Paul Hastings Janofsky & Walker has lost the German desk of its London office, after five lawyers left to set up their own firm with offices in Munich and London.
Former Paul Hastings of counsel Geza Toth-Feher has set up Toth-Feher & Partner LLP, luring associates Robert Abt, Oliver Beyer and Melanie Schuman to join his new partnership.
Paul Hastings had originally sought to send its London-based German lawyers to open an office in Munich, but will now work with Toth-Feher’s firm instead.
Toth-Feher said: “I told Paul Hastings to let me get on with opening and we could just cooperate. Maybe in two years from now we could get back together again.”
He added: “There was no argument, it wasn’t hostile, it was business as usual. I introduced the concept to the clients and they have been very loyal.”
The firm will specialize in private equity advice and will work closely with Paul Hastings and its clients. Clients of Toth-Feher include investment bank MacQuarie.
The new firm is an English partnership, funded by a €2m line of credit from private equity firm CB Equity Partners, which Toth-Feher set up two years ago in Munich.
Toth-Feher said the funding was “like a loan but with certain profit-sharing instruments.” He said the arrangement was allowed by the Law Society.