Legal Business

Reed Smith lands CMS Cameron McKenna’s capital markets head as it hunts financial services growth

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Intent on building up its financial industry group in the City, Reed Smith has hired CMS Cameron McKenna‘s head of capital markets Daniel Winterfeldt. He joins Reed Smith with a team of three associates.

Winterfeldt, a US securities partner, has led CMS Cameron McKenna’s international capital markets group, including the US securities practice, for nearly six years after joining from Simmons & Simmons.

Winterfeldt’s recent client list includes Telefónica Deutschland, Big Yellow Group, The Wellcome Trust and N M Rothschild. His practice is based around accessing funding in the international capital markets, and he has acted on a wide range of IPOs, secondary equity offerings, rights issues and high yield bonds.

Winterfeldt started his career in New York with Hughes Hubbard & Reed, before relocating to London to join Weil, Gotshal & Manges in 2000. He subsequently joined Jones Day, before making partner at Simmons & Simmons nearly 10 years ago.

The global chair of Reed Smith’s financial industry group, Tamara Box, said the hire will ‘complement to our securities practices in the United States and Asia’ after landing New York-based Danielle Carbone to head its capital markets practice late last year from Shearman & Sterling.

Winterfeldt is the founder and co-chair of the Forum for US securities lawyers in London and has built a strong reputation around promoting diversity in the workplace. He is the founder and co-chair of the InterLaw Diversity Forum, the leading LGBT inclusion legal network in the UK, and led CMS’s diversity and inclusion programme. InterLaw Diversity Forum now has over 1,500 members.

Sakil Suleman, who heads Reed Smith’s UK diversity committee, said: ‘Diversity and inclusion are at the heart of our culture at Reed Smith. Daniel is a passionate and dedicated speaker and campaigner on these issues and we are delighted to welcome his expertise and his award-winning work through the InterLaw Diversity Forum to Reed Smith.’

tom.moore@legalease.co.uk

Legal Business

Reed Smith the beneficiary as Addleshaw loses second insurance head in two years

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Strategic recruitment Addleshaw GoddardReed Smith
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Addleshaw Goddard (AG) head of insurance Mark Pring is leaving the firm to join Reed Smith, less than two years after he replaced Richard Leedham as team head.

Pring was a dispute resolution partner as well as head of insurance at the firm. He has extensive experience in handling high-value, multijurisdictional disputes and his practice has a strong focus on insurance and reinsurance work, including professional indemnity, financial institutions risks, and directors and officers liability insurance.

Pring became head of insurance litigation following the departure of Richard Leedham to Mishcon de Reya in 2014. He previously was a partner at another US firm, Chadbourne & Parke, where he spent two years in Dubai handling complex international arbitration proceedings and advising a range of commercial clients on core risk management issues.

Peter Hardy, leader of Reed Smith’s EMEA commercial disputes group and the insurance recoveries team in London, said: ‘Mark’s appointment emphasises our commitment to building upon our existing market leading brand for policyholder coverage work. His experience and particular understanding of the Middle Eastern market is a natural fit for our global footprint and international client base.’

Commenting on his departure, a spokesperson for AG said: ‘We are sorry to be losing Mark Pring to Reed Smith which he believes is the right step for him at this stage in his career and he goes with our best wishes. The ambitions for our insurance disputes practice are unaffected and we will of course continue to develop the team through the right mix of sponsoring and promoting internal talent, and also acquiring laterally if necessary.’

AG has promoted managing associate Richard Wise as Pring’s replacement. Wise, who specialises in insurance and international commercial arbitration, represents major national and multinational policyholders within the financial and professional services, retail and consumer, real estate, construction and pharmaceutical/health sectors. He also spent two years working in the firm’s Singapore office, advising clients throughout south-east Asia and India.

In March, another AG partner, Sonia Campbell, left the firm to join Leedham at Mishcon.

kathryn.mccann@legalease.co.uk

Legal Business

‘A variety of reasons’: Reed Smith and Pepper Hamilton call off merger talks

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Legal mergers Reed Smith
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Less than a fortnight after negotiations were reported, Reed Smith and Pepper Hamilton have called off talks over a combination.

A merger between the two US firms, which would have pushed Reed Smith to more than 2,000 lawyers with revenues of $1.5bn, making it one of the 20 largest firms in the world.

A spokesperson for Reed Smith said: ‘Reed Smith…periodically has discussions with other firms regarding joining forces. As part of that process, we had some preliminary discussions with Pepper Hamilton, a firm we know well and respect, about a possible combination.

‘While our conversations with Pepper Hamilton were positive and informative, both firms have concluded that for a variety of reasons those discussions should end.’

Pepper Hamilton has 13 US offices but no overseas network, while Reed Smith has 14 US offices and 12 overseas. While there is some cross-over between the two firms’ American practices, a merger would have added offices in Boston, Silicon Valley, Harrisburg and Berwyn, Illinois.

At just under a third of the size of Reed Smith, Pepper Hamilton’s 490 lawyers grew revenue by just 1% in 2015 to $388.5m. Nonetheless, that figure marked a record high for the Philadelphia-based firm, and profits per equity partner crossed the $1m boundary for the first time as PEP grew 9% to $1.03m.

The rising PEP at Pepper Hamilton last year coincided with a fall at Reed Smith, bringing the two firms’ profitability into closer alignment. With revenue falling 3% to $1.15bn in 2015, the knock-on effect was an 8% dip in PEP to $1.1m.

Reed Smith made redundancies at the start of this year, with the firm losing 45 lawyers across its US, Europe and Middle Eastern offices in a move it said involved ‘necessary adjustments to remain competitive’.

victoria.young@legalease.co.uk

Legal Business

Reed Smith enters merger discussions with Pepper Hamilton

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Legal mergers Pepper HamiltonReed Smith
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As a sluggish US legal market drives consolidation, Reed Smith is lining up a merger with smaller American firm Pepper Hamilton.

The two firms confirmed the merger talks on Monday (11 April) night, with 1,600-lawyer Reed Smith saying that ‘based on these preliminary discussions, we see many potential benefits to joining forces’.

The firm added: ‘There remains a significant amount of work to do with Pepper Hamilton to assess those benefits and before any transaction would be ready to bring to the Reed Smith partnership.’

Pepper Hamilton has 13 US offices but no overseas network, while Reed Smith has 14 US offices and 12 overseas. While there is some cross-over between the two firms’ American practices, a potential merger between the two firms would add offices in Boston, Silicon Valley, Harrisburg and Berwyn, Illinois.

At just under a third of the size of Reed Smith, Pepper Hamilton’s 490 lawyers grew revenue by just 1% in 2015 to $388.5m. Nonetheless, that figure marked a record high for the Philadelphia-based firm, and profits per equity partner crossed the $1m boundary for the first time as PEP grew 9% to $1.03m.

The rising PEP at Pepper Hamilton last year coincided with a fall at Reed Smith, bringing the two firms’ profitability into closer alignment. With revenue falling 3% to $1.15bn in 2015, the knock-on effect was an 8% dip in PEP to $1.1m.

Should the merger talks be successful, the combined firm would be home to 2,100 lawyers and be set to generate revenue of around $1.5bn. This would make Reed Smith one of the 20 largest firms in the world.

Reed Smith made redundancies at the start of this year, with the firm axing 45 lawyers across its US, Europe and Middle Eastern offices in a move it said were ‘necessary adjustments to remain competitive’.

tom.moore@legalease.co.uk

Legal Business

News in brief – April 2016

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Corporate Bird & BirdFasken MartineauReed SmithSlaughter and May
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REED SMITH REPLACED AS SIEMENS REFRESHES PANEL

Last month Eversheds and Osborne Clarke were reappointed to Siemens UK’s legal panel, while Addleshaw Goddard replaced Reed Smith, following a review. The new panel will last for three years.

Legal Business

Eversheds, Reed Smith and Dentons land spots on inaugural Avis panel

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Adviser reviews DentonsEversheds SutherlandReed Smith
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Eversheds, Reed Smith, Dentons and K&L Gates have landed spots on a seven-firm global panel created by US car rental giant Avis.

Avis, the world’s third largest car rental agency, has condensed its use of law firms through a detailed panel review that will see it move from using around 650 firms to a seven-firm global panel.

Eversheds, Reed Smith, Dentons and K&L Gates have all secured spots for European legal work. Three US firms have also been selected.

The New York-listed company has an annual revenue of $8.5bn and has expanded rapidly in Europe over the past five years, purchasing car-sharing firm Zipcar for $500m in 2013 and Avis Europe, once a separate corporate licensing the Avis brand, for $1bn in 2011. The company has a fleet of 500,000 cars.

Avis created an innovative legal panel that bars its law firms from competing with each other for work. Each firm has been given pre-determined areas of work, with the idea being that the panel firms act as one unit, joining up their advice across their respective remits. The firms have agreed to a global blended rate.

The panel process was run by Michael Tucker, executive vice president and general counsel, and EMEA head of legal Gail Jones. Legal Business understands that Trevor Faure, the former general counsel at Big Four accountancy EY, was drafted in to advise Avis on its use of outside legal counsel.

K&L Gates has a long history of advising Avis, particularly in the US, where Washington DC-based partner William Kirk is known to provide lobbying advice.

Other recently concluded panel reviews include Siemens, which reappointed Eversheds and Osborne Clarke, while adding Addleshaw Goddard to its list of preferred firms, and Credit Suisse which appointed Ashurst along with the big four of the Magic Circle to its panel.

tom.moore@legalease.co.uk

Legal Business

Reed Smith replaced as Addleshaw Goddard joins Siemens UK legal panel

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Adviser reviews Addleshaw GoddardReed Smith
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Eversheds and Osborne Clarke have been reappointed to Siemens UK’s legal panel, while newcomer Addleshaw Goddard will replace Reed Smith, following a review.

The new panel will take effect from March 2016, spanning a three year term. Siemens general counsel Claire Carless, appointed in 2012, leads the company’s legal team, which operates across the UK and is aligned to Siemens’ four business sectors, energy, healthcare, industry and infrastructure & cities, and in addition supports other busineses such as its financial services division.

The energy and technology company streamlined its legal panel during its last panel review in 2013. The goal was to work on ensuring firms on the panel had a ‘better understanding of the Siemens businesses and to create greater efficiencies and value for the UK organisation.’

Eversheds has acted for Siemens since 2013, and anti-trust partner Richard Prowse, who led the panel bid, said he looks forward to continuing the relationship.

Prowse said: ‘Over the past three years we have worked closely with the Siemens in-house team and have developed a deep understanding of the business. We are thrilled to be reappointed to the panel, which underscores our strength in the various practice areas.’

Slaughter and May is not on the panel but has also advised Siemens in the past on Nokia’s €1.7bn buyout of Siemens’ stake in Nokia Siemens Networks in 2013.

Other recently concluded panel reviews include Credit Suisse which appointed Ashurst alongside four Magic Circle advisers, JPMorgan Chase, which appointed the entire Magic Circle, as well as CMS Cameron McKenna, Eversheds and Norton Rose Fulbright, while The Royal Bank of Scotland also undertook a review, and appointed Clifford Chance, Linklaters and Allen & Overy among several others to its roster for the next three years.

madeleine.farman@legalease.co.uk

Legal Business

Reed Smith blames poor energy prices as global revenues dip 2.5%

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Financial results 2015 Reed Smith
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Reed Smith has reported global revenues fell 2.5% in 2015 to $1.12bn from $1.15bn, while profits per partner were lower by 8.1%, which the firm has said is due to poor commodity prices and early resolution of some litigation matters.  

Profits per partner at the US firm were down to $1.1m from $1.2m, as the firm pointed out the slump in commodity prices impacted the firm’s bottom line. Reed Smith global managing partner Sandy Thomas also said resolving litigation matters early affected the firm’s revenue.

He added: ‘We have a large, sophisticated energy and natural resources practice, so when our energy clients have a tough year, we are affected as well.’

Despite a decline in revenue, the firm had a busy year with lateral growth, hiring 47 laterals globally compared with 34 in 2014. The firm also expanded by opening in Frankfurt, where it now has eight partners.

Thomas said 2016 was already off to a good start, and highlighted its IP practice as one which was already busy.

‘We remain committed to our strategy of delivering the highest quality legal services in our key industries – financial services, life sciences and health, energy and natural resources, shipping, and entertainment and media – and we are laser-focused on ensuring that we assemble the best teams for our clients to deliver the best possible legal advice.’

Reed Smith’s lacklustre financials results follow stronger performances from Mayer Brown which broke the $1.5m barrier for the first time in 2015 as revenue rose 3% to $1.26bn, while Gibson, Dunn & Crutcher has been one of the fastest revenue risers. It notched a 20th straight year of revenue growth in 2015, with revenue up 5% to $1.54bn.

victoria.young@legalease.co.uk

Legal Business

Revolving doors: Reed Smith ups energy offering as Mayer Brown JSM and Ince & Co make Hong Kong hires

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Strategic recruitment Ince & CoMayer BrownReed Smith
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Reed Smith, which last week cut 45 jobs across its US, Europe and Middle Eastern offices, has bolstered its energy offering in the United Arab Emirates and China by appointing partners from Pinsent Masons and Norton Rose Fulbright.

Project finance partner Simon Harvey joins from Pinsents’ Dubai office. Harvey advises on a range of project and infrastructure matters relating to power, gas minerals and resources. Reed Smith Middle East managing partner Vince Gordon said: ‘Simon’s hire continues to build upon our finance and projects practice and create further opportunities to support clients requiring support across our global platform.’

Meanwhile in Beijing the firm has hired Norton Rose Fulbright corporate partner Jie Zhang. Zhang, who focuses on energy and natural resources, has built his practice on inbound foreign investment work and Chinese outbound investments. Reed Smith has continued to expand its energy and natural resources practice by adding 26 partners across the globe in the past three years. The practice now has 120 lawyers.

Still in Asia, Ince & Co has hired CEC North Star Energy executive director of legal affairs Balbir Bindra as partner in its Hong Kong office. Banking and finance lawyer Bindra has broad experience in the energy, asset-based finance and investment sectors. According to the firm, the appointment is part of Ince’s agreed strategy to enhance its transactional capability in its core sectors of shipping, aviation, energy, insurance and international trade.

Also in Hong Kong, Mayer Brown JSM has added corporate partner Nicholas Chan to its ranks. Chan joins from Sidley Austin and has experience acting issuers and advisers on listings on the Hong Kong Stock Exchange. Corporate and securities partner Jacqueline Chiu said: ‘Nicholas’ knowledge of Hong Kong’s IPO market and other corporate finance products is expected to enhance our recent association with Jingtian & Gongcheng, a leading Chinese firm in connection with capital markets practice transactions for issuers from mainland China.’

In Europe, Paul Hastings has hired leveraged finance partner Olivier Vermeulen to head the Paris outpost’s finance department. Vermeulen joins with a team of three other lawyers from King & Wood Mallesons and he has broad experience in leveraged finance, funds financing, structured finance and general lending and securitisation. Paul Hastings Paris chair Olivier Deren said the firm was growing throughout Europe, particularly in leveraged finance and Vermeulen would be an asset. ‘He has developed innovative solutions to assist clients in a rapidly changing market, across a wide range of finance areas, and complements our existing reputation in private equity.’

In London Norton Rose has made its third lateral tax hire in Europe since January 2015 with the appointment of Matthew Findley from Pinsents. Findley advises transactional and annuity clients in relation to the implementation and operation of share plans and employee incentive arrangements both in the UK and internationally. The firm’s head of tax for Europe Dominic Stuttaford said: ‘Matthew’s experience is highly aligned with our strategic vision and will enhance our offering to clients.’

TLT has also made a City hire, going in-house to appoint Daniel Lloyd who was head of consumer law at telco BT. Lloyd has experience in the procurement of technology and other services and is an expert in the law on digital content. He arrives as the firm continues to invest in its TMT practice. TLT managing partner David Pester said: ‘Daniel’s arrival is the latest of a series of notable partner hires into our 100-strong London practice, including Jake McQuitty from Barclays Bank. London plays an important role in the development of our wider UK practice, being a centre of excellence for a number of specialist services as part of our sector strategy.’

victoria.young@legalease.co.uk

Legal Business

‘Necessary adjustments’: 45 lawyers laid off in Reed Smith restructure

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Restructuring Reed Smith
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Reed Smith has axed 45 lawyers from its US, Europe and Middle Eastern offices as it makes the ‘necessary adjustments to remain competitive’.

The firm made the decision to restructure its legal staff, along with a number of non-legal employees after it undertook a review of its staffing model.

The lawyer cuts were made in the US – the firm’s largest contributor to its annual revenue – followed by Europe and the Middle East, affecting 4% of its total 1,205 lawyer headcount across the three regions. The firm would not say how many lawyers from each office were made redundant.

Last year’s figures from Legal Business’ Global 100 survey show the firm had 1,101 lawyers in its US offices, 86 in Europe and 18 in the Middle East. London and Asia were unaffected by the job cuts. Reed Smith confirmed that overall, 2.5% of the firm’s 1650-lawyer headcount globally has been impacted from the cuts.

The news comes after Reed Smith experienced a double-digit surge in staff numbers across its largest Europe and Middle East offices in 2014 as profits across London, Paris, Dubai and Abu Dhabi surged by 12% to £65m.

The firm’s global managing partner Sandy Thomas said: ‘The decision to restructure was difficult, particularly because it impacts individuals who have made meaningful and positive contributions to our firm and our clients. We are providing them with resources, including severance pay and professional job transition advisory support, to help them through this period.

‘The legal industry has experienced a fundamental shift in the nature of the demand for, and the delivery of, legal services in recent years. Like all profitable businesses, Reed Smith must be attentive to market demand and industry changes.’

While the US firm has predominantly focused on building out its City offering over the past five years, the firm also invested heavily in Europe and Asia. Reed Smith launched in Frankfurt in June 2015 with seven partners from Mayer Brown; Orrick, Herrington & Sutcliffe; Willkie Farr & Gallagher; and Jones Day, and in early 2014 the firm also opened a small office in Kazakhstan centred on attracting arbitration being sent to London.

In March last year, Reed Smith posted global revenues for 2014 up 7% to $1.15bn while profit per equity partner climbed 6% from $1.14m to $1.2m, and confirmed it ‘had another strong year in 2015’ making it the firm’s fourth straight year of achieving over $1bn in revenue.

jaishree.kalia@legalease.co.uk