Many of the top 30 international firms in London have become notorious for splashing cash around the City to secure lateral partner recruits. 2006 saw a flurry of local lawyers packing their bags for US firms (all 30 firms in the international tables have their roots in the US). Private equity stars Graham White and Raymond McKeeve defected from Linklaters to Kirkland & Ellis, as did A&O finance heavyweight Stephen Gillespie. Lovells lost Macro Compagnoni and Jonathan Wood to Weil Gotshal & Manges, while Sullivan & Cromwell offered the big bucks to A&O corporate partner Vanessa Blackmore.
US firms are keen on growing their UK offerings through lateral hires, which is unsurprising given that some are still in start-up or bedding-down mode. But associates are less likely to be offered partnership from within. Across the 30 firms, 135 lawyers have been made up to the partnership in the UK in the past three years. This compares with 157 who entered the partnership through lateral hires. But circumstances are improving, with the total number of internal appointments in 2006 increasing to 58, up from 45 in 2005 and 32 in 2004.
Bakers, Kirkpatrick & Lockhart Preston Gates Ellis (K&L Gates) and Mayer Brown Rowe & Maw (MBRM) are classed as international because of their US headquarters, but all three have indigenous UK practices. They prove that transatlantic mergers are not necessarily guaranteed to improve associates’ prospects. Bakers has made up just 14 lawyers in the UK in the past three years, despite the London office being its largest by number of staff. The office’s results pale in comparison with those of Bakers’ far smaller presences in Amsterdam and Caracas, which have received 12 and 11 promotions respectively. Things are worse for K&L Gates’ and MBRM’s associates, with just nine and eight lawyers made up in the City respectively since 2004.
White & Case is one of the most embedded US firms in the City and leads the international firms in terms of UK lateral hires, having brought in 16 partners since 2004. LeBoeuf Lamb Greene & MacRae is the next largest hirer, with 15 external recruits. This is disappointing news for Leboeuf’s associates, as only two have been promoted to partner during the same period, despite the firm setting out ambitious plans for the London offering to become full service. White & Case leads for overall partnership appointments in the UK since 2004 with 27, followed closely by Bakers with 22, Reed Smith with 20 (before its merger with Richards Butler went live) and K&L Gates with 18 appointments. On 2006 figures, Bakers take the lead with a total of 14 appointments.
Arnold & Porter, Davis Polk & Wardwell and Sullivan & Cromwell ended their UK partnership promotion droughts in 2006, each making up their first lawyer in the City in three years. The lucky recipient at Arnold & Porter was Adela Williams in the technology group, while at Sullivan it was competition specialist Juan Rodriguez. Associates at Davis Polk should not begin cheering just yet, though, as upon his promotion Luigi De Gehenghi promptly transferred to the New York office. Prospects also remain slim for associates at Gibson Dunn & Crutcher’s London office, which has not yet made any internal promotions to the partnership despite making six lateral hires since 2004.
Taking a global perspective, things of course improve significantly for associates looking to enter the partnership at an international firm. For UK associates, perhaps the most logical step to partnership is to request a transfer to the US. Bakers leads the market with 312 appointments based on the global number of promotions since 2004. The next closest is Kirkland with 185 promotions, 177 of which were in the US and just six in the UK. McDermott Will & Emery has meanwhile made up 110 to partner internally. McDermott has consistently made up 36 or 37 associates globally a year, with its small London office, which boasts 26 partners, receiving an impressive nine to its partnership. Linklaters and Clifford Chance offer the best results from the UK 100 in eighth and tenth places, with 95 and 88 promotions respectively. This beats the likes of US heavyweights Skadden Arps Slate Meagher & Flom and White & Case.
Bakers, of course, leads the table for total partnership appointments globally since 2004, having made a total of 459 appointments, followed by DLA Piper’s Emea practice with 294. Linklaters and Clifford Chance offer the next best results from the UK 100, ranking thirteenth and fourteenth, having made 129 and 126 appointments respectively since 2004.
