Legal Business

City stalwart Macfarlanes opens in Brussels with KWM hires

Despite being known for its reluctance towards overseas expansion, Macfarlanes is launching a new office in Brussels early this year for the competition team it hired from King & Wood Mallesons (KWM) in December.

It has also emerged the firm closed its Johannesburg office in October last year after three years in business. This will make Brussels its only base outside of London. The Johannesburg office was shut after its only partner Scott Brodsky, formerly at Baker & McKenzie, left the practice to join a client.

The KWM competition trio which Macfarlanes hired late last year includes partners Cristophe Humpe, Tom Usher and Cameron Firth, alongside former KWM senior partner Stephen Kon who is joining the firm as a consultant.

Macfarlanes has seen revenue remain static at £161m for 2015/16, up less than 1% from £159.6m. The firm’s profit per equity partner is down 17% on 2014/15 when the firm reported PEP of £1.55m. Overall profits were also down to £74.5m, dropping 9% on 2014/15. The falling figures follow five years of top line growth.

Also last year, the partnership re-appointed Charles Martin (pictured) and Julian Howard to the roles of senior partner and managing partner respectively for another three years, five months earlier than their terms were expiring. Both Martin and Howard’s terms expire in May 2017, and the new ones will take effect for a further three years until May 2020.

georgiana.tudor@legalease.co.uk

Read more: ‘This is a gritty place’: Macfarlanes’ leaders on the hustle it takes to look effortless’

Legal Business

Reed Smith poised to take more KWM heavyweights in Europe as Proskauer hires in London

Reed Smith continues its quest to recruit King & Wood Mallesons (KWM) partners in Europe and is in talks with corporate heavyweight Mark Sanders in London and a leading trio in Paris.

M&A specialist Sanders, Paris co-head of funds Arnaud David, head of tax Sylvie Vansteenkiste and head of EU, competition and regulatory Marc Levy are all in talks with the US firm. All four partners are among legacy SJ Berwin’s top billers, having raked in nearly £6.5m together last year.

When hiring is complete it is expected Reed Smith will have taken on the largest group of partners from the global giant’s beleaguered European arm. The US firm is talking to other partners in France, Germany and London, and has been targeting practices such as financial regulation, funds, tax and private equity. It is understood the talks are at due diligence stage.

Among his key mandates, Sanders played a role in the £2.4bn sale of a stake in data giant Global Switch to a consortium of Chinese investors in December 2016.

David is co-head of funds, and his work includes buyout, infrastructure, mezzanine, debt, fund of funds, venture, corporate, real estate and special focus funds.

Vansteenkiste is one of the founding members of SJ Berwin’s Paris office and head of tax, with 20 years’ experience in complex tax structuring of investment funds.

Levy is head of the EU, competition & regulatory department. He joined SJ Berwin as a partner in 2003 and was elected a member of the Paris management committee in 2012.

Most recently, Reed Smith was also reported to be taking on the bulk of the firm’s financial regulation team in London led by partner David Calligan.

Reed Smith Europe and Middle East managing partner Tamara Box (pictured) said: ‘We confirm that we continue to progress with very positive discussions with a number of impressive European KWM partners. As you would expect from a global law firm of the size and calibre of Reed Smith, we have very robust processes in place which focus on strategic alignment and strong integration with all new partners or teams who join our firm. While we therefore still have some work to do internally to ensure all that our own procedures are fully satisfied, we remain optimistic about the potential opportunities for us to grow in London, Frankfurt, Munich and Paris through these discussions.’

Meanwhile, Proskauer Rose announced today (9 January) that it has hired tax partner Stephen Pevsner from KWM Europe. Pevsner will join Proskauer’s London tax practice, and he focuses on UK and international M&A and private equity transactions, corporate reorganisations, and new business formations. He follows in the footsteps of former managing partner Rob Day and finance partner Andrew Wingfield, who also joined Proskauer last year.

KWM’s European arm is expected to file another intention of notice to appoint administrators today, giving the firm’s various suitors more time to finalise deals to take on parts of the legacy business, including agreements about work in progress within already announced large team moves, including DLA Piper, Greenberg Traurig, Reed Smith and KWM’s Chinese arm.

georgiana.tudor@legalease.co.uk

For more on King & Wood Mallesons, subscribers can read ‘Branded’ for an in-depth look at the firm

Legal Business

Senior partner Cziesla departs as KWM expected to file second administration notice on Monday

Less than three months after being named King & Wood Mallesons (KWM) EUME senior partner, Michael Cziesla has already joined McDermott Will & Emery’s Frankfurt office the US firm confirmed today (6 January).

Cziesla was only elected as EUME senior partner on 18 October, defeating Dubai-based disputes partner Tim Taylor QC in the race between two legacy SJ Berwin veterans. The election was triggered after Stephen Kon’s early resignation in September last year, and was hoped to bring a period of stability for the ailing firm.

At the time of his promotion, Cziesla said: ‘I care deeply about KWM…The opportunity to help drive our firm forward as a challenger, top-tier law firm is one that I relish.’

Corporate partner Cziesla (pictured) joined SJ Berwin in 2002 and specialises in complex private equity and corporate transactions, including cross-border mergers, leveraged buyouts, joint ventures and restructurings. Cziesla is to join McDermott’s Frankfurt office alongside associate Norman Wasse, who will join as counsel.

He had also been designated as ‘officer’ when the KWM Deutschland LLP spin-off was created in December, with the intent of maintaining a European presence should the existing enter administration.

His departure leaves EUME managing partner and legacy Mallesons partner Tim Bednall as the only senior management figure at KWM in Europe. Cziesla’s exit comes as KWM is expected to file another intention of notice to appoint administrators on Monday (9 January), when the existing notice will expire after having been valid for 10 working days since 22 December when it was filed. The firm is only permitted to file this notice twice.

The extension will give the firm’s various suitors more time to finalise deals to take on parts of the legacy business, including agreements about work in progress within already announced large team moves, including DLA Piper and Greenberg Traurig. However, the second notice may not last for another ten days, as such notices can be halted at any point by the firm or its creditors.

KWM China has been negotiating with offices in Spain, Italy, Germany and Dubai, and also understood to be interested in keeping a small London presence.

georgiana.tudor@legalease.co.uk

Read more on KWM in ‘Comment: The moment of truth arrives in the SJ Berwin saga’

For an in-depth assessment of KWM, subscribers can see our July cover feature ‘Branded’

Legal Business

KWM co-head of funds in Paris exits for Willkie Farr

King & Wood Mallesons‘ co-head of investment funds in Paris, Nathalie Duguay, has joined Willkie Farr & Gallagher as asset management partner.

One of legacy SJ Berwins top ten billers last year, Duguay specialises in private equity investment funds and joined legacy SJ Berwin in 2001 as founding partner of the firm’s Paris office, after having been an M&A associate at Salans since 1998.

Earlier this week, Stephenson Harwood picked up three King & Wood Mallesons (KWM) private equity partners including former UK private equity co-head Jonathan Pittal, one of the four heavyweights that quit the firm in October.

Warren Allan and Gabriel Boghossian will join Pittal at the LB100 firm. The trio of partners are expected to take with them as many as six associates and two trainees.

KWM’s Paris office was raided by Goodwin Procter in March this 2015, when the firm opened its Paris office with a six-partner team from KWM, which represented the bulk of its private equity (PE) practice including office managing partner Maxence Bloch. KWM’s Richard Lever and Simon Fulbrook had also joined Goodwin in spring 2015. KWM has since filed a lawsuit against Lever and his new firm on the basis of hiring the PE team in Paris.

Meanwhile, Goodwin Procter has applied to the Solicitors Regulation Authority for permission to bring in five trainees. The trainees will join investment funds partner and major biller Michael Halford. It was announced he would be joining the US firm in November

Yesterday (5 January) it emerged Baker & McKenzie will take on two partners from KWM including private equity partner Will Holder and employment partner Carl Richards. The pair arrive with a team of five associates including members of the private equity and employment teams. Fieldfisher has also hired technology partner James Walsh, whilst Debevoise & Plimpton announced it is taking on private equity lawyer Simon Witney as a consultant.

KWM is currently in the process of appointing administrators before 16 January. In December the firm confirmed its European arm had filed a Notice of Intention to Appoint Administrators with the court.

On Wednesday (4 January) it was revealed by Legal Business that KWM’s European arm had stopped paying 100 staff. Employees were notified of the decision on 3 January – the first day back for many after the Christmas break.

georgiana.tudor@legalease.co.uk

Read more on KWM in ‘Comment: The moment of truth arrives in the SJ Berwin saga’

For an in-depth assessment of KWM, subscribers can see our July cover feature ‘Branded’

 

Legal Business

Stephenson Harwood picks up three partner PE team from KWM

Stephenson Harwood has picked up three King & Wood Mallesons (KWM) private equity partners including former UK private equity co-head Jonathan Pittal, one of the four heavyweights that quit the firm in October.

Warren Allan and Gabriel Boghossian will join Pittal at the LB100 firm. Together the trio have acted for clients such as Bowmark Capital, Lloyds Banking Group, Unicredit Bank AG, Risk Capital Partners, Core Capital, SL Capital Partners, Pantheon Ventures, Lexington Capital Partners, Temasek, Goldman Sachs Vintage Fund, Oak Hill Capital Partners and Unigestion SA. The trio of partners are expected to take with them as many as six associates and two trainees.

Stephenson Harwood chief executive Sharon White said: ‘This move reflects our strategy to continue to grow and strengthen our firm. The calibre and experience of Jonathan, Warren and Gabriel demonstrates our ability to attract the very best lawyers, while further developing our corporate offering.’

Pittal (pictured) was one of four sudden resignations which triggered a partnership meeting held on 27 October and the halt of the firm’s recapitalisation plan. Private equity partner and major biller Michael Halford, former managing partner Rob Day and corporate finance partner Andrew Wingfield also announced their exits. Three of them were among the 20 highest-billing partners at the firm.

Meanwhile, Goodwin Procter has applied to the Solicitors Regulation Authority for permission to bring in five trainees. The trainees will join investment funds partner and major biller Michael Halford. It was announced he would be joining the US firm in November

Yesterday (5 January) it emerged Baker & McKenzie will take on two partners from KWM including private equity partner Will Holder and employment partner Carl Richards. The pair arrive with a team of five associates including members of the private equity and employment teams. Fieldfisher has also hired technology partner James Walsh, whilst Debevoise & Plimpton announced it is taking on private equity lawyer Simon Witney as a consultant.

In Germany, Frankfurt-based corporate partner Michiel Huizinga is expected to move to Allen & Overy while DLA Piper has taken on the firm’s former head of real estate for Germany Lars Reubekeul and real estate partner Florian Biesalski.

KWM is currently in the process of appointing administrators before 16 January. In December the firm confirmed its European arm had filed a Notice of Intention to Appoint Administrators with the court.

On Wednesday (4 January) it was revealed by Legal Business that KWM’s European arm had stopped paying 100 staff. Employees were notified of the decision on 3 January – the first day back for many after the Christmas break.

madeleine.farman@legalease.co.uk

Legal Business

Bakers takes on seven lawyer team from KWM including London employment head

Baker & McKenzie is to take on two partners from King & Wood Mallesons‘ European partnership including private equity partner Will Holder and employment partner Carl Richards.

The pair arrive with a team of five associates including members of the private equity and employment teams. Holder was previously head of KWM’s China Group and spent ten months seconded to Chinese offices.

Richards (pictured) was head of the firm’s employment group with experience of advising on employment aspects of corporate transactions and disputes.

Bakers managing partner Alex Chadwick said: ‘Both of them bring many years of experience and expertise in their respective practice areas, which will strengthen our existing capabilities and prove invaluable to our clients.’

KWM is currently in the process of appointing administrators before 16 January. In December the firm confirmed its European arm had filed a Notice of Intention to Appoint Administrators with the court.

The beleaguered firm recently lost partners to Fieldfisher and Debevoise & Plimpton in exits reported today. Fieldfisher hired technology partner James Walsh, whilst Debevoise announced it is taking on private equity lawyer Simon Witney as a consultant. In Germany, Frankfurt-based corporate partner Michiel Huizinga is expected to move to Allen & Overy while DLA Piper has taken on the firm’s former head of real estate for Germany Lars Reubekeul and real estate partner Florian Biesalski.

The latest departures come as Legal Business revealed yesterday that KWM’s European arm had stopped paying 100 staff. Employees were notified of the decision on 3 January – the first day back for many after the Christmas break.

matthew.field@legalease.co.uk

Legal Business

KWM latest: Fieldfisher and Debevoise latest to hire from ailing European partnership

Fieldfisher and Debevoise & Plimpton are the latest to hire from King & Wood Mallesons‘ (KWM) ailing European practice. Fieldfisher hired technology partner James Walsh, whilst Debevoise announced it is taking on private equity lawyer Simon Witney as a consultant.

Walsh joined KWM in June 2015 alongside three others from Eversheds, in a move by the firm to rebuild its City offering after an early string of post-merger exits. He previously headed Eversheds’ international telecoms practice.

Fieldfisher head of technology Rob Shooter said: ‘James is well-known in the industry as a leader in his field and we are delighted that he’s joining us. His client base and experience spans across the firm’s three focus industries – technology, financial services and energy – and as such he is a fantastic addition to the Fieldfisher team.’

Witney has previously co-led KWM’s funds team in London, and had sat on the firm’s management board. He joins Debevoise as a consultant in order to complete his PhD this year in corporate governance issues in private equity backed companies.

Yesterday (4 January) Legal Business reported Frankfurt-based corporate partner Michiel Huizinga is expected to move to Allen & Overy, whilst in Germany DLA Piper has taken on KWM’s former head of real estate for Germany Lars Reubekeul and real estate partner Florian Biesalski.

New exits come as the firm’s European partnership confirmed yesterday (4 January) it has stopped paying 100 staff as it heads towards administration. The firm confirmed its intention to file for administration in a court filing in December 2016, and has lost almost all of its top 50 billers since it halted its recapitalisation plan late last year. The recap plan ultimately failed, and the firm is carrying more than £30m in debt.

Late last year, it was revealed China has bid for an out-of-administration purchase of certain legacy SJ Berwin offices including Dubai, Germany, Italy and Spain. It is also talking with partners to keep an outpost in London and if a deal is agreed, the acquisition will remain within a verein structure, and the business will take on a significant number of lawyers but without any of legacy SJ Berwin’s liabilities.

georgiana.tudor@legalease.co.uk

Legal Business

KWM Europe halts pay for 100 staff as it prepares for administration

Today (4 January) the European partnership of King & Wood Mallesons (KWM) has stopped paying 100 staff as the firm heads towards administration. The firm confirmed its intention to file for administration in a court filing in December 2016.

Staff affected are mostly in business services, but the pay halt includes a few fee earners. The staff going unpaid include those on holiday, maternity and sick leave, but those concerned remained employed by the firm.

Employees were notified of the decision yesterday (3 January), on their first day back after the Christmas break.

According to the firm’s latest LLP accounts published in February 2016 on Companies House, there were 425 support staff and 452 fee earners across the UK, Europe and the Middle East in financial year ending April 2015.

A spokeswoman for the firm said: ‘We do not comment on any matter concerning our people, whether individually or collectively, in order to protect their privacy’.

The pay halt comes as the firm continues to shed partners, having lost the bulk of its top billers since the firm halted its recapitalisation plan late last year. KWM’s European practice is carrying more than £30m in debt and the recap plan failed in November.

Frankfurt-based corporate partner Michiel Huizinga is expected to move to Allen & Overy, an appointment subject to a partnership vote.

Huizinga is a private equity (PE) expert who joined KWM from Freshfields Bruckhaus Deringer in 2011 where he was a principal associate. During his time at KWM he advised clients such as Star Capital Partners, Schroders, Techcent Group, JIC (Jiantou Investment), ARDIAN (Axa Private Equity) and CCC Holding. For A&O, the move will soften the exit of PE partner Michael Bernhardt who quit for Milbank, Tweed, Hadley & McCloy in December.

Also in Germany DLA Piper has also taken on two partners, taking KWM’s former head of real estate for Germany Lars Reubekeul and real estate partner Florian Biesalski.

Meanwhile, in China KWM has taken on two partners from Cadwalader Wickersham & Taft, including Cadwalader’s former Asia managing partner.

Corporate lawyers Rocky Lee and Li Xiaoyang will join the firm at the start of this year, after Cadwalader confirmed in September last year it would close down its Beijing and Hong Kong offices. In a statement KWM said Lee joins along with his entire team of lawyers and staff.

georgiana.tudor@legalease.co.uk


Legal Business

KWM Europe files notice of intention to appoint administrators

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King & Wood Mallesons (KWM) has confirmed that today (22 December) its European arm has filed a Notice of Intention to Appoint Administrators with the court.

A statement released by the firm said: ‘the notice is designed to protect the firm from its creditors and allows it to maintain client service as it continues to explore all available options.’

‘The firm’s management team and financial advisers continue to work to ensure the best possible outcome for clients and staff, and this move supports these efforts at a key point for the business.’ it added.

As revealed by Legal Business, staff at the legacy SJ Berwin partnership were told earlier this month the firm is expected to move into administration on 16 January. KWM’s European practice is carrying more than £30m in debt and plans to recapitalise the business failed in November.

This news comes as KWM China is understood to have bid for an out-of-administration purchase of certain legacy SJ Berwin offices including Dubai, Germany, Italy and Spain. It is also talking with partners to keep an outpost in London.

If a deal is agreed, the acquisition will remain within a verein structure, and the business will take on a significant number of lawyers but without any of legacy SJ Berwin’s liabilities.

While the Chinese arm is interested in these parts of the business, it is not yet clear what will happen to other outposts in France, Belgium and Luxembourg.

Last week the firm registered a new LLP in the UK under the name KWM Deutschland, which may include part or all of the new European entity which the Asian arm is keen to retain.

Yesterday (21 December) US firm Reed Smith and City firm Macfarlanes became the latest to hire from the European practice. Winston & Strawn is also understood to have recruited finance partner Ian Borman.

Earlier this week, it was revealed that K&L Gates and Orrick, Herrington & Sutcliffe have also taken on a number of lawyers from KWM’s Munich office, while one of KWM’s top billers Craig Pollack and part of his team are to join Covington & Burling. Orrick has also confirmed the hire of private equity partner Ylan Steiner in London.

DLA Piper will take on real estate partner William Naunton and several members of his team including partners Cornelius Medvei, Bryan Pickup, Ed Page, George Burrha and Jeremy Brooks. Managing associate Omer Maroof will also join as a partner, alongside eight other lawyers and three trainees.

Tax partner Clive Jones will join Greenberg Traurig, alongside top biller Steve Cowins and Marc Snell, M&A partners Michael Goldberg and David Fitzgerald and partner Matthew Priday along with their teams.

georgiana.tudor@legalease.co.uk

Read more on KWM in ‘Comment: The moment of truth arrives in the SJ Berwin saga’

For an in-depth assessment of KWM, subscribers can see our July cover feature ‘Branded’

Legal Business

Reed Smith takes on finreg team as KWM exits continue

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US firm Reed Smith is the latest to hire from King & Wood Mallesons (KWM) European practice, taking on the bulk of the firm’s financial regulation team. It is also in discussions with a number of other partners in Europe.

The team is led by partner David Calligan and includes several other partners in the London office.

Calligan joined SJ Berwin in 1989 from The Securities Association and now acts principally for banks, broker dealers and investment management firms.

It is understood that Reed Smith’s global managing partner Sandy Thomas has flown to London to participate in talks with partners from the legacy SJ Berwin practice.

Reed Smith’s managing partner in Europe and Middle East Tamara Box (pictured) said in a statement: ‘I confirm that we continue to have positive discussions with a number of impressive European KWM partners. We remain committed to investing in top legal talent and, at this time, are optimistic that we will be joined in 2017 by some great ex-KWM lawyers.’

She added: ‘As you will appreciate, however, negotiations continue and we have our own usual protocols and processes to follow around such potential hires. At this time, I am unable to confirm any definitive hires,’ she added.

The news comes as today (21 November) City firm Macfarlanes made a triple lateral hire with three partners from KWM, taking on Tom Usher, Cameron Firth and Christoph Humpe, and the KWM’s former European senior partner Stephen Kon as a consultant.

Partners have been peeling away from the legacy SJ Berwin practice after the partnership, which is carrying more than £30m in debt, failed to agree to a recapitalisation plan in November.

K&L Gates and Orrick, Herrington & Sutcliffe have also taken on a number of lawyers from KWM’s Munich office, while one of KWM’s top billers Craig Pollack and part of his team are to join Covington & Burling.

DLA Piper will take on real estate partner William Naunton and several members of his team including partners Cornelius Medvei, Bryan Pickup, Ed Page, George Burrha and Jeremy Brooks. Managing associate Omer Maroof will also join as a partner, alongside eight other lawyers and three trainees.

Tax partner Clive Jones will join Greenberg Traurig, alongside top biller Steve Cowins and Marc Snell, M&A partners Michael Goldberg and David Fitzgerald and partner Matthew Priday along with their teams.

georgiana.tudor@legalease.co.uk

Read more on KWM in ‘Comment: The moment of truth arrives in the SJ Berwin saga’

For an in-depth assessment of KWM, subscribers can see our July cover feature ‘Branded’