Legal Business

Dentons gets even more polycentric with seven-way tie-up and Australia hires

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Australia Dentons

Dentons, the world’s largest globetrotting firm, has added 17 partners from an ailing Australian shop and announced a combination with seven firms across three continents over the past few weeks.

As 25-partner Australian firm DibbsBarker shut down, Dentons in May acquired ten of its partners in Sydney and two in Melbourne, while another five launched Dentons’ new office in Brisbane. They strengthened the firm’s financial services, real estate and corporate practices.

Legal Business

Trio of top-30 firms unveil new partners with Taylor Wessing and HFW boosting promotions rounds

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Partnership promotions DentonsHolman Fenwick WillanTaylor Wessing

LB100 top-30 firms Taylor Wessing, Holman Fenwick Willan (HFW) and Dentons have all announced their Spring partner promotions covering the UK and beyond.

For Taylor Wessing, it is an increased UK round compared to last year when just one lawyer was made up to its London partnership. This year, the firm has promoted three lawyers to its partnership, with a further five being made up to senior counsel.

Among those being promoted is Katie Chandler, a dispute resolution lawyer who joined Taylor Wessing as a trainee in 2005. Chandler acts for clients spanning the retail, technology and life sciences sectors. Lerika Jourbet, who joined Taylor Wessing from Slaughter and May in 2013, has been promoted into the firm’s banking and finance practice. Edward Story, another Taylor Wessing lifer, has been elevated to partnership in the firm’s corporate division.

Taylor Wessing managing partner Tim Eyles commented: ‘Their original thinking and willingness always to challenge and be challenged are qualities we value just as highly as their technical skill and client relationships – and indeed which we think add to the latter.’

Despite the growth on last year’s partner promotions, the three elevated this year contrasts with the 16-strong UK round Taylor Wessing unveiled five years ago, although 15 of those came in non-UK offices.

Elsewhere, HFW has promoted eight new partners, but with just one in the UK. Alex Kemp, a litigator in the marine sector, is the sole lawyer promoted in London. Last year, the firm made up two lawyers in the capital.

The remaining seven new partners have been made up internationally, with three in Australia, two in Dubai and one each in Houston and Singapore.

Similarly, Dentons has recorded a slump in its London partner promotions, elevating five this year compared to seven in 2017. In a global round that saw the firm promote 36 new partners, Tessa Blank, Simon Elliot, Christopher Graf and Christopher Thomson were made up in London, while Jane Miles was promoted in Milton Keynes.

Early signs are mixed for partner promotions generally this year, with Freshfields Bruckhaus Deringer announcing yesterday (4 April) it had promoted a modest five lawyers to its London partnership. However, Linklaters increased the size of its promotions round for the fifth year in a row, adding 27 lawyers to its partnership. Similarly, Slaughter and May saw a dip in the number of promotions, while Hogan Lovells and Pinsent Masons recorded increases.

tom.baker@legalease.co.uk

Legal Business

Covington strengthens in Europe with Frankfurt launch as Dentons takes chunk of ailing Australia player

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Germany Covington & BurlingDentons

Covington & Burling is to deepen its European footprint with the opening of a new office in Frankfurt – the firm’s third office in the region – while Dentons has taken on 17 partners from domestic Australian firm DibbsBarker.

The US firm has announced today (28 March) the opening of a new Frankfurt branch, which will be led by eight partners, including six from Heymann & Partner and two Covington partners from the firm’s Brussels and New York offices.

The new Frankfurt outpost will open on 3 April and focus on corporate work, including M&A, private equity, finance and restructuring, outsourcing and other technology transactions. M&A and private equity specialist Henning Bloss from Heymann & Partner will lead the new office, accompanied by Thomas Heymann, the founder of the German firm.

The move underlines Covington’s decision to develop its European presence, after last year becoming the second law firm to open an office in Dublin in light of the 2016 Brexit referendum.

Timothy Hester, Covington’s chair, said: ‘Our new German team is of outstanding quality and will provide important synergies with the firm, including our London and Brussels offices and will allow us to serve the needs of our clients who have legal issues in Germany.’

M&A partner Heymann echoed Hester’s sentiments, adding: ‘We are convinced that adding Covington’s strengths and global reach will benefit our clients in an increasingly global market, especially with matters in the US, Asia and the UK.’

Covington enjoyed a fruitful year in 2017, boosting its London top line by 16% from $69.5m to $80.5m after strategic hires in the city. Meanwhile, firmwide revenue increased by 13% to $945.5m after opening new offices in United Arab Emirates and South Africa.

Meanwhile, Dentons has also expanded its international operations in Australia by bringing over 17 partners from local firm DibbsBarker, which will wind down its operations after more than 130 years.

The two firms have reached an agreement that will see Dentons acquire 10 partners in Sydney, two in Melbourne and five in Brisbane across its financial services, real estate and corporate practices from 1 May.

DibbsBarker managing partner Stephen Purcell said Dentons was ‘an excellent firm where our partners will continue to deliver high-quality legal services. Being part of a firm with global reach and an innovative approach to legal solutions will further enable our partners to amplify their offering for clients into the future.’

Dentons combined with 500-lawyer Gadens in 2016, securing a presence in Sydney, Perth and Port Moresby in Papua New Guinea.

thomas.alan@legalbusiness.co.uk

marco.cillario@legalbusiness.co.uk

Legal Business

Seven wonders: Globetrotting Dentons combines with firms in Africa, the Caribbean and South East Asia

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Africa Dentons

The world’s largest law firm by fee-earners, Dentons,  is continuing its relentless global expansion as it announces new combinations with seven law firms across Africa, the Caribbean and South East Asia today (14 March).

Dentons is combining with Hamilton, Harrison & Mathews in Kenya, Mardemootoo Solicitors and Balgobin Chambers in Mauritius, Dinner Martin in the Cayman Islands, Delany Law in the Eastern Caribbean, Hanafiah Ponggawa & Partners (HPRP) in Indonesia, and Zain & Co in Malaysia. The combinations mean the firms become full voting, contributing and participating members of the Dentons group, and are expected to launch later this year subject to partner approval and meeting regulatory requirements.

The combinations will give Dentons a presence in 73 countries, and follow expansions in The Netherlands in early 2017 , Scotland in mid-2017 , and Uganda through a merger with that country’s largest law firm, Kampala Associated Advocates (KAA), in September last year kicking off a strategy to become the ‘first truly pan-African law firm’.

Dentons also expanded in Latin America last year through a strategic alliance with Brazil’s Vella Pugliese Buosi Guidoni and a combination with Gallo Barrios Pickmann in Peru, following the launch of Dentons Muñoz in Central America, Dentons López Velarde in Mexico and Dentons Cardenas & Cardenas in Colombia. It has also recently combined with firms in the South East Asia region.

Dentons said the seven new combinations would grow its offering in banking and finance, corporate, dispute resolution, real estate, tax and infrastructure.

Dentons global chief executive Elliott Portnoy commented: ‘We are growing faster in Latin America and the Caribbean – and with truly high-quality firms – in a way that no one has ever done before. Our new offices in Mauritius and Kenya complement our growing pan-African presence, coming on the heels of our expansion in neighbouring Uganda just last year. And our expansion in Indonesia and Malaysia builds on our presence in Singapore and Myanmar in the dynamic South East Asia region.’

hamish.mcnicol@legalease.co.uk

 

Legal Business

Revolving doors: new teams for DLA Piper and Dentons while IP specialists find new homes

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Strategic recruitment DentonsDLA Piper

Firms have launched new teams in Paris and Milan on the back of a strong week for European lateral recruitment, while both Ashurst and Eversheds Sutherland have bolstered their IP practices with hires in the UK.

In the City, Ashurst hired former Clyde & Co intellectual property (IP) head David Wilkinson for its London disputes team. Wilkinson has more than 20 years’ experience in disputes and transactions involving patents, copyright, designs and confidential information.

Ashurst global head of IP Lisa Ritson said Wilkinson’s broad expertise in the area would be a valuable addition to its offering. The firm’s disputes head, Simon Bromwich, added that the firm was developing its IP practice with an immediate focus in London: ‘David’s expertise in covering both contentious and non-contentious work in a broad range of areas is also a perfect complement to our existing international IP capabilities.’

Also in IP, Eversheds Sutherland brought back Rupert Bent for his second stint at the firm, based in Birmingham. Bent was most recently the head of IP at Leeds stalwart Walker Morris, and was previously a senior associate at Eversheds Sutherland for nearly a decade. The firm’s head of IP and media, Neil Mohring, said Bent would enhance its IP capability. Bent added: ‘I’m very pleased to be re-joining the team as a partner and very much look forward to the challenges ahead.’

Osborne Clarke, meanwhile, announced former Thrings partner and Bristol office head Colin Stratton would join its real estate team from May this year. Stratton specialises in commercial and residential development work, as well as acting for the public sector. Also in the UK, Bristol-headquartered Burges Salmon added to its corporate tax team with the appointment of Sarah Lane, who has previous experience at KPMG and EY, and was most recently managing director of FTI Consulting.

Further afield, DLA Piper launched a fund offering in Paris with the hire of corporate partner Benjamin Aller from asset management consultancy MJ Hudson. The move follows the hiring of tax partners Sylvie Vansteenkiste, Fanny Combourieu and Raphaël Béra, also in Paris, from Reed Smith: the trio had joined that firm as part of a 17-partner move from collapsed legacy SJ Berwin at the start of 2017.

Aller has more than two decades’ experience advising on private investment funds and related transactions, and has advised on several hundred fund of fund investments throughout Europe, the Middle East, Africa and Asia. DLA global corporate co-chair Bob Bishop said Aller’s hire, when aligned with the tax team, meant the firm could go to market with a funds offering in France.

‘This builds out DLA Piper’s global funds practice and is highly complementary to our existing transactional private equity team in Paris. That team has made great progress over the last few years and our new recruits will help move us to the next level.’

Elsewhere on the continent, Dentons launched a white collar and investigations team in Italy with the hire of Armando Simbari, who will be based in Milan and joins from Dinoia Federico Pelanda Simbari Uslenghi. Bird & Bird appointed experienced M&A lawyer Jan Byström as partner in Stockholm, where he joins from his own boutique transactional firm. And DWF hired Vassilis Akritidis in Brussels from McGuireWoods, to lead on international trade and WTO issues.

hamish.mcnicol@legalbusiness.co.uk

Legal Business

Ex-Sidley partner cleared in tax case as CPS admits ‘wholesale failures’ while Dentons partner leaves following harassment inquiry

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Litigation DentonsSidley Austin

Former Sidley Austin partner Matthew Cahill, who was accused of tax offences, has had all charges against him dropped after the Crown Prosecution Service (CPS) admitted to ‘wholesale failures’ in its disclosure process. Meanwhile, a Dentons partner accused of sexual harassment has left the firm following an internal investigation.

Cahill’s charges related to investments he made in Zeus Partners, a film scheme setup by HSBC, which HMRC deemed to be fraudulent in December 2015.

Cahill and a KPMG partner, as well as a JPMorgan banker, were the only three investors to be prosecuted out of a wider group of 400 individuals who had invested in the schemes. However the charges against Cahill were dropped in July 2017, before he had even filed a legal defence.

The prosecution submitted a written statement of position to Birmingham Crown Court in December last year, in which it admitted to ‘wholesale failures’ in its disclosure process as well as a ‘clear and stark’ failure to follow certain lines of inquiry.

The admissions came after the prosecution replaced its lead counsel, 7BR’s Andrew Wheeler QC and 4 Breams Buildings’ Stuart Trimmer QC, with a new team led by Helen Malcolm QC of Three Raymond Buildings. The new prosecution team reviewed its case, and then admitted to the failures.

Corker Binning partner David Corker, who was instructed by Cahill, told Legal Business that there was a strong possibility that Cahill will sue the CPS. He said: ‘He’s angry. He had to leave his firm because of the prosecution. He’s pretty bitter about the situation.’

On the admission that the CPS failed to follow certain lines of inquiry, Corker said: ‘When they investigated Cahill, they didn’t investigate the role played by HSBC, who had marketed the scheme. It was as if they had left HSBC to the side.’

Both the CPS and HMRC have confirmed that they will be conducting internal reviews into issues raised by Cahill’s case.

Matthew Dening, managing partner of Sidley’s London office, commented: ‘The firm was very pleased to learn of this outcome and, in particular, to learn that this ordeal is over for Matthew.’

Elsewhere, Dentons has confirmed that one of its partners accused of inappropriate sexual behaviour has left the firm.

The allegations made against the unnamed partner were made around 15 months ago, prior to Dentons’ tie-up with Scottish firm Maclay Murray and Spens (MMS).

Upon learning of the accusation, Dentons launched an internal investigation and placed the partner on a leave of absence. Despite the investigation finding no evidence of sexual harassment, the partner has now left the firm.

A Dentons statement read: ‘During the investigation it became apparent that the behaviour of the partner concerned fell well below the expectations that we have of our partners’.

The departure of the Dentons partner amid sexual harassment allegations follows a similar controversy at Baker McKenzie this week, where one of the firm’s partners has left after claims of sexual assault .

tom.baker@legalease.co.uk

Legal Business

LLP latest: profits fall at Norton Rose Fulbright as Dentons’ top earner sees pay cut

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Financial results 2016/17 DentonsNorton Rose Fulbright

Operating profits at Norton Rose Fulbright’s (NRF) Eurasian business fell 7.5% to £115.8m in the year to 30 April 2017, the firm’s latest LLP accounts have revealed.

The fall in profits for this segment of the business, which includes the legacy Norton Rose operations, came despite a 3% rise in turnover from £444.3m to £457.9m.

It resulted in the firm’s top-earner bringing home £1.4m, 12% less than the year before despite the average number of members remaining essentially flat at 241 compared to 242 at the end of April 2016.

The firm also cut remuneration for management by 13% from £5.94m to £5.16m but spent more on its staff. The number of fee earners was reduced from 1,094 to 1,085 and business services staff from 1,129 to 1,118. But salaries, social security payments and pensions cost the firm 8% more at £213.2m compared to £197.2m in 2015/16.

Fee income grew 3% to £252.4m in the UK and 5% to £118.2m in the rest of Europe, but fell from £78.2m to £77.8m in the rest of the world.

NRF is in the middle of its 2020 strategy, including the implementation of a practice management system from SAP and moves to re-engineer its business for global clients.

Speaking to Legal Business in the summer, global chief executive Peter Martyr – who started his sixth term last month – said the firm was in a ‘transitional phase, a time of transformation and structural changes’.

He added: ‘A lot of what we are doing has been designed to drive efficiency and flexibility. It will take about five years for the strategy to be fully implemented. We are now in year two.’

Meanwhile, Dentons’ UKMEA business also published its LLP accounts, showing the firm’s top earner brought home 15% less than last year even though the firm’s turnover and profits increased slightly.

The highest-earning member’s remuneration was down from £1.3m to £1.1m as the firm grew both the number of its members – from 124 to 129 – and fee-earners – from 435 to 484.

The firm had a total of 929 staff at the end of the financial year, costing it £84.9m, 8% more than last year.

Dentons also slashed the remuneration for its top management team 9% from £4.3m to £3.9m.

These numbers do not include the combination with Scotland’s Maclay Murray & Spens, which went live at the end of October last year and brought the firm’s UK headcount to 200 partners and 600 other lawyers.

Turnover at the firm in 2016/17 was broadly flat at £170.3m compared to £169.2 the year before, while operating profit grew from £47.2m to £48.2m.

Financial results published in the summer showed a 9% fall in the LLP’s profit per equity partner to £481,000. UK and Middle East chief executive Jeremy Cohen admitted at the time the firm would have ‘preferred to have a better profitability’ and pointed to a ‘fairly flat year’ in the UK market.

Both NRF and Dentons had less than half the cash at the end of April 2017 compared to the year before. The former had £25m in the bank and in hand compared to £56.3m the year before, the latter £7m compared to £15m.

marco.cillario@legalbusiness.co.uk

Legal Business

‘Potential is still enormous’: Dentons European arm grows revenue 21% in 2017

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Europe Dentons

Revenue from Dentons’ continental European practice grew 21% to €288m in 2017, as the firm recorded growth in all but one of its offices in the region.

In a year in which it completed its expansion into ‘initial priority markets’ on the continent by entering The Netherlands and hired 51 partners, the LLP – which includes the legacy Salans business – also grew net profit 20% to €95m. The figures were reported on a cash basis, but the firm said it recorded a similar growth in accrual terms.

Dentons did not disclose profit per equity partner but Europe chief executive Tomasz Dabrowski told Legal Business equity points increased their value by 10% last year and by 30% over the past three.

The German and Italian operations were the two standout performers, growing their top line by 32% to €61m and 92% to €22m respectively.

‘It was really encouraging to see the growth of our business everywhere – that does not always happen,’ said Dabrowski. ‘Hungary was the only exception, perhaps because the market is quite flat and there is a very small amount of foreign investment coming to the market.’

He added the growth was a result of the firm adding new offices and acquiring boutiques ‘but also the synergy between offices’. He pointed to the fact that the percentage of revenue generated as a result of referrals within the Dentons network grew from 26.5% to 28% in 2017.

‘We see the benefits of having offices in many locations, and the potential is still enormous because our practices in Italy, Luxembourg and the Netherlands are still relatively fresh but growing.’

In terms of practice areas, real estate exceeded expectations, corporate performed strongly and arbitration grew significantly, Dabrowski said. Key mandates included advising on OMV’s €1.4bn sale of OMV Petrol Ofisi to Vitol, while panel appointments included Société Générale.

The year saw Dentons merge with Dutch firm Boekel in Amsterdam , completing the strategy set out in 2014 to enter Italy, Luxembourg and The Netherlands.

Dabrowski said the Dutch practice was ‘booming’. ‘It exceeded budget expectations and we see a lot of interaction between that team and their colleagues in other countries.’

The firm also entered Georgia, acquiring an entire team from DLA Piper in Tbilisi and expanded our presence in Uzbekistan through a combination with local firm Avent Advokat.

Speaking of the plans for the upcoming year, Dabrowski said: ‘We are looking at the Nordic region – Denmark and Finland in particular – and Austria, which is an important market.’

He added that Switzerland and Portugal were also on the firm’s radar and concluded: ‘Our preferred approach is through full firm combination and we will be approaching our good friends that we know in those markets.’

marco.cillario@legalbusiness.co.uk

Legal Business

#MeToo: Dentons launches investigation and puts partner on leave amid reports of sexual misconduct

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Partnership Dentons

With the recent #MeToo campaign shining a light on sexual harassment and misogyny across every industry, a Dentons partner has been put on leave of absence while the firm investigates reports of sexual misconduct made against him.

The firm confirmed one of 62 partners who joined Dentons from Maclay Murray & Spens after the firms merged in October last year ‘will not be attending the office while the investigation is ongoing’.

Reports of inappropriate behaviour were made against the partner at legacy Maclays about 15 months ago, but Dentons only became aware of them last week.

The firm said no formal complaint was made at the time or subsequently, but the partner was warned about his future conduct.

‘Dentons places huge importance on ensuring that we create a safe, open and respectful workplace for all our employees, and we are taking these reports very seriously,’ said a spokesperson for the firm. ‘Upon becoming aware of these reports, we launched an internal investigation and the partner concerned is now on a leave of absence.’

The firm refused to comment on how it was made aware of the allegations against the partner. According to RollOnFriday, which first reported the story, the firm suspended the partner after being contacted by the website about complaints made by a number of women about his inappropriate sexual behaviour at legacy Maclays.

Dentons would neither confirm where the partner was based, nor how long he will be absent for. The spokesperson added: ‘We will be making no further comment until the investigation has concluded and all parties have been informed of the outcome’.

Announced in the summer, Dentons’ tie-up with Maclays went live on 31 October, with the firm adding offices in Glasgow, Aberdeen and Edinburgh and bringing its UK headcount to 800 lawyers, including 200 partners.

marco.cillario@legalbusiness.co.uk

For further comment from senior industry figures about this issue in the wake of the Harvey Weinstein allegations, read ‘The last word: Speaking out’

Legal Business

Dentons re-elects Cohen as UKME chief as UK managing partner steps down

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Leadership Dentons

Jeremy Cohen will lead Dentons’ UK and Middle East operations until 2021 after the partnership approved him for a second term following an election in which he stood unopposed.

Meanwhile, the firm also announced today (14 December) that UK managing partner Brandon Ransley has decided to step down from his role in April 2018 and retire from the partnership.

A partner since 2000, former head of the London corporate practice Cohen was first appointed UK, Middle East and Africa chief executive in March 2015 and has overseen the expansion of the firm in those regions over the past three years, most notably through the merger with Scottish firm Maclay Murray & Spens announced this summer.

However, Cohen attributed Dentons UKME’s recent modest financial performance to a ‘more difficult UK market’ in 2016/17: the firm saw a 1% increase in revenue to £166.4m and a 9% fall in profit per equity partner to £481,000.

His role was changed this summer to only cover Europe and the Middle East, when Dentons established a separate governance for Africa and appointed Noor Kapdi as its regional chief executive.

Cohen said of his reappointment: ‘It is a privilege to lead such a talented group of partners. Following the completion of a number of growth and innovation initiatives during the past three years, I am convinced that we now have both a team and platform in place to drive forward and continue our success in the years ahead.’

Ransley joined Dentons’ Milton Keynes office in November 2008 from Howes Percival and ran Dentons’ office from 2009 before taking on the UK managing partner role in 2010. He will continue at Dentons as a special adviser, a role which will allow him to spend more time close to his family in Buckinghamshire.

Cohen will appoint Ransley’s replacement early next year.

Marco.cillario@legalbusiness.co.uk