Changes follow on from 2016 strategic review
Six finance partners left Freshfields Bruckhaus Deringer at the end of April, with two more losing equity status as the Magic Circle law firm implemented a restructure of its finance practice.
Legal Business has chosen not to name the five City partners and one New York partner who left the firm at the beginning of this financial year, including three London partners whose exits came as result of the recent rejig of the Magic Circle firm’s practice. Finance has about 34 partners in London and more than 70 globally.
Two others – one in New York and another in London – gave up equity partner status in April but it is understood they will remain with the firm in other roles.
In addition to the eight who leave the equity partnership this financial year, two further partner exits from the London practice are earmarked for April 2018. Another finance partner in Asia already left the firm during the 2016/17 financial year as part of the rejig.
‘We are confident that our practice is well placed for the next phase of its development.’
Simon Johnson, Freshfields
Finance head Simon Johnson (pictured) said: ‘We had a strategic review in 2016 and refocused our product offering. This review has resulted in some associated changes within the partner group. We are confident that our practice is well placed for the next phase of its development.’
One finance partner at a US firm observed: ‘Historically the Freshfields finance practice was trying to be full service, focusing on every area across the whole spectrum of different financing products. Some of them – projects, aircraft or asset finance – are historically not as profitable. The whole thing seems a bit dysfunctional, they’ve got a brilliant brand but they don’t seem to have been able to pull it all together.’
In 2015 Freshfields began the ‘recalibration’ of its finance practice. The process coincided with the firm putting some finance partners on its second-tier lockstep, which runs from 10-30 points and sits alongside the traditional 17.5-50-point ladder.
A former Freshfields partner said: ‘I think they would have liked to have done more. Instead of getting rid of a partner, they basically said: “How long are you going to stay here for?” In terms of strategy, they just did too many unprofitable things. It’s not surprising that they’ve ended up in this position.’
madeleine.farman@legalease.co.uk