming an association with the Law Firm of Hassan Mahassni. Shearman & Sterling also bolstered its presence in the Middle East with a new office in Dubai.

Founded in 1970 and based in Jeddah, Hassan Mahassni focuses on corporate, commercial and finance work including joint ventures, M&A, project finance, Islamic finance and capital market transactions.

The Saudi firm has a top-tier rated disputes practice by The Legal 500 as well as having recommended teams in banking and finance, corporate and projects. The firm has worked with clients including Saudi Binladin Group and Huggies manufacturer Kimberly-Clark.

Dechert chief executive Daniel O’Donnell said the association was, ‘of strategic importance’ to the firm and added: ‘We are committed to enhancing our offering in the Middle East and in working with Hassan and his team; I think we can achieve great results for our clients.’

The Global 100 firm is also looking to build its capital markets practice, which is led by partner Camille Abousleiman, after having won several mandates in H1 2015 including Egypt and Tunisia return to US markets. Abousleiman said ‘With the liberalization of the capital markets in Saudi Arabia, we are delighted that the association with Hassan and his team will allow us to participate in the growth and development of this market.’

There has been a spate of office openings in the Kingdom as it reformed its economy. DLA Piper opened it second office in the country in Jeddah with plans for a third in April this year following Baker & McKenzie which last year also opened its second outpost in the city. Meanwhile Clyde & Co launched in Riyadh in September 2014 as did Charles Russell and Simmons & Simmons.

Meanwhile, Shearman announced today that it was opening an office in the Dubai International Financial Centre. The outpost will be staffed by the firm’s regional managing partner Marwan Elaraby but there are no current plans to build headcount further with the firm saying that Abu Dhabi would continue to be its regional base with the new outpost allowing ‘the firm to offer clients more flexibility and better access to a major regional financial and commercial hub’.

michael.west@legalease.co.uk

Legal Business

Ten years after hiring Coudert partners, Dechert pays $2.4m to settle dispute

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Litigation Dechert
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A long-running case between Dechert and the administrator of the now dissolved Coudert Brothers over the former’s hiring of Paris and Brussels-based partners has finally come to an end with the US dispute shop agreeing to pay $2.4m in a settlement.

The dispute dates back to 2005 after Dechert recruited a six-partner team from Coudert’s Paris office and five others from its Brussel’s outpost, with the partners exiting without billing for work already performed. This came a month after Coudert, which had 28 offices around the world, announced that it was to claim bankruptcy in one of the largest dissolutions of a law firm as it had failed to secure a firm-wide merger.

The firm’s assets were then sold off to numerous other firms including Orrick, Herrington & Sutcliffe in the UK, Russia and China. The administrators claimed that Dechert underpaid Coudert for the French and Belgian offerings after hiring its partners and taking their respective billings – a claim that Dechert disputed.

The filings for the settlement, cover how, in July, the bankruptcy court reached a settlement agreement which resolved all claims between Dechert and the administrator, Development Specialists Inc. McCarter & English partner and executive committee member David Adler represented the administrator, while partners Joel Miller and Nick Cutaia at Miller & Wrubel acted for Dechert.

Dechert declined to comment.

In July, last year Jones Day prevailed in an ‘unfinished business’ case with the Coudert administrator with the New York Court of Appeals deciding in its favour.

jaishree.kalia@legalease.co.uk