Fifteen years of Legal 500 data offers big-picture view of Stateside elite’s relentless advance into London private equity arena
Of all the London legal markets to have been upended by competition from across the pond, private equity offers perhaps the strongest evidence of how US firms have made their mark in the City.
And 15 years of records from Legal 500’s online historical data archive provide a stark picture of how the pecking order in this market has changed over the years. Twice as many US headquartered firms (32) are now ranked for private equity than in 2009, with American practices now making up 70% of the firms in the high-value PE deals ranking.
Weil, Gotshal & Manges London managing partner Mike Francies, one of the longest-ranked lawyers for private equity in the Legal 500 (see stats, below), is well-positioned to look back on this shift, particularly given his move from Clifford Chance (CC) to Weil in 1998: ‘The most significant change in my time at Weil has been the rise of US firms. When I began, CC and Ashurst were the leaders in private equity, with what was then, SJ Berwin in fund formation.
‘Now, the leaders globally and locally are the US firms, in part because many of the top lawyers at Magic Circle and other UK firms have transitioned to US firms, highlighting the shift in dominance within the industry and the significance of cross-border operations.’
That shift is also underlined by the Legal 500’s individual rankings. In 2009, just 22% of the ranked lawyers for private equity worked at US firms; that proportion now stands at a whopping 62%.
Proskauer PE co-head Steven Davis, who headed the corporate team at SJ Berwin from 2006 to 2013, summarises: ‘There’s been a migration of talent driven by two interconnected factors. First, many US law firms have opened offices in London with a focus on private capital and/or private equity. At the same time, US-based private equity firms have created dedicated European teams and funds to target the European market. Initially, mature US law firms in London focused on public equity.
‘This migration of talent has been fuelled by the increasing presence of US sponsors in the European marketplace. This shift in market dynamics has significantly influenced where people are located and how they operate.’
Francies expands on this point: ‘I think the shift we’ve seen is more economic than legal. Private equity and private capital has transformed from a niche area handled by a few firms into a core component of nearly every law firm operation.’
The Magic Circle’s preeminence in the City private equity sphere has also been chipped away over the years – while 30% of ranked individuals for PE were from Magic Circle firms in 2009, that proportion now stands at just 14%.
Perkins Coie London head Ian Bagshaw is one such example of a big-name partner who left the Magic Circle for a US firm, jumping from Linklaters to White & Case in 2013. ‘The value of individual partners has increased, with clients remaining loyal to them rather than to the firms,’ he explains. ‘This has led to a shift towards US firms for partners with a loyal client following who want to develop their own practice further as well as get paid up beyond the legacy constraints of Magic Circle lockstep.’
Aside from the US/UK rivalry, the data also highlights long overdue recognition for female talent in the sector. Up to 2018, there were no women ranked for private equity, but female lawyers now make up 28% of all individual rankings – a figure which underlines both the progress that has been made and the long way still to go.
As Weil’s Marco Compagnoni sums up: ‘The market has evolved and matured considerably compared to the more “rock and roll” very early years. It’s a very different landscape now. Given that private equity was essentially invented in the US, it’s no surprise that American headquartered law firms lead the market globally.’
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