Legal Business

Edwards Wildman posts 10% turnover slide in UK with latest LLP accounts

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Having endured a difficult time in recent months with the exodus of multiple partners from its London office, US firm Edwards Wildman has also seen financial challenges in the UK as evidenced by its latest LLP accounts which recorded a 10% drop in turnover to £25.1m from £27.8m, alongside a 21% drop in profit available for discretionary division among members to £7.6m.

According to the firm’s latest UK limited liability partnership accounts filed on Companies House and dated to December 31 2013, operating profit decreased 21% to £8m from £10.1m. The amount due on the firm’s bank loan within one year dropped from £243,899 to £142,857, but net debt rose dramatically to £323,827 from £54,952. The firm’s Hong Kong arm also owes the UK LLP an estimated £2.8m which rose from last year’s £2.2m.

Staff costs rose by 4% to £8.2m from £7.9m while the monthly average number of fee earners and support staff dipped modestly from 128 to 120. The firm also operates a defined benefit scheme, a pension arrangement to a former partner, and a retirement healthcare benefits scheme which collectively totals nearly £4.5m, a drop on the 2012 figure of £6m.

Located at Old Broad Street, Edwards Wildman saw a quintet of corporate partners resign over the summer, including venture capital group co-chair Shawn Atkinson who is headed for Orrick, Herrington & Sutcliffe; transactions partner Stuart Blythe, who is joining CMS Cameron McKenna; London private equity and venture capital head David Ramm who is moving to Morgan Lewis & Bockius; Niall McAlister who has departed for Olswang; and capital markets partner Eero Rautalahti whose next move is unknown.

It has also been said that fellow US firm Cooley is set to take on a significant number of partners from Edwards Wildman as the former prepares to establish a presence in London this autumn, while Arnold & Porter was also said to be in talks with commercial litigation partners.

Sarah.downey@legalease.co.uk

Legal Business

Edwards Wildman sees final corporate partner exit for Olswang as Arnold & Porter emerges as ‘in talks’ with disputes team

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Strategic recruitment Arnold & Porter Kaye ScholerCMS UKLocke Lord
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US firm Edwards Wildman has seen the last of its quintet of disgruntled corporate partners resign as it has emerged that Niall McAlister has departed for Olswang.The firm could also potentially face further loss from its City disputes practice as it has come to light that fellow US firm Arnold & Porter has been in talks with its commercial litigation partners. Commercial litigation partner Rod Cowper has already resigned and is moving to City firm Teacher Stern.

Acknowledged by The Legal 500 as having ‘a practical approach and deep industry understanding’ of the market, transactional lawyer McAlister is the latest loss to Edwards Wildman’s corporate team.

Stephen Reese, co-chair of Olswang’s life sciences practice, said: ‘Our successful life sciences practice has been growing rapidly in the last few years. As a result, we having been looking carefully for additional well-known and experienced corporate partners in the sector who can further develop our corporate strength in one of the key sector focuses for our corporate group. Niall was an obvious choice given his experience, and we are excited that he has agreed to join us. Likewise, he was drawn to Olswang because of our reputation in the sector and our unique IP and regulatory law offering.’

Located at Old Broad Street, the original five corporate partners in talks with management over potentially resigning were understood to be unhappy over the lack of support from the US together with issues of ‘disconnection’.

First to resign was co-chair of Edwards Wildman’s venture capital group Shawn Atkinson who is headed for Orrick, Herrington & Sutcliffe. Transactions partner Stuart Blythe, who joined from Bird & Bird in 2011, was next and is set to join CMS Cameron McKenna. It emerged days ago that London private equity and venture capital head David Ramm is to move to Morgan Lewis & Bockius. It is also known that capital markets partner Eero Rautalahti has resigned but it is unclear as to where he will move.

The departure of litigator Cowper, the former London head of litigation for Squire Sanders, will also be a loss to Edwards Wildman’s City disputes team. Ranked as a ‘well regarded’ disputes lawyer, Cowper is experienced in international arbitration and has conducted litigation in all commercial divisions of the High Court, the Court of Appeal, the Supreme Court and the Privy Council.

The firm has also seen a string of insurance exits, including Damian Connolly who went in-house to American managed healthcare company Aetna International; heavyweight Francis Mackie who left for national firm Weightmans; and Mark Meyer who joined Cozen O’Connor’s London office as a partner in its insurance and reinsurance practice. A trio of litigation associates were also understood to have resigned in June, including Rhys Davies who will join Mackie at Weightmans.

Edwards Wildman declined to comment.

Sarah.downey@legalease.co.uk

Legal Business

RPC in talks with breakaway Edwards Wildman partners alongside Cooley and Foley & Lardner

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US firms Locke LordRPC
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RPC is in talks with a potential breakaway group of Edwards Wildman Palmer City partners – made up of corporate partners Niall McAlister, Eero Rautalahti, Stuart Blythe, and insurance and reinsurance partner David Kendall – alongside California-headquartered Cooley and top-60 Global 100 US firm Foley & Lardner.

The formerly five-strong splinter group is down to four after Shawn Atkinson, who served as co-chair of Edwards Wildman’s venture capital group, resigned in June to go to Orrick, Herrington & Sutcliffe.

Legal Business

Further Edwards Wildman City fallout as CMS set to take on corporate partner

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The fallout from the embattled City office of US firm Edwards Wildman continues as it emerges that corporate partners Eero Rautalahti and Stuart Blythe have resigned, with Blythe set to join CMS Cameron McKenna. It was not known at the time of going to press where Rautalahti is headed.

A trio of litigation associates are also understood to have resigned last week, including Rhys Davies, who is set to join recently-departed insurance heavyweight Francis Mackie to Weightmans.

The US top 100 firm has been in talks with disgruntled London partners following a string of exits, amid accusations that resentment has been building over three years due to the City site being ‘neglected’ by its Boston headquarters. Located at Old Broad Street, corporate partner Niall McAlister and insurance and reinsurance partner David Kendall are the final two partners understood to still be in talks with management.

The formerly five-strong splinter group first saw the departure of Shawn Atkinson, who served as co-chair of Edwards Wildman’s venture capital group and who resigned two weeks ago to go to Orrick, Herrington & Sutcliffe.

Last week, Legal Business revealed that partners at the firm were in potential breakaway talks with UK firm, RPC, California-headquartered Cooley and top 55 Global 100 US firm Foley & Lardner.

Sarah.downey@legalease.co.uk

Legal Business

RPC in talks with breakaway Edwards Wildman partners alongside Cooley and Foley & Lardner

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US firms Locke LordRPC
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RPC is in talks with a potential breakaway group of Edwards Wildman City partners – made up of corporate partners Niall McAlister, Eero Rautalahti, Stuart Blythe, and insurance and reinsurance partner David Kendall – alongside California-headquartered Cooley and top 55 Global 100 US firm Foley & Lardner.

The formerly five-strong splinter group is down to four after Shawn Atkinson, who served as co-chair of Edwards Wildman’s venture capital group, resigned last week to go to Orrick.

Located at Old Broad Street, the partners are understood to be unhappy over a lack of support from the US together with issues of ‘disconnection’ and pay.

A partner at the firm said: ‘Everybody has a different take on this. Everyone likes more money and more love from colleagues. That’s like any US firm in London and it’s very normal for a lower end AmLaw firm.’

The firm has denied claims that it is looking to sell off its London office and the partner added: ‘The firm will always have a London office but just different in size.’

The discussions follow a string of partner exits, most recently insurance & reinsurance partner Damian Connolly, who this month took up the position of chief legal officer for American managed healthcare company Aetna International. In early June, insurance heavyweight Francis Mackie started a new role at national firm Weightmans.

An ex-partner told Legal Business: ‘It’s the usual mixture of problems of a London office when it goes to the stage of being neglected. There are partners looking at their exit strategy if the talks don’t meet their expectations and satisfaction.’

Edwards Wildman and RPC declined to comment. Foley did not return requests for comment.

Sarah.downey@legalease.co.uk

Legal Business

First Edwards Wildman City fallout since ‘revolt’ as Cooley one of three US firms circling

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In many ways the only real surprise about the departure of Edwards Wildman senior London venture capital partner Shawn Atkinson to Orrick is the speed with which it has been announced, after Legal Business revealed on Tuesday (17 June) that the US top 100 firm is in talks with five London partners following a string of exits, with Cooley and two other US firms said to be circling.

It is not yet known if Atkinson, who serves as co-chair of Edwards Wildman’s venture capital group, the cross-border group and its Central & Eastern Europe group, was one of the partners directly involved in the talks, after a statement from Edwards Wildman on Tuesday said: ‘..a few partners may consider leaving in the near term.’

Located at Old Broad Street, the five partners in question are understood to be unhappy over the lack of support from the US together with issues of ‘disconnection’.

One person familiar with the situation claimed that Edwards Wildman is looking to sell off its 25-partner City office altogether, a claim it has strongly denied.

Three other US firms are said to have been circling, including California-headquartered firm Cooley, which is known to be looking to launch in the City.

On Atkinson’s hire, Orrick’s chairman Mitch Zuklie said: ‘Well respected for his deep knowledge of the technology and emerging companies market, Shawn adds to our London team tremendous complementary strength representing investors in growth equity investments and emerging markets. We are excited to be able to offer his talent to our clients, particularly at a time when the market is white hot.’

This is the second lateral Orrick has made to its London office this year, following the move of Stephen Phillips from White & Case to co-head Orrick’s European restructuring practice in February.

Sarah.downey@legalease.co.uk

Legal Business

Edwards Wildman faces five-strong London partner revolt following string of City exits

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Strategic recruitment Locke Lord
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Edwards Wildman is in talks with five disgruntled London partners following a string of exits from the top 100 US firm and accusations from one ex-partner that the City site is being neglected by its Boston headquarters.

The news comes as it has emerged that London insurance & reinsurance partner Damian Connolly this month took up the position of chief legal officer for American managed healthcare company Aetna International.

Located at Old Broad Street, the five partners in question are understood to be unhappy over the lack of support from the US together with issues of ‘disconnection’.

An ex-partner told Legal Business: ‘It’s the usual mixture of problems of a London office when it goes to the stage of being neglected. There are partners looking at their exit strategy if the talks don’t meet their expectations and satisfaction.’

The news comes as one person familiar with the situation claimed that Edwards Wildman is looking to sell off its 25-partner City office altogether, a claim it has strongly denied.

A spokesperson for the firm said: ‘There is no truth to the rumour that we intend to sell our London office. Reflecting the constant movement in the legal industry, however, a few partners may consider leaving in the near term. We are strongly committed to the continued growth of our international platform, particularly London.’

A number of partners have exited the firm in recent weeks, most recently Connolly and insurance heavyweight Francis Mackie, who in early June started his new role at national firm Weightmans as part of the firm’s strategy to significantly grow the insurance side of its business.

In March, Edwards Wildman’s aviation and aerospace group head Mark Meyer exited for Cozen O’Connor’s London office as a partner in its insurance and reinsurance practice while in January, Fieldfisher hired IT disputes partner Geoff Mendelsohn who joined the latter’s IP enforcement and litigation group after less than two years at Edwards Wildman.

The 540-lawyer firm suffered a poor performance for the 2013/14 year according to financials published in AmLaw, which show a revenue drop of 9.4% to $311.5m while revenue per lawyer decreased 4.2% to $575,000. Profits per partner remained relatively static with a dip of 0.7% to $680,000.

Established in October 2011 from the merger of Edwards Angell Palmer & Dodge and Wildman, Harrold, Allen & Dixon, the firm currently has 16 offices globally. In January it boosted its City offering with the hire of the former head of Taylor Wessing’s international insurance & reinsurance James Crabtree.

sarah.downey@legalease.co.uk

Legal Business

In Administration: Barratts administrators instruct Shoosmiths as Blockbuster turns to Locke Lord

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Beleaguered shoe retailer Barratts has gone into administration for the third time in four years, with administrator Duff & Phelps turning to top 50 firm Shoosmiths to advise as it reviews the company’s position and considers all options including a fire sale.

Shoosmith’s restructuring and insolvency national head James Keates and Manchester partner Sarah Teale are advising Duff & Phelps this time around, after Barratts, which has 75 stores and 23 concessions across the UK and Ireland employing 1,035 people in total, was left with no choice but to turn to administrators when a recent offer of £5m from an investor was withdrawn on 7 November.

The latest development follows Barratts’ administration last year, when Squire Saunders advised Deloitte, with Leeds head of restructuring and insolvency John Alderton taking the lead.

Barratt’s collapse comes as fellow high street retailer Blockbuster has also filed for administration again, with Locke Lord’s London office being instructed by joint administrators Simon Thomas and Nick O’Reily of Moorfields Corporate Recovery.

Locke Lord’s restructuring partner David Grant is leading the team working for the administrators, as Blockbusters goes into administration for the second time this year. Locke Lord were appointed after Blockbuster’s owners, TS Operations, announced its intention two weeks ago to take the company into administration.

In January, when Blockbuster first went into administration, CMS Cameron McKenna advised Deloitte’s joint administrators Lee Manning, Matthew Smith and Neville Kahn.

The US private equity firm Gordon Brothers Europe first rescued Blockbuster in March but failed to turn around the company’s fortunes.

david.stevenson@legalease.co.uk

Legal Business

Edwards Wildman joins the ranks of international firms in Istanbul

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The increased importance of Turkey as strategic hub for international firms has been underlined with news that US firm Edwards Wildman Palmer is to open an office in Istanbul in association with local M&A and private equity boutique Ismen Law Firm.

The date of the opening will depend on regulatory approval by the Istanbul Bar Association but it will become the 600-lawyer firm’s the first office in the Central & Eastern Europe, Middle East and Northern Africa (CEEMENA) region.

Edwards Wildman, which already has 15 offices across the US, Asia and in London, will work closely with 12-lawyer Ismen cross-border private equity and corporate-backed M&A transactions throughout CEEMENA.

Led by two partners, Tolga Ismen and Arzum Gunalcin, the M&A boutique’s areas of expertise include privatisations and private equity investments along with complementary practice areas such as corporate and commercial, real estate, capital markets, TMT and competition law. The firm is ranked in the second tier of corporate firms in Turkey, according to The Legal 500 EMEA.

Ted Cominos, a private equity partner at Edwards Wildman said: ‘Istanbul has become a hub for sophisticated M&A and private equity activity as multinational companies and private equity firms are attracted to the increasingly active CEEMENA region. We are excited to partner with the Ismen law firm to tap into this dynamic market.’

Managing partner Robert Shuftan added: ‘As one of the fastest growing economies in the world, Turkey’s demographics, diversifying business base and supportive investment climate are fuelling impressive growth.

‘Our objective is to expand our international footprint into markets that offer tremendous opportunity for sophisticated and market-leading work, and Turkey increasingly has become a global leader in that regard.’

Ismen partner Tolga Ismen said: ‘The arrangement with Edwards Wildman presents an opportunity for our lawyers to tap into a new network of sophisticated clients while offering a brad array of cross-border legal services to our existing clients.’

Edwards Wildman will join a number of other international firms that have established a presence in Istanbul in the last couple of years, including Baker & McKenzie, which opened in March 2012, Clifford Chance, which opened in April 2011, DLA Piper in May 2010 and US firm Chadbourne & Parke in September 2011.

Francesca.fanshawe@legalease.co.uk

Legal Business

Locke Lord’s lateral spree continues in London

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US firm Locke Lord has continued its rapid expansion in London since launching in February this year with the addition of three more lateral hires within a few weeks.

The arrival of Mayer Brown reinsurance litigator Ian McKenna at the end of October was followed by the hire of Fox Williams’ corporate finance partner James Channo and Mishcon de Reya’s former head of finance, Luke Morris, in November.