Legal Business

First Osborne Clarke LLPs show revenue up as highest paid member takes home 22% more

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Osborne Clarke (OC) has published its first set of LLP results for its UK and US offices which show an increase in annual revenue of 17% to £114.7m from £98.2m, while the firm’s highest paid member took home a fifth more than the year prior.

According to the pro-forma figures for the year to 2015/16, the firm’s highest paid member was paid 22% more than last year, taking home £913,000, up from £748,000 the year before. The figures in the LLP accounts do not necessarily equate to the highest paid equity member and can relate to ‘golden handshakes’ to retiring members.

There have been increases across the board, with cash increasing 44% to £261m, while the number of partners has risen 9% to 112 and the number of lawyers is up 11% to 331.

Staff costs also rose, from £33m in 2015 to £37.8m in 2016, while the staff costs from November 2015 to April 2016 stands at almost £20m.

The LLPs show the firm had 331 fee earners up from 299 the year prior, and 138 PAs, up from 127 the year before. OC had also upped the number of business services staff from 565 to 631, an increase of 12%.

The accounts don’t include the firm’s Asia and Europe offices, which operate in a Swiss Verein under Osborne Clarke International.

The LLP’s also state that the firm has no external borrowing, with members capital used for funding investments.

In May, the firm posted its global results, enjoying double digit growth across both its global offices and in the UK for the financial year 2015/16.

The firm posted a 23% increase in global revenues from €191.6m to €236.3m; in the UK growth was slightly slower, up 17% from £96.5m to £112.9m. According to the firm, OC’s six sector groups which includes infrastructure, life sciences and digital business, account for over 90% of its UK revenues.

In September the firm continued the second phase of its international growth by entering into a formal association with new Singaporean firm, OC Queen Street.

Set up by a former partner of Bird & Bird ATMD, Chia-Ling Koh, OC Queen Street will focus on IT, data and IP, and will initially serve clients in the digital and fintech sectors. Koh will be joined later in the year by further partners and support staff.

kathryn.mccann@legalease.co.uk

Legal Business

‘An ideal fit’: Osborne Clarke hires Addleshaws’ employee incentives group head Michael Carter

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Following its double partner hire from Irwin Mitchell last month, Osborne Clarke (OC) has recruited the head of Addleshaw Goddard‘s employee incentives group Michael Carter, who leaves the firm after eight years.

Carter, who will join OC’s incentives team and wider tax practice, has over 20 years’ experience in helping listed, private and global companies on all aspects of employment remuneration and employment taxes with a particular focus on the design, drafting and implementation of share and cash incentive plans for both executives and all employees. Previous to his stint at Addleshaws, Carter was a partner and head of the executive compensation practice at KPMG.

Paul Matthews, head of OC’s advisory practice said: ‘Michael is a highly experienced practitioner in his field, recognised by peers and clients alike. His proven track record in technical expertise and client service makes him an ideal fit for Osborne Clarke, both strategically and culturally.’

Last month OC bolstered its ranks with the double corporate hire of Edward Persse and Paul Smith from Irwin Mitchell. Persse was a partner at Irwin Mitchell for the last ten years, where he managed the corporate department in the London office and also headed up the firm’s international strategy group and in-house programme. He has experience in domestic and international private capital, M&A and joint venture transactions and was also previously at Baker & McKenzie.

Smith focuses on domestic and cross-border M&A, investment, joint venture and corporate advisory transactions, acting regularly for SMEs, venture capitalists, investment companies and funds.

Prior to this, OC boosted its London real estate team by adding two partners, Jo Footitt and Louise Cartwright, also from Irwin Mitchell.

Footitt, who was also previously a partner at legacy firm SJ Berwin, has experience acting for developers, lenders, investors and land owners. Cartwright, who trained at SJ Berwin before joining Irwin Mitchell in 2010, making partner in 2014, specialises in the industrial and retail sectors.

kathryn.mccann@legalease.co.uk

Legal Business

‘No clarity’: Industry reacts as MoJ puts brakes on Osborne’s personal injury reforms

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Legal affairs Osborne Clarke
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Law firms with substantial personal injury businesses have mixed views as the Ministry of Justice (MoJ) has put the brakes on George Osborne’s personal injury reforms.

The MP had planned to increase the small claims limit for personal injury (PI) Claims to £5,000 and abolish the right to damages for minor injuries caused by whiplash.

However, a statement released by the MoJ said: ‘The number and cost of whiplash claims remains too high, increasing premiums for ordinary motorists. We remain committed to tackling this issue, and will set out our plans in due course.’

Speaking to Legal Business Kennedys partner Ian Davies said there was no clarity around the issue, and that the resistance to the reforms didn’t come from the legal profession.

Davies said: ‘I’m not sure it’s the legal profession, its more separating that between the insurers, primarily the Association of British Insurers on the one hand and those of us who work with the defendant insurers and on the other side of the divide whether this is a good, bad or indifferent idea, is the claimant organisations. Most interested parties have very different views on it depending on their perspectives of it. Hopefully for all of us some clarity will come in the next few days.’

Qamar Anwar, managing director of PI firm First4Lawyers added: ‘We’re delighted with the government’s decision to put PI industry reform on the backburner. While it will no doubt be a huge disappointment to the insurance industry, it essentially protects access to justice for those who need it and, at a time when you can claim for a 15-minute train delay, this move makes complete sense.’

The reforms, which were announced by the then Chancellor during last year’s Autumn statement, were controversial as they sought to end the ‘compensation culture’ in the UK, but were seen by some as an all-out attack on victims for the benefit of the insurance industry.

The day after the reforms were announced Australian-listed Slater and Gordon, which makes 80% of its UK revenue from personal injury claims, saw its share value halve.

‘This will end the cycle in which responsible motorists pay higher premiums to cover false claims by others,’ the Treasury said. ‘It will remove over £1bn from the cost of providing motor insurance and the government expects the insurance industry to pass an average saving of £40-£50 per motor insurance policy on to consumers.’

kathryn.mccann@legalease.co.uk

Read more in the comment piece: ‘Guest post: Where now for personal injury lawyers?’

Legal Business

Irwin Mitchell exits continue as two corporate partners join OC in London

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Following last month’s exits to Dentons, Irwin Mitchell has lost a further two partners in London, with Edward Persse and Paul Smith departing the firm to join Osborne Clarke (OC).

Persse was a partner at Irwin Mitchell for the last ten years, where he managed the corporate department in the London office and also headed up the firm’s international strategy group and in-house programme. He has experience in domestic and international private capital, M&A and joint venture transactions and was also previously at Baker & McKenzie.

Smith focuses on domestic and cross-border M&A, investment, joint venture and corporate advisory transactions, acting regularly for SMEs, venture capitalists, investment companies and funds.

Commenting on the hires, Greg Leyshon, head of OC’s corporate department said: ‘In Ed and Paul, we have two very strong additions to the business. As highly regarded practitioners, their broad sector focus and technical and commercial know-how make them a great fit for our clients, our business and our people. We look forward to having them at the firm, and to the contributions they will bring.’

Last month, Dentons took five partners from Irwin Mitchell in London, strengthening its London banking and finance practice with the hire of Simon Tweedle.

The firm also appointed real estate head Rob Thompson, real estate partners Lewis Myers and Rupert Dowdell and head of corporate real estate Jayne Schnider.

Additionally, head of employment Chris Tutton left for boutique Constantine Law in August after his resignation in March, while litigation partner Daniel Brumpton moved to Manchester-based Berg in July.

In November last year, the firm announced a merger with south-east based Thomas Eggar to create what was billed as a £250m firm.

kathryn.mccann@legalease.co.uk

Legal Business

Osborne Clarke continues Asia phase of international expansion with Singapore tie-up

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Formal association with former Bird & Bird partner forms OC Queen Street

Last month saw Legal Business 100 top 25 firm Osborne Clarke (OC) continue the ‘second phase’ of its international growth by entering into a formal association with new Singaporean firm, OC Queen Street. Set up by a former partner of Bird & Bird ATMD, Chia-Ling Koh, OC Queen Street will focus on IT, data and IP, and will initially serve clients in the digital and fintech sectors. Koh will be joined later in the year by further partners and support staff.

Legal Business

‘Gateway for Asia’: Osborne Clarke enters association with new Singapore firm

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Osborne Clarke has expanded its south-east Asia presence through an association with a new Singaporean firm, OC Queen Street.The initial launch of the formal association will see a focus on clients in the digital and fintech sectors.

OC Queen Street’s first partner, Chia Ling Koh, will focus on IT, data and IP. Koh joins from Bird & Bird ATMD in Singapore, where he spent more than 10 years as a partner. Koh will work alongside a team of specialists in data and IT and is going to be joined later in the year by further partners and support staff.

Osborne Clarke international chief executive Simon Beswick said Singapore was ‘an important gateway for Asia and a powerhouse in its own right’.

He added: ‘The association with OC Queen Street presents an exciting opportunity for us to support existing clients and their regional headquarters in Singapore, to win new sector clients and to assist Asian clients with their US and European legal needs.’

The launch in Singapore continues Osborne Clarke’s ongoing strategy of regular expansion in Asia. In 2014 the firm formed a formal best-friend relationship with Indian firm BTG Legal, a firm founded by Osborne Clarke’s India group head Prashant Mara.

Osborne Clarke also formed an association with Hong Kong firm Koh Vass, announced in September 2015. The association means that after three years Osborne Clarke can apply for permission to fully merge with the Hong Kong firm.

Last month another technology focused firm, Taylor Wessing, announced it was opening in Hong Kong through a formal association with HM Chan & Co, citing opportunities to increase the firm’s international sector strength in technology, media and communications, life sciences, private wealth and energy.

OC has enjoyed several years of rapid international growth, reflected by marked increases in turnover. This year the firm reported a 23% increase in global revenues, with income for 2015/16 up to €236.3m, and UK income up 17% to £96.5m.

matthew.field@legalease.co.uk

Legal Business

Revolving doors: Osborne Clarke and RPC strengthen City practices as WFW makes major New York hire

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Several LB100 firms have announced a range of lateral hires this week, with Osborne Clarke, Watson Farley & Williams (WFW), RPC and DAC Beachcroft all adding new partners.

Osborne Clarke boosted its London real estate team by adding two partners, Jo Footitt and Louise Cartwright, from Irwin Mitchell.

Footitt, previously a partner at legacy firm SJ Berwin and later Irwin Mitchell, has experience acting for developers, lenders, investors and land owners. Cartwright, who trained at SJ Berwin before joining Irwin Mitchell in 2010, making partner in 2014, specialises in the industrial and retail sectors.

Osborne Clarke head of project, real estate and finance Tim Simmonds said: ‘Both Jo and Louise are highly regarded practitioners with a track record of delivering strong results.’

RPC has also been recruiting in London, hiring international trade specialist Stuart Shepherd from Ince & Co to join its commercial disputes team in London. RPC managing partner Jonathan Watmough said Shepherd’s arrival would add ‘significant extra firepower’ to the firm’s offering on litigation and large scale disputes.

Bolstering its Newcastle office, DAC Beachcroft has recruited a four-lawyer professional indemnity team from Manchester-based DWF. DAC Beachcroft bring in former Newcastle Law Society president Helen Ager, as well as fellow partner Tom Whitfield and two further solicitors. The move follows last month’s hires, when the firm added seven partners, also from DWF, to its Newcastle office.

In New York, WFW has added to its litigation practice, bringing in former Mishcon de Reya partner and head of civil litigation and white collar defence Joshua Sohn. Sohn has 20 years’ experience in commercial and regulatory issues and brings a team of three associates with him to WFW.

matthew.field@legalease.co.uk

Legal Business

Osborne Clarke praises sector focus as it posts yet another round of impressive financial results

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Osborne Clarke (OC) has posted another round of impressive results, enjoying double digit growth across both its global offices and in the UK.

The firm posted a 23% increase in global revenues from €191.6m to €236.3m; in the UK growth was slightly slower, up 17% from £96.5m to £112.9m. According to the firm, OC’s six sector groups which includes infrastructure, life sciences and digital business, account for over 90% of its UK revenues.

The full-year figures are also slightly lower than the impressive half-year results which the firm announced in November. OC, which then reported an increase of 25% to €111m, attributed the rise to its sector focus and being closer to clients.

Internationally, the offices that performed particularly well were Paris, Amsterdam, Brussels and Hong Kong.

Speaking to Legal Business OC UK managing partner Ray Berg (pictured) said the firm’s performance was down to a number of factors:

‘The first thing is undoubtedly a lot of hard work by everyone in the team across the patch. Its clear focus, knowing what we are doing and really going after it – so the sector focus, over 90% of the incomes come from the areas we are concentrating in.

He added: ‘We’ve really benefited from the international platform over the last twelve months, it’s generated more opportunities for us in the sense that companies, that even domestically may not have instructed us or instructed us for certain work just think of us slightly differently because of our presence. The Legal Business award helped as well because it is great recognition, if we are recognised in the market the way we were last year that is further credit.’

This week, OC announced it had made up three partners in the UK – Jeffery Chang and Matthew Bodfield in corporate and Mary Lawrence in litigation. Bodfield was the only London promotion, while Chang is based in Reading and Lawrence in Bristol.

In January OC promoted three partners in the corporate department in Cologne: Karsten Lisch, Christoph Boeminghaus and Benjamin Monheim.

kathryn.mccann@legalease.co.uk

Legal Business

Trainee retention: Perfect scores for Osborne Clarke and Mayer Brown as White & Case figure falls

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Osborne Clarke and Mayer Brown have posted perfect spring retention figures this year, while White & Case’s rate dropped to 87%.

Osborne Clarke has retained an impressive 100% of its spring qualifiers, a bump on the 67% it kept on last autumn. The firm had retained 89% in the spring of 2015, keeping on eight of nine qualifiers.

This spring the firm has kept all seven trainees which will qualify to positions in the firm’s three UK offices in London, Thames Valley and Bristol. Osborne Clarke training principal, partner Catherine Wolfenden put the firm’s retention rate success down to the level of guidance given to those coming through to the firm.

Wolfenden said: ‘Trainees are given real responsibilities and independence from day one with regular partner support.’

Similarly, Mayer Brown has also posted its spring qualifiers list. The firm kept on four out of four trainees. The intake is better than what it posted in September last year, when six of 11 trainees took places, for a rate of 55%.

White & Case, which retained 100% of its London trainees who qualified in autumn 2015, has announced it retained 87% of its London trainees, with 13 out of 15 taking on positions. With a successful track record, the firm says it’s important to ensure qualifiers know they have a future with the firm.

Earlier this year Slaughter and May and Nabarro improved their trainee retention figures with the latter firm retaining 89%, while the Magic Circle firm posted a 95% retention rate.

Other firms to post retention rates this spring include Herbert Smith Freehills which kept on 94%, while Weil, Gotshal & Manges scored 100% and Trowers & Hamlins retained 88% of trainees.

madeleine.farman@legalease.co.uk

Our sister website The Lex 100 has created a retention rate table which will be updated as more figures are announced.

Legal Business

Osborne Clarke still going strong as LB100 firms report first-half results

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2015 Legal Business Law Firm of the Year Osborne Clarke has continued its sound financial performance of the last few years, reporting impressive first-half results for 2015/16. The firm has outpaced its peers by a stretch, reporting a 25% rise in first-half turnover.

While not all firms disclose their revenues at the halfway point, Deloitte has found UK law firm revenues were up by an average of 4.5% for the first half of the financial year 2015/16.