UK 200: Record 11 firms join the £1m PEP club

This year’s UK 200: the Top 100, which was launched this week, includes a record 11 firms with an average profit per equity partner (PEP) of £1m or more.

Topping the group, which features firms with a wide variety of shapes, sizes and strategies, is Slaughter and May. The firm does not officially confirm its financials but average PEP this year is estimated to be around £1.9m.

All four magic circle firms – Freshfields Bruckhaus Deringer (£1.47m), Linklaters (£1.45m), Allen & Overy and Clifford Chance (both on £1.2m)  – posted PEP above £1m.

Travers Smith’s PEP smashed through the £1m barrier, growing by 8.3 per cent from £937,000 while Mishcon de Reya’s run of excellent financial years continued in 2015/16 with PEP increasing by 5.3 per cent from £950,000 to £1m.

The group of 11 also includes three firms that are primarily focused on single business lines. Litigation boutique Stewarts Law, where total revenue grew by 18 per cent to £62.4m, saw its net profit rise by 24.3 per cent to £29m and PEP jump 18.5 per cent from £1.29m to £1.5m.

While still predominantly focused on disputes, Stewarts has broadened its practice mix over the past five years, moving away from its roots in personal injury and adding competition litigation, arbitration and employment teams as well as a tax litigation department.

Dickson Minto continued its strategy of providing advice to a small group of private equity houses including AG Barr, BC Partners, Caird Capital, Charterhouse Capital Partners and Premier Hytemp. Last year PEP at Dickson Minto is thought to have been around £1.2m.

Specialist pensions boutique Sackers & Partners had a return to form in terms of turnover after two consecutive years of falling revenues. PEP also rebounded significantly, rising by 30 per cent from £769,000 to £1m.

Macfarlanes, where PEP was £1.3m last year, is the final member of the group.

Yesterday the changing nature of the top end of the UK legal market, which displays an increasingly diverse array of business structures, was revealed for the first time in full with the publication of the entire UK 200 ranking.