Legal Business

DLA Piper launches new sector strategy

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Global law giant DLA Piper has launched a seven-sector strategy as the firm bids to sharpen its focus from its current 15 and foster greater cross-selling.

DLA Piper, which is pushing a high-profit agenda that last year resulted in a 13% jump in profit per equity partner to $1.33m, will reduce its sector focus from 15 to seven industries. These are: banking and financial services; life sciences; real estate; insurance; technology; energy; and media, sports and entertainment.

Legal Business

DLA splits from SA alliance firm Cliffe Dekker over integration and branding issues

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Last month saw DLA Piper and South African firm Cliffe Dekker Hofmeyr end their ten-year formal alliance over integration and branding issues, with the international firm making plans to open a greenfield site in Johannesburg to preserve a presence in the market.

DLA wanted Cliffe Dekker, which carries the DLA branding, to become more closely integrated with the firm. However, the majority of the partnership at Cliffe Dekker felt they would lose too much independence and freedom to operate as a result. At the time the duo said they would continue to maintain a relationship to support existing client relationships and refer clients where appropriate.

Legal Business

Eversheds’ Manchester office loses partner trio to DLA Piper as firm builds up in construction

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DLA Piper has targeted Eversheds‘ Manchester base, hiring three of the firm’s partners from the office, as its bulks up it infrastructure and construction practice.

David Moss and Paul Giles join DLA as partners while Nigel Proctor comes in as a consultant in the global firm’s infrastructure, construction and transport sector, though a start date is still to be confirmed.

Moss and Giles are both contentious construction lawyers with 25 and 15 years’ experience respectively. Moss specialises in project management, administering contracts and resolving claims in the civil, oil and gas heavy engineering, and building industries, while Giles is specialised in dispute avoidance and resolution in a number of industries including road, rail and nuclear.

Chartered civil engineer Proctor is a non-contentious construction lawyer with 20 years’ experience advising on both client funded and project financed infrastructure projects in the UK and internationally.

Commenting on the hires David Gray, UK head of DLA’s litigation and regulatory group, said the group would help to develop the UK construction disputes team as well as the firm’s infrastructure, construction & transport sector globally.

Liam Cowell, managing partner of the firm’s Manchester office and a finance and projects partner added: ‘David, Paul and Nigel are a dynamic team who have worked together for a number of years at different firms and have built a significant practice together. Their appointment will increase our breadth of experience in the infrastructure sector not only in the North West but across the UK and internationally.’

The team first worked together at Hammonds before splitting up as Proctor joined Addleshaw Goddard and both Moss and Giles joined McGrigors. All three joined Eversheds in 2012.

kathryn.mccann@legalease.co.uk

Legal Business

‘We are not where we wanted to be’: Bakers falls behind DLA as revenue drops $100m and PEP dives 12%

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Baker & McKenzie has fallen behind rival firm DLA Piper in the stakes to be the biggest global law firm after its worldwide revenues dropped 4% to $2.43bn in the fiscal year ending 30 June 2015.

The firm said the results, which are down on last year’s record $2.54bn, highlighted ‘the exceptional appreciation of the US dollar against most other currencies in the period’, which resulted in a ‘modest decline’, and that, on a like-for-like exchange rate, the firm’s total global revenues would have been up 2% compared to the previous financial year.

But profit per equity partner at the firm would still have been down, though instead of dropping the steep 12% to $1.14m from $1.29m the previous year, it would have only marginally shifted to $1.25m.

‘We are not where we wanted to be,’ said Bakers’ chairman Eduardo Leite (pictured). ‘We were affected, like anyone else that has a very global footprint and deals with 35 or more currencies by the devaluation of many currencies when we convert into the dollar. We also had a one-time impact of the change to a new system for financial and management purposes – SAP system – so there is an adaptation period, and this to some extent affected our billing cycle.’

In the last 12 months the firm has continued its international investment with the launch of two new offices in Brisbane and Jeddah, a joint venture in Shanghai which allows the firm to practice both international and Chinese law, as well as a new global services centre in Belfast.

Leite particularly cited standout performance in its antitrust, competition and tax practices, which managed to grow in dollar terms. The firm’s transactional practices in banking and finance, capital markets, M&A, private equity and real estate were also active, as well as the firm’s less established areas such as compliance and cybersecurity, which also saw a rise in activity.

The firm hired 51 lateral partners in the past year, and increased its full-time equivalent fee-earner headcount by 34% to 5,685 while total staff headcount was 11,336. Total billable hours at the firm grew by 5% to 7.8 million while productivity increased 2% on average.

Some key work at firm in the last year included advising the financial advisors and lead managers on the $6bn floatation of The National Commercial Bank, Saudi Arabia’s largest lender; representing Merck on the international aspects of its $14.2bn consumer care business sale to Bayer; and acting for CSR Corporation Limited on its $26bn merger with China CNR Corporation.

The results are considerably apart from last year when the firm overtook rivals and became the world’s largest law firm with a turnover of $2.54bn. In Legal Business’ Global 100, the top spot is currently occupied by Latham & Watkins, which set a high bar for the global elite after its 2014 revenues surged 14% to $2.61bn.

jaishree.kalia@legalease.co.uk

Legal Business

Revolving doors: OC, DLA and DWF make key hires as CMA promotes new cartels head

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Last week saw a trio of LB100 firms, Osborne Clarke (OC), DWF, and DLA Piper,  make key national and international appointments while the Competition and Markets Authority (CMA) bolstered its cartels and criminal group with the internal promotion of a director to its leadership team.

OC, which has this year seen a period of dramatic growth and assured strategic expansion, recruited Hogan Lovells commercial partner Mark Taylor to its London office. A specialist in tech and IT projects, outsourcing and cyber security, his move to the firm follows that of telecoms specialist Jon Fell, who left Pinsent Masons after 15 years for OC in June.

UK managing partner, Ray Berg, said: ‘Digital business, data privacy and mobile payments are all hot topics in today’s world. Mark brings a wealth of knowledge and experience in all three, making him a huge asset to the team. We look forward to welcoming him to our London office and further strengthening our expertise for the benefit of our clients.’

On the back of a recent disappointing financial performance, DWF has forged ahead with further investment and appointed DAC Beachcroft partner Lorraine Carolan as its national head of counter fraud.

Set to join this month, Carolan headed DAC’s national claims validation team and prior to that led the litigation practice. She will work alongside the firm’s 900-strong insurance team to ‘deliver increased value to the firm’s client base of insurers’.

She said: ‘There are a number of opportunities available to pursue within the fraud market, and DWF’s investment in their systems and intelligence provide a strong platform on which to explore these.’

Carolan’s hire comes on the back of DWF’s second year of lacklustre performance. In early August its financial results showed a 1% rise in revenue and a 16% drop in profit per equity partner.

DLA Piper meanwhile, has made a bid to enhance its Australia offering with the recruit of heavyweight corporate lawyer James Philips from Minter Ellison, where he co-headed its M&A practice.

Having advised on transactions valued at more than AU$100bn, he specialises in takeover bids, schemes of arrangement, public to privates, privatisations and equity capital markets work. Philips constitutes the sixth lateral hire made by the firm as part of a strategic effort to better its corporate capabilities in the Asia Pacific. Others in recent months includes Allen & Overy partner Grant Koch as head of private equity in Sydney; Michael Bowen, Scott Gibson and Marc Wilshaw of Perth corporate law firm Hardy Bowen in July; and partner David Hallam from Melbourne firm Corrs Chambers Westgarth in July.

DLA Australia managing partner John Weber said: ‘We have gained significant momentum in the Australian market, in particular with a focus on transactional corporate work, and we’re delighted to welcome James.’

Finally the CMA last week bolstered its cartels and criminal group with the promotion of Deborah Wilkie as director of civil cartel enforcement.

Previously a lawyer at Herbert Smith Freehills before joining the body in 2014, she will lead an expanded team alongside existing director Juliette Enser, and act as project director on Competition Act cartels cases, while playing a role in the CMA policy work on cartels and leniency.

Stephen Blake, CMA senior director of cartels and criminal, said: ‘This appointment further strengthens the CMA’s cartel enforcement group, reflecting the ongoing importance we place on identifying, investigating and taking enforcement action against cartel activity by firms and individuals across the UK. Deborah brings a wealth of skills and experience, both from her time at the CMA, and before that as a lawyer in private practice, dealing with large and complex commercial disputes.’

sarah.downey@legalease.co.uk

Legal Business

DLA Piper ends South African alliance as it eyes Jo’burg launch for first foray into Africa

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DLA Piper and its South African affiliate, Cliffe Dekker Hofmeyr, are ending their formal alliance as the international firm looks to strengthen its presence in the country.

The move comes after talks regarding further integration between the two, which have had an alliance since 2005, failed to come to fruition with Cliffe Dekker deciding not to become part of DLA Piper’s sprawling Swiss verein.

Consequently, 200-lawyer Cliffe Dekker, which has previously used the branding DLA Cliffe Dekker Hofmeyr and was fourth in mergermarket’s African and Middle East M&A league table for 2014, and DLA Piper said in a statement that they ‘concluded that their respective interests and strategies are best delivered separately.’

Instead, DLA is pushing on with plans to establish its own presence in the country that has seen a stream of international firms open offices in recent years. In October 2014, Johannesburg, where the firm is targeting, saw Allen & Overy open an outpost with a seven-strong banking and finance team from local firm Bowman Gilfillan.

Other international firms with a presence in the city include Clyde & Co, which opened in May 2014 with a team hire from Linklaters’ local ally Webber Wentzel; Hogan Lovells, which combined with Routledge Modise in December 2013; and Baker & McKenzie, which launched in May 2012. However, there have been concerns raised that the market is becoming over-lawyered given its recent popularity.

The duo said in a statement that they will maintain a relationship when the ten-year alliance ends at the end of August to support existing client relationships and refer clients where appropriate.

michael.west@legalease.co.uk

Legal Business

Pinsents and CMS miss out as DLA Piper, DWF and Weightmans make it onto Scots government legal panel

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Both Pinsent Masons and CMS Cameron McKenna have missed out on spots as nine firms were awarded places on the Scottish government’s legal services framework which is open to public sector bodies across Scotland.

Scottish firms Anderson Strathern and Harper MacLeod were the only two to win places on all of the six lots: contracts, commercial and corporate; debt recovery; litigation, reparation, employment and inquiries; major projects; property; and a one-stop shop.

DLA Piper won a sole place to provide property advice, with DWF taking a position on the major projects roster. Weightmans also gained a solitary engagement on the litigation lot.

Pinsents and CMS both missed out on slots having been on the previous panel with roles also being handed to Brodies and a handful of smaller Scottish outfits including MacRoberts, Morton Fraser and Thorntons. Pricing is understood to have played a key role in the procurement with the government saying it weighed bids on a 60/40 quality/price basis.

Harper Macleod chairman, Lorne Crerar, said: ‘Given the level of interest and high levels of competition during this procurement process, being appointed to the Framework panels is an achievement in itself, however this simply affords us the ability to bid for a wide range of tender opportunities. We look forward to competing for the opportunity to work with the Government and a wide range of public bodies over the next four years.’

The tender process, which was launched a year ago, was run by the Scottish Procurement and Commercial Directorate with the finalised framework available to over one hundred public bodies in Scotland, including NHS organisations, fire and rescue services, the Scottish police authority and the equality and human rights commission.

The former panel was renewed in 2011 and included eleven firms, namely Anderson Strathern; Biggart Baillie; Brodies; DLA Piper; Dundas & Wilson (now CMS); Harper Macleod; Ledingham Chalmers; Maclay Murray & Spens; MacRoberts; Morton Fraser and Pinsent Masons.

The current framework comprises:

Lot 1 – Contracts, Commercial and Corporate: Anderson Strathern, Harper Macleod, MacRoberts, Morton Fraser and Thorntons

Lot 2 – Debt Recovery: Anderson Strathern, Brodies, Harper MacLeod, Morton Fraser and Thorntons

Lot 3 – Litigation, Reparation, Employment and Inquiries: Anderson Strathern, Brodies, Harper MacLeod, Morton Fraser and Weightmans

Lot 4 – Major Projects: Anderson Strathern, Brodies, DWF, Harper MacLeod and MacRoberts

Lot 5 – Property and Related Matters: Anderson Strathern, DLA Piper, Harper MacLeod, Morton Fraser and Thorntons

Lot 6 – One Stop Shop: Anderson Strathern, Brodies, Harper MacLeod, Morton Fraser and Thorntons

michael.west@legalease.co.uk

For more on the current state of play in the Scottish legal market see: When the hurlyburly’s done – nationalism, devolution and another turbulent period for Scots law firms

Legal Business

Morgan Lewis continues City ramp-up with DLA Piper’s head of funds

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US firm Morgan, Lewis & Bockius has bolstered its funds practice as it continues to build its City presence with DLA Piper’s London head of funds Gawain Hughes – adding to the structured finance trio hired from K&L Gates last week.

Hughes joins Morgan Lewis in London as a partner after having headed up DLA Piper’s investment funds practice for five years and previously leading CMS Cameron McKenna’s funds practice from 2004 to 2010. Before this, he had the same management role at Osborne Clarke for eight years.

His experience has focused on the UK and Europe, acting for institutional fund managers, administrators and investors on all aspects of fund formation, investment and regulation. Recent work includes advising Jones Lang LaSalle Investment Management on the transfer of management mandates and equity/debt interests in eleven real estate funds to a spin-out, Marick Capital; and acting for Harbert Management Corporation on its first European growth debt fund.

Hughes’ arrival builds on the recently recruited finance partner trio – Matthew Duncan, Julian Goodman and Paul Matthews – from K&L Gates in London, as the firm expanded its global structured transactions capability to add to its offering in the US, Asia and Europe.

Morgan Lewis chair Jami McKeon said: ‘His addition further enhances the comprehensive spectrum of services we offer to clients from New York, London, Singapore, and other global financial centres.’

Earlier this year, DLA Piper lost its structured trade and receivables finance head Alex Dell as Mayer Brown boosted its City banking and finance team.

jaishree.kalia@legalease.co.uk

Legal Business

‘We need to harness the best of our people to really drive profitability’: DLA Piper appoints its first UK managing partner from the regions

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Birmingham-based Sandra Wallace (pictured) has been appointed DLA Piper’s next UK managing partner, the first time that the position has gone to a partner outside the City.

Wallace, who became UK employment head in 2012, was approached about the position at the firm’s annual partners conference in Orlando in May and is set to become one of the most senior female lawyers in the UK. She will take up the role as UK managing partner on 1 August for a three-year term, replacing intellectual property partner Mark O’Conor, who took over from the influential Andrew Darwin just two years ago.

The promotion comes as part of a fast rise for Wallace, who held no management position just three years ago, but was handed the reins as UK employment partner to reposition the practice internationally given her work for cosmetics company Avon, hotels group Hilton and Malaysian gambling giant Genting.

Her time in charge of the firm’s UK employment group is viewed as a success by senior management at DLA Piper, having repositioned the team away from its reliance on local litigation towards more strategic business advice spanning multiple jurisdictions. This was in part motivated by UK reform of the employment tribunal system which saw litigation now account for 30% of the practice, down from the 60% share it held a decade ago. Wallace told Legal Business: ‘This repositioning has given the team work they would never have had exposure to in the past and they are now working internationally on programmes I would have never thought would have been required when I was first starting out 20 years ago.’

The appointment of Wallace to UK managing partner is symbolic in many ways, as not only is she the first partner from DLA Piper’s regional offices to take the position since the firm’s transformative three-way merger in 2005, but she also works flexibly. Wallace, who has three children, said: ‘A lot of people said ‘we didn’t even know you did’. My clients know I work flexibly and they don’t see that as a problem. It can be a challenge but it works for me. Everybody automatically thinks you’re part time, and originally I started working fewer days a week, but that didn’t really work for me as I didn’t feel I was making the connections I needed to. Instead I now take periods of time off when I know the business is quieter, for example, in August.’

‘It’s very important to have buy in from your team. This was about finding what worked for me and what would actually make a difference and having a great team who want to grow and develop. The result is that people snap you’re hand off when you offer them opportunities to take responsibility.’

With Simon Levine having replaced Sir Nigel Knowles as chief executive of the firm’s international arm at the start of the year, Wallace’s remit as UK managing partner will not be too dissimilar to what she inherited as UK head of employment. As the firm is now firmly fixed on integrating its 4,000 lawyer network, pushing profitability over revenue growth and looking to leverage its big corporate relationships across more offices, Wallace seems a good fit for the task in hand.

She concludes: ‘I’m working through the manifesto at the moment with the rest of the UK management team but for us, it’s about saying the UK is a critical part of the business, the UK employs some amazing individuals and we need to harness the best of our people to really drive profitability across the international business. We have to ensure we’re setting the standard internationally for quality, consistency, and the drive to make sure the client is at the heart of everything we do.’

tom.moore@legalease.co.uk

For analysis of DLA Piper’s shifting strategy see: Simon says – DLA Piper gears up for a life after Nigel

Legal Business

Proskauer’s City hiring spree continues with DLA finance partner Griffith

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Proskauer Rose’s rapidly expanding City office, which hired Baker & McKenzie’s private equity rainmaker Bruno Bertrand-Delfau last week, has bolstered its finance practice with DLA Piper’s leveraged finance and banking partner Alexander Griffith.

Griffith, having been at DLA Piper since he trained, resigned from the firm on Monday morning after long being pursued by the aggressively expansive US firm. In 17 years at DLA Piper, Griffith built up a strong leveraged finance practice servicing Lloyds Banking Group, Ares Capital, RBS and HSBC. He was made partner in 2007, having spent nearly a year on secondment to Barclays during his early years as an associate.

Having also built up a strong reputation in the private equity market following the financial crisis, with a retrenching in the lending market increasing the demand for non-bank lending, Griffith’s arrival at Proskauer follows a string of recent hires.

Since securing the move of Steven Davis, who led SJ Berwin’s City corporate team before its $1bn Sino-Australian merger and started in January, Proskauer has hired Bakers’ Bertrand-Delfau, Kirkland & Ellis’ M&A partner James Howe and Simmons & Simmons’ dealmaker Matt Rees.

To aid its rapid expansion in London, Proskauer took an 18,000 sq ft lease in Heron Tower late last year to double its office space and accommodate up to 100 lawyers.

tom.moore@legalease.co.uk