Legal Business

‘An ideal partner’: Hogan Lovells boosts Southeast Asian offering with Indonesian association

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Asia Hogan Lovells
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Hogan Lovells has made further moves to strengthen its position in Southeast Asia with a new association in Indonesia and a partner hire in Singapore. 

The firm announced that it will enter a new association with Indonesian law firm Dewi Negara Fachri & Partners (DNFP) effective today (1 June). The decision comes after Hogan Lovells ended its three year association with Hermawan Juniarto last year.

The move will combine Hogan Lovells’ 30 years’ experience in Asian markets with the knowledge of DNFP’s founding partners Dewi Djarot and Fachri Fachrul, who have 30 and 20 years legal experience in the region respectively. The firm has three partners in total.

DNFP founding partner Dewi Djarot said: ‘There are many demands and challenges facing Indonesia across energy, infrastructure, telecommunications and healthcare but, despite this, the region is poised to continue to grow.’

Hogan Lovells chief executive Steve Immelt told Legal Business working with Indonesian lawyers who understand the culture and ‘what’s happening on the ground’ was key to clients in the region.

‘Clients considered Indonesia to be something that was important for them, and they were coming to us and saying what do you have? When you are asked that question enough you realise you need to come up with an answer.

‘We thought DNFP would be an ideal partner for us. There is likely to be a fair amount of activity, with infrastructure as an immediate focus and there are significant number of issues with disputes, from insolvency to cross border disputes.’

Immelt added the firm’s strategy was aiming to bring its Asia business closer to the ‘dynamic state’ they enjoy in the US and Europe.

‘It’s required investment – bringing in new people we think will be critical to growing out the practice.’

The LB 100 firm has also hired Noor Meurling as a new partner in Singapore. She previously led Ashurst’s corporate M&A practice in Jakarta, where she has advised on major joint ventures and acquisitions in the region since 1989.

The announcement comes after the firm added new blood to its capital markets practice in Hong Kong this week. The firm added Stephen Peepels from DLA Piper and Sammy Li from Paul Hastings.

The recruitment of Meurling comes as the latest of a series of hires to bolster revenues and expertise in Southeast Asia. Earlier this month, Hogan Lovells hired Berwin Leighton Paisner’s head of international arbitration Kent Phillips to its Singapore office. 

matthew.field@legalease.co.uk

Legal Business

White & Case lands Hogan Lovells rising star Potel as US firm builds corporate practice

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Strategic recruitment Hogan LovellsWhite & Case
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After becoming the first US firm to employ more than 400 lawyers in the City last year, White & Case has added Hogan Lovells‘ star corporate partner Guy Potel (pictured) as it bids to become a corporate force in London.

Potel made partner at Hogan Lovells in 2010, two years after joining as an associate from Slaughter and May. Viewed as one of the rising stars at Hogan Lovells, Potel has done deals for the likes of data centre provider Equinix Telecity, real estate investment company Henderson Group and institutional stockbroker Numis Securities. He specialises in M&A in the financial services, consumer and technology sectors.

Potel has a strong track record of working with private equity houses and venture capitalists. His arrival at White & Case comes as part of a drive at the firm to build out its global corporate practice, with Linklaters’ big-billing Hong Kong partner Chris Kelly arriving in February as the firm’s Asia head of corporate and Clifford Chance private equity infrastructure partner Caroline Sherrell and Debevoise & Plimpton’s Kenneth Barry joining in London last October.

The firm has been gathering M&A momentum in Europe since the arrival of private equity duo Richard Youle and Ian Bagshaw from Linklaters in 2012, with the duo’s mid-market approach adding deals volume in London through a client base including HgCapital, Mid Europa Partners, Triton Partners, Novator and Arle. Potel started his career in 1999 at Clifford Chance, working in the same corporate group as Bagshaw after he joined in 2000.

Jan Matejcek, White & Case’s head of corporate for EMEA, said: ‘Guy…will play an important role in the ongoing development of our London public M&A practice, and there are exciting opportunities to work with our private equity team on portfolio company exits, and our equity capital markets team on issuer IPOs and secondary equity offerings by listed companies.’

Oliver Brettle, the US firm’s executive partner in London added: ‘Our strategy to 2020 includes a focus on profitable growth in London, in M&A and in the global technology industry. Guy’s addition drives us forward in all three areas, and follows the arrival of eight new lateral partners in London since the start of 2015.’

The number of lawyers at White & Case’s London office rose 19% in 2015 to 420, with revenue up 22% to $266m as it edged past US rival Latham & Watkins with its City turnover.

tom.moore@legalease.co.uk

 

Legal Business

Hogan Lovells makes Asia arbitration play with BLP hire

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Strategic recruitment Hogan Lovells
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Hogan Lovells continues to make a play for greater market share in Asia with the hire of Berwin Leighton Paisner‘s (BLP) head of international arbitration, Kent Phillips, to its Singapore office.

The latest in a spate of hires made in Asia by the firm, Phillips will join its litigation and arbitration practice to bolster Hogan Lovell’s offering in the energy sector and Southeast Asia.

Senior disputes lawyer Phillips joined BLP in 2011 from Addleshaw Goddard and shared the global leadership role with Richard Power before the latter moved to Clyde & Co in 2014. He previously acted on the high profile Berezovsky litigation in the English courts and is experienced as counsel and as arbitrator, particularly in the energy sector (including projects and construction) and also in financial services.

BLP London-based partner Jonathan Sacher replaces Phillips as head of international arbitration.

Hogan Lovells has made concerted efforts to boost revenues in the Asia-Pacific region through lateral recruitment. Most recently it expanded its Australia operations with four new partners; Scott Harris from DLA Piper, Richard Hayes from King & Wood Mallesons (KWM), and Gilbert & Tobin duo Andrew Crook and Ros O’Malley.

Hogan Lovells litigation and arbitration head Michael Davison said: ‘Recruiting Kent is a key step in enhancing our international arbitration capability in this important market. Singapore has grown substantively as an arbitration hub for ASEAN making a compelling arbitration offering in Singapore critical for most multinationals. Kent also has specialist knowledge in Indonesia and India which are two important markets to our strategic plans.’

The firm’s disputes head for Southeast Asia, Maurice Burke, added: ‘The team here in Singapore is genuinely excited about Kent joining. I think he is going to be a great fit, and I have no doubt with him on board he will take the arbitration practice to the next level.’

BLP has also made a key Asia hire in Hong Kong with the recruit of private client partner Marcus Dearle from Withers, where he previously helped establish the latter’s family law practice and played a role developing its Hong Kong and Singapore offices where he served as office managing director.

It is no surprise that firms are looking to grab greater market share in disputes within Singapore, as London faces stiff competition from the region alongside Hong Kong and Paris to become the dominant international arbitration hub. Recently in January the Singapore International Arbitration Centre (SIAC) notably launched a representative office in the Shanghai free trade zone, a move underpinning Singapore’s growing status as the major legal hub in Asia. Its third overseas office, following launches in Mumbai and Seoul, SIAC is to target Chinese companies as they increasingly turn to arbitration to solve corporate disputes.

sarah.downey@legalease.co.uk

Legal Business

Hogan Lovells triples Australian partner headcount with new hires

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Strategic recruitment Hogan Lovells
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Having long voiced its intention to boost revenues in the Asia-Pacific region Hogan Lovells has recruited four new partners to expand its operations in Australia, hiring Scott Harris from DLA Piper, Richard Hayes from King & Wood Mallesons (KWM), and Gilbert & Tobin duo Andrew Crook and Ros O’Malley.

The hires will bring the firm’s partner headcount to six in Australia where they will ‘help spearhead the growth of the firm across a number of key practice areas.’

Harris served as DLA Piper Australia’s restructuring group head in Sydney, and previously worked for Hogan Lovells in London for five years; while finance specialist Hayes was the ‘lead contact’ for the acquisition and leveraged finance practice at KWM in Australia. He has previously worked at Allen & Overy’s London office and with White & Case as a partner in New York. Crook and O’Mally join from local firm Gilbert & Tobin, where they specialised in private equity and project finance respectively.

Hogan Lovells Asia Pacific and Middle East managing partner Patrick Sherrington said: ‘We have deliberately taken our time to choose the right partners that are the perfect strategic and cultural fit. This is a long term investment that demands considered and not hurried decisions.’

Global chief executive Steve Immelt said the new partner hires are ‘executing a strategy that brings together the best people in the market’.

He added: ‘Hogan Lovells’ entrance into the Australian market is informed by a clear and consistent strategy to build a focused practice with ambitious and collaborative partners who are at the top of their game. Australia is an economy that has real significance for clients globally and, in particular, throughout the Asia Pacific region.’

Immelt has previously expressed his intention to better revenues across the firm’s Asia & Middle East offering, which is headed by disputes partner Sherrington and has significantly lagged behind. The region made up only 7% of total billings in 2015, the same as the year before.

The firm established a presence in Australia last March with former Allens partners Nicky Lester and Tim Lester in Sydney and Perth respectively. At the time the firm said it wanted to target Australian entities extending their operations into emerging markets such as Africa and to ‘allow the firm to leverage opportunities’ from cross-border trade flows to and from Australia from South East Asia, Japan and China.

sarah.downey@legalease.co.uk

Legal Business

Revolving doors: KWM adds one in London while Hogan Lovells makes key international hire

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Strategic recruitment Hogan LovellsKing & Wood Mallesons
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Despite axing 24 partners from its legacy SJ Berwin practice, King & Wood Mallesons (KWM) has hired one in London, while Hogan Lovells has made a key appointment in the US.

KWM has added to its London office with the hire of a new corporate partner, M&A and ECM specialist Greg Stonefield. Joining from Mayer Brown’s corporate and securities practice, Stonefield has wide sector experience across a range of industries including real estate, oil and gas, mining and metals and telecoms. Senior partner of Europe and Middle East Stephen Kon said Stonefield’s appointment will add depth to help the firm achieve its ambition to be one of the global elite. He said: ‘Greg’s hire supports the core strategic areas for the firm and our clients, and will further enhance our international reputation in European capital markets and corporate M&A.’

In international appointments news, Julie Brill will join Hogan Lovells’ Washington DC office as partner and co-director of the privacy and cybersecurity practice following her term as a commissioner at the Federal Trade Commission. Prior to serving on the Commission, Brill was an Assistant Attorney General in the states of North Carolina and Vermont for over 20 years. Co-director of the firm’s privacy and cybersecurity practice Marcy Wilder commented: ‘Julie brings immense substantive knowledge, enormous energy, and great enthusiasm to our privacy practice.’

Meanwhile, Matthew Getz will join Boies, Schiller & Flexner’s London office as partner in its international disputes and regulatory practice. Joining from Debevoise & Plimpton and qualified in both England and New York, Getz has advised large multinational companies in some of the world’s biggest ant-corruption internal investigations. With the expectation investigations and white collar practice will continue to be a core focus of the firm in future years, managing partner Jonathan Schiller noted Getz’s hire is part of a substantial increase to the resources the firm devotes to government investigations and internal investigations.

madeleine.farman@legalease.co.uk

Legal Business

Revolving doors: Linklaters, Hogan Lovells, Mayer Brown reach into lateral hire market

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Strategic recruitment Hogan LovellsLinklatersMayer Brown
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In a busy week for Global 100 firms, Hogan Lovells, Mayer Brown, and Linklaters have all added to their partner ranks across a diverse range of practice areas.

Hogan Lovells has made two laterals as it strengthens its executive compensation and share incentives capability. Paul Randall joins the firm as its new co-head of the executive compensation and share incentives team. He was previously at Ashurst where he was head of employee benefits and incentives. Hogan Lovells has also hired Allen & Overy’s Stefan Martin, who has joined as partner.

The firm’s head of London employment, Elizabeth Slattery, said: ‘Stefan and Paul are well-respected in the London market and very experienced. Their arrival significantly bolsters our employment and executive compensation and share incentives offering and they will be a tremendous asset to our UK and global teams.’

Meanwhile US firm Mayer Brown has again added a City finance partner in Kieron Dwyer from Gowling WLG, where he was partner and head of international energy and natural resources and established the energy and infrastructure finance practice at legacy firm Wragge & Co.

Co-head of the global finance practice at Mayer Brown, Dominic Griffiths, said: ‘We are seeing an increasing appetite from our clients for structured finance expertise in the energy market and Kieron’s in-depth experience in this sector and project finance in Europe, Africa and the Middle East will further boost our global offering.’

Finally, Linklaters has hired white-collar crime and civil litigator Adam Lurie as a partner in its US dispute resolution practice. Joining from Cadwalader, Wickersham & Taft, he will head Linklaters’ Washington litigation and government investigations practice.

The head of Linklaters’ global US practice Scott Bowie said Lurie’s hire was one of a series of moves.

‘As US law in the context of increasingly complex regulatory regimes is progressively shaping and governing cross-border transactions and disputes, building a strong and global US platform is integral to our strategy. Adam’s hire is a key development in progressing Linklaters’ global ambitions to strengthen further our government risk, FCPA and civil litigation offering.’

Elsewhere, Travers Smith has confirmed the appointment of partner Edward Smith, who joins the firm’s restructuring and insolvency practice. Smith joins arrives from K&L Gates, where he was a partner in the firm’s bankruptcy/insolvency practice group.

The firm’s head of finance, Matt Ayre, commented: ‘Edward is a hugely experienced restructuring lawyer, who will add further depth to our existing capabilities. His arrival demonstrates our commitment to providing clients with first-class specialist restructuring expertise and will strengthen our position in the marketplace.’

madeleine.farman@legalease.co.uk

Legal Business

‘There’s a flat legal market’: Hogan Lovells blames low revenue and profit growth on currency fluctuations

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Financial results 2015/16 Hogan Lovells
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Nearly six years on from its transatlantic union Hogan Lovells continues to post modest financial growth as its results today (16 February) showed revenue for the calendar year increased by 2.3% to $1.82bn in 2015 from $1.779bn in 2014 while profit per equity partner (PEP) increased by 2.7% to $1.250m from $1.217m.

Meanwhile revenue per lawyer (RPL), decreased by 4% to $723,698 in 2015 from $753,974 in 2014. Notably last year chief executive Steve Immelt (pictured) said he aimed to increase the firm’s RPL figure ‘so that it’s tracking more closely our increase in revenue.’

The firm said in a statement that with more than 40% of billings in London and continental Europe, the stronger dollar and weaker euro and sterling adversely impact results when reported in dollars. Factoring out the impact of currency on the results, revenue increased by 8.2%.

Immelt said: ‘We’re pleased to have revenues up but you really have to take into account the currency effect that underlines that – only half of our billings are in dollars so when other currencies go down it dampens our dollar reporting. Our PEP is also affected by the number of markets we operate in. We succeeded our targets.’

‘We continue to work on the profitability of the firm – that’s like saying the sun is coming up tomorrow. It’s important we continue to be focused on levels of profitability and focus on RPL. Globally the sense is there’s a flat legal market – it’s very different to how it was ten years ago.’

Another senior management figure at the firm told Legal Business: ‘One of the issues when you’re full service, and in most places, doing most things, you get the advantages of that, but not the complete highs it brings to people in certain economic conditions. You can’t fully utilise opportunities compared to those firms who specialise.’

It is the second consecutive year of disappointing financials after last year the firm posted a modest revenue increase by 3.6% to $1.779bn from $1.718bn in 2013, while PEP was flat with a 0.8% uptick to $1.217m.

Geographically, a revenue breakdown showed the Americas represent approximately 50% of total billings, while London and Continental Europe together made up 43%, and Asia and the Middle East totalled 7%. Immelt added that the firm has no plans to open any offices this year.

By practice, corporate represented approximately 32% of total billings, while the litigation, arbitration and employment group made up 28%, followed by government regulatory at 16%, finance with 14% and IP, media and technology generating 10%.

Internally the firm promoted 24 last January and another 24 this year, as well as an additional 35 lateral partner hires globally in 2015 – of which a third were recruited in Asia. The firm intends to make ‘further significant investments there in 2016.’

sarah.downey@legalease.co.uk

Legal Business

Revolving doors: Nabarro, Pinsents and Hogan Lovells make key hires

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Strategic recruitment CMS UKHogan LovellsPinsent Masons
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Several firms have made noteworthy strategic appointments in the past week, with Nabarro, Pinsent Masons and Hogan Lovells all adding to their benches.

Nabarro is building up its construction practice with the dual hire of partners from Irwin Mitchell and Pinsent Masons. The firm has added David Parton, Irwin Mitchell’s head of construction, as well as Chris Hallam who was a partner in Pinsent Masons’ transactional construction team. Nabarro senior partner Graham Stedman said: ‘Investing in our four sectors is a fundamental commitment as part of our strategy. This is proof of that commitment and focus.’

Going the other way, Pinsent Masons has taken three lawyers from Watson Farley & Williams (WFW). The firm has appointed energy and infrastructure planning specialist Gareth Phillips and two of his team members. Phillips had led the planning practice at WFW and joins as part of a major targeted investment into Pinsents’ planning and parliamentary team which now has over 100 lawyers in the UK including over 40 specialists based in London.

Allen & Overy, which suffered the exit of an eight lawyer team to BonelliErede last week, will also farewell Dusseldorf partner Birgit Reese, who is joining Hogan Lovells. Reese is an M&A lawyer who focuses on insurance and reinsurance companies. She is expected to start at Hogan Lovells this month.

Hogan Lovells global head of corporate David Gibbons said: ‘Birgit considerably enhances our leading Germany practice and illustrates our on-going commitment to one of our key markets. Her strong reputation for providing practical solutions to complete complex transactions is right in line with how we serve clients.’

Finally, the world’s second biggest law firm by revenue, Baker & McKenzie, has made a high-profile hire with the appointment of former Canadian Attorney-General Peter MacKay. MacKay joins as partner in the firm’s Toronto office from today (1 February). He has more than 20 years of experience as a member of the House of Commons and has served in senior roles in the Canadian government.

victoria.young@legalease.co.uk

Legal Business

Cash levels drop at Hogan Lovells as PEP dips below £700,000

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Financial results 2015/16 Hogan Lovells
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The international arm of Hogan Lovells, which covers all offices outside the Americas, suffered an 11% fall in profits per equity partner (PEP) in 2014/15 as revenue and profits suffered.

Revenue generated by Hogan Lovells International dipped 2% from £604m to £591m in the 12 months to 30 April 2015, with operating profit down 8% to £184m as a result.

While the firm maintained its debt free position, cash flow was heavily impacted by the drop in income, with cash at the end of the year 84% below the £57m balance at the end of 2013/14. On 30 April 2015 it was just £9m. Nonetheless, the group’s £60m bank facility remained untouched.

Costs also rose, with staff expenditure up £3m to £254m last year despite a drop in the number of employees. With profits dented, PEP across the group fell by 11% to £698,000. Key management took an even bigger hit, with take-home pay across the firm’s biggest earners down 12% to £7.9m.

The filing also shows that partners injected £7.2m over the period to take members’ capital to £48.8m. This is largely due to the tax changes imposed on non-equity partners at LLPs, introduced by UK HM Revenue & Customs which impacted the majority of UK law firms.

The international arm is off the pace compared to its US unit, which carried the firm towards global growth in 2014. The firm said in its filing that ‘there remains an on-going risk of the economic environment having an adverse impact on some of our clients’.

The accounts state: ‘Our underlying business performance over the year has been satisfactory, exhibiting the benefits of our global capability, the continued demonstration of the strength of our client work across our practice areas, industry sectors, regions and the positive effects of tight cost control in the current economic conditions.’

tom.moore@legalease.co.uk

Legal Business

Fintech play: Hogan Lovells hires Pinsent Masons financial services chief Salmon

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Strategic recruitment Hogan LovellsPinsent Masons
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Hogan Lovells has made a key hire in the City with Pinsent Masons financial services chief John Salmon, in a bid to better position itself for opportunities in the burgeoning financial technology (fintech) market.

Salmon will sit in the firm’s corporate practice and serve as an ‘active member’ of the financial institutions and TMT sectors.

A partner at Pinsent Masons since 1999, Salmon was appointed to head its finance practice in 2012, and before this served as insurance head. Having acted for clients including AXA, Royal London, Aviva and Zurich, Salmon focuses on advising financial institutions on innovative digital projects including IT procurement, outsourcing, cyber security, and digital payments.

Hogan Lovells global head of financial institutions Rachel Kent said: ‘The UK and Ireland is currently the fastest growing region for Fintech investment making this the ideal time to grow our Fintech practice with the hire of John, whose experience complements perfectly that of our regulatory, commercial, and cyber teams.’

The firm established a strategic partnership with Innovate Finance, the UK’s fintech trade association, in November, as firms respond to provide resources for the growing industry.

In November Legal Business also revealed Hogan Lovells’ appointment of Dubai-based Latham & Watkins corporate duo Charles Fuller and Andrew Tarbuck, along with finance partner Anthony Pallett.

sarah.downey@legalease.co.uk

To read more on the fintech industry see: ‘Comment: UK’s fintech boom is set to dazzle but advisers are still struggling to respond’