Record year for Cravath sees PEP soar to $2.7m

New York's Cravath Swaine & Moore has posted record results for 2005, with average profit per equity partner (PEP) rocketing 20 per cent to $2.7m (£1.5m).

Net income grew by an even more impressive 30 per cent, but Cravath added eight partners during the course of 2005, bringing the average PEP down.

Cravath's presiding partner Robert Joffe told The Lawyer that 2005 had been characterised by a heavy deal flow throughout, with an increase of big-ticket transactions in the second half of the year. "Last year was our best ever and we're looking to do better this year," he added.

Deal highlights for Cravath last year included advising GTech on its $4.8bn (£2.71bn) acquisition of Italy's lottery operator Lottomatica, DreamWorks SKG in its sale to Paramount and Chevron in its takeover battle with CNOOC for Unocal.

Joffe's term as presiding partner, which began on 1 January 1999, ends next year. He will hand over to deputy presiding partner Evan Chesler on 1 January 2007.