News Berwin Leighton Paisner Boodle Hatfield Browne Jacobson Capsticks Clifford Chance DAC Beachcroft Digby Brown Freshfields Bruckhaus Deringer Furley Page Herbert Smith Freehills Ledingham Chalmers Lewis Silkin Linklaters Matthew Arnold & Baldwin Pinsent Masons RPC Trowers & Hamlins UK Business Leadership Financial news Herbies tops charts in The Lawyer’s first-ever ranking of net debt By Matt Byrne 7 April 2014 00:05 17 December 2015 14:19 Sign in or register to continue reading. It's FREE Sign in Email Password Keep me logged in Forgot your password? Not registered? It's FREE! Register now Register with The Lawyer PR Guru 7 April 2014 at 09:39 Does Herbies get a special prize for being the most indebted law firm? Special visit from the bank manager, perhaps? Reply Link Anonymous 7 April 2014 at 13:31 This is meaningless: we don’t have an equity capital contribution, instead the firm borrows on behalf of all partners and gets a (hopefully) better rate, we pay a per-equity-partner share of the interest each year and give a guarantee over our share of the debt. Accordingly, our debt is largely determined by the number of equity partners. I am sure that many other firms do the same thing and I’m sure that the Lawyer knows that’s what they do. I would much rather borrowing tens of millions as a group of 100+ partners than hundreds of thousands as an individual. This is either deliberate sensationalism or just plain stupid. Reply Link Anonymous 7 April 2014 at 15:07 The Lawyer should also consider undertaking an analysis of the level of partner capital in each firm. It would be interesting to see how much a partner of one firm has to invest for his profit share, compared with a partner at another. And how is that capital invested – genuine profit retention (i.e. cash left in the business) or borrowed funds by the particular partner, or a combination of the two? The comments by the HSF partner suggests it is bank funded all the way. Is that the case at other firms? Reply Link Tom Fletcher 8 April 2014 at 10:06 Good to see some analysis like this, although slightly let down by the assertion that Trowers’ and Pinsents’ debt increased by 100% by the action of taking on debt. If those firms suddenly showed debt levels of £100 compared to £0 a year before, then on the same calculation, debt increased by 100%. So the percentage figure is completely meaningless. Reply Link Anonymous 8 April 2014 at 11:04 What is going on at Browne Jacobson? Their name keeps cropping up in these articles. Are they having an enormous overhaul or is something going awry? Reply Link Name Email Cancel reply Threaded commenting powered by interconnect/it code.