Foreign firms in London made bulking up their senior ranks their key priority in 2012, with average partner headcount hitting an all time high, according to the 11th annual Legal Business Global London survey.
The overall number of partners at Global London firms climbed from 1,296 in 2011 to 1,325, proving that the Capital is still one of the most vital legal markets in the world. The top 50 foreign firms in London by headcount added an extra 29 partners to their respective firms compared to last year, with lateral hiring as the main reason for growth.
A handful of firms, including Jones Day, Dechert, Reed Smith and Mayer Brown, went on hiring sprees during 2012 and successfully recruited from some of the UK’s largest firms.
Jones Day and Dechert each added eight new partners during 2012. The former took on a number of big names and last month saw the addition of former Clifford Chance partner Sumesh Sawhney, who co-headed the Magic Circle firm’s India corporate practice. Dechert also did well to recruit out of a large UK firm after acquiring Antony Dutton, who headed the global disputes practice at Norton Rose. Dutton joined the top 50 US firm in January last year.
Reed Smith recruited out of two large UK firms to secure private equity and structured finance practices, hiring Perry Yam from SJ Berwin and Tamara Box from Berwin Leighton Paisner.
Reed Smith Europe, Middle East and Asia managing partner Roger Parker said the firm had made many lateral hires over the year but stressed it is part of a balanced approach, with organic growth also important.
Mayer Brown also took on seven lateral partners, with the Chicago-based firm recruiting Alistair Graham, a highly regarded litigator from rival White & Case.
The amount of laterals shows the attraction of US heavyweights to UK-based partners. Parker commented that international firms have ‘bigger balance sheets’ which may explain the transfer of partners to US firms.
He added: ‘The market in the City is going to get more competitive as more new entrants come and seek a piece of the same pie.’
‘The market in the City is going to get more competitive as more new entrants come and seek a piece of the same pie.’
Roger Parker, Reed Smith
The escalating use of lateral hires has been highly documented in recent years, especially after the use of guaranteed remuneration packages was one of the many reasons that Global London firm Dewey & LeBoeuf failed last year. The now defunct firm also gifted a number of its rivals with teams of partners and enabled a number of foreign firms to launch into new areas.
Despite the lack of economic growth in London, global law firms still have a desire to be here. The overall average headcount of fee-earners at top 50 global firms has grown by 2.6% to 4,382 from 4,271 in a year and firms are looking to acquire talent wherever they can find it.
Morgan, Lewis & Bockius, Ropes & Gray and Proskauer Rose each significantly expanded their London offering by boosting headcount in the City by more than 30% during the year.
The top 50 global firms by headcount are predominantly made up of US firms, in part because of the sheer size of the US legal market. Fasken Martineau, which ranks in the top 25, is Toronto-based and has been in London since 2006, while France’s Salans and Gide Loyrette Nouel have been in London for 20 and ten years respectively.
Salans, however, will not feature in the Global London table next year as its merger with SNR Denton and Canada’s Fraser Milner Casgrain went live last month.