Legal Business

Eversheds Sutherland unveils leadership team as combination goes live

Eversheds Sutherland has unveiled its joint leadership team as the combination between Eversheds and Sutherland Asbill & Brennan goes live today (1 February) following a partner vote in December.

Eversheds Sutherland will be led by chief executive Lee Ranson who takes over as Eversheds chief executive in May, alongside Sutherland’s managing partner Mark Wasserman on a six-person global executive team which will be overseen by a global board of ten people with equal representation from each firm.

Keith Froud, who will take over as managing partner of the UK firm in May, as well as executive partner Ian Gray, will also sit on the global executive team, along with Sutherland partners Victor Haley and Thomas Gick; however Gick will be replaced in April by Cynthia Krus.

On the Eversheds side Ranson (pictured), Froud and chairman Paul Smith will also sit on the global board along with two rotating members from their international board and regional managing partner team. Gick will sit on the board for Sutherland alongside Wasserman, Robert Pile, Eric Tresh and Ben Clark with Krus replacing Gick in April.

Eversheds is the larger partner with revenue of £406m in the financial year 2015/16 compared to Sutherland’s top-line of $300m in 2015.

Both firms claim shared values and similar cultures were key factors in the tie-up, with Eversheds and Sutherland having a broadly comparable compensation system. Eversheds’ top of equity sits at about £1.2m while Sutherland has some partners sitting at more than $2m.

It is also understood that both firms will have separate bonus pots for partners who exhibit behaviour that helps to progress the combination and smooth the transition to a combined firm through client referrals.

Said Ranson: ‘There are a number of things that are helping to work a common approach. The global executive and the global board are going to bring a consistency in approach. Both firms’ remuneration structures take into account behaviours and cross-selling. Then we have got the bonus points and we are encouraging people within our practice groups, sectors and within our international operations teams to make contact with their opposite numbers, to talk about client opportunities and best practice. We are encouraging that interaction as much as possible.’

Priorities for the combined firm will be building out Eversheds’ insurance and tax practice while investing in finance, particularly in New York, where the firm has 55 lawyers.

Pursuing a US tie-up has been a high priority for Eversheds since 2014 when the partnership heavily backed the strategy through a vote. The firm held discussions with Milwaukee-based Foley & Lardner, which emerged as the preferred firm. However, these talks quickly fell through after a memo from Foley’s chair and chief executive Jay Rothman said no decision was made to pursue such an affiliation.

The deal with Sutherland has also delayed the firm’s Singapore merger with Harry Elias Partnership by three to four months, as Eversheds will need to reapply to Singapore’s Ministry of Law due to the name change resulting from the US combination.

kathryn.mccann@legalease.co.uk

Legal Business

Eversheds votes for US merger as Singapore tie-up delayed

legal-business-default

Partners at Eversheds and Atlanta-based Sutherland Asbill & Brennan have voted today (16 December) to create a new global firm called Eversheds Sutherland. Eversheds’ threshold was two thirds of the partners who were eligible to vote, while in the US Sutherland only needed 50% of the partnership vote.

The combination will be an English company limited by guarantee and will not include financial integration between the two firms. The management structure will remain in place at Eversheds with Lee Ranson (pictured) remaining as chief executive, however the combination will create a global executive and a global board, with equal representation from both firms.

The deal, which is expected to go live in February, will see Eversheds as the larger partner with revenue of £406m in the financial year 2015/16 compared to Sutherland’s top-line of $300m in 2015.

Sutherland, which is placed at number 107 in the AmLaw 200, posted revenue per lawyer at $790,000 with profits per partner at $1.02m. It has offices across eight locations, including Austin, Houston, New York, Washington DC and London and was founded in 1924 by William Sutherland.

It is understood that the deal with Sutherland will also delay the firm’s Singapore merger with Harry Elias Partnership by 3-4 months, as Eversheds will need to reapply to Singapore’s Ministry of Law due to the name change resulting from the combination.

In September Legal Business revealed that Eversheds had moved into the same building as its Singapore merger suitor as talks continued between the two firms, but process had been slow due to Singapore’s tightly regulated legal market.

Eversheds and Sutherland announced they were in discussions last month ‘driven by a shared vision of providing clients with high-quality, consistent and coordinated service around the globe.’

Pursuing a US suitor has been high on the Eversheds’ priority list since 2014 when the partnership heavily backed the strategy during a vote. The firm held discussions with Milwaukee-based Foley & Lardner, which emerged as the preferred firm.

kathryn.mccann@legalease.co.uk

Read more: ‘An element of control’: Market reacts as Eversheds confirms talks with Atlanta-based Sutherland’

Legal Business

‘A competitive auction’: Clifford Chance and CMS advise as consortium buys majority of National Grid

legal-business-default

Clifford Chance, CMS Cameron McKenna, Linklaters and Eversheds have advised as National Grid has agreed the sale of its gas pipe network with an enterprise value of approximately £13.8bn to a consortium of bidders.

National Grid has agreed to sell a 61% equity interest in its UK gas distribution business to a consortium including Macquarie Infrastructure and Real Assets, Allianz Capital Partners, Hermes Investment Management, CIC Capital Corporation, Qatar Investment Authority, Dalmore Capital and Amber Infrastructure Limited/International Public Partnerships.

A range of bidders had been mooted throughout the year, including Global Infrastructure Partners, the Abu Dhabi Investment Authority, Fosun International, the CPP Investment Board and a consortium including Ontario Teachers’ Pension Plan and Borealis.

Clifford Chance and Camerons acted for the winning consortium. Camerons’ head of corporate Charles Currier led a team on the deal while Clifford Chance corporate partner Brendan Moylan acted alongside finance partners Michael Bates and Stephen Curtis.

Cleary Gottlieb Steen & Hamilton advised consortium member Qatar Investment Authority with partners  Michael McDonald and Tihir Sarkar taking the lead.

The Linklaters team advising National Grid was led by corporate partners Roger Barron and Jessamy Gallagher. Eversheds also advised the utility company, leading the business separation and supporting the sale with a team led by corporate partner James Trevis.

The property separation aspects of the deal, which includes the transfer of over 15,000 properties, was led by Addleshaw Goddard real estate partners Ian Smith and Cathy Fearnhead co-ordinating other firms, including Eversheds, DLA Piper and Irwin Mitchell. DLA Piper’s team was led by partners Tim Field and Tom Kelsall.

Legal Business understands Freshfields Bruckhaus Deringer advised Fosun on its bid with a team led by international energy and natural resources co-head Laurie McFadden. London private equity head Adrian Maguire and corporate partners Richard Thexton, Alan Wang and Natascha Doll also advised.

Linklaters’ Barron said: ‘It was a very competitive auction, but it shows continued confidence in UK infrastructure assets with an international consortium showing its desire to invest in the UK.’

madeleine.farman@legalease.co.uk

Legal Business

Freshfields, Eversheds and Slaughters lead the pack as Brexit vote sparks record-breaking admissions to Irish roll

legal-business-default

The number of solicitors added to Ireland’s law society roll has increased by 275% to 1,347 solicitors over the past year in the wake of the Brexit vote, with Freshfields Bruckhaus Deringer, Eversheds and Slaughter and May making the most applications.

Beating the previous record set in 2008 by more than 500, 1,347 will have been admitted to the Law Society of Ireland’s Roll of Solicitors by the end of 2016. Of that number, 810 England and Wales-qualified solicitors made the decision to become dual-qualified following the Brexit vote on June 23. In 2015 the total number of UK solicitors that transferred to Ireland was 101. In 2014, that number was 51.

Freshfields led the pack with 117 UK solicitors transferring. From Eversheds 86 solicitors will gain places on the Irish law society’s solicitor roll while 40 have transferred from Slaughter and May. Of the Magic Circle, 24 solicitors from Allen & Overy, 20 from Linklaters and 12 from Clifford Chance will be added.

Law Society director general Ken Murphy said: ‘The tsunami of new solicitors has been caused by the Brexit-driven transfer decisions of some 810 England and Wales-qualified solicitors to take out a second jurisdictional qualification, in Ireland.

He added: ‘The single word that dominates all assessments of the potential impact of Brexit is “uncertainty”. So far, the Law Society of Ireland has no knowledge that any of the England-based firms intend to open an office in this jurisdiction.’

In June figures from the Law Society of Ireland obtained by Legal Business revealed that in the first six months of 2016, a record-breaking 186 solicitors from the UK had been admitted to practice in Ireland. The figure was more than three times the total admitted at the same stage last year, when the number was less than 50.

In August it was revealed Pinsent Masons is eyeing up a Dublin base, to complement its existing offering in Belfast and provide a full UK and Ireland presence for the firm.

Since the firm’s merger with McGrigors in 2012, Pinsents’ international strategy has largely revolved around launching sector-focused greenfield sites, with partners from local firms.

madeleine.farman@legalease.co.uk

Top 10 firms: Source – Law Society of Ireland Gazette

Freshfields Bruckhaus Deringer – 117

Eversheds – 86

Slaughter and May – 40

Hogan Lovells – 34

Bristows – 27

Herbert Smith Freehills – 25

Allen & Overy – 24

Linklaters – 20

Clifford Chance – 12

Shearman & Sterling – 11

https://www.lawsociety.ie/News/Media/Press-Releases/Tsunami-of-new-solicitors-added-to-the-Roll-of-Solicitors-in-2016/

Irish ambitions: Pinsents eyes Dublin base as UK firms look to capitalise on post-Brexit market

http://www.legalbusiness.co.uk/index.php/lb-blog-view/6707-brexit-fears-record-number-of-uk-solicitors-seek-admission-in-ireland

Legal Business

Deal watch: Corporate activity in December 2016

legal-business-default

TRAVERS AND W&C LEAD ON LATEST BRIDGEPOINT DEAL

Travers Smith advised long-time client Bridgepoint as it sold off Oasis Dental Care to White & Case client Bupa for £835m. DLA Piper also acted on the deal, advising the dental firm’s management team.

 

Legal Business

‘An element of control’: Market reacts as Eversheds confirms talks with Atlanta-based Sutherland

legal-business-default

It is no secret that Eversheds has long wanted a US tie-up, with the partnership heavily backing the strategy in 2014. However apart from a few well-placed external and internal sources, most of the partnership and important clients this side of the Atlantic had no idea the firm was so close to a deal with Atlanta-based full service firm Sutherland Asbill & Brennan.

‘It was out there but very quietly’, said a rival managing partner of the combination, which isn’t going to include operational or financial integration between Eversheds and Sutherland, but will include a new entity called Eversheds Sutherland, overseen by a global board and with equal representation from each firm.

However, Eversheds 2015/16 revenue of £405.5m ($548m) far outstrips Sutherland’s $300m top-line. Meanwhile profit per equity partner (PEP) at Eversheds for this financial year was £742,000 ($1m), compared to $1m at Sutherland.

According to one partner, the combination suits Eversheds, which preferred a US deal where the firm kept control by being the bigger partner.

‘It was always an intention that as a minimum it had to be a combination of equals, preferably Eversheds being the bigger of the two. It just gives an element of control to it.’

However, although another internal source said that since the announcement yesterday new client opportunities are already coming through, one trophy client of the firm, who also sits on Eversheds client advisory board, did not know the firm was in talks with Sutherland.

‘I didn’t know and it could be interesting, we will wait and see. I am quite ambivalent about it actually. It’s not a law firm that we have used. Although I used them in a previous job that I had and actually worked very effectively with them. As far as I’m concerned as long as it doesn’t impact on what they can offer me in Europe, I am quite relaxed.’

kathryn.mccann@legalease.co.uk

Legal Business

Eversheds in talks with Sutherland Asbill & Brennan as firm gets closer to long-held US ambitions

legal-business-default

Eversheds is in talks with Atlanta-based Sutherland Asbill & Brennan as the firm gets closer to its long-held ambition of an American tie-up.

It is understood that the firms are in talks to form a combination, rather than a swiss verein type structure. A partnership vote on the deal is expected in coming weeks, with the new firm to be called Eversheds Sutherland.

Sutherland’s turnover stands at $300m and it is placed at number 107 in the AmLaw 200. The firm posted revenue per lawyer at $790,000 with profits per partner at $1.02m.

380-lawyer Sutherland has offices across eight locations, including Austin, Houston, New York, Washington DC and London and was founded in 1924 by William Sutherland.

Eversheds reported revenue growth of 7% to £405.5m for 2015/16. The increase follows a year of flat turnover for the firm after last year it posted £380.7m in revenue, up less than 1%.

Major practice areas include investment funds, corporate, energy & environmental, financial services, intellectual property, litigation, real estate and tax.

Pursuing a US suitor has been high on the Eversheds’ priority list since 2014 when the partnership heavily backed the strategy during a vote. The firm held discussions with Milwaukee-based Foley & Lardner, which emerged as the preferred firm.

However Foley ended merger discussions just over a week after talks were made public with the firm’s chairman and chief executive Jay Rothman stating in a memo that while there had been preliminary conversations around exploring a more formal affiliation between the two firms, ‘no decision was ever made by Foley to pursue such an affiliation’.

Last week Eversheds’ management structure was finalised following Lee Ranson’s appointment as chief executive last month.

Former international managing partner Ian Gray has been given the new role of executive partner, with a broad remit which includes being responsible for firmwide client strategy. Gray is currently the client partner for the firm’s sole adviser mandate with FTSE 100 water company Severn Trent, as well as the relationship with Vodafone.

Meanwhile the international managing partner role has been scrapped and merged into the managing partner role, which will be taken up by current head for company commercial Keith Froud. Both Froud and Gray will take up their new roles in May next year and are already members of the firm’s executive, international strategy group and senior management team.

Legal Business revealed in March that Eversheds was in talks with Harry Elias in a bid for a Singapore tie-up. The firm has had an office in the city since 2009, which is led by managing director Oommen Mathew. The outpost covers corporate commercial, dispute management, banking and finance and human resources and employment.

Outgoing Eversheds chief executive Bryan Hughes said: ‘Eversheds has an exceptionally strong reputation for international client service and our strategic ambition is to provide a high quality offering and a single legal solution to clients wherever they are required globally.’

kathryn.mcann@legalease.co.uk

Legal Business

Eversheds leadership structure finalised as Gray made executive partner and Froud takes MP role

legal-business-default

Eversheds‘ management structure has been finalised following Lee Ranson’s appointment as chief executive last month, Legal Business has learned.

Former international managing partner Ian Gray has been given the new role of executive partner, with a broad remit which includes being responsible for firmwide client strategy. Gray is currently the client partner for the firm’s sole adviser mandate with FTSE 100 water company Severn Trent, as well as the relationship with Vodafone.

Meanwhile the international managing partner role has been scrapped and merged into the managing partner role, which will be taken up by current head for company commercial Keith Froud. Both Froud and Gray will take up their new roles in May next year and are already members of the firm’s executive, international strategy group and senior management team.

Legal Business revealed in September that Ranson, along with Gray and Froud had been in negotiations to forge a new leadership team as the firm strived to avoid a divisive contest. It is understood that all three will work together very closely when Ranson takes the reins next year.

Ranson, who is currently managing partner, was automatically appointed into the chief executive role following a three week period in which no other candidate was nominated.

He has long been the frontrunner to take over from longstanding chief executive Bryan Hughes who departs the role in May after two four-year terms.

As early as last September Ranson said he was positioning himself for the chief executive role after being tasked with leading a ‘Growth Agenda’ following the firm’s subdued performance for the financial year 2014/15.

Ranson said: ‘Where I am at the moment, the next logical step for me would be chief executive – all things being equal in 12 months’ time.’

Eversheds declined to comment.

kathryn.mccann@legalease.co.uk

Legal Business

Eversheds and Linklaters act as L&G finalises biggest pensions buyout of the year

legal-business-default

Eversheds has advised Legal & General Group on the largest pensions risk transfer of 2016 as the insurer takes on £1.1bn of the Vickers Group Pension Scheme.

Linklaters advised the scheme, part of Rolls-Royce Group, which covers around 11,000 members. The team was led by Linklaters corporate partner Victoria Sander.

Eversheds corporate insurance partner Hugo Laing and pensions partner Mark Latimour advised Legal & General on the buyout.

The de-risking market has faced some headwinds following the introduction of Solvency II. The EU regulation required insurers to hold more capital to reduce the risk of insolvency, but insurers have worried it would have an impact on pricing and impact de-risking deals.

Eversheds’ Laing (pictured) told Legal Business the deal showed the buyout was ‘a good statement of the health of the market’.

Laing added: ‘2016 brought some perceived challenges for the de-risking market in the form of Solvency II. However, the de-risking market is very busy indeed and the size of this transaction demonstrates simply a peak in a large number of transactions we have seen in the past six months.’

Eversheds is a long-standing adviser to insurance and investment giant Legal & General, having previously acted on the purchase of a 50% stake in MediaCity UK in 2015 and on a £252m real estate portfolio deal in 2014.

Other significant deals this year have seen Travers Smith, Debevoise & Plimpton and Freshfields Bruckhaus Deringer advise on Canada Pension Plan Investment’s deal to buy Lloyds of London syndicate Ascot Underwriting for $1.1bn.

Ascot, part of American International Group (AIG), instructed Travers Smith senior partner Chris Hale, while Canada Pension Plan Investment was advised by Debevoise partner Alexander Cochran and Nicholas Potter. AIG enlisted Freshfields corporate insurance partner George Swan.

matthew.field@legalease.co.uk

Legal Business

Slater and Gordon, Eversheds and HSF take roles on Jay inquiry into child sexual abuse

legal-business-default

Slater and Gordon, Eversheds, Herbert Smith Freehills (HSF), Kingsley Napley, BLM, Hill Dickinson, Farrer & Co and Weightmans are all among the firms acting on the Independent Inquiry into Child Sexual Abuse (IICSA).

The firms are representing ‘core participants’ in the investigation, led by Professor Alexis Jay (pictured), into decades of sexual exploitation and abuse by the UK establishment, according to IICSA documents seen by Legal Business.

Slater and Gordon principal lawyer for abuse Richard Scorer and head of abuse Liz Dux are representing a large number of the 152 initial claimants. The firm has previously stated it represents more than 800 victims of child abuse. Other victims are being advised by Brentford law firm Howe + Co, while Leeds firm Simpson Millar, Bindmans and Imran Khan are all representing core claimants.

A number of LB 100 firms are representing key organisations linked to the investigation. HSF partner Nusrat Zar, Eversheds key inquiries partner Peter Watkin Jones and Weightmans head of police Hannah Walsh are all acting on the investigation into the Anglican Church.

Farrer & Co partner David Smellie and Kingsley Napley partner Adam Chapman are both advising on the inquiry into the Roman Catholic Church.

Other firms are advising insurers on reparations, Hill Dickinson partner Alastair Gillespie is representing Royal Sun Alliance and Browne Jacobson partner Sarah Erwin-Jones is acting for Municipal Mutual Insurance, while Zurich insurance has retained HSF disputes partner Andrew Lidbetter.

The potential cost and scope of the inquiry has raised eyebrows within the legal profession, with IICSA set to run 13 separate investigations. IICSA has spent around £3.2m on legal costs during its first year for 2015/16 and the former chair of the inquiry, retired New Zealand judge Dame Lowell Goddard, was retained on an annual salary of £360,000, before her resignation this summer. New chair Jay, who is the fourth head of the inquiry takes home a salary of £185,000 per year.

One senior lawyer acting on the inquiry told Legal Business that although the inquiry would be a challenge to run successfully it was not impossible: ‘You would have to have a very imaginative approach and have hugely strong leadership and a really crack legal team. The chair is not a lawyer, I just don’t know if that could be a problem.’

Fieldfisher public and regulatory partner Martin Smith is acting as solicitor to the inquiry, while the inquiry’s lead counsel Ben Emmerson QC of Matrix Chambers was suspended from his role in September.

matthew.field@legalease.co.uk