Legal Business

US financials: White & Case in growth mode while revenues up 1%

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US firm White & Case has reported flat revenues for 2015, ticking up 1%, while the firm improved partnership and fee earner headcounts.

The firm posted revenues of $1.524bn for 2015, which followed a 4% rise from 2013 to 2014. Profits per partner came in at $2.02m, up a fraction from $2.007m. Revenue per lawyer was down from $800,000 to $795,000, after rising 5% last year.

The results come as the firm boosted its partnership ranks by 6% and expanded total lawyer headcount by about 2% to 1,194.

While the firm would not detail the figures for its City office, London executive partner Oliver Brettle (pictured) said they were ‘strong, and reflect, as you would expect, continued investment.’

Growth areas for the office included disputes generally, and the firm has seen strong improvement in the private equity field. The firm recently appointed Caroline Sherrell from Clifford Chance and Kenneth Barry from Debevoise & Plimpton to invest in its City practice. White & Case also established a white collar practice with the hire of Jonathan Pickworth from Dechert in September last year. 

Brettle added: ‘In the future I see the firm fulfilling its desire to be strong in the US and stronger in London, I see us continually investing in our network which is the envy of our competitors.’

The firm, which has added more than 100 lawyers in its London office in the past three years, is aiming to hit 500 lawyers in the City by 2020 as part of a five year plan established last year. 

‘Our business is focused on navigating our clients through their complex cross border activities. We’re a truly global firm, built around collaboration, which is why it’s our global results that truly matter,’ Brettle added.

White & Case’s most recent limited liability partnership (LLP) accounts filed at Companies House show turnover at its UK and Africa offices increased 12% in the financial year ending December 2014.

Overall turnover at the offices grew from £137m to £154m – a significant rise from last year when revenues dropped 2% at the end of 2013. Operating profit at the offices also improved from a 7% decline last year (from £56.4m in 2012 down to £52.5m in 2013), rising a robust 14% to just under £60m.

victoria.young@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

White & Case to hire Linklaters big-biller Kelly to lead Asia push

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White & Case is set to hire Linklaters‘ big-billing Hong Kong partner Christopher Kelly as its Asia head of corporate as develops its practice in the region.

The corporate partner has agreed to join White & Case as it makes an M&A push in the area. 

Kelly is one of Hong Kong’s most respected corporate lawyers and is ranked as a leading individual in Hong Kong by the Legal 500 for private equity work. He resigned from Linklaters in January.

He will be reunited at White & Case with former Linklaters colleague Peggy Wang, who left this time last year to become head of private equity in Asia. Kelly struck up a successful working relationship with Wang during their time at the Magic Circle firm’s Hong Kong office, controlling a number of key corporate relationships, including private equity giant Carlyle and commodity trader Noble Group.

The duo led on the Singapore-listed trader’s $1.5bn sale of a 51% stake in its agricultural unit to Chinese state-backed grain trader Cofco in 2014. Kelly had also recently acted for AIG on the $20.5bn spin off of is Asian insurance aim AIA group and on the $494m Hong Kong IPO of Macau’s largest casino operator SJM Holdings.

Kelly and Wang become part of a growing band of Linklaters alumni to move to White & Case following the arrival of City private equity duo Ian Bagshaw and Richard Youle from the Magic Circle firm in 2013.

Youle and Bagshaw have added over 60 lawyers to White & Case’s London private equity team since their arrival, recently hiring Clifford Chance private equity infrastructure partner Caroline Sherrell and Debevoise & Plimpton’s Kenneth Barry. Longstanding clients HgCapital, Mid Europa Partners, Global Infrastructure Partners, Triton Partners, Novator and Arle all followed Youle and Bagshaw with instructions for White & Case.

Kelly is one of several senior Linklaters partners based in Asia to depart recently, with the firm’s capital markets practice hit hard. Well regarded Dean Lockhart, who has spent the last 15 years as a partner in Singapore and Hong Kong, and Jeremy Webb have both retired at a young age from the firm this month. Fellow capital markets partners Jon Gray and David Ludwick have also departed in the past 12 months, leaving for White Shoe firm Davis Polk and Freshfields Bruckhaus Deringer respectively.

tom.moore@legalease.co.uk

 

Legal Business

Shearman flags potential conflict at White & Case as US rivals face off in $50bn Yukos arbitration

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Shearman & Sterling has raised a potential conflict of interest issue at White & Case (W&C) in its representation of Russia’s bid to annul the $50bn arbitration award against it over the collapse of oil giant Yukos.

In a motion to recuse or disqualify a US district judge on 19 November before the district court of Columbia, Yukos shareholders Hulley Enterprises, Yukos Universal and Veteran Petroleum alerted the court that they were ‘investigating prior attorney-client relationships’ between them, their affiliates, and W&C.

‘The facts underlying the prior relationships (which date back to at least 1999 and appear to involve matters raised by W&C in this proceeding) are being investigated as quickly as possible, but due to the passage of time and the intervening confiscation of most of the relevant documents by agents of the Russian Federation, petitioners may not be in a position to make a final determination whether to seek disqualification of W&C for several weeks,’ the court filing said.

Russia was ordered to pay $50bn to the majority shareholders in Yukos Oil Company, once Russia’s largest oil producer, by an arbitral tribunal sitting in The Hague in 2014. It was the largest arbitration award in history and 20 times larger than the previous record. Recognition and enforcement of the award in the courts, however, is expected to take about a decade and will generate millions of dollars in legal fees. Proceedings are taking place across various jurisdictions, including Belgium and the US.

W&C was instructed by Russia to coordinate the country’s defence against enforcement and annulment proceedings across at least three jurisdictions on the case, while Cleary Gottlieb Steen & Hamilton and Baker Botts acted for Russia in the original tribunal where the award was made against it.

Shearman as well as local law firms assisting it in the recognition and enforcement of the award, are now investigating whether W&C has a conflict of interest in representing Russia. The firm is known to have represented Yukos around the time of the oil giant’s collapse a decade ago, with W&C chairman Hugh Verrier one of the company’s advisers.

W&C Washington DC-based arbitration partner Carolyn Lamm is leading Russia’s defence in the US, with David Goldberg leading proceedings in London and Markus Burianski heading the defence in Germany. Russia has also instructed Brussels-based Albert Jan van den Berg of Hanotiau & van den Berg in a bid to have the award set aside at the seat of arbitration, The Hague.

Shearman’s team in the US, led by veteran litigator Henry Weisburg and the firm’s deputy head of litigation Richard Schwed, already successfully petitioned district judge Amy Berman Jackson to recuse herself from hearing a request to enforce the Yukos award against Russia in Washington DC over ‘cumulative connections’ with Lamm, as the pair were mothers to children at the same school.

Shearman head of international arbitration, Paris-based Emmanuel Gaillard, who alongside public international law chief Yas Banifatemi is coordinating the enforcement after securing the $50bn award for the majority shareholders in Yukos Oil Company in July 2014, has instructed Stephenson Harwood to enforce the award in the English courts and Dutch firm De Brauw Blackstone Westbroek for proceedings in the Netherlands.

A spokesperson for Stephenson Harwood told Legal Business: ‘The issues with regards to the potential conflict of interest in relation to W&C are currently being investigated by the claimants.’

Stephenson Harwood’s head of commercial litigation, John Fordham, is leading proceedings to seize assets in the UK with support from litigator Ros Prince. Stephenson Harwood has instructed David Foxton QC and Paul McGrath QC of Essex Court Chambers as counsel.

W&C would not comment on the matter. 

tom.moore@legalease.co.uk

Legal Business

White & Case to close Munich office after nearly a decade as it consolidates German operation

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White & Case is shutting its Munich office after almost ten years after opening, offering its 11-lawyer team the opportunity to relocate to its larger Frankfurt base.

The team was notified at the end of last week (13 November) and a spokesperson at the firm confirmed that most were expected to take up the transfer option.

The office closure will affect partners Markus Langen and Tobias Freiherr von Tucher, five local partners and four associates.

The firm opened its doors in Munich in 2006, its fifth base in Germany alongside Berlin, Düsseldorf, Frankfurt and Hamburg. Its German practice is home to around 200 lawyers.

White & Case said in a statement: ‘We will continue to serve our clients in Germany from our offices in Berlin, Düsseldorf, Frankfurt and Hamburg and we have decided to focus on consolidating and strengthening our offering in these four locations.’

While the firm may be consolidating its German operations, expansion globally remains on the agenda, with the firm opening an office in Seoul earlier this summer with plans to relocate three partners and build on relationships with project finance clients.

In September, the firm also set up its first City white collar practice with the hire of white collar and securities litigation partner Jonathan Pickworth from Dechert, as it prepares itself for the next wave of regulatory and enforcement investigation work.

jaishree.kalia@legalease.co.uk

 

Legal Business

Revolving doors: key hires at Ropes & Gray and Clifford Chance while White & Case loses Polish disputes head

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Global 100 heavyweights Ropes & Gray and Clifford Chance announced key lateral hires last week, while White & Case saw the head of its Polish disputes practice leave the firm.

Boston-based Ropes & Gray expanded its global antitrust practice with the addition of Ruchit Patel. Joining from Cleary Gottlieb Steen & Hamilton’s highly rated competition team, Patel will be the first antitrust partner in Ropes’ City office and continues the push by the London practice to broaden its offering, following the hire of its first London disputes specialist Thomas Ross from K&L Gates in April.  

In France, Clifford Chance has improved its real estate practice team with the recruitment of King & Spalding partner Alexandre Couturier. With more than ten years’ experience in real estate, Couturier has particular expertise in the formation of real estate investment funds. He joins as a partner to the firm’s Paris office.

In Warsaw, White & Case was dealt a blow as its head of litigation and arbitration Paweł Pietkiewicz is leaving to join Greenberg Traurig. He will join as head of the 10-lawyer strong litigation and arbitration team as it splits from the banking and finance team.

The senior partner of Greenberg Traurig’s Warsaw office Lejb Fogelman said the recent successes of the firm’s banking and financial practices led to the decision to separate the leadership of the banking and finance practice from that of the litigation and arbitration practice. Former co-head of litigation and arbitration Andrzej Wysokiński will continue to develop the banking and finance practice.

Meanwhile at the Bar, 39 Essex Chambers has announced public law specialist Adam Fullwood will join the set. With more than 20 years’ experience, Fullwood joins from Kings Chambers. 39 Essex Chambers chief executive David Barnes said Fullwood had an ‘outstanding reputation’ in the public law arena and would be an excellent addition to its thriving team.

On the regulatory side, The Legal Services Board has appointed Ofcom director of investigations Neil Buckley as chief executive. Buckley replaces Richard Moriarty who departs in February 2016 to join the Civil Aviation Authority as deputy chief executive and group director for consumers and markets. 

victoria.young@legalease.co.uk

Legal Business

Tale of two strategies: Cleary Gottlieb passes on London again as White & Case promotes heavily in the City

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Cleary Gottlieb Steen & Hamilton has made up seven partners across its global network with London missing out for the second year in a row. Of its seven new partners globally, Cleary Gottlieb made up six in the US.

The promotions become effective on 1 January 2016. 

Moscow associate Mikhail Suvorov was the sole lawyer outside of the US to make partner, having formed strong relationships with some of that country’s biggest energy companies, including Gazprom and Rosneft.

Meanwhile Milo Molfa, a London-based disputes associate, was made up to counsel along with six others internationally. He specialises in investor-state arbitration, with the Russian government one of Molfa’s biggest clients.

In contrast White & Case has focused heavily on London its latest round, with eight of its 31-strong promotions based in the City. While six (16%) of last year’s round comprised London promotions, this year’s round sees 26% of the promotions handed to City lawyers. These promotions also take effect in the new year.

While the total promotions round is six fewer than last year, when 37 lawyers got made up to partner, more than half of those came in Europe, the Middle East and Africa.

With fewer partners being made up by White & Case in Asia and Eastern Europe this time around, the London promotions saw investment made in the firm’s disputes, finance and M&A teams.

Half of White & Case’s City promotions came in disputes, with litigators Edward Attenborough and Rory Hishon rising to partner. The duo also handle arbitration, one of the firm’s strongest practice areas, where Julian Bailey and Clare Connellan also made partner.

Private equity counsel Emma Parr – who joined from Linklaters last year to reunite with the Magic Circle firm’s former private equity co-heads Ian Bagshaw and Richard Youle – was also made up as that group continues to make rapid growth.

Leveraged finance lawyer Ben Wilkinson, who counts Deutsche Bank as a client, was also promoted, while M&A lawyer Victoria Landsbert and project finance associate Carina Radford also made the grade in London. 

tom.moore@legalease.co.uk

Legal Business

U-turn: White & Case’s LLP reverses the trend with UK/Africa offices posting 12% rise in turnover

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White & Case‘s most recent limited liability partnership (LLP) accounts filed at Companies House show turnover at its UK and Africa offices increased 12% in the financial year ending December 2014.

Overall turnover at the offices grew from £137m to £154m – a significant rise from last year when revenues dropped 2% at the end of 2013. Operating profit at the offices also improved from a 7% decline last year (from £56.4m in 2012 down to £52.5m in 2013), rising a robust 14% to just under £60m.

A further breakdown in the filings revealed significant increases in turnover in both the UK and Africa offices individually. While the UK saw revenues lift a solid 12% from £136m to £152m, Africa’s figures were more impressive, with a 126% rise from £842,000 in 2013 to £1.9m last year.

The numbers show a complete turnaround from last year’s figures which in the UK were down by 1.8% from £138.6m in 2012, while accounted activities in Africa dived 35% from £1.3m.

While staff costs fell 4% in 2013, last year this spend increased by 8% from £449m to £53m. This came following a rise in staff members (excluding partners), with staff headcount growing 14% overall from 421 to 479, of which there was an 18% rise in fee-earners to 289 from 245. Wages and salaries for this group subsequently rose by £2m to £44m. 

In 2014, the firm added seven members to its partnership, and while the firm does not disclose the average member remuneration in the filings, the global firm’s average profit per equity partner stood at £2m in 2014. Financial results earlier this year showed White & Case’s global revenues were up 4% to $1.5m, rising an impressive 15% since 2010.

The firm’s London office last month prepared to meet the next wave of regulatory and enforcement investigation work as it launched its first City white collar practice with the hire of white collar and securities litigation partner Jonathan Pickworth from Dechert.

jaishree.kalia@legalease.co.uk

Legal Business

Q&A: Jenner & Block’s Charlie Lightfoot talks about leadership, White & Case, and ‘getting my hands dirty’

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Chicago litigation firm Jenner & Block’s launch of its first overseas office earlier this year in London was as soft as they come. Is there space for another litigation firm or will London be its graveyard? Charlie Lightfoot (pictured), the man tasked with growing the firm’s London office, talks of the firm’s prospects. 

Why did you want to join Jenner & Block?

It took a lot of hard thought but these opportunities don’t come around very often and it’s an exciting step. I’d been at White & Case for 16 years and always been very happy but the more I learned about Jenner & Block the more I realised why it was the right fit for me. I guess there was a leap of faith but every lawyer I met at Jenner & Block gave a consistent message, which is always a good sign, about the personality of the firm and how they felt about the firm opening in London. They also take the quality of their lawyering very, very seriously.

Did you look what Richard East at Quinn Emanuel Urquhart & Sullivan and Natasha Harrison at Boies, Schiller & Flexner are doing and think ‘I want a piece of that’?

I was aware of Quinn and Boies and it gives you some element of confidence if you see other people doing a similar thing and apparently succeeding. But I was much more focused on what Jenner wanted to do and its vision for the office.

There are many people in London who don’t know much about Jenner & Block. What’s your message to the market? 

I’m excited to raise the profile here and educate people about Jenner & Block. They are a firm that handles transactional work as well but their roots, which was attractive to me, are in disputes. Its reputation in the US for disputes is really first class and once you realise you’re dealing with an organisation of that level of quality it becomes very attractive.

Is there more than that? Cooley came to London and said ‘we do M&A for technology companies’, Quinn came and said ‘we’ll sue banks’ and Boies came and said ‘we sue people for hedge funds’. Is there a specific focus? 

‘The message is that we are now bringing the high quality Jenner brand to London. We’re pushing our front door to London to better service our clients. It’s a three-pronged approach of white-collar, commercial litigation and arbitration. We want to push all three of these equally. That’s not to say there won’t be a transactional piece later but these are the priorities. Our client base needs all of that work. We’re excited about the prospects for international arbitration. It’s something that has been growing and that is set to continue.

Is much of the US practice transferable to London?

It is transferable. Until the opening of the London office they were a domestic practice but it’s an incredibly international practice base. We have these clients we know need assistance in London, and I hope to generate our own work too, we’re going to be an office that is going to support Jenner’s existing client base.

You weren’t in a leadership position at White & Case. What will your leadership style be like at Jenner?

As an experienced partner you are in a leadership role anyway. I’m a consensual person, who leads from the front. I enjoy getting my hands dirty on cases and working with teams. I love doing cases and I love being a lawyer but the strongest reason for this transition was the opportunity to take more of leadership role and a step in my career I was happy to make.

How do you plan to grow the office?

It’s going to be a steady expansion and my role is to use my knowledge of the London market to find the right people to help them get the message to our client base that we have strong capability in London. 

I learned a lot from White & Case. When I joined there were just 50 lawyers in London and now it’s got around 400 lawyers. I’ve been through the process of watching something grow and I’ve learned a lot from that.  I’m optimistic that Jenner’s London office will become busier and will need to grow to meet that demand.

London can be a graveyard for some US firms – Edwards Wildman Palmer and Bingham McCutchen to name two – are there any lessons to be learned in not being half-hearted?

London is a tough legal market but Jenner, from its Chicago roots, has taken on tough legal markets in New York and Los Angeles and has succeeded despite being an outsider. It now sees that the next natural progression is to London.

tom.moore@legalease.co.uk

Legal Business

White & Case steps up private equity march with hires from Clifford Chance and Debevoise

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White & Case’s march on the London private equity market has stepped up another gear with the hire of Caroline Sherrell from Clifford Chance and Kenneth Barry from Debevoise & Plimpton.

Sherrell leaves Clifford Chance after nine years at the Magic Circle firm, having been made partner in 2012. Barry, who joins as partner, is currently a senior associate in Debevoise & Plimpton’s London private equity group, departs four years after joining the New York-based firm, following previous stints at Simpson Thacher & Bartlett and Clifford Chance.

The moves come as part of an aggressive recruitment drive by White & Case to build one of the City’s strongest private equity teams. That mission is centred on former Linklaters duo Ian Bagshaw and Richard Youle, who arrived at the start of 2013 after a six-year stint running that firm’s global private equity team.

Barry’s hire aims to boost White & Case’s frontline private equity deals team, with Sherrell arriving as part of a play to capture the increasing amount of private equity activity in the infrastructure space. There has been a slew of private equity houses raising dedicated infrastructure funds in the past two years, with one of Brazil’s biggest banks Banco Bradesco one of the latest to do so with two new funds created earlier this year, and giants of the market like Axa Private Equity repositioning away from the retail sector to focus more heavily on infrastructure.

Sherrell, who counts France’s Antin Infrastructure Partners as a client at Clifford Chance, will team up with long serving White & Case partner John Cunningham in leading the City private equity team’s push into infrastructure. 

Barry arrives with a focus on building White & Case’s private equity profile in the oil and gas area, with many houses actively hunting deals in that sector following the collapse in oil prices and the resulting need for oil and gas companies to raise cash through sell-offs. He will also work closely with the head of White & Case’s Africa practice, Johannesburg-based banking partner Joshua Siaw, to build the firm’s private equity presence in Africa.

Since arriving at White & Case, Bagshaw and Youle have been instructed on mandates for private equity houses HgCapital, Montagu, CVC, Castik Capital, Rhone Capital, Oaktree, Triton, Mid Europa Partners, Novator and Arle Capital and have led on two high profile buyside deals in Europe this year, the CVC-led consortia acquisition of Alvogen and the ACP/Borealis consortia acquisition of Tank & Rast.

tom.moore@legalease.co.uk