Legal Business

Freshfields tops European deal tables as M&A figures drop from record highs

Posted on |
Corporate Freshfields Bruckhaus Deringer

Global M&A volume dropped for 2016 following its record high the year before, and with it Magic Circle firms Linklaters and Clifford Chance have been knocked out of Dealogic’s top ten European attorney rankings.

After three year-on-year increases, last year’s global M&A volume dropped to $3.84trn from 2015’s record $4.66trn. Global attorney rankings for corporate advisory work show Sullivan & Cromwell took out the top spot last year, advising on 106 deals worth $408.5bn pushing Skadden, Arps, Slate, Meagher & Flom down to three with the firm advising on 293 deals worth over $1trn in 2015. For 2016, year Skadden sits in the number three spot ($341.1bn) while Wachtell, Lipton, Rosen & Katz sits at number two ($389bn).

Freshfields Bruckhaus Deringer remained at number one on Dealogic’s Europe corporate advisory only attorney rankings last year, but value dropped with 144 deals totalling $198.3bn down from 143 deals totalling $418.4bn the year previous. Most notably, Linklaters and Clifford Chance dropped out of the top ten from their number three ($228.8bn) and number four ($221bn) places respectively for 2015.

While M&A rankings are notoriously hard to interpret, with US securities and secondary roles typically inflating the position of non-European law firms, such figures suggest that US advisers are steadily pushing into premium deal work in the region. Cravath, Swaine & Moore and Sullivan & Cromwell sit and number two ($162.5bn) and number three ($146.5bn) respectively below Freshfields on Dealogic’s Europe attorney ranking.

Freshfields partner Bruce Embley told Legal Business: ‘We’ve had a very busy year. Coming in at the top of league tables is always very nice but the main thing is to be consistently there or there abouts because it shows you have a robust practice. You can always have the odd outlier year. From an M&A practitioner’s perspective you’d be disappointed if you weren’t pretty busy last year.’

Allen & Overy (A&O) bounced up from number 12 in 2015 to number four last year with 181 deals totalling $134.2bn. Herbert Smith Freehills also leapt up from their spot at number 26 in 2015 to number seven with 74 deals totalling $114.8bn.

‘We’ve had a strong year – we believe that is the result of our continued investment in relationships rather than chasing transactions,’ A&O’s global co-head of corporate Richard Browne said. ‘We are positive about 2017 but we wouldn’t expect a strong bounce. We’d anticipate at this point that 2017 would be broadly similar to 2016.’

Deal volume in the UK was down by 48% in the UK from 2629 deals worth $431.6bn in 2015 to 2979 deals worth $222.3bn in 2016. China dropped 28% percent with 4475 deals worth $479.3bn and the US was also down by 21% with 9152 deals in 2016 worth $1.72trn.

madeleine.farman@legalease.co.uk

Legal Business

‘Additional depth’: Kirkland recruits from Freshfields again for real estate finance partner Birks

Posted on |
Finance Freshfields Bruckhaus DeringerKirkland & Ellis
legal-business-default

Kirkland & Ellis has returned to Freshfields Bruckhaus Deringer for another finance recruit, taking Jonathan Birks.

Listed by the Legal 500 as a key partner in Freshfields tier two real estate finance practice, Birks was made up to partner at the Magic Circle firm in 2014.

His practice covers leveraged finance, real estate finance and private equity and he has advised clients such as The Blackstone Group. He will join former Freshfields partner Michael Steele who joined Kirkland in 2015.

In October it emerged Kirkland was taking on corporate partner Doug Bacon from the Magic Circle firm’s New York office. Bacon’s client list includes Novartis, Honeywell International, Blackstone , KKR, TPG, Apax Partners, MSD Capital and First Reserve Corp.

Kirkland private equity partner Matt Elliott said: ‘[Birks] will add significant additional depth to our debt capabilities in real estate private equity, which has grown to become a core practice area of the London office in the past few years.’

Going the other way, Kirkland lost capital markets partner Andrew Hagan to Freshfields, which is steadily building its debt markets team, in February. The hire followed the recruit of high-yield heavyweight Ward McKimm who quit Kirkland to co-head Freshfields European leveraged finance team in London in June 2015.

Freshfields reshuffled its finance practice earlier this year and global finance head David Trott was replaced by Simon Johnson.

The ‘recalibration’ saw leveraged finance split into its own team, giving the department four groups.

Other recent exits from Freshfields finance team include real estate finance partner Jeffrey Rubinoff, who announced his move to White & Case in July this year, and Ian Frost who quit for Vinson & Elkins in February.

madeleine.farman@legalease.co.uk

Read more in: ‘Recasting finance at Freshfields: high ambition married with gently lowered expectations’

Read more on Kirkland’s City practice in: ‘Kiss the ring – patronage, in-fighting and exits threaten to stall Kirkland’s bandwagon’

‘Kiss the ring – patronage, in-fighting and exits threaten to stall Kirkland’s bandwagon’


Legal Business

Another Freshfields heavyweight moves into banking as former senior partner Lawes joins Lazard

Posted on |
Strategic recruitment Freshfields Bruckhaus Deringer
legal-business-default

Former Freshfields Bruckhaus Deringer senior partner Will Lawes is the latest heavyweight from the Magic Circle firm move into investment banking, taking a position at Lazard.

Lawes (pictured), whose move follows veteran Mark Rawlinson’s move to Morgan Stanley in October, will become a managing director in financial advisory at Lazard from 9 January.

Lawes became senior partner at Freshfields in 2010 following a contest against chief executive Ted Burke. He left the Magic Circle firm earlier this year following the appointment of senior partner Edward Braham and joint-managing partners Chris Pugh and Stephan Eilers.

Prior to taking up the role of senior partner, Lawes was financial institutions co-head for six years. He joined Freshfields in 1986 and became a corporate partner in 1994.

Lawes said: ‘Lazard has an enviable reputation in the boardrooms of businesses all around the world. I have advised, worked alongside or across the table from its bankers for many years, and I look forward to returning to serving clients with the benefit of the full resources of Lazard.’

Veteran deal maker Rawlinson left in October to join Morgan Stanley as its new chair of UK investment banking. He became a partner at Freshfields in 1990 and was later appointed to head of corporate from 2008 before moving into the role of London managing partner in 2011, which he held for two years.

madeleine.farman@legalease.co.uk

 

 

Legal Business

Turning Japanese: Freshfields and A&O act as Asahi makes €7.3bn play for five AB InBev beer brands

Posted on |
Corporate Allen & OveryFreshfields Bruckhaus Deringer
legal-business-default

Freshfields Bruckhaus Deringer, Allen & Overy (A&O) and Hogan Lovells have all advised as Asahi Group Holdings buys a group of eastern European beer brands from Anheuser-Busch InBev (AB InBev) for €7.3bn.

Japanese beer giant Asahi won a bidding process which included five potential buyers. Swiss investment firm Jacobs Holdings, Czech investment firm PPF, Bain Capital and Advent International were also vying for the brands.

The divestment, which follows the mega merger between SAB Miller and AB InBev, will see Asahi pick up brands including Pilsner Urquell, Tyskie, Lech, Dreher and Ursus in the largest deal in its history.

AB InBev returned to Freshfields for advice with a team led by corporate partner Bruce Embley. Hamburg based corporate partner Natascha Doll and Brussels antitrust partner Andreas von Bonin also acted on the deal.

SAB Miller’s preferred adviser Hogan Lovells worked on the due diligence for AB InBev with corporate partner Andrew Pearson taking the lead.

A&O corporate partner Richard Hough led the firm’s team advising Asahi which included competition partner Alasdair Balfour, the head of the firm’s London commercial group Jim Ford and the head of its global corporate lending group Trevor Borthwick. Partner Lydia Challen provided tax advice and partner Sarah Henchoz provided employment advice while partner Nick Wall led its Tokyo team.

Freshfields’ Embley told Legal Business: ‘It’s been a long process. This has been the final piece of the antitrust puzzle relating to the SAB Miller deal with a number of divestments before the deal closed. This is the one that it had committed to the European Commission that it would do after closure. There are quite different and interesting dynamics compared with your typical M&A deal.’

Freshfields has advised AB InBev through the merger and its related divestments while A&O advised Asahi on its bid to acquire SABMiller’s well-known European beer brands including Peroni and Grolsch worth €2.55bn. Hogan Lovells advised for SAB Miller.

madeleine.farman@legalease.co.uk

 

Legal Business

Cinven returns to Freshfields for €1.69bn sale of HEG to GoDaddy

Posted on |
Corporate Freshfields Bruckhaus Deringer
legal-business-default

Freshfields Bruckhaus Deringer has advised private equity firm Cinven’s €1.69bn sale of Host Europe Group (HEG) to GoDaddy.

In its largest acquisition, cloud platform GoDaddy has purchased the largest privately-owned web services provider in Europe as part of its continuing international expansion. The company will pay €605m to Cinven shareholders and assume net debt of €1.08bn. The transaction is expected to close by the second quarter of 2017.

Cinven returned to Freshfields with corporate partners David Higgins and Wessel Heukamp advising the private equity firm through the deal. Higgins (pictured) originally advised Cinven on its original acquisition of HEG for £438m in 2013 alongside private equity head Adrian Maguire, who will take over Higgins’ role as co-head the firm’s global financial investors sector group in January.

GoDaddy turned to California based Wilson Sonsini Goodrich & Rosati with a team led by M&A partner Mike Ringler while Gleiss Lutz partner Adrian Ringel did German diligence for the company. In London Slaughter and May also advised GoDaddy on the purchase with a team including corporate finance partner William Underhill.

On Monday it emerged Freshfields advised Advent International on its purchase of V.Group from OMERS Private Equity. The private equity arm of pension fund Ontario Municipal Employees Retirement System plans to reinvest in V.Group while the company’s management team will retain a minority stake in the maritime firm. Maguire and finance partners Denise Ryan and Sean Pierce acted on the deal. Weil, Gotshal & Manges co-head of private equity Marco Compagnoni advised OMERS.

In October Higgins advised Carlyle Group along with Maguire and Paris-based corporate partner Florent Mazeron as the private equity firm picked up chemicals firm Atotech from Total for $3.2bn. Finance partner Sean Lacey also acted on the deal. Latham & Watkins also advised Carlyle on financing aspects while Total turned to a Jones Day Paris team.

madeleine.farman@legalease.co.uk

Read more: ‘The M&A Report: Private equity offers the clients for all seasons’

 

Legal Business

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

Posted on |
Ireland Eversheds SutherlandFreshfields Bruckhaus DeringerSlaughter and May
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

Freshfields and Linklaters last of the big four to match US associate bonuses

Posted on |
Associates Freshfields Bruckhaus DeringerLinklaters
legal-business-default

The remaining Magic Circle firms with a US presence have now matched Cravath, Swain & Moore‘s associate bonus payouts with Freshfields Bruckhaus Deringer and Linklaters the latest to send out memos, following Clifford Chance (CC) and Allen & Overy (A&O).

Freshfields’ US managing partner Peter Lyons sent out an internal memo to its US based associates last week confirming associates could expect their bonuses in one month. The memo, leaked to Above The Law, said its associates from the class of 2008 will receive $100,000, while 2015 and 2016 associates will both receive $15,000 (with the latter year awarded on a pro-rated basis).

Associates in the class of 2010 will take home $90,000, while 2011, 2012, 2013 and 2014 associates will pocket $80,000, $65,000, $50,000 and $25,000 respectively.

Linklaters’ US head Scott Bowie also confirmed US associates it would match the Cravath bonus scale. Associates ‘who are in good standing with the firm, subject to the usual pro-rations for part-time schedule and leaves of absence’ can expect the same amount of money in their pockets on December 30, according to the leaked email.

A&O and CC matched bonus levels rewarded by leading Wall Street firms last week. CC Americas chief Evan Cohen confirmed its US associates would receive their bonuses on January 13, 2017 with A&O’s US managing partner David Krischer confirming the same bonus levels and pay scales.

The Wall Street elite have made concerted efforts for some years to attract junior talent to the ranks, and in late November Cravath associates were told their year-end bonuses. Newly-qualified associates in 2016 and 2015 will receive $15,000. The bonus scale means 2014 associates will receive $25,000, 2013 will receive $50,000, while associates from 2009 will earn up to $100,000 in bonuses. The scale remains on a par with last years’ US bonuses.

madeleine.farman@legalease.co.uk

Legal Business

Doubling up: Freshfields scores roles on Europe’s largest real estate transactions this year

Posted on |
Europe Freshfields Bruckhaus Deringer
legal-business-default

First-time instruction for Kirkland in €2.4bn purchase

Freshfields Bruckhaus Deringer has advised on two of the largest European real estate transactions of 2016 as The Blackstone Group purchased a property portfolio from German real estate group IVG Immobilien for €3.3bn while Singaporean sovereign wealth fund GIC picked up warehouse company P3 Logistic Parks from TPG Real Estate for €2.4bn.

Legal Business

UK projects teams earn their stripes as MoD makes key changes to army deal

Posted on |
Finance CMS UKFreshfields Bruckhaus Deringer
legal-business-default

Freshfields Bruckhaus Deringer and CMS Cameron McKenna reprised their advisory roles as the Ministry of Defence (MoD) made a £1.1bn extension to the largest accommodation private finance initiative project it has undertaken.

In November the MoD amended its long-running Project Allenby/Connaught contract to include an army basing programme, which will provide new accommodation and improve facilities for soldiers. Negotiations have ensured the original transaction, which had a value of £8bn and was signed in 2006, will continue without disruption.

Legal Business

News in brief – December 2016

Posted on |
Financial management CMS UKFieldfisherFreshfields Bruckhaus Deringer
legal-business-default

PARTNERSHIPS AT RISK IN AUTUMN STATEMENT

Chancellor Philip Hammond signalled a change to partnership taxation in November’s Autumn Statement, which is expected to impact law firm pay. Hammond said he will shake up profit-sharing arrangements, and according to UHY Hacker Young tax partner Roy Maugham, the government will propose that partnerships must decide their profit-sharing arrangements at the beginning of the tax year rather than at the end, regardless of how individuals perform.