Financial results round-up: Freshfields tops UK elite firms

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Magic Circle firm shines with 7% revenue spike in flat market

Freshfields Bruckhaus Deringer has led the Magic Circle for 2012/13 financial results in a year that has seen the UK’s elite turn out flat annual turnover and profits, while many of the UK’s top 50 reveal spikes in revenue largely generated by international expansion.

Freshfields has revealed a 7% revenue increase from £1.139bn to £1.22bn, with profit per equity partner (PEP) rising by 11% to £1,439,000.

Headline deals for the firm have included its role advising the government on the long-running IPO of Royal Mail, and advising Betfair on CVC Capital Partners’ £910m takeover bid. For Q1 of 2013, Freshfields was ranked by mergermarket in third place for global M&A behind US firms Davis Polk & Wardwell and Wachtell, Lipton, Rosen & Katz, and second for global buyouts behind Kirkland & Ellis.

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CC bumps starting pay to £63,500 with bonuses giving junior associates chance to earn over £100,000

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Despite generally gloomy market conditions there were renewed signs of underlying confidence at top London firms with Clifford Chance (CC) joining its peers today (4 June) in announcing rises in associate and trainee pay and bonuses for the year ahead.

The firm is the last of the Magic Circle to announce pay changes across the board, adding an extra £2,000 to newly-qualified (NQ) lawyers’ pay packets, up to £63,500 from last year’s £61,500, a rise of 3%. Continue reading “CC bumps starting pay to £63,500 with bonuses giving junior associates chance to earn over £100,000”

Magic Circle unveils new pay levels

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Four of the five Magic Circle firms have now revealed their decisions on newly qualified (NQ) and trainee salaries, with decisions pending from the remainder of the top ten City firms.

Freshfields Bruckhaus Deringer so far tops the table for NQs, despite its decision to freeze pay for its career milestone foundation. Junior-banded associates – equivalent to NQ to one-year PQE – will earn between £65,000 and £72,500. The firm’s trainee pay has also been frozen at £39,000 for first-year trainees and £44,000 for second-year trainees.

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Deal Watch: Magic Circle advises on headline debt deals as re-financing work keep advisers busy

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In a dire market for new money M&A, debt restructuring continues to be a lifeline for major advisers with Freshfields Bruckhaus Deringer, Linklaters and Kirkland & Ellis securing major mandates in recent days.

The standout mandate of May was the €4.2bn debt restructuring of German real estate group IVG Immobilien, which has generated lead roles for Freshfields and Linklaters alongside US duo Kirkland and Kaye Scholer. Continue reading “Deal Watch: Magic Circle advises on headline debt deals as re-financing work keep advisers busy”

A&O falls behind on associate pay table as it announces a freeze

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Allen & Overy (A&O) has become the latest of the Magic Circle to reveal that it is holding its associate salaries at last year’s levels, meaning its associates will rank as the lowest paid of its rivals so far.

The firm will continue paying newly-qualified (NQ) lawyers £61,500; £1,500 less than Slaughter and May, £2,500 less than Linklaters and £3,500 less than Freshfields Bruckhaus Deringer. Continue reading “A&O falls behind on associate pay table as it announces a freeze”

Old normal update – Linklaters outpaces Slaughters to hike starting associate pay by £2,500

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A further reminder comes this week that despite much talk of the pressure on the legal market (see Comment: Things I would have said about the future of law if I hadn’t forgotten my notes), leading City players continue to be highly profitable with Linklaters announcing on Tuesday (7 May) that it is raising its salary bands for associates. Continue reading “Old normal update – Linklaters outpaces Slaughters to hike starting associate pay by £2,500”

The reality gap and the Global 100

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There is a curious phenomenon that affects both the NHS and, now it seems, the legal sector. The reality gap. Ask a patient treated in hospital for a broken leg what their experience of the doctors and hospital was, and in the main it will be positive. But ask the same person what they think of the NHS on the whole, and usually they will say that the whole system is going to the dogs.

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Emerging markets dominate 2012 partner promotions round

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Good news for senior associates in emerging markets: there are now more partners than ever being made up in Asia. If you are an aspiring associate in Asia or Australia you stand a much greater chance of making partner at a UK firm now than five years ago. According to data collected by LB, this year the UK’s top 25 firms made up 48 partners in Asia, compared to just 26 in 2008.

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