Building on last year’s record performance, Herbert Smith Freehills has achieved its 11th consecutive year of annual revenue growth in its latest financial results.

The firm reported a 10% increase in revenue, rising from £1.186bn to £1.306bn. Net profit and profit per equity partner (PEP) also saw strong growth, with increases of 14.5% and 12% respectively. PEP rose from £1.173m to £1.315m, while total profit went from £388.2m to £444.5m.

Reflecting on this sustained growth in a statement, CEO Justin D’Agostino commented: ‘Our focus on our clients, core practices and priority sectors keep up in the leading pack of international law firms.’

He continued: ‘Our strategy has strong momentum, delivering continuous and sustainable growth across all practice areas and regions. Our well-hedged international business across a broad mix of geographies, sectors and practices makes the firm resilient.’

The firm identifies the UK as a very strong performer, and notes growth across Australia, Asia, EMEA, and the US.

‘We remain committed to our international network, investing strategically in areas such as private capital, energy transition, ESG and digital across all of our practice groups, sectors and regions’, said D’Agostino.

While last year HSF noted strength in disputes in a tough climate for transactional work, this year the firm was positive on its performance across the board: ‘our ‘twin-engines’ of transactional and contentious expertise drive our business forward’, said D’Agostino.

Disputes highlights include acting for US chip design company R2 Semiconductor in High Court proceedings against Intel concerning semiconductor patents, as well as successfully representing the Human Dignity Trust on a pro bono basis in Mauritius Supreme Court proceedings that ruled legislation criminalising private, same-sex, consensual activity was unconstitutional.

In the transactional space, notable mandates include advising Stonepeak on its €730 million acquisition of a 49% stake in Cellnex Nordics from Cellnex Telecom. Furthermore, HSF assisted Interpath Advisory in the sale of Toucan Energy’s solar portfolio to Schroders Greencoat for approximately £700m.

HSF expanded its global team with 14 new lateral partner hires across all regions. In its latest promotion round, the firm appointed 27 new partners, with 52% of these promotions going to women. This contributes to HSF’s overall female partnership, which now stands at 33%, marking an 18% increase since the establishment of gender targets in 2014. Looking ahead, HSF aims to achieve 40% female partners by May 2030, with aspirations for parity — 50% representation — in certain parts of the firm, such as Australia, in that time.

In addition to its personnel achievements, HSF reported providing over 80,000 hours of pro bono advice globally, and remains committed to supporting innovators and entrepreneurs through initiatives like The Earthshot Prize. This year, the firm also launched its Leading Digital Delivery practice.

D’Agostino commented: ‘I am proud of our achievements in the face of significant change and challenge in many of our markets. We continue to work closely with our clients to navigate this new world, by getting ahead of their opportunities, needs and concerns.’

anna.huntley@legalease.co.uk

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Ashurst global PE co-head exits to O’Melveny; Hogan Lovells hires from K&L Gates and Weil and Kirkland picks up a CC tech partner

O’Melveny & Myers has expanded its London office with the hires of Ashurst private equity partners David Carter and Braeden Donnelly, bringing O’Melveny’s London partner headcount to seven.

Carter,  a Legal 500 Hall of Famer for mid-market private equity transactions, was global co-head of Ashurst’s PE practice, and brings over 20 years of experience in leveraged buyouts, mergers and acquisitions, and corporate reconstructions. Donnelly, a partner at Ashurst for five years, has experience advising on UK and multijurisdictional PE transactions for clients including Agilitas, CapVest, and Liberty Hall Capital Partners.

Commenting on their departures, Ashurst’s global CEO Paul Jenkins told Legal Business: ‘We wish David and Braeden the very best. We also made some significant hires and internal promotions, so for us it’s a matter of continuing to invest and look for opportunities to continue to grow that team.’

Also active in PE was Hogan Lovells, which has hired K&L Gates partner James Cross and Weil acquisition finance counsel Nick Cusack as a partner. This follows last month’s hire of special situations partner Sam Norris from Ropes & Gray, signaling continued growth in the firm’s largest office.

Cross’s expertise includes advising investors and management on buyouts, restructurings, and bolt-on acquisitions, with notable experience in complex cross-border transactions for Chinese and US investors.

Cusack, a specialist in leveraged finance transactions, has a focus on private credit.

Global corporate & finance practice group head James Doyle emphasised the strategic importance of the hires, stating: ‘Their arrival helps us to continue to service the increasingly important and sophisticated global private capital market across the full investment life cycle.’

Elsewhere, André Duminy has joined Kirkland & Ellis as a partner in the firm’s technology and IP transactions practice, concluding a nearly 25-year tenure at Clifford Chance.

Specialising in technology and business separation issues, as well as multi-vendor and multijurisdictional carveout transactions, Duminy is set to enhance the firm’s tech and IP transactions offering, alongside its broader M&A practice in Europe.

‘André’s skillset strongly supports out private equity and financial sponsor clients’ investments across relevant asset classes,’ said Kirkland corporate partner and executive committee member Matthew Elliott in a statement. ‘His hire will help spearhead the development of the London Technology & IP Transactions practice as our transactional offering continues to evolve and drive growth opportunities,’ he continued.

Simmons & Simmons has also strengthened its London PE offering with its hire of Richard Kyle, who joins from Eversheds after over two decades.

‘It’s an excellent time to join, with the firm prioritising the expansion of its mid-market private equity offering. With strong EU transactional and financing capabilities, a wide international network, and a sector focus aligned with that of my clients, Simmons is a fantastic fit for my practice,’ Kyle said in a statement.

Covington & Burling has enhanced its EMEA PE practice with the addition of partners Lyndsey Laverack and Jade Williams-Adedeji in London, complementing the February hire of Paul Hastings’ Adrian Chiodo as European leveraged finance practice head.

Laverack, previously at Sidley Austin, focuses on PE and cross-border M&A, particularly in equity investments in real estate and social infrastructure assets. Williams-Adedeji, also joining from Sidley after over almost two decades, advises clients on the real estate investment cycle, including debt and equity investments, as well as direct asset acquisitions and disposals.

Meanwhile, White & Case has expanded its investment funds practice and global private equity industry group with its hire of Alexandra Chauvin as a secondaries partner in London.

Chauvin, who joins from Ropes & Gray where she led the European secondaries team, brings extensive experience in US and European secondaries transactions.

Chauvin marks the firm’s third recent hire from Ropes: Emily Brown joined as investment funds practice head last November after making partner at Ropes in April 2021, followed by Lavanya Raghavan, who was a counsel at Ropes and joined W&C as a partner in March.

‘With deep experience in the US and Europe, Alexandra will strengthen our funds and secondaries capabilities globally and be well-placed to capitalize on a market that is growing at speed’, said Brown in a statement.

Elsewhere, Jenner & Block expanded its litigation team with its hire of Legal 500 banking litigation leading individual Edward Davis. Davis joins from Stephenson Harwood, where he co-headed the London litigation practice for 25 years, handling complex banking and fund-related matters, fraud cases, and corporate disputes.

Also active in disputes was Fladgate, which hired Ashurst counsel Thomas Karalis into its dispute resolution group as a partner. A Legal 500 international arbitration rising star, Karalis joins with over 15 years’ experience, and brings the firm’s London partner headcount to just shy of 100.

Shoosmiths has grown its London employment practice with the addition of Adam Lambert, who joins from BCLP, where he led the UK employment and labour group. Lambert brings nearly 30 years of experience to complement Shoosmiths’ 50-strong national employment team.

Additionally, Rachel Orton has joined Clyde & Co as a partner in the firm’s real estate team. Formerly partner and head of senior living at Addleshaw Goddard, Orton brings experience in advising on healthcare and living sector developments, including hospitals, supported living, dementia care assets, and infrastructure transactions.

Finally, looking overseas, Freshfields continued its run of aggressive US expansion with its hire of Skadden tax head Steven Matays into its New York tax practice.

Matays brings over 20 years of experience in handling complex U.S. and international tax matters, focusing on M&A, spinoffs, debt and equity offerings, corporate restructurings, and joint ventures.

Matays said in a statement: ‘Freshfields is the firm to watch in the US. I’ve been impressed by how the firm has become a go-to outside counsel for the most important assignments of high-profile clients especially in M&A over the last few years. I’m excited to be a part of this vibrant team and I look forward to contributing to the next phase of growth.’

anna.huntley@legalease.co.uk

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On the eve of a general election that looks set to promise a wipeout for the Conservative Party and the first Labour government in 14 years, LB checked in with a range of City partners across a variety of practice area to gauge the temperature of the UK legal industry, find out what they think will change, what won’t, and what to watch out for.

Things can only get better?

‘As of now, the polls suggest that if Labour achieve the same majority as Tony Blair did in 1997, it would be a good result for the Conservatives.’ This from Paul Butcher, director of public policy at Herbert Smith Freehills in London, sums up prevailing sentiment among not just the legal community but the wider media.

Indeed, the BBC’s poll tracker shows Labour poised to secure 40% of votes cast, with the Conservatives languishing at 20% – a stunning reversal in fortunes for the two parties after the Conservatives roared to victory in 2019 with 43.6% of the vote to Labour’s 32.1% and a majority of 80 seats. Now, The Economist predicts that Labour will emerge with 434 seats – more even than it won in 1997.

Polls can of course be wrong. But things do not look good for the Conservative Party – and not a single partner interviewed for this feature expressed any scepticism about a Labour victory.

‘Like everybody else, we’re expecting a Labour government’, says Quinn Emanuel London co-managing partner Ted Greeno (pictured).

Given the near unanimous expectation of a Labour victory, it is encouraging that the market view on the party is broadly positive – if not wildly enthusiastic. ‘I view this election as relatively benign, especially from the perspectives of the financial services and legal sectors’, says Latham & Watkins corporate and capital markets partner Mark Austin. ‘Unlike the last election, we now have two relatively centrist main party leaders and parties.’

Views in the finance community are similar, says McDermott London managing partner Aymen Mahmoud: ‘The usual measure of market reaction to a change in government is any movement in treasury or gilt markets. The fact that we haven’t seen one tells us that whichever party wins the election will be pro-business and, in the case of the Labour government, pro-worker.’

This is at least in part the result of a concerted effort by Labour. ‘Labour has been courting the business community over the last couple of years, really listening to what it needs’, notes Katy Colton (pictured, below), head of the politics and law group at Mishcon de Reya.

Down to brass tax

However, opinions on the Labour manifesto are not unanimously positive, with tax one particular area of concern – and not just the proposals for VAT on private school fees. ‘The Chancellor made a surprise announcement a while ago about cracking down on nondoms, but Labour has committed to going further, whilst at the same time pledging to tax carried interest to income tax instead of capital gains tax, which will have implications for the private equity industry’, says Colton.

These proposals raise the spectre of what Colton calls ‘an exodus of high-net-worth individuals’. Other partners, meanwhile, point to the risk that tax increases could discourage investment into the UK. This would be especially damaging as Labour has acknowledged that it will struggle to finance even its more modest proposals for change, and has placed economic growth at the core of its pitch to voters. The party has spoken too about closing loopholes in the tax regime, but partners are sceptical that there are enough loopholes to close to garner the kinds of revenues that Labour needs.

Still, Butcher points out that the tax issue is ‘heavily derisked for businesses compared to 2017 or 2019’. ‘They will find ways of raising taxes,’ he explains, ‘As under either party they will always find taxes or allowances not subject to promises. However, they are far more pro-business and pro-private sector investment. Their vision involves a more interventionist approach and more co-investing. Nevertheless, they embrace private investment, which will be reassuring.’

Employment is another area where the two parties diverge. Says Colton: ‘There are changes that are going to be interesting for employment lawyers, with Labour promising to increase day-one rights for workers and to remove some of the restrictions on unions, while the Conservatives are saying they’ll increase restrictions.’

Butcher agrees: ‘Concerns are much less acute than they were with Jeremy Corbyn in 2017 and 2019, but it will be a very different government to the current one. They will want to intervene much more in the economy. For example, in employment rights, they propose what they frame as the biggest upgrade to workers’ rights in a generation.’

However, he also makes sure to temper expectations: ‘Admittedly, it would also be the only upgrade in a generation.’

Powering up

Of course, much of what any incoming government does will be dictated not by its ideology or priorities but by its response to long-term challenges. The struggle between energy security and energy transition looms particularly large here.

‘Whatever the make-up of the new government, it seems inevitable that legislation will be enacted to bring forward regulatory change, especially in the energy and infrastructure sectors’, says Vinson & Elkins London corporate head Ben Higson. ‘The new government will inevitably need to continue balancing the need for energy security and the drive to net zero: brought into sharp focus, I think, as real progress will need to be made during the five-year term on both fronts.’

Here, too, though, there is no sense that a Labour government will mean a radical break with the status quo. ‘Labour has a ‘moonshot’ proposal to decarbonise the electricity system by 2030,’ says HSF’s Butcher. ‘This could help focus efforts on issues like planning, as achieving this would be impossible without planning reform. This urgency also means they need to proceed with current plans rather than implementing new reforms. In energy, this is likely positive, as we have a good strategy for encouraging investment. Investors will likely welcome such stability over constant changes. Labour’s emphasis on quick implementation should reassure investors and could facilitate progress if executed well.’

Both Higson and Butcher point to nuclear power as one key area to watch for signals from the incoming government. Butcher expects that Labour ‘will be just as supportive as the current government. They recognise the reality that decarbonising by 2050 necessitates a significant amount of nuclear power; current technologies cannot achieve this alone.’ But he does not discount the possibility of further action: ‘The current government has established a solid foundation. Now, reforms to planning are needed to move forward, offering Labour a great prize if they can seize it. Currently, they appear as committed as the current government. However, I would urge them to go even bolder with the UK’s nuclear ambitions.’

Contentious matters

On the disputes front, Quinn’s Greeno is optimistic that a change in government will not present any unwelcome upheaval for litigators. ‘There’s no particular reason to think that anything’s going to change, at least in the short term’, says Greeno of the commercial litigation market. ‘Hopefully, the legislation on litigation funding pending when the election was called will be picked up and carried through by a Labour government. It’s pretty uncontroversial and in everyone’s interests to assist with access to justice.’

However, the dangers of an underfunded court system remain. Says Greeno: ‘We all know that the criminal justice system is crumbling due to lack of funding. One would have hoped, perhaps, that, as a former Director of Public Prosecutions, Keir Starmer would be alive to the risks of doing nothing to reverse that. None of the parties seem to think there are any votes in supporting a properly funded justice system, but as we see more years long delays and miscarriages of justice, I think this topic will gain more political traction.’

It is unclear what any government could do to relieve the stress on the system without an influx of cash. Increasing court fees would be ‘self-defeating’, argues Greeno, because ‘it would inevitably discourage some litigants from coming to London’, potentially sacrificing enormous funds. ‘Whatever the amount of revenue that would be raised by such a measure, a significantly greater amount would be lost if only one major case went elsewhere.’

The problem may be a hard one to solve. But that does not mean that the new government should shy away from it. For Greeno: ‘All governments are happy to talk about the rule of law, but they continue to take it for granted by underfunding the courts.’

Stable door

The feeling from the City’s corporate lawyers is that pre-election jitters from clients are, to date, relatively limited. The period since Rishi Sunak announced the election on 22 May has seen some businesses hold off on making any major moves until the new government comes in. But most define this as the usual waiting period that comes before any major election.

‘The timing is helpful’, says Austin, ‘because getting it done by mid-July means businesses and investors can confidently plan for the rest of this year and the first half of next year.’

Across the board, observers expect and hope for certainty. ‘It remains to be seen how the new government may impact the M&A markets’, says Higson. ‘But, at the least, a five-year term should provide some stability for businesses and investors going forward.’

A&O Shearman UK managing partner Denise Gibson (pictured) concurs: ‘The UK is in desperate need of substantial investment in this county’s physical, digital and social infrastructure, and its people. The country is also craving stability in decision-making.’

For Colton, ‘Having an election, regardless of the outcome, is a good thing for the business of law, because there’s been so much uncertainty, and an election will give us more certainty in terms of who the next government will be.’

Butcher is encouraged on this point: ‘Stability has become the prevailing trend. Politics seems to be returning to a more normal state post-Brexit and post-pandemic. We are moving to a situation resembling more typical political dynamics, and I hope this leads to improved legislation – but time will tell.’

Alexander.ryan@legalbusiness.co.uk

Anna.huntley@legalbusiness.co.uk

Elisha.juttla@legalbusiness.co.uk

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As UK financial reporting season kicks off, Osborne Clarke (OC) has today (2 July) posted a robust 19% revenue boost, passing the firm’s target of €500m to reach €525m.

The increase in international revenues – up from €442m last year – comes after the firm last September launched its third US office in Miami, marking its 26th international location.

Meanwhile, UK revenues jumped 11% from £217.3m to £240.5m, while net profit of £84.8m marks a 14% increase on last years’ £74.7m figure. Profit per equity partner (PEP) saw a parallel 11% increase, climbing from £687,000 to £771,000.

This revenue growth surpasses last year’s performance when the firm navigated weaker global economic conditions and a stagnant deals market to achieve a 9% increase in both international and UK revenues. However, the current PEP still falls short of the 2021-22 figure of £796,000.

Speaking with Legal Business, UK managing partner Conrad Davies expressed satisfaction with the strong results. ‘Given the market conditions we’ve experienced over the past 12 months, I believe we have maximised our top line and overall business performance,’ adding that the 2021-22 results should be viewed as ‘exceptional’ due to post-Covid market conditions.

Reflecting on this year’s growth, international chief executive Omar Al-Nuaimi (pictured) said: ‘We’re really pleased with the outcome; it’s been great across the board. A feature of the previous year was a flat transactional market. However, the past 12 months have been more consistent for us on the transactional side. Coupled with strong growth in advisory areas like ESG and energy, it’s meant that all parts of the business are firing at the same time.’

Davies added: ‘The service line growth in the UK mirrors our international performance. We observed modest growth in transactions compared to the previous year, which was relatively flat, but saw double-digit growth across all other practice groups.’

OC’s priority UK sectors – life sciences & healthcare, retail and consumer, and mobility and infrastructure – saw growth rates of 60%, 33%, and 26% respectively, while energy & utilities grew by 15%.

‘We have focused on areas with potential for profitable growth, investing in and concentrating our efforts on these sectors, which has paid off this year,’ Davies explained.

The year also saw a record promotion round, with 11 partners made up in May, complemented by the addition of 13 partner hires over the year. Notable laterals included Charles Russell Speechlys construction disputes partner Rupa Lakha and Stephenson Harwood restructuring specialist Nick Axup.

‘We’ve been identifying areas where we need to promote internal partners or bring in lateral hires to ensure we fill all gaps in our network,’ Al-Nuaimi noted.

In recognition of the firm’s strong performance, all UK staff this June received a 5% profit share bonus based on annual salaries. Additionally, August will mark the launch of a long-term incentive plan, with the firm set to reward high performers with bonuses of up to 40%, paid over three years.

‘This is the largest distribution we’ve provided to our people to date,’ Conrad commented. ‘Our philosophy is that when we succeed as a business and enhance profitability, we must reinvest in the business, while also rewarding our people.’

Looking ahead, after achieving the firm’s €500m target a year ahead of schedule, Al-Nuaimi characterised 2024-25 as a ‘free hit’, without specific new targets.

‘While I would be surprised if we achieve the same level of growth as last year, which was exceptional, we remain ambitious. The transactional market, in particular, feels very healthy compared to the past two years, and there are promising signs across all levels. I would be disappointed if this isn’t another successful year,’ he explained.

anna.huntley@legalease.co.uk

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‘In the old days, it was about having a nice brochure with some green pictures, but then getting on with the serious matter of running our business. We’ve moved way beyond that now – it’s a business fundamental now.’

Norton Rose Fulbright head of environment, health and safety, Europe, Middle East and Asia, Caroline May neatly sums up the transformative shift in attitudes in recent years, with law firms now more attuned than ever to the importance of ESG, both in their capacity as commercial advisers and in terms of their reputation as progressive employers.

Now in its fourth year, the responses from leading law firms to LB’s annual ESG survey indicate concrete progress on both fronts, with more widespread evidence of firms putting together a joined-up client offering, while implementing internal strategies to ensure they are also walking the walk, as their sustainability and social responsibility credentials come under scrutiny from all quarters.

As Michael Watson, head of climate and sustainability advisory at Pinsent Masons, explains: ‘The accelerated transition of sustainability from being a reputational issue – and therefore the domain of the marketing department of a business – to being central to the executive and particularly legal and risk, has been a significant trend this year.’

‘A few years ago, there was a high point of “let’s only advise green”, but I think that’s fundamentally wrong. Clients in the most challenging areas are often the ones most inclined to engage.’
Michael Watson, Pinsent Masons

The ESG gatekeepers

One of the most noticeable trends to emerge from this year’s survey is the growing number of firms putting processes in place to reject work on ESG grounds.

While firms are, unsurprisingly, reluctant to cite specific examples, around half of respondents to the survey provided details of how they are integrating ESG considerations into their client onboarding and business acceptance processes, with ethical labour practices, sustainability standards and governance processes all under the spotlight when determining whether potential clients meet the ESG bar.

Notable examples include Simmons & Simmons, which last year established a Business Acceptance Committee to ensure work ‘aligns with the firm’s values’, with all matters evaluated against ESG criteria such as climate risks or social harms, such as modern slavery.

At Bryan Cave Leighton Paisner (BCLP), high-risk matters and clients are considered by a business acceptance team, and can be escalated to the firm’s ‘Client Council’ – a group of senior partners who weigh up the ESG considerations of taking on work. Since assuming the role in January this year, the firm’s new London-based global senior partner Segun Osuntokun has also established an ESG Action Board and is aiming to formulate a ‘clear and progressive responsible business culture’ across the firm.

Other firms taking concrete steps on this front include Dentons, which over the past two years has established and built up a responsible business team for its UK, Ireland and Middle East (UKIME) business. The firm explicitly includes ESG considerations in its client due diligence processes, turning away work from clients which fall short of established ESG standards, such as environmental crimes or poor employee treatment.

Best intentions, market realities

However, the reality is that for most firms, adherence to the purest of ideals is inevitably unrealistic, and there is a balance to be struck when it comes to clients in carbon-intensive industries – many of which are longstanding clients of top law firms.

Linklaters, for instance – a market-leader for oil, gas and mining transactions – is open about the fact that its commitment to ESG ‘does not mean that it does not work for, or impose limits or quotas on, clients which operate in carbon intensive businesses’, but that ‘the risks in relation to carbon intensive new business should be viewed as part of the usual analysis that is integral to the firm’s business acceptance process’.

The firm argues that clients in carbon intensive industries have an ‘acute’ need for high-quality legal advice, given the challenges in transitioning to sustainable practices, and that ‘it is precisely clients in those industries that most need such expertise and experience’.

‘ESG-related regulation is infectious; it snowballs, and the more that is adopted, the more will emerge.’ Jannis Bille, HSF

And this approach is not unique to Linklaters. As May explains, ‘The energy transition needs to happen, so we view it as providing best practice and advice to these companies – helping them move forward and understand where the market is heading.’

Watson adopts a similar stance. ‘The question I often ask is: what is your agency? Withdrawing your advice isn’t agency; giving it is the tool we have as professional advisers.’

He argues that advising clients in ‘challenging’ areas can be a form of social responsibility. ‘A few years ago, there was a high point of “let’s only advise green”, but I think that’s fundamentally wrong. It’s correct to engage with your whole client base, and we’re finding that clients in the most challenging areas are often the ones most inclined to engage with our ESG advisory capability.

‘If you think about energy transition, you need to be leaning into your client base rather than running away from it. Turning away a client wouldn’t necessarily make any material difference to their transition, so what we do is incorporate ESG factors into our broader client onboarding procedure, and I increasingly think that’s the correct thing to do.’

Even allowing for such considerations, firms are of course acutely aware of reputational risks. Taylor Wessing, for instance, escalates potential reputation-threatening mandates to its reputation committee, which weighs ESG factors in deciding whether to proceed with specific mandates. Jannis Bille, UK head of ESG at Herbert Smith Freehills (HSF), acknowledges this shifting dynamic: ‘Traditionally, lawyers would be quite content to follow the letter of the law and advise based strictly on that. However, with regards to ESG, this isn’t sufficient due to the reputational considerations.’

This underscores how there are always business risks to consider – how a company’s actions are perceived by the public, customers, investors, and stakeholders, and for the younger generation in particular, such considerations are front and centre of their personal and professional choices.

Arthur Cox financial regulation head Robert Cain, who is also the firm’s people partner, notes the importance of ESG credentials in the context of recruitment and talent management: ‘We are finding that Gen Z professionals value meaningful cases, social impact, and alignment with their personal values.’ Such issues are undeniably growing in importance for law firms, in terms of creating a culture that resonates with the values of the next generation.

‘We are finding that Gen Z professionals value meaningful cases, social impact, and alignment with their personal values.’
Robert Cain, Arthur Cox

Sustainable service

The responses to the survey also underline the efforts that firms are making to put together cohesive and convincing multidisciplinary practices to service client needs, which are only increasing amid snowballing ESG concerns.

Rachel Barrett, who leads the ESG practice at Linklaters, says there has been substantial progress on this front in the last year, with new ESG regulations ‘catapulting these issues further into the mainstream’. ‘As lawyers we’ve always had a crucial role, but now there are concrete new rules to address,’ she explains. ‘Clients are increasingly seeking specific support to meet their compliance obligations.’

Typical matters handled by Linklaters’ multidisciplinary practice include governance strategies, regulatory compliance, advice on disclosure requirements covering pay, climate targets, sustainability and D&I, while the firm also holds a number of broad ‘ESG counsel’ roles for major multinational corporates and financial institutions.

Hogan Lovells global ESG head Adrian Walker says a ‘tsunami of global regulation’ has been a key factor behind ESG’s rise up the agenda, with new reporting and disclosure obligations such as the EU Corporate Sustainability Reporting Directive (CSRD) and the UK’s climate disclosure requirements generating increasing volumes of work.

‘The old ESG economy was transactional driven – the game changer in the ESG advisory space is the tsunami of global regulation, which has really changed things for us as a global law firm,’ he explains.

HSF’s Bille adds that, ‘The CSRD has expanded the European lens of sustainability-related reporting from 10,000 to 40,000 companies, with an extra-territorial reach. ESG-related regulation is infectious; it snowballs, and the more that is adopted, the more will emerge,’ he continues.

On the sustainable finance front, Hogan Lovells last year advised the International Finance Corporation and the Bank of the Philippine Islands on its $250m green bond to finance eligible green assets in the Philippines, and is one of many increasingly involved in such pioneering work in this space.

Other firms acting on market-leading sustainable finance work include Ashurst, which earlier this year advised HSBC on the Hong Kong Monetary Authority’s issuance of a digitally native green bond – the world’s first multi-currency digital bond offering – after acting for Goldman Sachs on the world’s first government-issued tokenised green bond in 2023.

Meanwhile, A&O Shearman recently took the Legal 500 ESG Award for Sustainable Finance for its impressive CV in this space, including legacy Allen & Overy’s work with the International Swaps and Derivatives Association to develop template documentation for trading voluntary carbon credits.

Other typical areas of work being handled by ESG practices include the ESG aspects of major transactions, and ‘values-driven litigation’ concerning issues such as greenwashing, environmental and human rights, for example Baker McKenzie’s role for the UN High Commissioner for Refugees in the Supreme Court case which ruled against the UK government’s policy to relocate asylum seekers to Rwanda.

‘As lawyers we’ve always had a crucial role, but now there are concrete new rules to address.’
Rachel Barrett, Linklaters

Connecting the E to the S and G

To meet and manage this rising demand for ESG-focused legal services, over recent years more and more firms have established dedicated ESG practices.

Latham & Watkins is known for being a market-leader on this front, with London partner Paul Davies leading the ESG practice – which combines regulatory, transactional, and litigation practitioners – alongside US co-chairs Sarah Fortt and Betty Moy Huber, both of whom joined the firm in 2022. Typical work handled includes regulatory reporting, compliance, and the ESG aspects of major M&A and private equity transactions.

This March, HSF named new regional leaders to drive its practice forward, with corporate energy specialist Bille taking the UK leadership role, working with existing global practice head Silke Goldberg and newly appointed US and EMEA co-heads – litigator Ben Rubinstein in New York, Frankfurt finance partner Heike Schmitz and Madrid administrative and environmental specialist Iria Calviño.

HSF’s changes came after the firm’s global head of sustainable and impact investment Rebecca Perlman left for Kirkland & Ellis, as the US leader moved to grow its ESG practice.

To integrate ESG across their operations, firms are also investing in training programmes to educate and equip staff on ESG. Linklaters’ ESG Accelerator Programme, which is run in collaboration with the University of Oxford, has trained over 500 of the firm’s lawyers over the past three years, equipping them to provide a comprehensive ESG-focused service.

Barrett elaborates: ‘At Linklaters, we started upskilling our lawyers early. We launched the Accelerator programme in 2020, which included six to eight months’ worth of training and coaching – it’s an intensive programme and a really big investment the firm made in getting our people up the curve, but also to ensure that different practice areas were able to take the time to work out what ESG meant for them.’

Hogan Lovells, meanwhile, operates under the philosophy that ‘every lawyer of all of our 2,800 lawyers is an ESG lawyer’, a bold claim backed up by its ‘You Are An ESG Lawyer’ programme, which provides customised ESG issue-spotting training tailored to each of the firm’s key sectors. ‘We want everyone to be thinking about ESG in every piece of advice that they give,’ Walker explains.

Looking ahead, May says her sustainability goal is ‘to work us out of a job so that we don’t need a separate sustainability committee, because it’s absolutely embedded,’ – a particularly apt goal for the firm’s first head of sustainability.

‘The goal is to work us out of a job so that we don’t need a separate sustainability committee, because it’s absolutely embedded.’
Caroline May, Norton Rose Fulbright

Happy teams, happy schemes

Alongside market-facing considerations, firms are also increasingly aware that they need to ensure their own houses are in order. This shift is evident in the formation of dedicated ESG committees, the appointment of ESG ambassadors to promote integration, and the establishment of robust governance frameworks for effective implementation.

Watson cautions against ESG being ‘placed into the reputational box rather than the strategy box’. ‘There’s a risk that if people are only concerned with the reputational aspects of ESG, they will see less rather than more.’

One such example of ESG considerations being embedded into business can be seen in Eversheds Sutherland, which in 2022 secured unanimous agreement from its international partnership to make an annual investment of at least 1% of net profit – equating to over £2m – in its responsible business programme, which has included the launch of a new global Ethical Code of Conduct, continued efforts to reduce carbon emissions, and the establishment of five-year partnership with the International Rescue Committee to provide pro bono and financial support.

Another trend among firms is an increasing emphasis on supporting employees’ mental health and wellbeing, an issue which was thrust into the spotlight last year by the death of Pinsent Masons partner Vanessa Ford, who had been suffering from an ‘acute mental health crisis’. As Reed Smith London office managing partner Andrew Jenkinson notes: ‘While mental health challenges are not new in the profession, the tragic news of Vanessa’s passing certainly seems to have catalysed the discussion within the UK legal industry.’

Alongside employee assistance programmes, in-house counselling services, and 24/7 access to mental health support, notable initiatives this year have included moves by Reed Smith and Macfarlanes to offer free therapy for their staff.

At Reed Smith, everyone at the firm – including their partners and children, now have access to eight free therapy sessions a year, delivered through external mental health care provider Lyra, while Macfarlanes offers all staff up to seven fully-funded confidential counselling sessions led by qualified psychotherapists and psychologists from Cognacity.

Reed Smith also holds an annual global mental health summit, where lawyers come together with industry professionals to open up about their struggles and strategies for dealing with mental health issues, as part of an effort to tackle what Jenkinson recognises as ‘one of the biggest problems in the industry – the stigma around the topic’.

Underlying numbers

On the question of whether firms’ diversity initiatives are helping to shift the needle on ethnicity and gender statistics, the jury is out – although progress is being made in some quarters.

Of the firms which provided diversity data in our survey, around half increased their percentage of women among the UK lawyer ranks last year, with the overall average in that group continuing to inch up, now standing at 55%. Strong performers include Eversheds, Pinsents, RPC, Simmons and BCLP, all of which have at least 60% female representation among their UK lawyer ranks.

Female partner numbers are also inching up – although only nine firms reported a higher percentage of women among their London partnership this year, the average across firms which provided figures now stands at 30%, up from 29% last year. Of the firms that provided figures, the standouts were Greenberg (42%), CMS (37%) and Mishcon de Reya (37%).

The figures for ethnic diversity are less encouraging, however, despite much talk from firms about how this is crucial to address. Of the firms that provided figures, average BAME headcount among lawyer ranks fell by 1% to 19%, while the equivalent figure for partners also fell 1% to 10% this year.

Our survey also asked firms to provide data on the percentage of their lawyers who are state school educated – and of those which provided figures, four stood out with figures of just over 50% for both lawyers and partners – RPC, Greenberg, Pinsents and Mishcon. At the opposite end of the spectrum were Simmons, with just 17% state school educated lawyers, and Latham with 18%.

‘Clients now want all sorts of information about how diverse we are as a firm and what our approach to sustainability is.’
Farmida Bi, Norton Rose Fulbright

What clients want

While improving these figures is undeniably a key consideration for firms, client demands will inevitably be front and centre. May describes how ESG credentials are now a ‘pre-qualifier’ for some clients. ‘We are often quizzed and rated on our ESG and sustainability performance, irrespective of our legal services. This has been a development over the last five years – we may not stay on a panel if we don’t meet the client’s criteria.’

Norton Rose Fulbright EMEA chair Farmida Bi emphasises this evolving dynamic: ‘Clients – including those with whom we have deep relationships – now want all sorts of information about how diverse we are as a firm and what our approach to sustainability is, for example. The relationship and the values are much more shared than they used to be in the past.’

And while ESG may in the past have been an easy target for non-believers, law firms now have to strike the balance between business and their best intentions, as Hogan Lovells’ Walker sums up: ‘We want to have maximum positive impact for all our stakeholders and clients, but we need to make money as well, because if you don’t, then it’s not sustainable.

‘It’s important that businesses do make money, but if you’re just in it to make money, it’s going to be a pretty bad business – I’m with Henry Ford on that.’ LB

anna.huntley@legalease.co.uk

Go to the ESG Report contents.

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On 29-30 April, more than 200 senior in-house counsel gathered at the Hilton London Wembley for the seventh annual Enterprise GC event.

The event – which was sponsored by Walker Morris, Luminance, Lex Mundi, SSQ, EY, Taylor Wessing, Trowers & Hamlins, Cilex, Flex Legal, Winston & Strawn, Thomson Reuters and LexisNexis – saw two packed days of dynamic sessions, panel discussions and networking, bringing together top in-house professionals and speakers from broader business and academic communities to discuss the evolving role of GCs.

Sandra Wachter, professor of technology and regulation at the Oxford Internet Institute at the University of Oxford, kicked off the event with a timely and engaging keynote on bias, ethics and risks relating to artificial intelligence, questioning whether AI can be trusted and what in-house lawyers need to know when adopting such technology. She highlighted the limitations and risks of large language models and AI-powered chatbots in legal and financial analysis, stressing the need for responsible evaluation and use of these technologies.

Following this, Taylor Wessing partner Christopher Jeffery and counsel Martijn Loth hosted a panel featuring Daniel Jarman, head of ethics, compliance, and insurance at Deliveroo, and Caroline Stockwell, head of legal at Amicus Therapeutics, which centred around the practical applications of AI in business, including operational efficiency and bias reduction, stressing the importance of robust governance and ethical frameworks.

After a short networking session and coffee break, participants then split off into various round table discussions encompassing topics such as enhancing the role of in-house legal teams in IT projects, the strategic role of in-house lawyers, maximising legal team efficiency, and how GCs are shaping corporate strategy.

In the last session before lunch, Michelle T Davies, global head of sustainability at EY Law, led a panel on regulatory considerations around supply chains and greenwashing. The panel included Mark Maurice-Jones, general counsel (GC) and compliance officer at Nestlé; Dr Linn Anker-Sørensen, director and global lead of sustainability regulatory at EY Law; Melissa Strong, head of insurance, pensions, and investments litigation at Lloyds Banking Group; and Anthony Kenny, assistant GC at GSK. They emphasised the increasing importance of sustainability disclosure and transition planning, underlining transparency, robustness, and collaboration.

The afternoon kicked off with an in-depth panel on cross-border legal risk management, hosted by Eric Staal, vice president of global markets at Lex Mundi, who discussed emerging challenges such as lockdown impacts, political talent shortages, and cyber risks. Panellists including Graham Cox, programme director at Boundaries Edge Ltd; Katarina Nilsson, vice president of people and culture, communication and SHEQ at Epiroc; and Graham Vanhegan, chief legal officer at The Weir Group, shared insights on dual sourcing, crisis management, and agility in global crises.

Additional round tables included an AI workshop with Taylor Wessing and a popular Legal 500-led session exploring concerns and challenges facing today’s GC.

The day concluded with two final panels – Grace Haselden, commercial director at Luminance, and Sam Al-Ani, legal counsel at Rightmove, discussed AI’s impact on document management and commercial processes, followed by a discussion moderated by the Legal 500’s head of global research and reporting Georgina Stanley, who talked to Maaike de Bie, group GC and company secretary at Vodafone; NatWest lawyer Lisa Ardley-Price; and SSQ’s Laura Field, who offered practical tips on navigating in-house career development, advancing to senior roles, and transitioning beyond legal positions.

Day one ended with a gala dinner featuring live music, a three-course meal, and networking drinks at the hotel’s Sky Bar.

Day two shifted from AI to ESG, with Jennifer Nadel, co-director of Compassion in Politics, delivering a keynote on the vital role of compassion in politics and ethics. Using personal and historical examples like the Grenfell Tower fire, she emphasised the urgency of embedding ESG principles across society and urged collective action to bridge the moral gap and foster a compassionate world.

The day’s first panel, moderated by Ben Bruton, partner at Winston & Strawn, explored dispute resolution as an opportunity for growth and innovation. Panellists Sam Shadbolt, legal director UK & Ireland at AkzoNobel; Charlotte Digby, legal director at LEVC; Amrik Kandola, commercial mediator at Ask Mediation Ltd; and Dominic Hennessy, senior legal counsel at London Metal Exchange, emphasised proactive engagement, early legal involvement, and collaborative mediation, concluding that these strategies enhance business resilience and competitive advantage.

After a coffee break, two additional panels were held before lunch. Legal 500’s Ben Wheway and Legal Business reporter Holly McKechnie led an interactive session on what in-house lawyers expect from their external advisers and what their intentions are for the year ahead, drawing on the results of the Legal 500’s vast referee research database.

Another session, moderated by SSQ’s Laura Field, featured Taylor Wessing partner Siân Skelton; NatWest’s Lisa Ardley-Price; and Mandy Kaur, legal director at PizzaExpress. They discussed how GCs can enhance social mobility in the legal profession through outreach programmes and inclusive recruitment, calling for unity and collaboration to foster diversity and inclusion through mentorship and proactive support.

Following lunch, three panels were held. The first, hosted by Chris Bones, chair of Cilex, focused on in-house ethics with Jeremy Barton, partner and GC at KPMG; Dr Karen Nokes, lecturer in Law at UCL; Peter O’Keeffe, head of legal group and EMEA at Dr Martens; and Lara Oyesanya, GC at Zepz. They discussed ethical challenges and lawyer behaviour in corporate scandals such as the Post Office case.

Legal Business City reporter Elisha Juttla, then hosted a panel on crisis management with BA GC Andrew Fleming and Awaze GC Rupa Patel, who discussed how they had navigated crises such as Covid-19 and cyber incidents, highlighting the value of preparation and effective communication.

The final panel of the event was led by Simon Edwards, corporate and commercial partner at Trowers & Hamlins, and Natalie Hunt, assistant GC, group functions and employment at Johnson Matthey, alongside a trio of Gen Z legal professionals – Phoebe Clements and Jasmin Chiu of McArthurGlen Group and Lucy Gün of Coca-Cola, who contributed to an eye-opening discussion on the career choices of junior lawyers and what they truly value and expect from a modern employer.

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Paul Hastings has recruited finance partner Reena Gogna in London, marking the latest hire for the acquisitive US firm in the City.

This development marks another notable move from Weil to US rival Paul Hastings, after Alexander Horstmann-Caines, a specialist in high-yield offerings and leveraged finance, joined in February last year.

Recognised as a leading individual in the Legal 500 for acquisition finance, Gogna will bring with her over two decades of experience. Notable transactions under her belt include advising on the €1.35bn senior secured term loan and revolving facilities for Mehiläinen Oy, and working with major banks such as JP Morgan, Credit Suisse, and Goldman Sachs.

Gogna’s exit from Weil comes after finance counsel Luke Lado’s move to Greenberg Traurig last November, as well as the exit of private equity and infrastructure funds partners James MacArthur and Ed Freeman to Sidley a year ago.

At Paul Hastings, Gogna will reunite with familiar faces such as Patrick Bright, a leader in European high-yield transactions who transitioned from Weil in 2022. She will also join Ross Anderson and Mo Nurmohamed, who arrived as part of a four-member team from Latham & Watkins, where Gogna spent 11 years of her career from 2003 to 2014.

This hire aligns with Paul Hastings’ ongoing strategic expansion of its global finance practice. Her appointment adds to significant lateral hires, such as investment funds and private capital specialist Zach Milloy from Kirkland & Ellis in October 2023, and financial restructuring partner Helena Potts from Shearman & Sterling in February 2023.

However, Paul Hastings has also seen some recent departures, including capital markets lawyer Peter Schwartz, who left for King & Spalding in March, followed by former global finance co-head Luke McDougall, who left for Davis Polk & Wardwell in May.

anna.huntley@legalease.co.uk

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For Mental Health Awareness Week, Samantha Brown, partner and regional head of Herbert Smith Freehill’s employment, pensions, and incentives group, spoke to LB about her own experiences with anxiety and depression, lessons from returning to work after taking time off, and how attitudes and language around mental health have changed for the better

Can you tell me about your experience with mental ill health during your career?

I was very successful throughout my career; I was promoted to partnership relatively early and had a flying start to my partnership career.

After maybe two years, I started to feel under an extraordinary amount of pressure, and I instinctively put that down to a feeling of ‘well, this is just what it’s like being a junior partner.’ However, it started impacting my sleep. I stopped being able to concentrate and catastrophising about what might happen if I made a mistake and what the implications of that would be.

I just continued trying to cope, often crying behind my desk – that kind of thing. Eventually, I went to the GP to ask for some sleeping medication, and one thing led to another. They referred me to a psychiatrist, and I was signed off for a period of several months with anxiety and depression.

How much do you think your career contributed to these challenges?

Like a lot of us, I have an underlying predisposition to these conditions, so this likely would have happened to me whatever my career. But I’d say my experience was magnified in the workplace because one of the ways it manifested was not being able to concentrate, pay attention to detail. I’d turn through pages and pages of documents and not have a clue what I was reading, and that goes to the very heart of what we do. So it was quite terrifying.

What was your experience like returning to work after taking time off for your mental health?

When I came back, we were in uncharted territory. I threw my hands up and said I didn’t want to talk about it, and the firm sort of over-catered for me with an abundance of caution. They were anxious about exposing me to clients, and anxious about getting me involved in matters – but not because they thought I couldn’t do it, but because they thought the stress might be too much.

The identifying feature for me when I became unwell was thinking I could no longer do my job. So, when I returned to work and didn’t have an opportunity to do my job, it just exacerbated that feeling of failure. Then I had a material relapse and needed more time off.

Why didn’t you want to talk about it?

I’d say stigma and a lack of familiarity. When the GP referred me to a psychiatrist, I never had any conscious experience of mental ill health and thought I was going to be told I was ‘crazy’. We didn’t talk about this stuff, so coming back into the office and having colleagues ask if I’m okay, I never knew what to say. We didn’t have the language.

I remember somebody in HR saying, ‘You’ll be fine; this is quite normal.’ I wanted to scream at her and say, ‘This is not normal.’ Bearing in mind this was eight years ago, we’ve come a long way since then – we have much better language now.

After your relapse, how was your second return to work different from your first, and what strategies did you use to ensure a more successful reintegration?

When I returned to work the second time, I took much more ownership of it. I think to be successful; you have to take some responsibility for making it work again for you. I haven’t been off for any prolonged period of time since then.

How would you advise individuals to start taking care of their mental health, especially in demanding careers?

People talk about this all the time; there is a health continuum – physical and mental. Mental health is not just ill health; it’s also good mental health. Wherever you are on the continuum, you should be looking after your health like you look after your physical health.

If you have diabetes, for example, you learn how to manage it from a physical perspective, and for a lot of people, from an emotional perspective as well. We haven’t in the past given enough focus to our mental health.

The main things I’d advise in managing mental health are getting enough sleep, learning to recognise the difference between feeling under pressure and feeling distressed, and not hiding.

What specific strategies and practices have you adopted in your career to ensure you’re maintaining your mental health?

I have a much better perspective on priorities now. I think there can be a tendency among lawyers that when anybody says ‘jump’, they say ‘how high?’. It’s important to feel able to say ‘yes, of course – but let’s have a conversation about timing’.

It’s about taking a lot more control; that doesn’t mean taking my foot off the gas, but going about things in a different way with more perspective. As lawyers we can be frightened or reluctant to have those conversations because we’re so used to saying ‘yes’ and just getting the work done.

I don’t know how to change the deal culture, but one thing we can do is be brave about having open conversations with clients rather than assuming they will be upset – they’re human too.

What advice do you offer to individuals who are susceptible to mental ill health and are concerned about pursuing a legal career?

Look – this is not a warm, cuddly profession, particularly in the City. It’s hard work, high pressure, with high intellectual rigour. That said, we owe it to our talent to teach them how to work with that pressure. There are healthy levels of stress.

I wouldn’t advise anyone away from the profession; it’s about learning to manage how to deal with it. Some of the reasons why I speak extensively about my experience are about owning the situation – rather than saying ‘I’m a victim of’ or ‘I’m suffering from it’, I can say ‘I have this condition, I’m owning it, managing how I work, and showing people that it’s perfectly possible’.

anna.huntley@legalease.co.uk

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Norton Rose has reported an 8.7% increase in global revenue, marking a turnaround from two years of declining revenue.

Profit per equity partner (PEP) jumped almost 33% from $1.05m to $1.4m in 2023, as the number of equity partners declined by 21% from 644 to 506.

This follows a stagnant 2022 for the firm, which saw a 1% drop in global revenue, with PEP remaining static. It is understood that the drop in total equity partner numbers came as a result of the firm standardising its definition of an equity partner across all regions.

The firm credited its growth during 2023 to expansion across various regions and practices, especially in the US, where revenue rose by nearly 13% due to increased demand for disputes advice, as well as work for clients in the banking, finance, projects and energy sectors.

The firm’s EMEA region also experienced a 6.5% rise in revenue, driven by a strong year for banking, litigation and regulatory work, offsetting lower demand in corporate and real estate.

Recent work of note has included advising battery materials company Euro Manganese on its $100m funding agreement with Orion for an innovative waste recycling initiative in the Czech Republic, fielding a team led by Legal 500 project finance Hall of Famer Martin McCann.

Meanwhile, in the US, a team of projects lawyers headed by Chicago-based partner Sameer Ghaznavi recently advised IRG Acquisition Holdings on the acquisition of a 1365-megawatt renewables portfolio from American Electric Power for $1.5bn, comprising wind and solar projects across 11 states.

Elsewhere, global co-head of energy Noam Ayali and partner Rebecca Abou-Chedid in Washington DC, and Charles Hord in New York, led a US team representing debt providers to Houston-based energy company NextDecade Corporation’s Rio Grande LNG export terminal. The project financing, valued at $18.4bn, is the largest in US LNG history.

During the past year, the firm made over 40 lateral partner hires and announced 36 partner promotions, resulting in a marginal partner growth rate of just over 1%.

In London, recent hires have included disputes lawyer Alison Kellett, who joined from BNP Paribas in November where she spent 15 years as head of global dispute resolution for the UK, Channel Islands and Nordics, as well as banking and finance specialist Christopher Akinrele who joined as a partner from Eversheds Sutherland, both based in London.

Conversely, the firm also experienced a series of partner departures throughout 2023, particularly within its litigation practices following the unexpected resignation of global chief executive Gerry Pecht in September.

Six additional global leaders followed Pecht in leaving the firm, including global COO and CFO Robert Otty, global CIO Ann-Michele Bowlin, global head of risk advisory and chief talent office Jane Caskey, global head of digital Sean Pratap, global co-head of information governance, privacy and cybersecurity Ffion Flockhart and global chief strategy alignment, innovation, and people officer Wayne Spanner.

Elsewhere, DLA has announced its eighth consecutive year of revenue growth, posting an increase of almost 4% on 2022 to reach $3.7bn, marking a near 35% increase since 2019.

PEP rose by 11.7% to reach $3.1m, while the number of equity partners decreased by nearly 10.5% from 373 to 334.

The firm has been actively recruiting laterals this year, with a notable influx of partners from Norton Rose. Five partners joined DLA from Norton Rose’s Frankfurt, Sydney, Vancouver, and Washington DC offices.

Among the recent additions to DLA Piper’s London office are energy and infrastructure M&A specialists Steven Bryan and Paul Doris, who joined from Paul Hastings and Brown Rudnick respectively. Andrew Sackney also joined from Pinsent Masons where he where he led the global investigations practice.

In 2023, DLA Piper elevated 73 lawyers to partnership across its 42 offices. Corporate saw the largest intake of new partners, comprising 25% of the promotions, including Laura Marcelli and Sam Whittaker in London.

The firm attributed its overall revenue growth to its diversified practice areas and global footprint, with strong transactional demand in certain areas of Western Europe and the Middle East compensating for reduced corporate activity elsewhere.

As part of the firm’s strategy to expand in key markets including New York, Chicago, California, Texas and Washington, the Americas region reported a 5% increase in revenue. This growth spanned various transactional areas including private equity, investment funds, M&A and venture capital.

Recent standout matters led by the firm’s London lawyers have included M&A partners Bob Bishop and Jon Kenworthy advising Warner Bros. Discovery and Liberty Global, joint owners of leading television production and distribution company ALL3Media, on its agreed £1.15bn sale to RedBird IMI in March.

In December, the firm’s teams in New York and Washington advised Ooredoo Group, a Qatari multinational telecommunications company, in entering into definitive agreements with Mobile Telecommunications Company and TASC Towers Holding to create the largest independent tower company in the MENA region, valued at $2.2bn.

Anna.huntley@legalease.co.uk

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More than 150 of the City’s leading M&A partners, in-house counsel and representatives from corporates and financial institutions came together in mid-March to discuss the latest trends in M&A at the 2024 Legal Business Corporate and M&A Summit.

The event, held at the Queen Elizabeth II Conference Centre in Westminster and sponsored by Gibson Dunn, Datasite, Gate One, Jones Day, Moneypenny, Shieldpay, Stevens & Bolton and Slaughter and May, saw delegates talk through the life cycle of an M&A deal over the course of a single day.

Gibson Dunn English and New York-qualified corporate partner Nick Tomlinson kicked off the event with the keynote speech, with his opening remarks followed by a panel led by Stevens & Bolton M&A partner Jenny Robertson on crafting and executing a programmatic M&A strategy and buy-and-build programme.

Robertson was joined by Iain Jamieson, board investor and advisor at Pep Talks; Gemma Legg, partner at RSM UK Corporate Finance; and Emma Leahey, senior group legal counsel at The Ardonagh Group. Key themes throughout the discussion included the need to evaluate how resource-intensive deals are going to be – particularly for smaller transactions, which may not be worth it if the workload is too high – and the critical role of cultural alignment, scalability and long-term growth plans for potential acquisitions.

The next panel, moderated by Babur Mirza from Datasite, explored due diligence (DD) in the digital age, featuring panellists Jenny Luckham from Ascential; Tom Rose, a partner at Macfarlanes; Edward Waldron, head of private equity at Taylor Wessing; and Ashley Boonin, financial director of GoHenry.

Mirza initiated the discussion by highlighting the increasing time spent on due diligence since 2021. The panel concluded with discussions about how AI could transform due diligence and the skills that future lawyers will need in order to be successful.

Following a brief networking session and a coffee break, the next panel session, led by Slaughters’ co-head of corporate and M&A Richard Smith, delved into the intricacies of deal structuring and valuation.

The discussion included insights from Greg Neilson, M&A director at Aviva; Claire Jackson, corporate partner at Slaughters; and Ameya Velhankar, executive director for EMEA consumer and retail at JP Morgan. The panel explored valuation methodologies, cross-jurisdictional factors, and practical approaches to evaluating synergies. They also examined the significance of vendor financing and highlighted the role of emotional intelligence in negotiations, emphasising the importance of maintaining composure and understanding red lines during deal discussions.

Next up, Gibson Dunn partners Alice Brogi and Federico Fruhbeck explored the evolving discussions surrounding joint ventures and minority investments, emphasising the need to consider all of the regulations and governance requirements across Europe.

First up after lunch, Legal 500’s head of research and reporting, Georgina Stanley, moderated a panel looking at how to navigate regulatory challenges in M&A. The panel comprised Jones Day London of counsel Jason Beer; Calum Warren, a partner at Matheson in Ireland; and Philippe Laconte, of counsel at Jones Day in Brussels. The discussion centred on the increasing regulatory obstacles in M&A transactions, propelled by heightened intervention from merger control authorities and the rise of foreign direct investment (FDI) regimes globally. Beer and Laconte highlighted the rise in transactions undergoing regulatory review, with Warren adding insight into the incoming FDI regime in Ireland.

Next came a panel session focused on finalising deals, addressing the intricacies of navigating complex deal terms and fund flow for transactions. Moderated by Chris Lyes, CCO at Shieldpay, the panel included Nick Atkins, partner at Stevens & Bolton; Karri Vuori, managing partner at IMAP; and Giles Chesher, a partner at Squire Patton Boggs. The panellists shared personal experiences of issues with deal closings and delved into the issue of whether payment agents would become the norm.

Drawing towards the end of the day came a fireside chat delving into the importance of culture in M&A integrations. Hosted by Jon Breger at Gate One and Henryk Feszczur, former GSK MA&D deal lead, the discussion shed light on the significance of culture, often overlooked and undermanaged, in maximising deal value. The panel highlighted how neglecting cultural alignment can result in employee resistance, decreased productivity, and diminished value. They explored key cultural challenges organisations encounter throughout the deal lifecycle and discussed actionable solutions to enhance integration success.

Closing a busy day, Hannah Williams-Skinner, working life manager at Moneypenny, and Nisha Morjaria, director and head of business innovation at Talbots Law, presented the final panel, sharing insights on how to nurture a culture that can attract and retain talent. They emphasised the need to ensure the workplace is inclusive and taking steps to boost the happiness of staff, promoting an open-door policy to drive internal culture.

Thanks to all of the attendees, sponsors and panellists for a fantastic day filled with invaluable, real-world insight into the M&A market.

anna.huntley@legalease.co.uk

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