Reed Smith PEP drops 8 per cent amid revenue fall

Reed Smith saw its average profit per equity partner (PEP) fall 8 per cent over 2015, amid a global revenue dip of 2.5 per cent.

The firm’s PEP fell from $1.2m to $1.1m (£770,000) last year, while global turnover also dipped from $1.15bn to $1.12bn (£790m).

The results contrast with Reed Smith’s financial results over 2014, when it saw revenue grow by 7 per cent and PEP up 6 per cent.

In 2015, Reed Smith said it saw a 40 per cent increase in the number of lateral hires that were made, although it lost a number of partners in London. These include private equity head Perry Yam who left for Mayer Brown, and life sciences partners John Wilkinson and Nicola Maguire who joined Cooley.

The firm also announced it was to cut 45 lawyers roles from across its US, UK and Middle Eastern offices affecting 2.5 per cent of the firm’s 1,650 lawyers.

Globally, Reed Smith launched a Singapore corporate practice with the hire of Stephenson Harwood partner Matthew Gorman and opened its second German office in Frankfurt.