Marco Cillario finds City offices outpacing worldwide growth at many Global London firms
2017 was a boom year for many of the London outposts of US law firms, with several convincingly outpacing their firm’s global performance financially and two passing the $300m mark. And it was not just a frenetic private equity market that boosted the London coffers: many UK teams also picked up headline mandates in areas including disputes and financial restructuring.
White & Case remains the highest-grossing US firm in London thanks to a 13% hike to its top line to $328m in 2017 – a faster growth than its 10% global revenue rise to $1.8bn.
Among the London office’s standout matters were the £1bn Alfa Financial Software initial public offering, the $10bn refinancing of Wind Tre and the $2.73bn Nacala Corridor project in Africa, which was led out of London.
‘We have seen a continuation of our strong trajectory from 2010 onwards,’ said London executive partner Oliver Brettle (pictured). ‘The key is to strengthen core practices with lateral hires and internal promotions.’ He referred to the firm’s 2020 strategy as targeting growth in four industries: financial institutions, private equity, technology, and oil and gas, and three practice areas: M&A, capital markets and disputes.
And in the year in which it became the first law firm to ever report revenue north of $3bn, Latham & Watkins is also believed to have passed the $300m mark in the City. The London office has grown its top line by more than 10%.
‘2017 was a fantastic year. We are incredibly proud of our accomplishments,’ said co-vice chair Richard Trobman. ‘Q4 was incredibly busy and we see that continue in 2018 across practices, across industries and across markets.’
Expansive global giant Sidley Austin also posted a double-digit percentage hike to its City revenue, which rose 14% to £85.7m ($109.9m), again outpacing the firm’s global growth of 6% to $2.04bn. The year was marked by four headline lateral hires for the firm’s transactional and restructuring teams, including private equity specialists Wim De Vlieger and Till Lefranc from Simpson Thacher & Bartlett, and Linklaters’ restructuring star Yen Sum. ‘They have hit the ground running and fit in well,’ said London managing partner Matthew Dening, but he added that the performance was the result of a cross-practice effort.
As a standout London performer behind Quinn Emanuel Urquhart & Sullivan’s striking 61% revenue increase, Paul Hastings’ London office grew revenue 25% to $80m. London chair Ronan O’Sullivan said: ‘Across all finance practice areas we have both invested and brought people through. In 2017 these investments have come home.’
Globally the firm grew revenue 4% to $1.12bn and PEP 12% to $2.9m in a year in which it kept its headcount flat. The London team advised on the £700m rescue of The Co-operative Bank, and the banks on the €700m acquisition of Concardis by Advent Capital Management and Bain Capital.
Cooley’s London outpost, meanwhile, grew revenue 22% to $57.5m in its third year since launch. It grew twice as fast as the firm globally, which increased its top line 10% to $1.07bn.
In a difficult year for the firm globally, London brought good news for Cadwalader, Wickersham & Taft too. The firm grew its City revenue 10% to $50m in 2017, while its global income dropped 10% to $408.1m as the firm keeps retrenching in a bid to concentrate its efforts on a more focused client roster. But the new year started with a setback for the firm’s City office too, as its restructuring practice was decimated by the departure of five partners to Milbank, Tweed, Hadley & McCloy and Brown Rudnick.
marco.cillario@legalease.co.uk
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Global London: top firms by London revenue
| Firm | London revenue 2017 | % change on previous year | Global revenue | % change on previous year |
|---|---|---|---|---|
| White & Case | $328m | 13% | $1.8bn | 10% |
| Latham & Watkins* | $300m | 15% | $3.06bn | 9% |
| Baker McKenzie** | $242.4m | 1% | $2.67bn | 2% |
| Shearman & Sterling* | $191.1m | 1% | $917.5m | 1% |
| Reed Smith | $189.7m | 9% | $1.12bn | 4% |
| Milbank, Tweed, Hadley & McCloy | $125m | 9% | $916m | 7% |
| Debevoise & Plimpton | $112.7 | 5% | $822m | 12% |
| Sidley Austin** | $109.9m | 8% | $2.04bn | 6% |
| Quinn Emanuel Urquhart & Sullivan | $92.2m | 61% | TBC | TBC |
| Covington & Burling | $80.5m | 16% | $945.5m | 13% |
| Paul Hastings | $80m | 25% | $1.12bn | 4% |
| Cooley | $57.5m | 22% | $1.07bn | 10% |
| Cadwalader, Wickersham & Taft | $50m | 11% | $408.1m | -10% |
| King & Spalding | $43m | 1% | $1.14bn | 8% |
* Estimate – no London financial information provided by the firm.
**Based on average exchange rate for 2017 of $1.28 for £1. Baker McKenzie reported London revenues of £189m for the year to 30 June 2017 (+7% on previous year). Sidley Austin reported London revenues of £85.7m for 2017 (+14%).