SJ Berwin
UK 200 RESULTS 2010
Movement since 2009
Turnover (£M):
Profit per equity partner (£K):
Earnings per partner (£K):
Equity spread (£K):
Net profit (£M):
Profit margin (%):
Revenue per fee-earner (£K):
Revenue per lawyer (£K):
Revenue per partner (£K):
Revenue per equity partner (£K):
Total number of fee-earners:
Total number of qualified lawyers:
Total number of partners:
Total number of equity partners:
Total number of female partners:
Total number of female equity partners:
Total number of staff:
Leverage ratio (fee-earners per equity partner):
DOWN
171
447
329.14
180-640
39
23
273.6
314.9
1,132.5
2,164.6
625
543
151
79
32
16
1,108
5.87
Following its annus horribilis that was 2008-09, the past financial year saw SJ Berwin manage to steady the ship. Yet few in the City believe the firm is out of the woods yet.
The firm’s 2009-10 was defined by its courting of a US merger partner. Early contender Orrick Herrington & Sutcliffe opted out of the tie-up, to be replaced by Proskauer Rose. The public pursuit of Proskauer has led many commentators to suggest that the future of the firm lies in the successful completion of the merger.
Transatlantic ambitions aside, revenue dropped for the second year in succession at SJ Berwin, down 7 per cent from £184m to £171m. This represents an overall decline over two years of 20 per cent. Average profit per equity partner rose by 9 per cent to £447,000, but this is still a long way off the 2007-08 high of £801,000. Furthermore, partners at the firm continued to see their quarterly profit distribution payments held back until the start of 2010, when they resumed.
While still securing a decent share of whatever private equity work was out there, the firm’s reliance on that practice – along with real estate – has seen it continue to slump in terms of transactional work.
One bright point came with a mandate acting for Apax Partners on a £600m investment by Chinese Investment Corporation, a deal led by corporate head Steven Davis, corporate partner Michael Halford and funds star Nigel van Zyl.
However, several departures also rocked the firm through the year, with banking partner Stuart Brinkworth’s defection to Hogan Lovells at the start of the year, leaving the finance practice feeling threadbare.
UK 200 RESULTS 2009
Movement since 2008
Turnover (£M):
Profit per equity partner (£K):
Earnings per partner (£K):
Equity spread (£K):
Net profit (£M):
Profit margin (%):
Revenue per fee-earner (£K):
Revenue per lawyer (£K):
Revenue per partner (£K):
Revenue per equity partner (£K):
Total number of fee-earners:
Total number of qualified lawyers:
Total number of partners:
Total number of equity partners:
Total number of female partners:
Total number of female equity partners:
Total number of staff:
Leverage ratio (fee-earners per equity partner):
DOWN
184.0
410
311.8
180 - 640
40
22
253
309
1,082
1,878
728
595
170
98
22
16
1,212
5.07
Average profit per equity partner (PEP) at SJ Berwin all but halved during the past financial year, dropping 48 per cent, from £801,000 in 2007-08 to £410,000 last year.
This substantial decrease in PEP was coupled with a more modest drop in turnover of 14 per cent, from £215m to £184m.
The firm’s heavy emphasis on real estate and private equity hit it hard. SJ Berwin launched a redundancy consultation in January this year, shedding a total of 50 staff. Four media partners also agreed to leave the firm at the end of the financial year due to film finance becoming less important strategically at the firm.
Previously branded as a European firm, SJ Berwin launched two offices outside Europe during the last two months of the 2008-09 financial year. In April the firm launched an office in Dubai, relocating London partner Tim Taylor and Paris-based partner Benjamin Aller to spearhead the office. The move came after the firm launched in Hong Kong in March.
The cost of the two office launches would also have hit the firm’s bottom line.
While SJ Berwin’s core practice areas suffered during 2008-09 the firm has made moves to win insolvency mandates, such as advising KPMG on the administration of Dunfermline Building Society.
NEWS
SJ Berwin and Mayer Brown in talks over £900m tie-up
SJ Berwin has held exploratory talks with US firm Mayer Brown with a view to joining forces to create a £900m business.
FEATURES
SJ Berwindy city tie-up with Mayer Brown
Two months after The Lawyer reported that SJ Berwin senior partner Stephen Kon was putting international expansion at the heart of the firm’s strategy, we can reveal that the firm is holding exploratory talks with US firm Mayer Brown.
