Latham & Watkins’ average profit per equity partner (PEP) has surpassed the $3m mark for the first time.
The PEP increase of 5 per cent from $2.91m to $3.1m means Latham has now joined an elite group of firms with PEP in excess of $3m.
According to The Lawyer’s Global 200 report, 11 other firms such as Kirkland & Ellis, Cleary Gottlieb Steen & Hamilton and Sullivan & Cromwell all have a PEP figure above $3m.
Global turnover grew by a similar percentage of 6.5 per cent from $2.65bn to $2.8bn.
“There are a small number of firms over the $3m PEP mark,” said chairman and managing partner Bill Voge.
“But we’re less concerned over year-by-year trends, as we instead focus on the long-term. We’ve increased revenues over $1bn since the end of the downturn. We have a long-term view.”
Latham made headlines in 2007 when it broke the $2bn barrier for the first time.
When it last reported its financial results, the firm posted a 1.5 per cent rise in revenue over 2015, as well as relatively static PEP of $2.9m.
This is the seventh consecutive year of growth for the firm, adding over 100 lawyers in the last 12 months. It is understood to have been “slightly hurt” by currency conversion rates of around 1 to 2 per cent. Roughly 65 per cent of its business is billed in US dollars.
A total of 10 new partners have joined in London, including Herbert Smith Freehills energy co-head John Balsdon, Allen & Overy (A&O) partners Ed Barnett and Stephen Kensell, as well as Slaughter and May corporate partner Sanjev Warna-kula-suriya.
Latham has not yet revealed its London turnover for 2016 – in 2015 it was the largest overseas-headquartered firm in the UK. Last year, The Lawyer revealed Latham had lost its top spot in the International Top 30 ranking to White & Case. This year White & Case posted UK revenues of $290m.