A radical restructuring of the equity at Mishcon de Reya has seen a third of the partners either leave the firm or lose their equity status.
The shake-up has resulted in a 25 per cent hike in average profits per equity partner (PEP) this year and should improve dramatically the figures for 2005.
Last year Mishcons’ average PEP was £211,000. This year the firm is expecting to post average profits of £264,500. The figure is partly a result of the restructuring, effective from 1 April, that has seen four equity partners leave the firm, four leave the equity and one become a consultant.
“We’ll be looking to push profits to £300,000 or better next year,” said Mishcons managing partner Kevin Gold.
The first part of the restructuring came last month with the exit of music head David Glick, who left to set up media boutique Edge Group. Mishcons has now jettisoned its entire music practice, with partners Martin Dacre and Adam van Straten expected to leave the firm later this year.
Another music partner, James Wilcox, has become a consultant, while immigration partner Philip Booth is also leaving the firm due to what Gold refers to as “a strategic decision”. Four partners, including property partner Susan Freeman, are also set to move out of the equity.
“We’ll be creating a new category of partner,” said Gold. Rather confusingly, the new category is called ‘partners’, which now sits alongside the two other categories, ‘equity partners’ and ‘salaried partners’. Gold said the four ‘partners’ de-equitised for “lifestyle” reasons.
The changes coincide with the second year of Gold’s tenure as managing partner.