Cooley’s London managing partner Justin Stock has left the firm to join Akin as international technology practice head, along with two other partners.

Akin has hired three partners from Cooley into its London office. Cooley London managing partner Justin Stock will move to the firm alongside Stephen Rosen, a Legal 500 Hall of Famer for mid-market private equity transactions who headed Cooley’s London corporate practice, and technology transactions partner David Bresnick.

Stock will join Akin as international technology practice head, and will work with Rosen and Bresnick to deepen Akin’s strength in tech transactions.

‘Justin, Stephen and David’s outstanding reputations in the market, coupled with their extensive transactional experience in high growth sectors such as technology and life sciences, significantly enhance our global corporate platform,’ said Akin chair Kim Koopersmith in a statement.

‘Their addition underscores our commitment to our technology focused clients and more broadly to the technology sector both in London and globally, ensuring we continue to provide unmatched client service.’

Akin London partner in charge Sebastian Rice added: ‘The arrival of Justin, Stephen and David is a significant step for our London office and gives Akin a market-leading global technology transactions team, focusing on clients in innovative industries including disruptive commerce, technology, health care, life sciences, data, data privacy, gaming and energy transition. We are particularly excited about their capabilities to grow the tech M&A pipeline and adding depth to our global technology practice.’

Back in February, Cooley also saw the departure of M&A partner Michal Berkner who left for McDermott Will & Emery’s transaction practice.

Stock led a five-partner Morrison Foerster team to Cooley in January 2015 as part of Cooley’s London office launch. Bresnick moved with Stock from Morrison Foerster, while Rosen came to Cooley from Olswang in May 2016. Only one of Cooley’s 2015 Morrison Foerster hires remains at the firm: Chris Coulter. Ed Lukins went to Orrick in 2019 and Nicholas Bolter left for Morgan Lewis in 2020.

Akin, meanwhile, first launched in London in 1997, and burst onto the scene in earnest in 2014 with a 22-partner hire from Bingham McCutchen, which collapsed in 2015.

The departures bring Cooley’s London partner headcount down to 30, according to the firm’s website.

‘We thank Justin, Stephen and David for their contributions and wish them well in the future. We look forward to continuing our ambitious growth plans in London, serving some of the world’s most exciting and disruptive innovators and technology and life sciences companies’, a Cooley spokesperson said in a statement.

alexander.ryan@legalbusiness.co.uk

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Kirkland & Ellis is overhauling its equity partner exit terms – ushering in new policies to withhold compensation for departing partners, as well as slashing notice periods and speeding up the time it takes those leaving to be repaid their capital.

Partners are understood to have unanimously approved the changes earlier this week (16 July), with the move, first revealed by Financial News, meaning equity partners leaving the firm could potentially see millions in accrued compensation withheld by Kirkland, where average PEP stands at nearly $8m and stars are paid significantly more.

Until now, Kirkland has withheld 55% of equity partners’ annual compensation until the following year. The new policy grants Kirkland the option of withholding this accrued compensation from departing partners altogether. It will be at Kirkland’s discretion whether it chooses to withhold the distributions.

In addition, the firm has also approved a change that will reduce the notice period for exiting partners from 120 days to 60 days, effectively returning Kirkland to the notice period it had prior to 2016.

The firm has also slashed the time those leaving will have to wait for their capital to be repaid from 12 months to three months.

The changes to Kirkland’s exit terms on its partnership agreement come after the firm saw a string of high-profile departures to Paul Weiss in London last year.

Debt finance partner Neel Sachdev and buyout partner Roger Johnson left to launch an English law practice for Paul Weiss, going on to bring in equity partners including Timothy Lowe (tax) and Matthew Merkle (capital markets), as well as several non-equity partners.  For more on Kirkland and Paul Weiss, see LB’s feature ‘Market forces: Paul Weiss, Kirkland and the war for London talent’ . 

With new firms likely having to pick up the cost of any potential profit distributions withheld from new recruits, the overhaul will make it more costly to add lateral teams from Kirkland in future.

Danielle Crawford, a partnership counsel at Forsters, said that in practice departing partners would likely not lose out personally because of the change, with their new firms instead picking up the additional cost of matching the withheld distributions.

She told Legal Business: ‘Talking about the discretion to withhold distribution payments for departing partners is very common across the bigger firms especially Kirkland’s competitors. It makes it less attractive for partners to leave, if a firm wants to poach a partner, they might have to make good that loss to persuade the partner to leave.’

Meanwhile speeding up the time it takes to get departing partners out of the door and to receive their capital back will save Kirkland money and it will also be better for firm culture, according to partnership experts.

‘Prolonged departures are not good for team morale/key firm-client relationships,’ added Crawford. ‘There is also a higher risk that the departing partner can take more business from the firm if they continue with client work for a number of months after they have decided to leave.’

Another partnership lawyer said: ‘When someone is so disaffected it’s best to get them out sooner rather than later rather than having them hanging around for a longer period.’

Partners suggest reducing the notice period and time taken to repay capital could well have been sweeteners for partners to get the changes over the line and boost retention. They also bring the firm in line with other firms, which have increasingly been looking at exit terms. Linklaters for example discussed withholding profit from departing partners before deciding against it.

‘It is increasingly common, particularly for the large, high earning US firms,’ said Jon Haley, head of professional partnerships at Farrer & Co.

He added: ‘It has not historically been common in UK legal partnerships but you do not have to look hard to find similar Bad Leaver mechanisms – whereby retained value in some form or other is forfeited on exit – in other high earning sectors such as private equity and financial services, so in some ways the legal profession could be said to be lagging behind and I suspect others will follow soon.’

elisha.juttla@legalbusiness.co.uk

tom.cox@legalease.co.uk

The post ‘When someone is so disaffected it’s best to get them out sooner rather than later’: Kirkland to hold back pay for departing partners; cut notice period appeared first on Legal Business.

Linklaters has leapt to first place in Stonewall’s Top 100 Employers 2024 list, while last year’s number one Clifford Chance has dropped outside of the top ten for the first time since 2020 and is ranked 14^th.

The prominent LGBTQ+ charity assesses its rankings using its workplace equality index, a voluntary benchmarking tool designed to help UK-based organisations measure and improve their LGBTQ+ workplace inclusion. The index measures key areas of employment policy and practice such as staff engagement and the implementation of LGBTQ+-inclusive policies and benefits.

Linklaters has now been ranked in the top 100 for six consecutive years. Its surge to first follows a leap from 53^rd to ninth last year, and marks a notable improvement after the firm hovered around the 50s and the 60s between 2019 and 2022.

In explaining its decision to award first place to Linklaters, Stonewall praised the ‘plethora of opportunities [for employees] to get involved in diversity, equity and inclusion initiatives’ at the firm, and highlighted that ‘events like bi visibility day and non-binary people’s day are celebrated as part of the annual LGBTQ+ calendar’.

Twelve law firms in total are included in the top 100 ranking – up from 11 in last year’s list but down from 15 in 2022. Among those, Charles Russell Speechlys, has climbed significantly higher in the rankings, while   Slaughter and May  and Shepherd and Wedderburn are notable reentries, having not featured in 2023.

In contrast, Irwin Mitchell, RPC and Womble Bond Dickinson have all moved down the rankings. Meanwhile, TLT, which placed 96^th last year; Mills & Reeve, which placed 38^th in 2023 and Leigh Day which placed 25^th last year, have not made the 2024 rankings.

The Stonewall list has shown the legal profession in a good light in recent years. 2024 marks the third time in the last six years that a law firm has ranked first, with Pinsent Masons taking the top spot in 2019 and Clifford Chance in 2023.

tom.cox@legalease.co.uk

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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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Ashurst is targeting expansion in the US as the firm announces financial results that show profit per equity partner reaching a record high and turnover just shy of £1bn.

The firm’s 2023-24 financial results show revenue climbed 9% to £961m, while PEP went up by 14% to hit £1.336m – a record-high figure that more than makes up for a slight decline last year that edged it down from £1.175m to £1.17m.

The revenue increase marks Ashurst’s eight consecutive year of growth, although is is slightly below last year’s increase of 10% and the previous year’s of 12%.

Global CEO Paul Jenkins told Legal Business he is happy with the results for the first year of the firm’s 2027 strategy: ‘We’re clear on where we want to focus, in terms of geography, sectors and practice areas, and it’s very good to see the fruits of that focus.’

He is also optimistic about his firm’s prospects of crossing of crossing a key milestone: ‘We’re in line to cross a billion pounds in revenue for this financial year.’

More than 85% of the firm’s turnover came from its five key sectors: banks and private capital, real estate, technology, infrastructure, and energy and resources, the last of which accounted for 23% of the firm’s revenue.

‘We’re starting to see a bounceback in transactional work’, said Jenkins. ‘But what we saw last year was particular activity in the energy sector, which translated to growth in a variety of areas, including projects, disputes, and corporate M&A.’

The firm’s disputes, investigations and advisory practice grew by 10%, while projects and energy transition was up by 11%, with ‘double-digit growth’ in corporate in Korea, Australia, Singapore, France, Italy, and the UK, and 10% growth in funds and restructuring across Asia Pacific. The firm also saw a strong performance in its consultancy and governance division (up 47%) and its Ashurst Advance business (up 16%), which launched a third global delivery centre in Krakow this February.

The UK, US, and Middle East all outperformed the firmwide revenue increase, with turnover bumps of 13%, 18%, and 17%, respectively. The firm also cited ‘significant growth in Singapore and a solid year in Australia’, with Italy and France as ‘standout jurisdictions’ in continental Europe.

The US growth rate was slightly slower than the 20% increase reported last year, however Jenkins said the firm has ambitious growth plans, targeting energy, real estate, private capital, and technology for further growth stateside.

Jenkins commented: ‘In the US, we’ve continued to double down on infrastructure and financial institutions. We continue to look for the right opportunities in our other key areas of focus. We’re looking for both incremental growth and more significant growth – whether it’s teams or otherwise. But we’ll only do that if it’s the right opportunity from a business perspective, and the right opportunity hasn’t arisen yet.’

US highlights over the last year include derivatives partner Nick Allen joining the New York office from Fried Frank in April, and Los Angeles projects and energy transition specialist Tristan Robinson being made up to partner in the firm’s most recent round of promotions.

The firm has secured a number of notable mandates. Ashurst’s London team is advising real estate investment trust Tritax Big Box REIT on a £3.9bn recommended all-share combination with UK Commercial Property REIT. Globally, the firm’s London and Hong Kong teams also advised The Hongkong and Shanghai Banking Corporation on the provision of its digital assets platform, known as HSBC Orion, to the Central Moneymarkets Unit of the Hong Kong Monetary Authority.

One area in which Jenkins sees opportunities, in the US and elsewhere, is private capital. Global private equity practice co-head David Carter left the firm for O’Melveny & Myers last week. However, Jenkins noted that Ashurst promoted PE senior associate Sara Hamzawi to the partnership in April, and pointed to firmwide experience in the broader private capital space beyond private equity.

Finally, Jenkins also highlighted the firm’s pro bono work: ‘Social responsibility is often not touched on in this context, but it’s very important to the firm, and we had our strongest pro bono year ever, at over 65,000 hours across the global firm.’

Alexander.ryan@legalbusiness.co.uk

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A clutch of major law firms have continued the trend for strong 2023-24 results, with Brodies, Shoosmiths, Clyde & Co and Watson Farley & Williams among the latest to reveal healthy financial figures.

Brodies has today (15 July) posted a 7.5% revenue increase to hit £114.3m, marking 14 consecutive years of growth for the firm after it hit a key milestone last year when it became the first Scottish firm to pass the £100m mark.

After a 6% bump last year, profit held steady with a 1.2% increase from £48.6m to £49.2m. Profit per equity partner (PEP) also stayed flat at £846,000.

Managing partner Stephen Goldie, who replaced Nick Scott in May following Scott’s retirement, said that the firm has made progress across all core practice areas – banking and finance, corporate and commercial, dispute resolution and risk, personal and family, and real estate. ‘Our strategic plans for the next three-year cycle are now underway and we look to the future with confidence, in ourselves and in the resilience and ambitions of the clients that we work with,’ he said in a statement.

Clydes has also posted a strong set of results, with revenue up 10% to £845m, and PEP up by more than 4% to £739,000, with profit up 3% to £174.4m.

The headline turnover increase comes after the 22% increase the firm notched last year, though only 6% of that was ‘organic growth’, with the rest of the bump accounted for by the completion of Clydes’ merger with BLM.

Clydes continued to expand this year, opening new offices in Warsaw and Jeddah in December and May respectively. The UK accounted for 47% of the firm’s total revenue, with the proportion of revenue generated outside the UK a percentage point down on last year’s 54%.

Europe was the fastest growing region with a 17% increase in turnover. The shares accounted for by the US and Asia-Pacific were each down by half a percentage point on last year, to 21.5% and 11.5% respectively. The Middle East and Africa accounted for 12% of the firm’s turnover and Latin America for 2% – the same proportions as last year, while the UK saw 9% growth.

Watson Farley & Williams has also posted double-digit growth of 11%, with revenue at £238.4m, up from £214.7m last year.

Overall profit also rose by 7.2% to £66.8m from £62.3m, with PEP remaining steady at £593,000, a slight increase of 1.5% from last year’s £584,000. Equity partner numbers, meanwhile, went up nearly 6% from 107 to an estimated total of 113.

Commenting on these results in a statement, managing partner Lindsey Keeble said: ‘We continue to build on the successes of previous years with double digit global income growth. With a majority equity partnership, we continue to invest in the firm to build a sustainable business with strength and depth at all levels.’

Revenue was also up at Charles Russell Speechlys, where a 13% bump took turnover to £218.3m after a 9% increase last year.

Profit was up by more than 20% to £45.9m, while PEP went up more than 30% to hit £661,000, comfortably offsetting last year’s 3% dip.

The firm’s UK offices generated £174.4m (a little under 80%), with £43.9m from overseas. International revenue growth was faster than the firmwide average, at 15%, with the Luxembourg, Paris, and Switzerland offices singled out as strong performers. The firm also reported 30% revenue growth in Asia, boosted by lateral hires and the July launch of its Singapore office.

‘Our results this year paint a picture of sustained growth’, said managing partner Simon Ridpath in a statement. ‘The fact we continue to see strong revenue and profit numbers and investments back into the firm bodes well for the future, and we remain fully confident in our strategy.’

The firm’s strategy still has private capital as a ‘core focus’ according to Ridpath who also mentioned the ‘raft of senior lateral hires across the firm’, referencing the 22 partners the firm has taken on since the last financial year.

At Shoosmiths, meanwhile, revenue ticked up 5% to push the firm over the £200m mark for the first time to hit £206.7m. Profit was up 5% to £66m, while PEP jumped 16% to £781,000.

Though the increase in turnover was slightly below both the 7% the firm posted last year and the previous year’s 8%, the firm exceeded last year’s performance on profit, which increased 3% last year, and PEP, which went up by just £1,000. The corporate and litigation departments both outperformed the wider firm at 15% and 12% growth respectively, while real estate stayed flat.

elisha.juttla@legalbusiness.co.uk

alexander.ryan@legalbusiness.co.uk

tom.cox@legalease.co.uk

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Could you share some examples of innovative ways Herbert Smith Freehills is working with clients in the ESG space?

Silke Goldberg: At Herbert Smith Freehills, we are actively engaging with our clients in the ESG space through innovative tools like our Global ESG Tracker and ESRS Navigator.

With the Global ESG Tracker, we offer clients a monthly subscription service that can deliver concise business friendly updates covering the entire range of ESG issues across the globe. This service is tailored to the specific jurisdictions and sectors that are most relevant to our clients, ensuring they receive the most pertinent information. It’s a strategic resource that helps businesses navigate the complex and ever-changing ESG legal landscape, enabling them to stay informed and compliant with the latest regulations, policies and legal cases. Our clients really value the fact that we are able to tailor the tool to meet their global needs and they receive a comprehensive summary of all important ESG updates in one place.

Sarah Ries-Coward: The ESRS Navigator, is another innovative tool designed to support our clients in translating the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) into practical language for their business teams to implement effectively. This tool serves as a bridge between the technical complexities of regulatory frameworks and the practical needs of businesses. It offers a clear and concise breakdown of both mandatory and voluntary disclosure requirements under ESRS, alongside the underlying process requirements and expectations. By leveraging our extensive global expertise, we provide targeted, actionable insights that empower our clients to proactively meet these standards, ensuring their business remains compliant and competitive in the evolving ESG landscape.

These tools are just a few examples of how we’re leveraging our global expertise to deliver targeted, actionable insights that empower our clients who are ‘running to stand still’ to remain compliant and competitive in the evolving ESG landscape.

What role does tech play in your ESG advisory services, and can you give an example of how it’s being used to enhance client outcomes?

Jannis Bille: Technology plays a pivotal role in our ESG advisory services at Herbert Smith Freehills, particularly through the use of innovative tools like our CSRD Mapper. This tool exemplifies how we leverage technology to enhance client outcomes by providing a clear and efficient pathway through the complexities of ESG compliance. The CSRD Mapper is designed to help clients navigate the CSRD applicability requirements – who falls in scope and when. By inputting specific company data, the CSRD Mapper can generate a tailored report that provides a definitive answer on which companies are caught, availability of exemptions and relevant reporting timelines.

Our use of technology ensures that our ESG services are not just comprehensive but also highly practical, cost effective and aligned with the specific needs and goals of our clients. It’s a testament to our commitment to staying at the cutting edge of ESG advice and using technology to drive better outcomes for our clients.

How do you vary your ESG guidance to meet the specific needs of clients across different industries?

Silke Goldberg: We aim to break down traditional law firm structures bringing together skills across disciplines to assemble bespoke teams of experts and draw in people with deep sector expertise. This allows us to address the unique ESG-related needs of each project and client.

As a team we have been recognised as a leading firm in ESG and have over 30 years of experience advising clients on ESG and sustainability matters. Our market-leading practice delivers expertise in areas such as ESG-related reporting and disclosures, governance and risk management, business and human rights, climate change-related litigation, transition planning, environment, green and sustainable finance, impact investment, and ESG issues relating to due diligence, the M&A process and supply chains.

How is Herbert Smith Freehills helping clients navigate the evolving regulatory landscape?

Sarah Ries-Coward: We’re dedicated to helping our clients navigate the ever-evolving ESG regulatory landscape and understand that keeping on top of the latest regulations and standards and how they interlink (or not!) is crucial for our clients.

One of the most recent ways we assist our clients is through one of the tools we spoke about above, our Global ESG Tracker, an invaluable resource for keeping up-to-date with global ESG legal and regulatory developments.

In addition to the Global ESG Tracker, we also offer bespoke ESG training programmes to our clients. These training sessions are designed to educate and empower our clients’ teams on the nuances of ESG regulations and best practices.

Can you discuss some of the major global trends in ESG that are particularly impacting your clients, and how you are helping them respond?

Jannis Bille: Some of the major global trends in ESG that are impacting our clients include the increasing emphasis on ESG disclosure and reporting such as the EU CSRD and the International Sustainability Standards Board (ISSB), the push on environmental and human rights due diligence in supply chains such as the Corporate Sustainability Due Diligence Directive (CSDDD), the heightened scrutiny on greenwashing and social washing and the rise in ESG disputes. These trends are influencing our clients across various sectors, prompting them to seek guidance on compliance, due diligence, and reporting requirements. They can arise from various issues, including corporate reporting, such as securities claims, and allegations of ‘greenwashing’, where companies are accused of misrepresenting their environmental practices or impacts or making unsupported sustainability claims for their products. Claims may also be brought against company directors in respect of ESG matters, reflecting the growing accountability for corporate leadership on sustainability issues.

Business and human rights issues are increasingly becoming a focal point within the ESG framework. As companies strive to align their operations with sustainable and ethical practices, the integration of human rights considerations into business responses to environmental challenges is gaining momentum. In addition, ensuring human rights compliance across global and intricate supply chains is difficult. Companies must navigate varying international regulations, local laws and cultural norms while maintaining their human rights standards. This is particularly challenging in sectors like agriculture and manufacturing, where labour rights and working conditions are critical.

Nature and biodiversity issues are becoming another significant aspect, the European Union, for instance, has been proactive in this area, with the introduction of the Regulation on Deforestation-free Products. This regulation is part of a broader effort to ensure that products entering the EU market do not contribute to deforestation and forest degradation. This shift towards integrating nature and biodiversity into ESG considerations is not just a regulatory trend but also a response to the growing awareness and demand from consumers, investors, and other stakeholders for more environmentally responsible business practices.

How has the tone of ESG conversations shifted in the last 12 months?

Silke Goldberg: Over the past year, the tone of ESG conversations has notably shifted from being a ‘nice-to-have’ initiative to a critical aspect of business strategy and operations across the globe. ESG is no longer seen as a peripheral concern but is increasingly integrated into Board level discussion and the core decision-making processes of businesses. This change is driven by a growing recognition of the financial materiality of ESG issues and the realisation that sustainable practices can lead to better long-term outcomes for companies and their stakeholders.

A significant shift has also been the importance of ESG in M&A transactions with ESG factors becoming increasingly significant in due diligence, strategic positioning and financing.

In your experience, where do client ESG concerns come from? Are they a result of internal or external pressures?

Sarah Ries-Coward: In our experience, client ESG concerns stem from a combination of both internal and external pressures. Internally, employees and shareholders are increasingly aware and concerned about ESG issues, recognising the importance of sustainability and ethical practices for long-term business success. They are advocating for change and accountability within their organisations, driving the agenda towards more sustainable and responsible business operations.

Externally, pressures come from customers who are demanding greater transparency and responsibility from the companies they support. Regulators are also playing a significant role, as they introduce stricter ESG-related regulations and reporting requirements. This regulatory landscape is compelling companies to adhere to higher standards of ESG compliance, influencing their strategies and policies.

Both these internal and external forces are shaping the ESG landscape, making it an essential consideration for businesses across all sectors. As a result, companies are increasingly seeking guidance on how to integrate ESG principles into their core strategies to meet the expectations of all stakeholders and to comply with regulatory demands.

Why should lawyers care about ESG?

Jannis Bille: ESG has hit the mainstream in legal services, so lawyers everywhere will already be paying attention. There are several reasons for this, including:

1. compliance with regulation – as we touched on before, our job as lawyers is to help clients navigate the fast-evolving ESG regulatory landscape;
2. risk management – it is also important to help clients mitigate liability and reputational risk not only advising clients on their disclosures but also on their wider ESG strategies and policies;
3. sustainable investment and financing – ESG considerations influence investor decisions and access to capital so we help clients align with ESG criteria to attract investment and secure favourable financing; and
4. commercial contract obligations – likewise, ESG considerations are integral to supply chain management and M&A transactions, so through contract drafting and advising on due diligence, lawyers help clients with compliance and risk mitigation.

The reality is, ESG has become a global trend. Aside from helping clients stay ahead of the curve and gain a competitive advantage, having a strong ESG practice leads to innovation and market differentiation.

Would you say ESG expertise is now more of a priority for companies when instructing a law firm?

Sarah Ries-Coward: Absolutely, ESG expertise has become a critical priority for companies when selecting a law firm. We are witnessing a significant uptick in ESG-specific mandates as well as the influence of ESG in wider mandates, reflecting the growing importance of ESG issues in the corporate world.

Furthermore, when engaging with clients, they are increasingly enquiring about our own ESG credentials and metrics. They want to ensure that their legal partners align with their ESG values and commitments. This scrutiny extends to our internal practices and our approach to ESG in our operations. Clients are not only seeking legal expertise but also looking for firms that practice what they preach in terms of ESG.

What do you see as the future of ESG, and how should companies prepare now to stay ahead of the curve?

Sarah Ries-Coward: The future of ESG is poised to become even more integrated into the core of business operations and strategy. Companies should anticipate a landscape where ESG considerations are not just compliance requirements but also key drivers of innovation, competitive advantage, and long-term sustainability. To stay ahead of the curve, companies should:

• Keep up-to-date with ESG developments: Utilise tools like our Global ESG Tracker to stay updated on legal developments and best practices in ESG. This will help companies remain informed about the evolving ESG landscape and anticipate changes that could impact their business.
• Understand ESG reporting requirements: Companies will need to know which ESG reporting standards apply to their operations and when. It’s crucial to understand what information and data is expected to be reported on and processes that need to be put in place – none of which can happen overnight.
• Develop a robust ESG strategy: Reassess ESG strategy to ensure it aligns with the company’s business goals and stakeholder expectations. This strategy should include clear objectives, actionable steps, and measurable targets.
• Foster an ESG culture: Engage with employees at all levels and integrate ESG considerations across the business. This can include working with law firms to provide ESG training for their teams. This will ensure that internal stakeholders understand the importance of ESG and are equipped to implement ESG principles effectively within the company.
• Leverage technology: Use technology to monitor and manage ESG performance. Digital tools will be critical to help track progress, identify areas for improvement, and report on ESG metrics effectively.
• Collaborate and innovate: Collaborate with industry peers, non-profits, and governmental organisations to drive collective action on ESG issues. Innovation in products, services, and processes can also contribute to better ESG outcomes.

By taking these proactive steps, companies can ensure they are not only prepared for the future of ESG but are also leading the way in sustainable business practices. If you need further guidance on developing and implementing an ESG strategy, our firm is here to assist you.

The post ‘Clients are not only seeking legal expertise but also looking for firms that practice what they preach’ – ESG Q&A: Herbert Smith Freehills appeared first on Legal Business.

Skadden London head Richard Youle on a year in management and scaling up London Skadden-style.

‘We’ve had a massive amount of change in the last year,’ says Skadden London head Richard Youle as he sits down to discuss his first year at the helm of the City base.

Youle, who took over as Skadden’s London head from Pranav Trivedi in July 2023 while also maintaining his global co-head of private equity post alongside Ken Wolff in New York, says much of the change has been around how the office and practices are organised.

‘We’ve seen some people step-up into new heads of practice-areas and we looked at the size and shape of our teams and promoted and recruited, where appropriate, to ensure we continue to be a great place to work and can continue to attack the market as powerful challengers,’ he explains.

Practice changes have included Legal 500 leading individuals Katja Butler and George Knighton becoming co-heads of Skadden’s UK corporate practice, while Kate Davies KC has taken over as head of the firm’s international litigation and arbitration group.

The firm has also added a number of lateral partners, including two former Linklaters partners: capital markets partner Noel Hughes, who joined in December, and financial regulatory partner Sebastian Barling, who joined in March this year. Meanwhile the banking practice welcomed  Sebastian FitzGerald from Willkie Farr & Gallagher in January.

‘We’re not Real Madrid signing the best player in the world every year, that’s not what we do,’ says Youle, explaining that growth across the firm’s practices is always strategic.

The firm may not recruit as many laterals as rivals such as Kirkland & Ellis, Latham or Paul Weiss but it has increased lawyer count by 62% since 2019, making it the tenth largest firm in LB’s Global London 2024 table by headcount with 227 fee earners. The tally means that within the top 10, Skadden has seen the second biggest increase in lawyer count over the five year period, behind Kirkland.

Youle says he’s applying some of the experience he’s gained on deals to build the office further. He jokes: ‘I never knew coming in that you could scale an office in the same way as you can scale a deal, which I’ve done for donkey’s years, so it was a nice surprise.’

He is keen to stress that lateral recruitment is less important to the firm than internal promotions, which most recently saw Jisun Choi appointed as a tax partner and Nicholas Adams promoted to partner in the UK disputes team, which has seen David Edwards leave to join Simpson Thacher and white collar partner Elizabeth Robertson leave to launch new investigations firm Robertson Pugh Associates.

‘Homegrown talent is most important,’ he says. ‘While I anticipate growth for our office – it will be a considered and strategic mix of lateral hires that fit with our culture and promoting through the ranks.’

Discussing his strategy for the past year, Youle says each practice in the office has been looking at how they can ‘win’.

He adds: ‘I run deals for a living and my leadership style is to break things down into very small pieces.

‘What we’ve done as an office is we’ve really broken things down, both with professional services and practices – working out where we need to position ourselves for the next 10 years of growth.’

When asked how he’d define winning, Youle responds: ‘Winning for me is continuing to ensure we have a laser-focus on client development and client relationships – right from our professional staff, through to our trainees and our partners.’

‘We are nothing, if not for our clients and our people – so I want to ensure we are continuing to provide our clients with that differentiated service, and also providing our people with an engaging environment within which to work and develop.’

In the past year, Skadden has secured a number of notable mandates, including advising BlackRock on its $3.2bn acquisition of UK investment data group Preqin and advising International Paper on its $7.2bn acquisition of FTSE 100 packaging company DS Smith, alongside Slaughter and May and Sidley.

Looking back on the firm’s successes, Youle maintains that the team’s biggest achievement is ‘how we’ve challenged ourselves on culture around the office.’

He says that the firm introduced Skadden Spirit, a campaign focused on promoting its core values through cultural ambassadors, with over 30 ambassadors within the firm already participating.

‘Ambassadors help decide how we are going to focus on a particular core value every few months – whether that be motivational speakers or events or even making small tweaks to our existing offerings including our affinity groups and well-being initiatives,’ concluded Youle.

elisha.juttla@legalbusiness.co.uk

The post ‘We’re not Real Madrid signing the best player in the world every year, that’s not what we do’ – Skadden London head Youle on scaling up London appeared first on Legal Business.

More than 10,000 civilians have been killed in Ukraine since Russia first invaded in February 2022 according to the UN. And, as highlighted by this week’s airstrike on Kyiv, in which more than 40 people lost their lives, the war is far from over.

But despite the ongoing conflict, law firms in the country remain very much open to business.

Here, Legal Business speaks to some of those on the ground in Ukraine about the different stages of the conflict and the mood among the business and legal community.

February 2022 – June 2022: Invasion

In the initial weeks and months after Russia’s invasion on 24 February 2022, law firms, like the rest of the country, went into survival mode. The first priority was ensuring the safety of staff. Although most men of professional age were unable to leave the country, female lawyers were largely free to leave.

International firms moved their eligible staff to overseas offices, with CMS, for example, offering all of its employees on the ground the chance to move to its Budapest office. Domestic outfits either shifted as far as possible into Western Ukraine, or managed to operate entirely remotely with staff scattered throughout Europe and beyond. Independent firm Arzinger continued to practice despite resettling approximately 40 people across 22 different jurisdictions. The alternative was to lose staff.

For those headquartered in Kyiv, the situation was less dire than for those in the eastern regions, such as Kharkiv, where Aurum Law Firm evacuated its entire team, and co-founder Sergey Ostrovskiy recalls that ‘a few of our associates were caught in the area when Russia invaded, and one had to sit for eight days in the basement without leaving’.

Yet by early summer 2022, carrying on with legal business in a combat zone was becoming the new normal.

Anna Babych, executive partner at AEQUO, says that many people were back on the ground in the office from June, ‘since the goal was to keep the team together as much as possible’. She adds: ‘We tried to get back to normal and were celebrating certain things together.’

Timur Bondaryev, Arzinger managing partner, describes how even though things were put on hold at first, over time ‘people got accustomed to it’. He adds: ‘Business became more or less as usual – not considering regular missile attacks of course. As long as we’re alive we adapt.’

‘Business became more or less as usual – not considering regular missile attacks of course. As long as we’re alive we adapt.’ Timur Bondaryev, Arzinger

The first practice to bounce back was dispute resolution. Force majeure and bankruptcy claims quickly piled up, giving full-service firms the chance to rapidly pick up a healthy caseload. The courts, already primed to operate remotely, sprung into fully-digitalised action. Sanctions work was also booming. Bondaryev recalls: ‘Since Russian investors have traditionally been a huge presence on the market in every area, it was painful for each and every client.’ It meant firms were kept extremely busy, with related white-collar crime investigations relating to potential involvement with Russian money also picking up.

July 2022 – May 2023: Counteroffensive and hope

Through late summer and into autumn, Ukrainian forces liberated territory in the northeast and east of the country and, with the promise of a similar programme to follow in 2023, some opportunistic investors began to look again at Ukraine.

Tetyana Dovgan, an M&A partner at CMS in Kyiv, recalls seeing ‘the promise of deals in the infrastructure, logistics and telecoms sectors’. One such example was Nestle’s announcement in December 2022 that it was planning to invest just over $42m in a new production facility in Smolyhiv, in the western region of Volyn.

‘[Most in the industry felt that that lawyers had] a patriotic duty to work and pay taxes – this is the way for us to support the war effort.’
Olga Shenk, CMS

Throughout the winter and into spring 2023, a hopeful mood abounded. International financial institutions, tapping into the zeitgeist, resumed lending, as well as developing concurrent political risk insurance programmes. Some firms also saw their domestic clients taking the opportunity to widen their focus beyond the border.

Away from the transactional space, litigation continued to be a key driver of activity. Compensation for losses and damages caused by the conflict emerged as a core concern. Where previously there had been a lack of tangible opportunities for such claims, there was increasing optimism. In May 2023, the Register of Damage for Ukraine was established under the auspices of the Council of Europe, with Yulia Kyrpa, another of AEQUO’s executive partners, one of the current board members.

Firms were also picking up commercial and employment work, particularly in relation to military personnel.

Throughout this period, firms also continued to establish and adjust to the working patterns associated with their new reality. The barely forgotten realities of the pandemic proved useful, with Bondaryev noting that ‘Covid turned out to be a huge help, as everyone was trained to work remotely, including the public authorities’. Those who had previously been based in the eastern parts of the country, such as Aurum Law Firm, had no choice but to remain long-distance. But those in the western part of the country were seeing many lawyers opting to spend at least part of their time on the ground.

June 2023 – December 2023: Delay and disappointment

But by the end of autumn 2023, as it became clear that the counteroffensive was not progressing as had initially been hoped, even bolder investors started putting projects on the back burner once more. Bondaryev estimates that during this time, ‘maybe 10% of investors went ahead with projects, and only near the Western border’. As a result, firms experienced a slowdown in the transactional space.

With the situation on the ground becoming increasingly dire, many firms used the pause in deal-making to focus on the pro bono work many had been carrying out since 2022. CMS, for example, had launched a ‘Super Humans’ initiative, which sees practitioners assisting humanitarian and rehabilitation centres with their structuring and insurance matters. AEQUO, meanwhile, dedicated its efforts to providing prosthetics centres for veterans with free advice, as well as handling a spate of defence mandates for free on behalf of the Ministry of Defence.

Aurum Law Firm teamed up with a number of clients to create a fund that could be distributed directly to volunteers in the eastern areas of Ukraine, providing certainty that ‘every penny would reach its destination’. As Babych explains, legal professionals were eager to find their own ways of alleviating the suffering they were seeing, and ‘this was their contribution’.

During these darker days, firms continued to mine all possible sources of work. For some, like Ostrovskiy’s boutique, this meant leveraging their smaller and more flexible nature and ‘diversifying to conduct business not only in Ukraine but globally’. Larger, full-service firms, meanwhile, took on insolvency and supply chain related mandates.

Overall, as Olga Shenk, head of dispute resolution and compliance at CMS in Kyiv, explains, most in the industry felt that that lawyers had ‘a patriotic duty to work and pay taxes – this is the way for us to support the war effort’. Integrites’ managing partner Oleksiy Feliv, similarly, affirms that ‘law firms do make their contribution to Ukraine’s victory, and have been doing their job despite the ongoing war’.

‘Everyone hopes that the next year will be the one where there will be a ceasefire or a resolution.’
Anna Babych, AEQUO

January 2024 – June 2024: Pragmatism

With the war now into its second year, since 2024 the mood has shifted again. Bondaryev characterises it as: ’the realisation that this is a sprint and not a marathon’.

Firms have been operating in a war zone for nearly two and a half years, transitioning through various operational models to land on systems that work.

For those previously based in eastern Ukraine, such as Aurum Law Firm, partners and lawyers remain scattered around the world, with none currently working in Ukraine.

But firms in western parts of Ukraine have seen lawyers flooding back to the country and their offices.

At Integrites, only one partner out of 15 is now living abroad full-time, with the rest based either solely or partially in Ukraine.

‘Law firms do make their contribution to Ukraine’s victory, and have been doing their job despite the ongoing war.’
Oleksiy Feliv, Integrites

For the firm, this is ‘a conscious decision in order to try and be in Kyiv close to clients’.

The figures are similar for Arzinger, where only four of the senior practitioners are now working completely remotely.

Those who relocated their families abroad are now splitting their time between cities; Feliv alternates between spending one month at the office, and one with his wife and children. He jokes that ‘it’s great; as soon as you get everything sorted in one place you have to leave and can’t enjoy it, and then you move and there are 1,000 problems there which you sort out, then you have to leave again’. This picture is a common one for lawyers across the country.

But despite the difficulties, firms, like corporates and investors, have settled down for the long haul.

The major international players with a presence in Ukraine before the war are cautiously resuming operations, and hoping to seek opportunities in the rebuilding projects that are needed on a huge scale. As Babych explains: ‘Everyone hopes that the next year will be the one where there will be a ceasefire or a resolution.’

Ukrainian firms are keen to stress that life – and business – is still going on – despite an increase in the violence.

‘We are continuing to stay on the ground in Kyiv, working, supporting our teams, and bringing the victory closer.’
Tetyana Dovgan, CMS

As Feliv explains: ‘there’s often an ‘aha’ effect when we explain to people abroad that we are still working, because perhaps people think we sit back home in our cellars, hiding from missiles and doing nothing, but we understand that we must keep the economy going’.

Dovgan concludes: ‘We are continuing to stay on the ground in Kyiv, working, supporting our teams, and bringing the victory closer.’

If you would like to make a donation to aid efforts in Ukraine please go to british-ukrainianaid.org/

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