Weil Gotshal & Manges’ London office has fallen behind its US rivals, reporting only a 4 per cent rise in gross revenue.
But the disappointing results, which see London report gross revenue of $98m (£53m) for 2006, are largely on par with the firm’s global results.
Sources within the firm explained that the figures were the result of the benefits of the booming M&A and private equity markets being counteracted by a much softer restructuring practice.
Overall the firm’s revenue only rose 4 per cent to $1.06bn (£576m), as did the firm’s average profit per equity partner (PEP), which reached $1.9m (£1.03m).
London’s PEP, meanwhile, was $1.65m (£897,000), a more notable 14 per cent increase from $1.45m (£853,000) in 2005.
As Weil Gotshal accounts on a cash basis, London’s figures were also impinged by the costs involved in the star hire of private equity partners Marco Compagnoni and Jonathan Wood from Lovells in the first half of 2006.
The office is, however, forecasting double-digit growth in revenues in 2007 based on the existing pipeline of work at the beginning of the year.
Many of the firm’s Continental European offices, including Paris and its presences in German and the CEE, are understood to have reporter double-digit growth in revenues in 2006.
The results follow strong financial results in 2005, when the firm joined the elite group of firms with gross revenues above the $1bn mark, with revenues of $1.02bn (£560m).
It also comes as several of Weil’s key US rivals report impressive results. For example, White & Case recorded a staggering 67 per cent increase in London PEP to hit $1.28m (£693,000) in 2006.