Legal Business

Leadership: Latham elects Bill Voge to take over from Bob Dell after eight-month selection process

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Following a rigorous eight-month selection process, London-based projects partner Bill Voge has been elected to take over from Latham & Watkins retiring global chair and managing partner Robert Dell, who leaves the firm after two decades in management and an increase in revenue from $260m at the start of his tenure to $2.285bn in the latest financial year.

Voge (pictured), whose appointment will take effect on 1 January 2015, emerged as a frontrunner to replace Dell in March, identified by a succession committee appointed on Dell’s announced retirement. The committee was chaired by New York litigation partner Miles Ruthberg, with the remainder of the group drawn from across Latham’s different offices and practices.

Voge, who also works in New York, joined 2,060-lawyer Latham & Watkins in 1983 and has held a string of leadership positions since making partner in 1991, including acting as global chair of the finance department between 2007 and 2008 and global chair of project finance between 2004 and 2007.

He served an eight-year term on the executive committee between 1998-2002 and 2008-2012 and has helped to spearhead Latham & Watkins’ global strategy and practice integration for markets outside the US.

Voge’s practice focuses primarily on project development and project financings and he has acted for project sponsors, banks, underwriters and other parties on a wide variety of electricity and oil and gas projects in the US and globally.

Dell said of his successor: ‘Bill brings an impressive mix of experience and leadership qualities to the role: astute strategic vision; superb judgment; smart business instincts; and, above all, strong character. He is clear-sighted and a consensus-builder who is highly attuned to our unique culture, client service and the external market forces driving change in the legal profession.’

Voge added: ‘Bob has driven our relentless focus on quality and client service and he has exemplified our culture in all that he has done. Bob is that rare leader that combines incredible humility and integrity with a tough, competitive drive. He is known for his fairness, judgment and selfless leadership, and in whose footsteps I hope to follow.’

Under Dell’s helm revenue at the top-five Global 100 firm rose from $260m in 1995 to $2.41bn during 2013, with profit per equity partner up from $550,000 to $2.5m, making it one of the most profitable US firms and one of the few that has achieved growth largely without merger.

Despite this organic approach, Latham’s number of offices has risen from 11 at the start of Dell’s term to 31 today and headcount under his watch has increased from 586 on 31 December 1994 – the day before he took over aged just 42 – to over 2,060.

Tom.moore@legalease.co.uk

Legal Business

Linklaters corporate heavyweight Charlie Jacobs leads on Carlyle’s circa £2bn RAC exit talks

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Linklaters senior corporate partner Charlie Jacobs is leading for Carlyle Group on the US buyout house’s early stage discussions to exit UK roadside recovery service RAC for a sum reported to be in the region of £2bn.

An IPO remains Carlyle Group’s preferred route for RAC, which the private equity house acquired from British insurer Aviva for £1bn in 2011, but it is understood that no decision has yet been taken and talks are reported to have taken place with potential buyers including Apax and BC Partners.

Carlyle Group is a longstanding Linklaters client, with relationship manager and private equity partner Alex Woodward having advised on its £600m acquisition of Integrated Dental Holdings and Associated Dental Practices in a move that created a combined entity with 450 dental practices. However, the group is also a major client for Los Angeles-founded US firm Latham & Watkins, which last year advised Carlyle on its acquisition of Chesapeake Packaging from private equity house Irving Place Capital and funds managed by Oaktree Capital Management, and later on Chesapeake’s merger with Multi Packaging Solutions, led by former Clifford Chance partner David Walker.

Latham earlier this year hired senior Carlyle counsel Tom Alabaster as a partner in London.

Jacobs, who is the relationship partner for many of Linklaters international clients including mining groups Gold Fields and Implats, last year advised Glencore on its $45bn merger with Xstrata, having advised the mining giant on its 2011 IPO, in a listing on the London and Hong Kong exchanges valued at £7.3bn.

Carlyle discussions to dispose of RAC follows the recent IPO of rival roadside recovery group the AA, which private equity owners CVC and Permira floated in June for £1.4bn.

Revenue at RAC, which has over seven million members and attends 2.5m breakdowns every year, increased by 6% to £486 million in 2013.

Tom.moore@legalease.co.uk

Legal Business

Latham goes green with latest City hire of Macfarlanes environmentalist Paul Davies

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In the latest of a series of heavyweight City hires, Latham & Watkins is to bring in Macfarlanes’ environmental specialist Paul Davies as a partner in its environment, land and resources group.

Davies will become the first sole environmental specialist to join the 20-strong European team, charged with developing the Los Angeles-founded firm’s transactional and contentious environmental practice in London.

Davies, who has been at Macfarlanes since 2001 and became a partner in 2005, will particularly focus on servicing existing corporate clients who have environmental needs across the energy sector. He will work closely with the firm’s US offices, particularly Houston where Latham already has an established energy practice, and alongside global chair of environment, land and resources, Bob Wyman.

‘The firm has a strong corporate client base and energy practice in the US but needed tier-one environmental expertise in Europe,’ said Latham’s London managing partner Nick Cline (pictured).

Davies’ experience includes providing advice on the environmental aspects of corporate, regulatory and contentious issues, as well as on contaminated land, environmental risk and climate change. He has previously advised Oak Hill Capital on the $2bn secondary buyout of Firth Rixson, a manufacturer of specialised metal products for the aerospace industry.

The Slaughter and May-trained lawyer is the fifth partner hire announced by Latham’s London office since January, following the appointments of Nick Benson from Weil Gotshal & Manges; Kem Ihenacho from Clifford Chance; Lucy Oddy from Berwin Leighton Paisner; and Tom Alabaster from The Carlyle Group. The office now has over 250 fee-earners including 65 partners.

Cline added: ‘Our growth in London, particularly our investment in our corporate and litigation practices, has created an obvious opportunity to develop a market-leading transactional and contentious environmental practice, while also significantly enhancing our existing EU environmental regulatory credentials.’

Davies added: ‘Latham has a top-ranked global environmental practice, and a reputation for advising on the most complex cross-border transactions involving lawyers from multiple jurisdictions. This international capability will give me an ideal platform to further develop my practice.’

Jaishree.kalia@legalease.co.uk

Legal Business

Latham recruitment spree continues with key arbitration and private equity hires

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It’s been another week and another set of significant acquisitions for Latham & Watkins, with the global elite firm announcing a significant arbitration lateral hire and a key industry appointment to its London private equity practice.

The firm announced yesterday (24 April) that it had hired Shearman & Sterling international arbitration partner Fernando Mantilla-Serrano, who will become global co-chair of the firm’s international arbitration practice, based in Paris.

Mantilla-Serrano has had a distinguished career. Prior to joining Shearman in 2003, he was head of Iberian powerhouse Garrigues’ international arbitration practice and was also counsel at the secretariat of the ICC International Court of Arbitration, where he remains a member of the court.

Mantilla-Serrano will head the practice alongside Hamburg-based Sebastian Seelmann-Eggebert and Claudia Salomon in New York. His practice focuses on disputes arising in the oil and gas, power, natural resources, construction, manufacturing and automotive industries and has a particular focus in Latin American disputes. He is a member of the Colombian, New York, Paris and Madrid Bars and regularly serves as tribunal chairman, sole arbitrator or party-appointed arbitrator.

Latham has made a significant push in arbitration recently. In February last year the firm hired its co-head of the international arbitration group Claudia Salomon from DLA Piper in New York, followed by Ing Loong Yang from Sidley Austin to its the Hong Kong office in  March 2013. In June last year, the firm hired also hired Markus Rieder from Shearman, who represents clients in the automotive, industrials and manufacturing sectors.

Olivier du Mottay, Paris office managing partner, said: ‘Fernando’s arrival, coupled with the talented members of our arbitration group around the globe, confirms Latham’s stature as a key player in the arbitration market. We are particularly delighted to welcome Fernando in Paris, which is a key centre of international arbitration.’

Earlier this week, Latham announced a move to further strengthen its City private equity practice and cement its relationship with the Carlyle Group by taking on the buyout house’s senior counsel, Tom Alabaster, as a partner in its London office.

Alabaster had previously focused on fund formation, restructuring, deal financing, and regulation at Carlyle. Before moving in-house, he was a senior associate with Debevoise & Plimpton and had also been an associate at Slaughter and May.

The links between Carlyle and Latham have long been established and general counsel Jeffrey Ferguson is a former Latham associate. The firm has significantly bolstered its London PE practice recently, with the hires of Clifford Chance’s global head of private equity David Walker and CC partners Tom Evans and Kem Ihenacho.

david.stevenson@legalease.co.uk

For more analysis of Latham’s challenge to the Wall Street hierachy, see Taking Manhattan – can the Wall Street elite hold out in the age of the $5bn law firm?

Legal Business

Asia: Latham hires V&E ex China co-head in HK; NRF hires DLA’s Singapore corporate head; Clayton Utz ends HK association

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The past week has seen global top three firm Latham & Watkins hire Vinson & Elkins’ former China co-head David Blumental in Hong Kong, as Norton Rose Fulbright (NRF) takes on DLA Piper’s Singapore corporate head Sheela Moorthy and big six Australian firm Clayton Utz ends its association in Hong Kong with Haley & Co.

Blumental’s practice covers cross-border M&A, joint ventures, project development and financing, and private equity investments focusing on oil and gas, LNG, infrastructure and mining. He has worked in China, North and South America, Africa, Russia and the CIS, Southeast Asia and Australia.

The oil and gas partner relocated to Hong Kong after Vinson & Elkins closed its Shanghai office in August last year, as energy specialist Tju Liang Chua left the firm to join US rival Sidley Austin in Singapore.

‘As we continue to position ourselves as one of the leading global oil and gas firms David has a unique blend of Asian experience and knowledge that makes him an exciting and important addition to our existing Asian energy and natural resources team,’ said David Miles, chair of Lathams’ Asia practice and a partner in the firm’s Hong Kong office.

Elsewhere NRF, which last month had its Singapore qualifying foreign legal practice (QFLP) licence extended for another five years, has bulked up its presence in the region with the hire of Moorthy, who becomes the fourth partner exit from DLA’s Singapore office in two years.

Moorthy has over 20 years’ experience working on cross-border transactions in Singapore, Indonesia, India, Korea, Malaysia, the Philippines, South Africa, Thailand and Vietnam.

QFLPs, which enable law firms to practice some Singapore law, are highly sought after and held by only nine international law firms in total, despite 23 applying in 2012.

‘Her dual qualification in England and Singapore is significant for the practice, and her experience in the energy, life sciences and technology sectors makes her a great fit for our team and our clients,’ said Jeff Smith, head of NRF’s Southeast Asia practice.

Meanwhile, Clayton Utz has called time on its association with Hong Kong firm Haley & Co after four years. Chief executive partner Darryl McDonough said the move reflected the evolution of Clayton Utz’s international strategy and its focus on being Australia’s top-tier independent law firm. This comment follows recent tie-ups between peer group firms such as Freehills, Mallesons Stephen Jaques and Blake Dawson with global firms Herbert Smith, King & Wood (and subsequently SJ Berwin) and Ashurst respectively.

‘With the changes in the legal services market we have developed a clear strategic focus on being Australia’s pre-eminent top-tier independent law firm with deep relationships with a comprehensive network of “best in market” law firms in key international jurisdictions. The success of that clear strategic focus led us to a mutual agreement with Haley & Co to withdraw from our association,’ said McDonough.

Glenn Haley, the senior partner of Haley & Co, said that the end of the association will have no effect on the firm’s Hong Kong office. The association is due to end on June 30.

Caroline.hill@legalease.co.uk

Legal Business

Latham bolsters City arm with hire of partner Lucy Oddy as BLP finance departures keep coming

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Berwin Leighton Paisner (BLP) structured finance partner Lucy Oddy is set to join Latham & Watkins, representing a further City partner hire for the acquisitive US firm and further fallout from BLP’s beleaguered finance team.

Oddy moved to BLP from Clifford Chance in 2010, where she worked in the structured finance team for 12 years in both London and Tokyo. She advises clients on a broad range of complex, cross-border finance matters in the UK and across Europe, with particular experience in securitisations and structured products.

Her departure follows the news yesterday (24 March) that the top 20 firm has lost another two City banking partners, with real estate finance duo Andrew Flemming and Jo Solomon set to join top 10 LB100 firm Hogan Lovells.

For Latham, meanwhile, the hire follows the high profile recruitment last month of Clifford Chance private equity partner Kem Ihenacho and Weil, Gotshal & Manges funds partner Nick Benson in January. Ihenacho was Latham’s third CC partner hire after global head of private equity David Walker joined in April last year followed by Tom Evans in October. The office now has 250 fee earners including over 60 partners.

Nick Cline, Latham’s London office managing partner, said: ‘Lucy’s hire continues the firm’s significant investment in the London office across our core practices. Her excellent reputation and wealth of experience will enhance the first-class finance offering that we provide to our clients, from our top-ranked bank and bond practices, through restructuring and project finance, to derivatives and structured finance.’

david.stevenson@legalease.co.uk

Legal Business

US financial results 2013: Latham sees moderate growth in PEP and revenue

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Still basking in London in the news that it has hired leading Clifford Chance (CC) private equity partner Kem Ihenacho, Latham & Watkins yesterday (19 February) released moderate US growth figures for 2013, with revenue up by 2.7% to $2.29bn.

Profit per partner has increased by almost 2% to $2,490,000, up from $2,443,000 the previous financial year. Revenue per lawyer has also increased by a modest 1.4% to $1,110,000 from a 2012 figure of $1,095,000.

While the firm continues to make significant inroads in its key markets, speaking to Legal Business yesterday, outgoing managing partner Bob Dell said that the global economy continues to be a challenge. ‘We’ve been dealing with an anaemic economy around the globe for 6 years now,’ he said.

‘We keep waiting for the recovery to kick in fully. For a very large firm with offices around the world, the global economy makes a difference.’

However, over a five-year period, the Los Angeles-originated firm’s revenue has increased by 14%, and in a statement yesterday the firm attributed its sustained growth to its industry focus, integrated practice and culture.

In London, Ihenacho is the firm’s third private equity lateral hire from CC after David Walker and Tom Evans, and Nick Cline, London managing partner, said: ‘The significant investments we made last year have helped generate strong momentum in the London market and give us good reason to be optimistic about the year ahead. There is renewed confidence in Europe, capital markets are performing strongly and our ability to switch debt financing work across different product areas and between top-tier practices in London and New York continues to stand us apart.’

Ihenacho’s hire is the sixth London lateral since May last year, with the others being Dean Naumowicz from Norton Rose Fulbright; Simon Bushell from Herbert Smith Freehills; and Nick Benson from Weil Gotshal & Manges. The office now has 250 fee-earners including over 60 partners.

In the past year, Latham has opened an office in Dusseldorf with three top-ranked partners from Shearman & Sterling. A fourth partner in the group joined Latham in Munich and the firm has also made senior hires to its office in Brussels.

Dell told Legal Business: ‘Our culture is to keep innovative and entreprenurial but at the same time collegiate; that balance is an important one to strike and I think we’ll continue in that way.’

Latham’s results come after other early 2013 results from Dechert and Sidley Austin revealed a growth in turnover of 6.6% and 7% respectively.

david.stevenson@legalease.co.uk

For further in depth analysis of the US market see Taking Manhattan – can the Wall Street elite hold out in the age of the $5bn law firm?

Legal Business

Taking London – Latham on the offensive in the Square Mile with hire of third private equity partner from CC

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As our Taking Manhattan cover feature underlines, the Los Angeles-bred Latham & Watkins continues to make major inroads in the key global hubs of New York and increasingly London. Making the point again, the global giant has today (18 February), announced the recruitment of high-profile Clifford Chance (CC) partner Kem Ihenacho, the third private equity partner to join Latham’s City arm from CC in the last 12 months.

The move follows the departure of former CC global head of private equity David Walker in April last year and another CC partner Tom Evans in October.

Ihenacho was the co-head of CC’s Africa practice and a key relationship partner for the Carlyle Group. Walker was also a key Carlyle contact and the loss of Ihenacho will raise fresh questions over CC’s grip on the client. Former Latham associate, Jeffrey Ferguson, is general counsel at Carlyle and sits on the management board.

Latham recently advised Carlyle on the acquisitions of Addison Lee and Chesapeake Packaging. The Addison Lee deal was led by Michael Bond, who handles the firm’s relationship with Carlyle in London. The US law firm’s private equity clients also include KKR, EQT, Advent International, BC Partners, Charterhouse, Nordic Capital and PAI Partners.

Despite CC’s historic reputation as Europe’s top private equity practice there is no doubt that such predatory recruitment has impacted on its competitive position in the leveraged buyout market, with US advisers increasingly on the offensive in London.

‘We are now the only firm in the UK market to have top-ranked bank and bond practices and are building a market-leading private equity team to capitalise on this strength. Kem is a rising star with a great reputation and a broad range of experience that makes him an excellent addition to our private equity team,’ said Nick Cline (pictured), managing partner of Latham’s London office.

‘Having market-leading capability on both sides of the Atlantic stands us apart from many of our competitors. Kem’s arrival further strengthens our reputation in the European PE market,’ added Dan Lennon, global chair of the firm’s corporate department.

The firm has already been bulking up its private equity practice this year, with the hire of former Weil, Gotshal & Manges funds partner Nick Benson in January. The London office now has 250 fee-earners and 60 partners.

david.stevenson@legalease.co.uk

For more analysis on US firms moving into the City private equity market, see Back at the gate: US invaders raise fresh questions over private equity status of CC and Linklaters

Legal Business

M&A: Davis Polk and Latham advise on Smith & Nephew’s $1.7bn acquisition of Arthrocare

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In the third largest M&A deal in the UK this year after Liberty Global’s $10bn takeover of Ziggo and Amec’s $2.7bn acquisition of Foster Wheeler, Davis Polk & Wardwell is advising Smith & Nephew on its $1.7bn acquisition of Texas-based medical device company ArthroCare opposite Latham & Watkins.

The Davis Polk team includes corporate partners George Bason and Michael Davis, along with Jeffrey Crandall who is providing executive compensation advice. Partners Ronan Harty and Kathleen Ferrell are providing antitrust and tax advice respectively. Davis Polk is advising from its New York and Washington offices.

London Stock Exchange-listed Smith & Nephew, with a market capitalisation of £7.9bn, has in the past used firms including Ashurst and Magic Circle giant Freshfields Bruckhaus Deringer for corporate work, with Freshfields also having recently advised the corporate on employment and pensions matters.

Latham’s corporate team for Arthrocare is being led by Silicon Valley partners Michael Hall and Josh Dobofsky, along with Orange County corporate partners Charles Ruck and David Lee and Washington D.C-based antitrust partners Michael Egge and Amanda Reeves.

Compensation and benefits advice is being provided by Silicon Valley-based James Metz; intellectual property advice by partner JD Marple; health care regulatory matters by Washington-based partners John Manthei Stuart Kurlander; and securities and finance advice by Washington-based partner Joel Trotter and New York partner Wesley Holmes.

ArthroCare is based in Austin, Texas and employs around 1,800 people. In January the company and the U.S Department of Justice (DOJ) entered into a deferred prosecution agreement resolving an investigation by the DOJ into allegations of securities and related fraud going back to 2008.

david.stevenson@legalease.co.uk

Legal Business

Revolving doors – Weil, Latham, Freshfields and Dentons among the firms opening 2014 with senior recruits

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Increasing confidence in the transactional market has contributed to a rash of senior partner moves at the start of 2014, with the UK’s leading firms bolstering both their London and international practices.

In the City, upwardly mobile US practices continued to boost their capability with Weil, Gotshal & Manges hiring Hogan Lovells banking and finance partner Chris McLaughlin, who has extensive experience of cross-border private equity buyouts and European real estate acquisitions and restructuring. His hire came a week after Latham & Watkins hired Weil Gotshal funds partner Nick Benson, its fifth City hire within the past 12 months.