Legal Business

‘Why not me?’ – the law firms leading the way in the Social Mobility Employer Index

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Social mobility Browne JacobsonLinklaters

Browne Jacobson has topped the 2024 Social Mobility Employer Index with Slaughter and May, Linklaters, Lewis Silkin, Norton Rose Fulbright and Freshfields all ranking within the top 10.

In total, 25 law firms have made it into the Index’s top 75 employers, with other notable inclusions including Macfarlanes (13), Clifford Chance (14), CMS (17), Ashurst (20), DLA Piper (27), Pinsent Masons (33), and Simmons & Simmons (55).

Established by the Social Mobility Foundation in 2017, the Index is a benchmarking tool that celebrates organisations leading the way in creating inclusive workplaces accessible to individuals from all social backgrounds.

Browne Jacobson’s first place (which was shared with PwC UK) marks the fourth consecutive year it has placed in the top two. Caroline Green (pictured top), senior partner at Browne Jacobson, who leads on diversity, inclusion and wellbeing at the firm tells Legal Business she was ‘thrilled’ to top the table, adding, ‘you can’t win an accolade like this without lots of people contributing – it’s a whole firm effort’.

The firm, which shares best practice with a range of public and private sector clients, has received praise for an array of social mobility efforts. These include its school outreach programme, conducted at non-selective state schools, and its Fairer Access to Real Experience (FAIRE) programme which offers work experience opportunities to candidates from lower socio-economic backgrounds.

It also removed its minimum grade requirements of 2:1 and ABB in 2016 after Green reveals an internal survey showed that ‘some of our best solicitors didn’t have the qualifications that the profession was insisting on’.

Linklaters placed 6th in the Index this year, marking the second year running the firm has finished in the top ten and the eighth consecutive year it has featured in the Index.

Global head of corporate and ExCom champion for social mobility at Linklaters, Simon Branigan describes the ranking as a ‘testament to the work we are doing across social impact, recruitment and internally.’

‘We have a Social Mobility Network with people across the firm from all practices and all levels of seniority – they are engaged, active and incredibly passionate about what they do.’

The network, which shares best practices with large corporations and financial firms, runs a range of initiatives. Branigan highlights coffee drop-ins where senior partners share their stories as one that has made a big impact. He has his own story to tell, as the first member of his family to do A-Levels and then attend university, and has seen first-hand how powerful it can be for members of staff to hear it.

Linklaters’ social mobility initiatives also include a nationwide apprenticeship program for school leavers and social impact projects with a local school in a disadvantaged London ward. While the firm prioritises social mobility in its recruitment strategy, Branigan is passionate about taking proactive measures earlier on.

‘We aim to break down barriers as early as possible so that children can see the legal profession is within their reach and ask themselves: ‘Why not me? Why shouldn’t I be one of those lawyers at a firm like Linklaters?’

There is still work to be done: a report released by the SRA in July 2024 showed that 57% of lawyers come from a professional socio-economic background and that 21% of lawyers attended an independent/fee-paying school, far outstripping the national average of 7.5%.

However, the high representation of law firms on the Index is proof that the profession is taking the issue of social mobility seriously.

Branigan believes progress will continue to be made: ‘I’m optimistic. I see how seriously law firms take the issue – it’s not tokenism. I can see the passion with which law firms talk about this.’

Green is similarly hopeful: ‘You have to be optimistic with the number of law firms on the Index – it’s encouraging.’

tom.cox@legalease.co.uk

Efforts to improve social mobility in the legal profession will be among the many law firm initiatives recognised at the upcoming UK ESG Awards 2025 in London next year – for more details and how to submit, click here.

Legal Business

Paul Weiss continues to add Kirkland alumni in London as TDR GC Holdsworth joins

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Revolving doors DechertLinklatersPaul, Weiss, Rifkind, Wharton & Garrison

Paul Weiss has continued its rapid London expansion with the hire of TDR Capital general counsel David Holdsworth, who is returning to private practice after less than two years at the private equity house

He is set to join as a partner in the US firm’s London private equity group, bringing the firm’s London partner headcount to 27, according to its website.

Holdsworth joined the London-based TDR in January 2023 after a 15-year stint at Linklaters, where he made partner in 2009, followed by six years at Kirkland & Ellis. At Paul Weiss he will be reunited with a number of his former colleagues from Linklaters and Kirkland, including London co-heads Neel Sachdev and Roger Johnson.

Johnson, who is global co-chair of the firm’s M&A practice, referenced the pair’s shared background at Kirkland in a statement, saying: ‘David is an exceptional lawyer, and I am delighted to once again have him as my partner.’

Paul Weiss chair Brad Karp (pictured, top) added: ‘David will be an excellent counselor to our private equity clients on their most complex transactions in the UK and Europe.’

Holdsworth’s move comes amid a flurry of additions to the US firm’s London office that have seen it repeatedly raid Kirkland. Asset management transactional specialist James King joined as partner from Kirkland in April, then at the beginning of August the firm announced it had recruited his Kirkland colleague Jeremy Leggate as European investment funds co-head.

This was quickly followed by the addition of investment funds partner David Pritchett, described as a ‘fantastic addition to our partnership’ in a statement by Karp, who also went on to say: ‘His experience working on complex fund formation matters will make him an exceptional asset to our growing global investment funds group.’

According to its website, the US firm now has around 150 lawyers in London, which, according to the most recent Global London ranking, puts it alongside firms such as Debevoise & Plimpton, Gibson Dunn and Cleary Gottlieb. The firm has a set itself a target of reaching 200 by the end of 2024 – a number which would place the firm among the top 20 Global London firms.

Other firms strengthening their partnerships include Dechert, which has bolstered its financial services ranks in Dubai with the addition of partner Amanjit Fagura from Morgan Lewis.

Dechert co-chair Mark Thierfelder said in a statement: ‘Ama’s global expertise and innovative approaches to fund structuring and investment transactions will be a tremendous asset to our clients.’

Fagura specialises in private funds and investment solutions for Middle East investors, including the structuring of Shari’a-compliant investments, while she also brings expertise in Sukuk issuances, and both conventional and Islamic financings.

Gus Black, co-chair of Dechert’s financial services practice group, added: “Ama’s arrival is a strategic enhancement to our global team and her expertise will significantly strengthen our capabilities in the Middle East region.”

In Sweden, Linklaters has boosted its leveraged finance offering  with the addition of senior partner and Legal 500 banking and finance Hall of Famer Magnus Wennerhorn, who will lead the firm’s banking and finance practice in Stockholm.

Wennerhorn’s move comes after 19 years at White & Case where he was most recently co-head of its debt finance practice. Rebecca Jarvis, Linklaters’ global co-head of banking, said in a statement: ‘We are excited to welcome Magnus to our banking practice where his skillset will strengthen a targeted area of growth, working closely with our network to service banks, financial sponsors and corporates both locally and globally, wherever they are in the world.’

In Riyadh, Latham & Watkins has hired Leen Zaza from independent Saudi firm Khoshaim & Associates (K&A) into its M&A and private equity practice. Zasa made partner at K&A in 2020 and is a Legal 500 next generation partner for commercial, corporate and M&A. She joined K&A as an associate in 2012. At that time, the firm had a cooperation agreement with pre-merger Allen & Overy, a deal which ended in December 2020.

‘Leen is a highly regarded practitioner with first-class technical skills and a wealth of experience advising on some of the region’s most significant strategic M&A and private equity transactions’, said Latham’s MENA region managing partner Salman Al-Sudairi in a statement. ‘Her broad practice spans important sectors that are central to Saudi Arabia’s ambitious growth plans, and she will be a terrific addition to our strong and growing team.’

tom.cox@legalease.co.uk

Legal Business

Linklaters claims top spot in Stonewall Top Employers list

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Diversity Linklaters

Linklaters has leapt to first place in Stonewall’s Top 100 Employers 2024 list, while last year’s number one Clifford Chance has dropped outside of the top ten for the first time since 2020 and is ranked 14th.

The prominent LGBTQ+ charity assesses its rankings using its workplace equality index, a voluntary benchmarking tool designed to help UK-based organisations measure and improve their LGBTQ+ workplace inclusion. The index measures key areas of employment policy and practice such as staff engagement and the implementation of LGBTQ+-inclusive policies and benefits.

Linklaters has now been ranked in the top 100 for six consecutive years. Its surge to first follows a leap from 53rd to ninth last year, and marks a notable improvement after the firm hovered around the 50s and the 60s between 2019 and 2022.

In explaining its decision to award first place to Linklaters, Stonewall praised the ‘plethora of opportunities [for employees] to get involved in diversity, equity and inclusion initiatives’ at the firm, and highlighted that ‘events like bi visibility day and non-binary people’s day are celebrated as part of the annual LGBTQ+ calendar’.

Twelve law firms in total are included in the top 100 ranking – up from 11 in last year’s list but down from 15 in 2022. Among those, Charles Russell Speechlys, has climbed significantly higher in the rankings, while   Slaughter and May  and Shepherd and Wedderburn are notable reentries, having not featured in 2023.

In contrast, Irwin Mitchell, RPC and Womble Bond Dickinson have all moved down the rankings. Meanwhile, TLT, which placed 96th last year; Mills & Reeve, which placed 38th in 2023 and Leigh Day which placed 25th last year, have not made the 2024 rankings.

The Stonewall list has shown the legal profession in a good light in recent years. 2024 marks the third time in the last six years that a law firm has ranked first, with Pinsent Masons taking the top spot in 2019 and Clifford Chance in 2023.

tom.cox@legalease.co.uk

Legal Business

‘We’ve had our best year ever in the UK and US’ – Linklaters breaks £2bn revenue barrier with double-digit growth

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Financial results Linklaters

Linklaters has become the first magic circle firm to announce its 2023-24 financial results, breaking through the £2bn mark for the first time after a double digit increase in revenue.

The firm confirmed record revenue and profits, with revenue climbing 10% from £1.901bn last year to £2.1bn, and pre-tax profit climbing 10.3% to £942m, from last year’s figure of £854m.

This translated to an 8% increase in profit per equity partner (PEP) to £1.9m while average profits across all partners climbed to £1.8m.

The firm highlighted its UK and US operations as standout performers, stating that both had posted their best-ever results. Its US revenues climbed by 24%. Linklaters’ most recent Companies House filing for the financial year ending April 2023 showed that the firm’s global revenue included £823.1m from the UK and £122.2m from the Americas.

Linklaters managing partner Paul Lewis told Legal Business: ‘We’ve been very strong globally – we’ve had our best year ever in the UK and US, Europe has been very strong and, notwithstanding a challenging market in China, you can look across the firm and it’s been strong across the board.’

‘We want to be bigger in the US’, he added, pointing to the January hire of a six-lawyer M&A team from Shearman & Sterling as a statement of intent. Led by Legal 500 Hall of Famer for $1bn-plus M&A deals George Casey, the team also includes partners Heiko Schiwek and Gregory Gewirtz.

‘The team hire in January has been a real success on all fronts. That was the start and by no means the end and we are actively looking to hire more. We’ve changed the system so that we have the ability to pay at very competitive levels,’ Lewis continued.

Discussing the practice drivers for the firm’s growth, Lewis said: ‘As part of our strategy, we’ve focused on six areas: high-end M&A, contentious mandates, complex financings, restructuring and insolvency, energy transition and tech. We’ve focused on investing in those areas, including lateral hires and partner elections, and when I look across the piece at the results, we’re on track and those investments are working.’

In the deals arena, Linklaters is advising UK drinks maker Britvic on its takeover by Carlsberg for £3.3bn, opposite Baker McKenzie. The firm is also advising UK homebuilder Barratt Developments on its proposed £2.5bn merger with Redrow, as well as multinational packaging group Mondi on its £5bn acquisition of DS Smith.

In restructuring, Linklaters’ team advised Crédit Agricole on the cross-border restructuring of global engineering and construction business McDermott International. Meanwhile, in disputes, the firm took on competition litigation mandates for Visa and has also been advising Experian on data protection related challenges.

Linklaters elected 27 new partners and 49 new counsel in its most recent promotion round, meeting its 40% global gender diversity target for female partner promotions, and its 15% target for under-represented minority ethnic partners (UK and US). The firm also recorded 55,000 hours globally on pro-bono work – its highest ever.

However the firm has seen a number of exits over the last year, with public M&A partner Dan Schuster-Woldan and antitrust partner Nicole Kar both leaving to join Paul Weiss’s ambitious London office.

Although Linklaters has changed its partner remuneration structure to make it easier to compete with high-paying US firms, Lewis stressed that competition goes beyond money.

He said: ‘It’s not all about money. It’s about doing the best work for the best clients. We are in 21 jurisdictions, and we can offer high-end, elite advice in all the places we are in. That is a competitive advantage because you’re trying to do the big complex, cross-border matters and that’s where we excel, with our seamless network making the difference.’

‘We’re focused on what we can deliver rather than worrying too much about what others are doing,’ he concluded.

elisha.juttla@legalbusiness.co.uk

Legal Business

‘Slightly alarming’ – Clifford Chance, Linklaters, A&O Shearman match Freshfields’ NQ pay hike

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Salaries Clifford ChanceLinklaters

Clifford Chance and A&O Shearman joined Linklaters this week in matching Freshfields’ NQ pay hike from £125,000 to £150,000, leaving Slaughter and May the sole Magic Circle firm still on the lower rate.

Following the pattern set by Freshfields earlier this month, all three firms are also increasing trainee pay. First-year trainee salaries at each firm will rise from £50,000 to £56,000, while second-year trainee salaries will increase from £55,000 to £61,000.

Commenting on the pay rises, Linklaters firmwide managing partner Paul Lewis said in a statement: ‘We are committed to rewarding our people competitively in our market. Our salary changes reflect this and enable us to attract and retain exceptional lawyers to provide the highest quality service to our clients.’

A&O Shearman’s statement, meanwhile, quoted new London managing partner Denise Gibson: ‘Our compensation structure gives us flexibility to reward expertise, performance and wider contribution and is designed to be highly competitive to reflect the markets in which we operate.’

The move also means that legacy Shearman lawyers at the now-merged firm will avoid taking the pay cut they faced when it was reported in April that A&O Shearman would stick with the legacy A&O NQ salary of £125,000 rather than matching Shearman’s £145,000.

However, some recruiters are warning that this latest round of NQ and trainee salary hikes will raise concerns among mid to senior-level lawyers.

Speaking to Legal Business, David von Dadelszen, director at James Legal, said: ‘This is a slightly alarming continuing trend that isn’t reflecting of increasing salaries for more senior lawyers where it may create retention issues. Clients must question getting advice from junior lawyers who are paid so highly.’

In a similar vein, Hannah Benger, business manager at Montresor Legal told LB: ‘Magic Circle salaries usually level out at the mid to senior level, which may create some issues, particularly given the consistent increases at leading US firms.’

She continued: ‘The other Magic Circle firms may find it harder to retain their top talent if they do not match the £150,000 NQ salary level. Although there has been some disparity in NQ pay between the Magic Circle in recent years, this is harder to justify given the significant and uniform increase at Freshfields, Linklaters and Clifford Chance.’

The increases will pile pressure to up salaries on other London firms. Slaughter and May last raised NQ salaries in November, with no further increase after its most recently six-monthly pay review in April.

However, many US firms continue to offer pay packets still more generous than even the increased Magic Circle rates. In Benger’s words: ‘The client base of Magic Circle firms is different to US firm clients who are used to paying a lot more.’

With NQ bonuses to be paid out in the coming months, Benger added: ‘It will be interesting to see what the Magic Circle firms do with bonuses. It is coming up to bonus season, and there is likely to be renewed interest in making a move to premium US firms if Magic Circle firms cannot compete with Cravath bonuses.’

elisha.juttla@legalbusiness.co.uk

alexander.ryan@legalbusiness.co.uk

Legal Business

‘A transformational step’: Links defies US strategy critics to hire Shearman New York M&A team

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Strategic recruitment Linklaters

In a move that may come as a surprise to detractors of the Magic Circle firm’s US ambitions, Linklaters today (8 January) announced it has expanded its New York M&A offering with the hire of a six-lawyer team from Shearman & Sterling.

The team is led by George Casey, a global managing partner at Shearman since 2018 and a Legal 500 Hall of Famer for $1bn-plus M&A deals. He joins Linklaters as global co-chair of corporate. His career has seen him advise on mega-mergers in chemicals and pharmaceuticals, including Celanese’s $11bn all-cash acquisition of the majority of DuPont’s mobility and materials business in 2022, and DuPont and Dow Chemical’s $130bn merger in 2015.

Casey moved alongside partner Heiko Schiwek, who comes to Linklaters as one of the firm’s chemicals sector global leaders. Meanwhile, Greg Gewirtz was counsel at Shearman and joins Linklaters as a partner, while the team is rounded out by counsel Yiting Du, senior associate Wendy Suh, and associate Michael Lomtevas.

‘Growing our M&A capacity in the US is a strategic priority for us and George and his team joining is a transformational step’, said Linklaters managing partner Aedamar Comiskey in a statement. ‘Adding a market-leading M&A practice in New York to our preeminent global M&A offering means we can support our clients in all core markets.’

A Shearman spokesperson said in a statement: ‘Our market-leading M&A team had a stellar year in 2023, with rankings in the top 15 globally for both deal value and deal volume, as reported by The American Lawyer earlier this week, driven by exceptional partners across the platform. Upon the imminent completion of our transformative merger with Allen & Overy, A&O Shearman is expected to have more than 180 M&A partners who, together, will provide unparalleled capability to global businesses. We thank George and Heiko for their contributions and wish them well.’

Linklaters has argued that its approach to the US is one defined by caution. It has made some notable US hires in regulation, litigation, and energy, but has nonetheless been seen as a slower mover than comparable firms. It has lagged behind its Magic Circle peers on both revenue and headcount. As of August 2023, it had just 39 partners in the US, compared to 77 at Freshfields, 87 at Allen & Overy, and 100 at Clifford Chance. Its Americas revenue for 2022 was £101.2m (6% of its firm-wide turnover), compared to £252.4m (13%) for A&O. CC and Freshfields, meanwhile, each made 13% of their revenue in the US in 2022: £224.5m for Freshfields and £259m for CC.

UK firms have long struggled to break into New York M&A – often viewed as the jewel in the crown of the super-profitable US market. Freshfields sought to win work with a clutch of key strategic hires – and paid top dollar to do so.

A&O, for its part, placed its bets on a merger with Shearman, with the two firms set to combine as A&O Shearman from May of this year. Shearman faced a slew of departures both before and after the merger was announced in May, and has been bedevilled by declines in revenue and profitability (as Legal Business noted in this year’s Global 100 report, it has the dubious distinction of being the only firm to post a decrease in revenue for the period 2018-23).

The New York firm’s reputation suffered, but few would dispute that it remained strong in New York M&A, with the access it would provide to that work often viewed as a core part of the rationale for the merger on A&O’s side. These departures to Linklaters mark the first from the firm’s key practice since the merger was announced: former real estate investment trusts group co-head Malcolm Montgomery was the only partner to leave the firm in New York since last May, while its bigger losses occurred overseas. It is far from depleted – its website still shows 12 partners in M&A in New York. But the moves nonetheless leave a dent in the firm’s armour in a core practice – and will be seen as a clear statement of intent from Linklaters.

alexander.ryan@legalease.co.uk

Legal Business

Linklaters sees 2% profit decline as revenue falls short of the £2bn milestone

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Financial results 2022/23 Linklaters

With financial reporting season in full swing, Linklaters is the latest Magic Circle firm to drop its financial results, reporting a 7% revenue increase from £1.8bn to £1.9bn, seeing it fall just short of the $2bn turnover barrier passed by both Allen & Overy and Clifford Chance recently.

Pre-tax profit is down by 2% to £854m from last year’s £872m, translating to a 5% decline in PEP from £1.87m to £1.78m.

Linklaters managing partner Paul Lewis said in a statement: ‘We’re pleased to have delivered a strong financial performance, despite a challenging high-inflation environment and ongoing geopolitical instability.’

He added: ‘Entering the new financial year we have seen a strong deal flow, particularly across energy & infrastructure, high-end M&A and from financial sponsors, notwithstanding the wider slowing of the global M&A market. The challenging economic environment has led to an increase in restructuring and insolvency matters and we have also seen an uptick in regulatory and criminal investigations as well as a rise in class actions, particularly in the tech sector.’

Linklaters reports that it has seen ‘significant growth’ in revenue from high-end M&A with top mandates that include advising Carrier Global Corporation on its acquisition of Viessmann Climate Solutions and HSBC on the sale of its Canadian banking business to Royal Bank of Canada.

Similarly, the firm also gives credit to the performance of its energy sector, with a particular focus on energy transition mandates that made up the majority of energy-related work over the last financial year. Whilst it is public knowledge that Links has struggled to make an impression on the US market, the addition of its energy and infrastructure team in the US has resulted in some mid-tier US mandates, including advising Actis on its new $500m Japanese renewables platform.

Beyond financials, the firm also reported that it had elected 41 new partners and 53 counsel in its latest promotion round, while meeting its 40% global gender diversity target for female partner promotions, and its 15% target for under-represented minority ethnic partners in new partner elections annually in the UK and US.

In the legal tech arena, the firm also reported that CreateIQ, its document automation and contract management platform, ‘grew at a rate of nearly 100% during FY2023 with over 100 digitised templates added, attracting over 300 institutions including major banks, asset managers, insurers and governments. ReportiQ, the firm’s next-generation due diligence reporting platform, ‘has now been used by Linklaters lawyers across 17 offices and external counsel in 21 countries to generate reports on €18bn worth of deals’.

Links is the third member of the Magic Circle to publish its financial results so far, with both A&O and Clifford Chance officially breaking the £2bn barrier. A&O’s revenue grew by 8% from £1.94bn to £2.1bn, while CC recorded a revenue increase of 5% from £1.969bn to £2.062bn.

With Freshfields the last of the four UK elite international firms to post its results, the picture so far is clearly one of modest revenue increases matched by a decline in profitability this year, as firms across the globe driven by transactional work struggle with the downturn in deals.

Ayesha.Ellis@legalease.co.uk

 

Legal Business

KPMG names Linklaters deals guru Bedford as new UK law chief

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KPMGLinklaters

While traditional law firm leaders have to date largely scoffed at the progress made by the Big Four, today’s (20 December) news of KPMG appointing a Magic Circle corporate veteran as its new UK legal head will have turned heads.  

The accountancy firm revealed that Linklaters deals partner Stuart Bedford will become its head of law for the UK in April 2023, replacing the longstanding Nick Roome. Roome, who has held the post since 2015, is being promoted to a new role where he will concentrate ‘on growing KPMG’s global legal solutions.’ 

Bedford will bring with him a notable track record, having been named Linklaters’ London corporate head in 2014 and boasting several high-profile advisory mandates. During his career, Bedford has advised on the IPOs of Bumi, Fresnillo, Hochschild Mining, Xchanging, Britvic and Investec, and in 2015 he assisted Brait on its £1.9bn acquisition of New Look and its £1.3bn acquisition of Virgin Active.  

He also has considerable in-house experience, thanks to stints at BAE Systems, Grosvenor and an 18-month spell at private equity house Leapfrog Investments. 

Bedford said of his appointment: ‘I am excited to be taking on this new challenge and aim to build on the impressive strides KPMG Law has made in the past few years. We have a huge opportunity to build on the great work we are already doing at a time of accelerated change within the legal sector. I am very much looking forward to working with the team as we help our clients and the firm to achieve their ambition.’ 

Established in the UK in 2014, KPMG Law has made significant progress in the last couple of years. According to the firm, revenues have expanded by over 80% in that two-year period. 

This is on top of an ambitious growth strategy which was announced earlier this year. In May, KPMG Law revealed an eye-catching £300m investment programme designed to supercharge growth. Speaking to Legal Business in October, Roome said the programme gave him a mandate to hire over 200 new lawyers and nearly triple KPMG’s partner headcount, from 35 to 90, by 2024. He added this would largely be done via lateral hiring.  

For a comprehensive review of KPMG Law’s evolution since 2014, as well as the thoughts of law firm leaders on the rise of the Big Four, read our interview piece with Roome from October.  

tom.baker@legalease.co.uk  

Legal Business

‘People are our biggest asset’: Linklaters’ incoming Paris head Maigrot outlines strategy

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France Linklaters

Linklaters has elected its head of real estate in France, Françoise Maigrot, as its new managing partner in Paris. Taking over from banking, energy and infrastructure head Bertrand Andriani, Maigrot will begin her four-year term on 1 January 2023.

Speaking to Legal Business, Maigrot outlined her priorities on assuming the role: ‘One is having a Paris office that is really outward facing and growing at the top of the market, making sure we are taking advantage of all our strengths, including our cross-practice nature. There are very few firms based in Paris that have our breadth of expertise or our European network.

‘The second is people. People are our biggest asset, and we are committed to attracting and retaining the right people. We have the best talent joining us and believe in organic growth by investing in them as associates, then counsel, and then partners.’

Practice area-wise, she highlighted corporate as an area of immediate focus: ‘Today we have seven [corporate] partners but we have an ambitious growth plan for the team. We are also very strong on everything that relates to energy, projects and infrastructure. We are very well equipped, but as the market grows we want to ensure we continue to deliver excellent client service.’

In pursuing that growth strategy, Maigrot, a Linklaters lifer herself having joined in 1999, noted: ‘Our priority has always been to give preference to internal growth’, but acknowledged that ‘when there’s a need in a specific practice area or specific area of law, we will be looking outside the firm.’

It may be seen as an inopportune moment to be taking the reins, given the economic headwinds currently buffeting much of Europe. Nevertheless, Maigrot is confident the coming months will be positive: ‘The war for talent is a really challenging issue, but it’s the same for all of us, not just Linklaters. We are also watching the economic situation, which could become a challenge but when I look back at 2008, 2011 or even the way we’ve responded after Covid, the business community is quite resilient.’

She also confirmed that her new role will not prevent her from maintaining her practice, which focuses on advising investors, funds and end users on real estate transactions across Europe. ‘That has been my clients’ first question! I told them: “Sleep well, it’s business as usual and I’ll continue to always be there for you”.’

Charles.Avery@legalease.co.uk

Legal Business

‘Bold and decisive’: Linklaters sees 6.5% revenue rise as £1.87m PEP lags Magic Circle

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Financial Results 2021/22 Linklaters

As financial results season continues apace, Linklaters today (9 August) joined Magic Circle peers in showing its hand, posting a 6.5% uptick in revenue to £1.783bn.

Pre-tax profit also saw a comparable increase of 7% to £871.7m. That translated to a 5.4% rise in profit per equity partner (PEP), which reached £1.87m, and a 4.5% rise in profit per all partners, which now stands at £1.78m.

The results are the first set overseen by managing partner Paul Lewis after the finance head was elected in July 2021 to take the helm from illustrious leader Gideon Moore.

The turnover numbers will be seen as a fillip for the firm after muted 2% growth to £1.67bn for the 2020/21 financial year. However, last year’s double-digit profit boost could not be maintained, with the latest pre-tax profit figure a more muted showing than the 12% jump last year.

Lewis said: ‘We are pleased to report a strong set of financial results, largely driven by increased revenues from robust markets and sustained deal activity over the past financial year.

‘Our strategy is built on the premise that we will deliver profitable growth by excelling for clients. We are able to achieve this due to the quality, hard work and client-centric approach of our people.

‘In a post-pandemic world with growing political and economic uncertainty, our clients require complex legal solutions. The investments we have made over the year have ensured that we are able to provide the right combination of global coverage and high-quality cross practice expertise. To excel for our clients we need to be nimble, bold and decisive in our approach, which we will continue to be as we look ahead to the next financial year.’

When compared to the rest of the Magic Circle, the results make for interesting reading. Clifford Chance and A&O both recorded larger revenue increases of 8% and 10% respectively, in addition to higher profit rises of 9%. The pair also had higher absolute revenues, with both edging closer to the £2bn mark. For its part, Freshfields grew revenue 10% to £1.7bn.

Linklaters also came up slightly short when it comes to PEP. Freshfields led the pack, with a PEP increase of 8% to £2.07m from £1.91m last year. CC also passed £2m for the first time after a 10% increase, while A&O, though only managing a 3% increase, hit £1.95m.

charles.avery@legalease.co.uk