Legal Business

Further KWM partner exits earmarked as firm completes Europe and Middle East review

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Partnership King & Wood Mallesons
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King & Wood Mallesons has wrapped up a review of its 170-strong partnership across Europe and the Middle East with plans to remove underperforming partners.

KWM has been carrying out an active management of its partnership to boost the profitability of the network it gained from merging with City firm SJ Berwin at the end of 2013.

The Hong Kong-headquartered firm has carried out an extensive review of legacy SJ Berwin operations, with a number of partners having been asked to leave. As a result, up to 10% of the partnership in Europe and the Middle East could be managed out. The move follows a wide-ranging cost-cutting exercise across the region, with the firm subletting space in its London, Paris and Frankfurt offices and relocating to cheaper premises in Milan. The firm reports that it has saved £6m from these measures.

The planned managing out of partners across the region follows a raft of unwanted exits in the City in the last year, with the firm’s renowned private equity group decimated by ambitious US firms offering stronger links to US-based clients and bigger salaries. Frmer corporate co-head Richard Lever left the firm for Goodwin Procter in April to launch its City private equity practice, Paul Hastings hired corporate partner Duncan Woollard in May, while private equity heavyweight Steven Davis joined Proskauer Rose last December.

According to the firm, average profit per equity partner (PEP) for KWM’s Europe and the Middle East arm rose by 39% to £610,000 during the last calendar year as revenues for the region grew 7% to £191m.

KWM senior partner Stephen Kon said: ‘We look at our partnership and performance on a regular basis in order to manage our business in a sensible and prudent way.’

tom.moore@legalease.co.uk

Legal Business

KWM loses second City partner this week as Fried Frank takes funds specialist

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Strategic recruitment Fried, Frank, Harris, Shriver & JacobsonKing & Wood Mallesons
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King & Wood Mallesons‘ (KWM) City office has suffered its second partner exit this week, with financial markets partner Gregg Beechey being the latest to quit the firm to join Fried, Frank, Harris, Shriver & Jacobson in London.

Beechey has been a partner at SJ Berwin, which merged with King & Wood Mallesons in 2013, since 2000 having spent the majority of his legal career at the UK firm, and under two years at the combined firm. Before SJ Berwin, Beechey was a compliance assistant at asset management company Schroders for two years. He specialises in financial markets, with a particular focus on regulatory issues for fund managers, and comes recommended by The Legal 500 for his work on advising on the Alternative Investment Fund Managers Directive (AIFMD) matters.

This latest hire for Fried Frank comes after the firm hired Kirkland & Ellis funds partners Mark Mifsud, Kate Downey and Alexandra Conroy in May, after recruiting Hogan Lovells partner Stuart Brinkworth to head its London finance offering.

For KWM, the exit comes after private equity partner Simon Fulbrook left to join Goodwin Procter earlier this week (1 July).

SJ Berwin’s renowned funds practice, particularly private equity, has suffered a number of key departures since the merger. Fulbrook joined former corporate co-head Richard Lever, who left the firm for Goodwin Procter in April to launch its City private equity practice. In May, Paul Hastings hired corporate partner Duncan Woollard to its London office. These followed the departures of a string of senior private equity heavyweights – including Steven Davis who quit to join Proskauer Rose in December 2014; Tim Wright who jumped to DLA Piper in May 2014; and Ed Harris who opted to join Hogan Lovells in October 2013 – all since the SJ Berwin/KWM combination two years ago.

However, KWM did move to rebuild its flagship group this week with the hire of Laura Brunnen from Fried Frank. The firm also recruited a team of Eversheds partners in April, as the firm boosted its capacity to capture hedge fund and investors in the UK’s booming real estate market.

A KWM spokesperson told Legal Business: ‘We can confirm that Gregg Beechey is leaving the firm, we thank him for his contribution and wish him every success for the future.’

Jaishree.kalia@legalease.co.uk

Legal Business

KWM seeks to rebuild City private equity practice with Fried Frank hire

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Strategic recruitment Fried, Frank, Harris, Shriver & JacobsonKing & Wood Mallesons
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After suffering a series of raids on its renowned City private equity practice, including the announced departure of partner Simon Fulbrook earlier today (1 July), King & Wood Mallesons (KWM) has sought to rebuild its flagship group with the hire of Laura Brunnen from Fried, Frank, Harris, Shriver & Jacobson.

With senior private equity heavyweights such as Steven Davis, Perry Yam and Richard Lever having deserted SJ Berwin’s renowned practice since its tie-up with KWM in 2013, Brunnen’s arrival will bolster depleting team. Before making partner at Fried Frank, Brunnen had stints as an associate at Kirkland & Ellis and Slaughter and May.

The firm is intent on rebuilding the practice following those exits, with the firm confirming earlier today that Simon Fulbrook will follow Lever to Goodwin Procter, and is seeking to follow up on Brunnen’s arrival with further hires. The firm has added 15 lateral partners in the past 12 months in the City, adding weight to its real estate practice with a string of hires from Eversheds including big-billing partner William Naunton.

William Boss, Europe and Middle East managing partner at King & Wood Mallesons, said: ‘We are continuing to actively pursue our growth agenda which includes strengthening our corporate team. Laura is a significant addition to that practice. Her quality and strength in the private equity area will support both the firm’s existing clients whilst exploiting new client growth opportunities in that market.’

Brunnen added: ‘Clients looking to take advantage of the increased flow of capital require an international firm with deep European and strong international expertise to help them unlock emerging opportunities in growth markets. The reputation of King & Wood Mallesons in those markets, combined with their corporate and private equity strength, perfectly complement and enhance my offering. Joining the firm represents a huge opportunity for me in being part of a dynamic and forward thinking business.~ Knowing I am part of the firm’s strategic plan to grow and develop their corporate practice is incredibly appealing, and I relish the opportunity to help take this vision forward.’

tom.moore@legalease.co.uk

Legal Business

Goodwin Procter makes second private equity hire from King & Wood Mallesons

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US firm Goodwin Procter has made its second private equity hire from King & Wood Mallesons’ City office with private equity partner Simon Fulbrook, signalling ‘an important strategic step in the development’ of its European private equity capabilities.

Fulbrook specialises in acquisition, fund and real estate finance and has acted for UK and international lenders, sponsors and corporates in the financial institutions, life sciences and healthcare and private equity sectors, including The Royal Bank of Scotland, Barclays Bank, Clydesdale Bank, Investec Bank, Bowmark Capital, Graphite and ECI Partners.

London office chair David Evans said: ‘His hire represents an important strategic step in the development of our European private equity capabilities, following the recent appointment of Richard Lever to spearhead the practice.’

The firm is aiming to muscle in on the private equity industry and in April hired King & Wood Mallesons’ City corporate co-head Richard Lever. Goodwin Procter plans to build a substantial team in London around Lever who has a proven track record in the City private equity space, having acted for the likes of ECI partners, Graphite Capital, Investcorp and Lion Capital.

Private equity group head Lever said: ‘Simon brings significant experience in all areas of leveraged finance and his hire will augment the expansion of Goodwin Procter’s focus on private equity work in the middle-market and growth equity sectors in Europe.’

US firm Morrison & Foerster announced this morning it had made a key hire with the recruit of Latham & Watkins’ private equity partner Graeme Sloan, where he will head the firm’s London corporate practice and serve as global co-chair of the firm’s M&A practice.

sarah.downey@legalease.co.uk

Legal Business

KWM suffers another corporate exit in the City as Woollard leaves for Paul Hastings

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Duncan Woollard has become the latest private equity partner to leave King & Wood Mallesons, heading for Paul Hastings to spearhead its private funds practice in the City.

Private investment funds specialist Woollard, who will head Paul Hastings‘ London private funds practice, becomes the fifth big-name corporate partner to leave King & Wood Mallesons since its merger was announced with SJ Berwin in 2013.

Having been a core part of SJ Berwin’s much-lauded private equity team in the late 2000s, Woollard’s departure expands the hole left behind by private equity heavyweights Ed Harris, who left just before the official tie-up; Steven Davis, the firm’s former corporate chief who left for Proskauer Rose; Tim Wright, who left for DLA Piper; and most recently Richard Lever, who became co-head of the firm’s London corporate group after Davis stepped down before leaving for Goodwin Procter in April this year.

Woollard joins an expanding London office at Paul Hastings which now holds 25 partners and becoming the firm’s third lateral in the City this year, following the arrival of leveraged finance partner Luke McDougall from Ashurst and real estate specialist Mark Shepherd from DLA Piper earlier this year. He becomes one of a number of SJ Berwin alumni stationed in Paul Hastings’ London office, reuniting with real estate partners Shepherd and David Ryland.

Advising on a range of private equity and fund structuring matters, Woollard specialises in raising investment funds in the private equity sector as well as for venture capital, infrastructure, direct lending, real estate, mezzanine lending and distressed debt.

Recent work includes the €1.25bn Investindustrial V fund, the £500m Endless Fund IV, a series of single investment funds for Duke Street plus Terra Firma’s special situations fund and the associated £3.2bn acquisition of the Annington portfolio. Other clients include AllianceBernstein, Hutton Collins, MML Capital Partners, Babson Capital Europe and NorthEdge.

‘Duncan’s appointment allows us to further capitalize on the resurgence in the private equity fundraising market in Europe,’ said Lawrence Hass, global chair of the private investment funds practice at Paul Hastings. ‘Duncan will play a leading role for us in Europe by helping deliver a coherent high-end global investment funds offering to our clients around the world.’

tom.moore@legalease.co.uk

Legal Business

Asia: KWM relocates partner trio to launch in Singapore as Quinn opens in Shanghai

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Quinn Emanuel Urquhart & Sullivan has hired Kirkland & Ellis partner Samuel Williamson as it looks to launch an office in Shanghai targeting Chinese enforcement work while King & Wood Mallesons (KWM) also expanded in the region, officially opening in Singapore.

Quinn Emanuel’s new office still requires approval from Chinese authorities though the relevant applications have already been made. Until approval is received Williamson, who is a former US prosecutor and fluent in mandarin, will operate from the firm’s other offices – though a start date is yet to be confirmed.

Williamson was relocated to Kirkland’s Shanghai office in 2011 where he led the firm’s Asia-based government enforcement and investigations practice. He advises on a range of enforcement issues including the Foreign Corrupt Practices Act and the UK’s Bribery Act.

On his move to Quinn Emanuel, Williamson told Legal Business: ‘I was attracted by its worldwide focus on litigation. Quinn has already built a substantial global platform and it is looking to build up its Chinese and PRC law capability.’

Meanwhile, KWM officially opened its Singapore office after having been granted a foreign law practice licence for the outpost earlier this year. The firm confirmed that three partners will lead its offering in the country which will initially focus on international funds, energy and resources, and China inbound and outbound work.

Funds partner John Sullivan, who focuses on real estate, infrastructure and private equity, is relocating from Australia, alongside energy, resources and projects specialist Michael Lawson, to what will be the firm’s 15th office in Asia. They will be joined by M&A partner Huang Xuhua from the firm’s Hong Kong office who will cover cross-border Chinese investment work.

Stuart Fuller, KWM’s global managing partner, said ‘South East Asia is one of the fastest growing markets in the world and has become a global hub for cross border investment, capital formation and commodities trading, and with China’s “One Belt, One Road” initiative, Singapore will play a critical role in Chinese in-bound and out-bound investment.’

michael.west@legalease.co.uk

Legal Business

News in brief – May 2015

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WHITTAKER STEPS DOWN AS LLOYDS GC

Group general counsel (GC) Andrew Whittaker is stepping down from his role at Lloyds Banking Group with deputy GC Kate Cheetham set to replace him. Whittaker joined the bank in May 2013 after having served as the legal head of the Financial Services Authority. The bank also saw the departure of disputes chief Philippa Simmons last month and began a redundancy consultation looking at cutting up to 25 mid-level positions.

 

Legal Business

‘A significant phase of renewal’: King & Wood Mallesons takes real estate team from Eversheds

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Three months after persuading Eversheds‘ heavyweight real estate trio William Naunton, Clive Jones and Cornelius Medvei to stay in Big Law and not launch their own boutique, King & Wood Mallesons (KWM) has hired a team of Eversheds partners as it seeks to reshape its London office.

Looking to rebuild after a string of senior exits post-merger with City stalwart SJ Berwin in late 2013, real estate partners Simon Burson and Jeremy Brooks make the switch alongside principal associate George Burrha who is becoming partner in the move and technology specialist James Walsh. Five associates are also making the move to KWM’s offices.

KWM’s fast spinning revolving door has now seen 15 lateral partner hires in the last 12 months, making up ground in real estate and projects, while the corporate team has been heaviest hit by exits. Corporate co-head Richard Lever departed to launch Goodwin Procter’s private equity group in the City earlier this month, following the departure of his predecessor Steven Davis to Proskauer Rose, Tim Wright to DLA Piper and Ed Harris to Hogan Lovells.

The latest hires from Eversheds build out the firm’s capacity to capture hedge fund and investors in the UK’s booming real estate market. While Naunton served as head of real estate, Jones as London head of tax and Medvei as senior partner, Burson also carries over years of management experience, having run the firm’s 25-lawyer real estate offering in Cambridge.

Over the year, the firm’s real estate team has led on Invesco’s disposal of 1 Finsbury Circus to China Overseas Holdings Limited, British Land’s sale of Ropemaker Place to an AXA led consortium for £472m and advised China Investment Corporation and Invesco on their joint venture acquisition of Deutsche Bank’s London HQ, Winchester House.

William Boss, European & Middle East managing partner at KWM, said: ‘We have made enormous progress as a firm, which has led to a significant phase of renewal, and we will continue to hire the best collegiate and relationship focused talent for our business.’

tom.moore@legalease.co.uk

Legal Business

Targeting London: Goodwin Procter hires KWM’s Lever to launch City PE practice

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Having set its sights on creating a private equity practice, given how Weil, Gotshal & Manges has made moves on prized client Advent International, Goodwin Procter has hired King & Wood Mallesons’ City corporate co-head Richard Lever.

Goodwin Procter plans to build a substantial team in London around Lever who has a proven track record in the City private equity space, having acted for the likes of ECI partners, Graphite Capital, Investcorp and Lion Capital,. He becomes the eighth London partner at the firm.

Lever was promoted to co-head of KWM’s City corporate team in December 2013, alongside Michael Goldberg, after private equity heavyweight Steven Davis stepped down before joining Proskauer Rose.

He becomes the fourth big-name corporate partner to quit King & Wood Mallesons since it agreed to merge with City firm SJ Berwin in 2013, with Tim Wright having jumped to DLA Piper in May 2014 and Ed Harris opting to join Hogan Lovells in October 2013.

‘The addition of Richard to spearhead the growth of our private equity practice in Europe is a significant and long-planned strategic step in the expansion of our London office capabilities,’ said Goodwin’s London chief David Evans. 

The firm launched in London in 2008, initially focused on expanding the firm’s real estate capital markets and fund formation practice in Europe, and has since grown to more than 25 lawyers.

Evans told Legal Business it took the firm around a year and a half to gain traction in those areas before gaining market credibility and is now looking to replicate that in private equity. ‘We’re not going to sit here and try and tackle the European private equity market with one bloke. We’re going to have to grow it. That means building a bench in levfin and private equity so we can credibly face that market.’

John LeClaire, co-head of the firm’s private equity group said: ‘Our private equity work in Europe over the years convinces us that there is a real opportunity to penetrate the middle market and growth equity sectors with a highly commercial, sector-focused, valued-added service offering. Those are our areas of focus and strength, and they align perfectly with Richard’s practice focus and strategic vision.’

Filings at Companies House by King & Wood Mallesons LLP have revealed that the firm’s UK office saw a 10.7% fall in turnover from £121.5m to £108.5m in the year to 30 April 2014. The hit to revenues saw operating profit fall from £59.6m to £54.3m in that period, while profit before partner remuneration and profit shares dropped 7.1% from £57m to £53m.

tom.moore@legalease.co.uk

Legal Business

Significant hires: KWM lands JP Morgan’s Asia-Pacific vice chairman

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Eager to convince Western investment banks, hedge funds and private equity houses that it has the lawyers to handle the most complex mandates in Asia, Hong Kong-headquartered King & Wood Mallesons has hired JP Morgan’s Zili Shao as co-chairman of its China management committee.

Shao’s arrival provides a major boost to the firm’s hopes of winning more high-value finance and M&A work and is designed to send a strong message to the investment banks after a record year for M&A in China. According to accountants PwC, China M&A hit record levels in 2014, both in terms of the number of deals (6,899) and their total value ($407bn).

Wang Ling, China managing partner of KWM, said Shao ‘will play a key role in the globalization of the firm’.

Shao leaves JP Morgan after five years at the bank, having arrived as China chairman before being named Asia-Pacific vice chairman in April 2014. Shao oversaw JP Morgan’s China expansion, including the formation of a domestic securities venture, the purchase of stakes in a trust and a guarantee company, and the establishment of a locally incorporated bank.

‘His breadth of experience across the legal and corporate sector and deep knowledge of the region provides him with the ability to help lead KWM through its next stage of development in China, and to help to integrate the China practice into the global KWM firm,’ said Stuart Fuller, KWM’s global managing partner.

Prior to his time at JP Morgan, Shao held posts as Linklaters Greater China managing partner before being promoted to Asia managing partner in a 12 year stint at the Magic Circle law firm. He has also been a partner at legacy Australian firm Mallesons Stephen Jaques, which merged with King & Wood in 2013. As a lawyer, he specialised in China-related M&A and corporate restructuring.

tom.moore@legalease.co.uk