Posted on

Revolving doors: Swings and roundabouts for Squires and Addleshaws as 2Birds fills real estate gap

City hires picked up pace again last week after a fallow patch as leading firms made prominent additions to a number of key practice areas. Squire Patton Boggs hired to its private equity practice while Bird & Bird and Addleshaw Goddard strengthened their real estate benches.

Squires added to its global corporate practice in London with the hire of Stephen Ball. He joined the firm’s international private equity team as a partner from KPMG where he served as chief executive and vice chairman. Ball advises on financial services, risk, strategy and corporate governance for global banks, companies, private equity firms, hedge funds and governments.

Squires’ European managing partner Jonathan Jones commented: ‘Stephen’s reputation precedes him, as a widely respected, highly trusted advisor on business strategy and decision-making at the highest level. He brings with him years of experience, in terms of personally leading global teams and firms and of advising international businesses – global private equity houses, major corporates, banks and financial institutions – on the most complex of matters.’

Bird & Bird meanwhile added Addleshaws partner James Salford to its real estate finance practice in London. Salford advises lenders and borrowers on debt and also reviews and negotiates hotel operating agreements.

Co-head of the retail & consumer sector group at Bird & Bird Mark Abell told Legal Business: ‘We decided to go the market and bring someone with the right seniority and right level of skills into the team and I think we’ve made an exceptionally strong recruitment. It’s not one of those roulette hires- there’s a real need and real opportunities. In the hotel sector we are growing at a pretty phenomenal pace and the main strategic goal is to fulfil that potential. There’s plenty of opportunities that are there for the taking.’

To mitigate the loss, Addleshaws hired Squires partner Rachel Orton to its real estate team in London. Orton acts for investors, developers and finance clients on transactions in the healthcare, retirement living and build-to-rent sectors.

Head of Addleshaws real estate division Adrian Collins commented: ‘Senior living and healthcare within the BTR sector is expanding rapidly, with an ageing population and longer life expectancy driving the requirement. Rachel is a fantastic addition to the team not only as her clients provide existing synergies with our real estate offering, but she can draw on strong support from our market leading construction and infrastructure teams.’

Orton told Legal Business: ‘I am excited to be joining a firm with such a high calibre real estate team as Addleshaw Goddard. In light of their existing impressive credentials in the build-to-rent sector and enthusiasm for and willingness to invest in the senior living and extra care sector, Addleshaw Goddard was an obvious choice for me.’

Orton’s hire follows the recent addition of former Linklaters real estate disputes head Frances Richardson to Addleshaws’ real estate team.

Elsewhere, Dentons recruited partner Shane O’Donnell to its corporate team in Dublin. O’Donnell joined the firm from William Fry where he has been head of corporate for the last five years. He advises leading domestic and international corporations, financial institutions and government organisations on mergers and acquisitions, joint ventures, fundraisings and take-private transactions.

Dentons managing partner in Ireland Eavan Saunders said: ‘Attracting such a high calibre partner demonstrates the ambitions we have for the Dublin office. Shane is an acknowledged leader in his field and will be a tremendous addition to the Dentons offering in Ireland.’

Finally, in Los Angeles, Simpson Thacher & Bartlett made a rare lateral play with the additions of Gregory Klein and Michael Kaplan from Irell & Manella to its M&A practice.

Klein and Kaplan are experienced in private equity transactions, mergers and acquisitions, securities offerings and related corporate matters, as well as advising venture investors, hedge funds and other institutional money managers, founders, startups and early-stage companies on investments, debt and equity financings and governance issues.

Chairman of Simpson Thacher’s executive committee Bill Dougherty commented: ‘Their addition will further enhance our ability to meet our clients’ needs both in California and beyond. Their experience advising on mergers and acquisitions, particularly in the middle-market, as well as on growth equity investments, is an ideal complement to our strength in private equity across the board.’

[email protected]

This article first appeared on Legal Business.

Posted on

University of South Wales partners with Capital Law to deliver pro bono legal advice

The University of South Wales’ (USW) School of Law has partnered with leading Welsh law firm, Capital Law, to develop its Legal Advice Clinic’s pro bono initiative. The new scheme will see junior lawyers from Capital Law collaborate with Student Clinic Volunteers, to provide pro bono legal advice to the community.

The School of Law set up the Clinic to increase its students’ opportunities for legal pro bono work. The Clinic is a free community-based face-to-face advice service staffed by trained Student Clinic Volunteers, who work under the supervision of practising solicitors and barristers.

Managed remotely from Capital Law’s offices by Richard Thomas, who heads up the firm’s Employment and Immigration team, and Nicola Mead-Batten, who leads its Public Law & Regulatory services, the junior lawyers will work on a rota-based system. Each week, two of the trainee solicitors will be ‘on-call’, supporting the students who interview clients, assess them and draw legal advice.

The junior lawyers help the students with a variety of legal queries, including pre-interview preparations, legal research and drafting letters of advice.

The issues they advise on relate to:

  • Employment
  • Debt recovery
  • Company Start Ups
  • Partnership Agreements
  • Commercial Property
  • Commercial Disputes
  • Public law/Judicial Review

As well as offering valuable community service, this collaborative programme provides training ground for both the students and the trainees, who can develop many legal and transferable skills while learning the art of pro bono.

While at the Clinic, students also participate in the Employment Tribunal Litigant in Person Support Scheme (ELIPS). Helped by solicitors from Capital Law’s Employment team, they offer support to those who are pursuing an employment claim with no legal representation.

Dr Dom Page, Head of the South Wales Business School, Faculty of Business and Society:

“As a University that leads the way by engaging with industry; this is a fantastic opportunity for our students to engage with both the community and the legal profession as part of their study with us. We are looking forward to officially launching this initiative and to working alongside Capital Law to make it a success for all involved.”

Richard Thomas, Partner at Capital Law, said:

“We already partner with USW on several exciting projects – such as assisting unrepresented litigants in tribunal, or supporting student entrepreneurship. This new collaboration is a natural next step, that we’re delighted to be taking. The Legal Advice Clinic will give access to a broader range of legal services to those who need it, and without doubt, will be very formative for students and trainees alike. It’s a precious resource, for the community and for everyone involved.”

Nina Holmes, Trainee Solicitor at Capital Law, said:

“While studying at USW, I had the opportunity to take part in the Legal Advice Clinic and there’s no mistaking the benefits that the first hand, practical experience gave me. It enhanced my commercial awareness, while giving me a practical understanding of areas of law that I had not previously considered or been exposed to. I am now really looking forward to return as a trainee: it’s a unique opportunity for us to use the skills we’ve acquired since joining Capital, and to develop relationships in the pro bono community.”

Posted on

‘Deeply upset’: Law Society’s historic HQ suffers damage after outbreak of major fire

Firefighters were called out to The Law Society’s headquarters over the weekend after a major fire broke out, damaging the historic building late on Saturday, 1 February.

The fire was brought under control early on Sunday, with no injuries sustained as a result. The alarm was sounded on Saturday night after the annual Junior Society dinner was held at the premises, 113 and 114 Chancery Lane in central London.

The fire is understood to have started in 114 Chancery Lane before spreading to 113, with 114 bearing the brunt of the damage. The Society is hoping staff can return to the premises tomorrow working out of 113.

Law Society chief executive Paul Tennant said in a statement: ‘First of all I wanted to express my gratitude to the fire service and my relief that nobody has been hurt. I also want to express my sympathy to the residents in the Chancery Lane area whom I understand may have had to evacuate their homes.’

Around 28 people had left the building before the fire brigade arrived, while 11 people were evacuated from nearby flats as a precaution. The Law Society Gazette, which is also based in the building, has sustained damage to its office while the Society’s extensive library has been unharmed. The London Fire Brigade (LFB) stated that much of the roof and part of the fifth, fourth and third floors were alight and that roughly 150 firefighters were deployed to tackle the fire. Crew have remained at the scene to minimise damage to the building.

Assistant Commissioner of the London Fire Brigade, Dom Ellis, said in a statement: ‘This was a very complex fire due to the age and layout of the building. Firefighters worked throughout the night in very challenging and arduous conditions to prevent the fire from spreading to key areas of the historic building, while also trying to prevent water damage.’

Few other details have been disclosed regarding the cause of the fire or the extent of the damage caused. However, Tennant added: ‘Clearly we are extremely upset that this has happened to this wonderful and historic building. When the fire alarm sounded on Saturday night an event had been taking place. An evacuation ensued and I’d like to praise our on-site staff and others for their calm response. We will release more information as it emerges in due course.’

[email protected]

This article first appeared on Legal Business.

Posted on

MoFo ups City revenue an impressive 25% as US reporting season begins

Morrison & Foerster (MoFo)’s City revenue has lifted 25% for a third consecutive year, outpacing a strong global showing and kicking off US reporting season with a showing of expansive City growth.

The firm’s revenue increase to £38.6m comes amid a 10% global increase in the last fiscal year, from $1.04bn to $1.15bn. Meanwhile, revenue per lawyer grew 4% and profit per partner grew 5% to the highest levels in the firm’s history at just over $2m.

The firm’s City showing follows a strong performance last year, when MoFo’s London office, spearheaded by managing partner Paul Friedman, grossed over £30m, up from the £24m the firm reached in 2017.

A series of strong mandates over the last year propelled London’s performance, with MoFo representing SoftBank and SoftBank Vision Fund in numerous transactions, as well as continuing to act for the liquidators in connection with the $9.2bn liquidation and cross-border insolvency of Saad Investments Company.

MoFo has also engaged in a robust recruitment strategy in the City. In February 2019, high-profile finance partner Chris Kandel joined from US giant Latham & Watkins, where he served as co-chair of the firm’s global banking practice. The reboot of MoFo’s London office began earlier in 2018, when the firm hired finance lawyers Caroline Jury and Benoit Lavigne, as well as Kirkland & Ellis arbitration partner Chiraag Shah.

The results mark something of a turnaround for MoFo, with financials in 2014 showing London revenue down 22% to $26m while in 2015 the firm suffered an exodus of corporate and technology partners to Cooley. According to Friedman, the firm’s strategy for 2020 will now focus on integrating new hires and further building its core practices in the City. MoFo has already secured one hire since the start of the year, with equity derivatives partner Polly Ehrman joining the firm from Latham.

[email protected]

This article first appeared on Legal Business.

Posted on

DLA cracks £1bn international revenue after pumping ‘tens of millions’ into offices and IT

DLA Piper has increased profit at its international LLP for the fourth year running despite a sustained period of investing ‘tens of millions’ of pounds in office moves, refurbishments and IT systems.

A strong year for its European offices – and the implementation of new accounting standards – simultaneously saw revenue lift 18.5% to £1.09bn, although on an underlying basis it climbed about 7%, slightly up on last year’s 5% increase.

The firm’s international (non-US) revenue for the year to 30 April 2019 was up £169.9m, although £105.6m of this was attributable to changes to accounting standards which means the firm now has to account for disbursements as well as fee income. The revenue increase was nullified by a mirrored £105.6m increase in operating costs, also due to the new standards.

Stripping that out and a negligible foreign exchange impact this year, underlying revenue grew £65.9m, including £52m in Continental Europe. Wage and other inflation added £37.5m to operating costs, resulting in an 8% lift in profit to £340.8m.

DLA chief financial officer Paul Edwards told Legal Business he was pleased the firm had put together a string of strong years, following a turnover dip in 2014/15. But he was particularly happy about a fourth successive increase in profit, achieved during a period of investment for the firm.

In the 2018/19 financial year the firm invested more than £30m in its offices, including its marquee office move in London. The firm is also moving in Frankfurt and Birmingham, and has refurbished a number of its premises. That was on top of investment in IT systems, accelerated by DLA’s high-profile cyber incident in 2017. DLA’s borrowings more than doubled this year to £67.2m from £32.6m the year before.

‘We haven’t grown the bottom line simply by cost-cutting, in fact, quite the opposite,’ he said. ‘We’re talking about tens of millions of pounds of investment. I could have doubled that profit increase but then not made the investments which give you the longer term possibilities which we’re going to get.’

Key management personnel, which includes the senior partner, managing partner, members of the executive committee, international practice group heads, country managing partners and service directors took home another 9% pay increase following last year’s 22% lift, up to £48m from £44m.

Total staff numbers at the firm rose to 5,209 from 5,120, while fee earner numbers lifted to 2,187 from 2,135. Staff costs increased 5% to £347.1m.

Edwards said the first eight months of the current financial year were tracking ‘very strongly’ with activity levels higher than expected during a long-standing period of uncertainty.

‘What is pleasing for us is there is still a lot of uncertainty out there, and the UK – which is about a third of our business on the international side – obviously had a period of uncertainty, but business levels were quite active,’ he commented. ‘The caution we had baked into our budgets at the time didn’t really come through in the performance.’

[email protected]

This article first appeared on Legal Business.

Posted on

Mayer Brown Posts 80% Spring Retention Rate

International firm Mayer Brown has released its retention figures for those trainees due to qualify in March 2020.

80% of the soon-to-be NQs are being kept on at the international firm.

Five jobs were offered, of which four were accepted by applicants. The distribution is as follows: two trainees will qualify into the Finance department, whilst the IP and Litigation teams are also snapping up a NQ each.

To see Mayer Brown’s full Lex 100 profile, click here.

Posted on

Burges Salmon BCultured

BCultured is Burges Salmon’s Black, Asian and minority ethnic (BAME) network. Established in 2018, the group welcomes anybody within the firm who shares its objectives: to promote diversity, inclusivity and social mobility within the firm.

‘It’s not just for lawyers’, explains Ebony Ezekwesili, first-seat trainee solicitor and active BCultured member. ‘It’s open to people at all levels in the firm, from apprentices to trainees to business services people. You don’t have to be BAME either, anyone who supports our aims can join’.

BCultured was officially launched in April 2019. The launch event, titled ‘From Diversity to Inclusion’ attracted around 100 guests. At a recent headcount, the group counted 32 members, at least four of whom are trainees in Ebony’s intake.

New recruits are quickly made aware of Burges Salmon’s diversity networks, which also include BProud, Family Matters and the Burges Salmon Disability Forum. Once enrolled, new members can hit the ground running: ‘I heard about BCultured probably within my first two weeks at the firm and joined soon afterwards. In fact, I was at one of the network’s first official meetings following the commencement of my training contract in September’, explains Ebony.

BCultured is co-chaired by senior associate Marcus Walters and design team manager Tanya Allen. Burges Salmon’s Diversity & Inclusion (‘D&I’) Manager, Fiona Smith, also sits on the committee and, Tanya, Fiona and Marcus all sit on the firm’s D&I Group, which is chaired by Liz Dunn (People Partner), and is the liaison between the network and the firm’s senior management. One benefit of being a BCultured member is that Ebony has met and got to know colleagues she may not otherwise have come across. ‘I recently attended the Rise awards, a celebration of black entrepreneurs in Bristol, with members of BCultured and Liz (Dunn). Liz, as well as being ‘People Partner’, is also a partner in the planning department and I’m sitting in pensions, so I hadn’t interacted with her before. It definitely brings together people you wouldn’t ordinarily bump into within the firm’.

The network comprises several sub-committees. Ebony is primarily involved with the recruitment and progression committee, which meets every 4-6 weeks and focuses on attracting more BAME applicants to the firm and publicising BCultured and the firm’s wider diversity initiatives to prospective applicants.

To this end, BCultured has developed relationships with local schools in Bristol, in particular those with diverse student populations or which are located in disadvantaged areas. BCultured has also developed relationships with the University of Bristol and the University of the West of England (UWE), which enables BCultured to target BAME students. Ebony elaborates: ‘we want to make them more aware that there are people who look like them working at firms like ours. There tends to be a perception that they won’t fit in if they apply to places like Burges Salmon, but that’s not the case. We’re working hard to dispel the myth’.

In a bid to spread the word, Ebony and fellow BCultured members recently attended a careers event at UWE as part of Black History Month. There they met BAME students and professionals, many of whom were unaware of Burges Salmon’s BAME network. ‘One of the fears of BAME candidates is that they’ll be fighting against different pressures in the workplace. I was asked whether I feel entirely supported by the firm and my stance is always the same. I explain that the firm is very committed to D&I and that we even have a D&I Manager who is fully invested and involved in the aims and objectives of BCultured’.

During October BCultured hosted a number of events to celebrate Black History month within the firm and, in January, we will be hosting a Chinese New Year celebration. More generally, the committee will reflect on the network’s inaugural year, revelling in the successes whilst also building on what has been achieved so far. Increasing membership is also a priority.

Impressively, and despite its relatively recent inception, BCultured was shortlisted for the 2019 UK Diversity Legal Awards in the ‘Outstanding Multi-cultural/BAME Employee Network’ category. Closer to home, the group triumphed in the ‘Best Team Contribution’ category in Burges Salmon’s own Outstanding Service to Clients Awards (nicknamed the OSCAs). ‘It’s been a good year so far!’ chimes Ebony.

Whilst being black was Ebony’s primary motivation to join BCultured, her ethnicity was not a major concern when applying for training contracts. ‘I didn’t really consider being black that much in the context of the legal profession, but it is something which is intrinsic to me so whatever industry I work in, I will always try to join networks or groups which promote diversity. I feel 100% supported at Burges Salmon. I have no qualms with that whatsoever’.

Going forward, BCultured and Burges Salmon are looking at improving inclusion within the firm and within the legal profession more generally. ‘Many firms agree that diversity is important and have made it a priority. But the question is, once you’ve recruited [a diverse workforce], how do you retain it?’, asks Ebony. Retention of BAME lawyers and business services professionals past the junior level has historically been more of a challenge than initially attracting candidates. In order to overcome this, Ebony says employers need to celebrate employees’ identities and help them to feel comfortable being their full selves at work. ‘It’s the next stage in diversity recruitment – how do we move from diversity to promoting a culture of inclusion?’ Watch this space.

Applications for Burges Salmon’s spring and summer vacation schemes are open now. Apply by 10 January.

Posted on

Dealwatch: Weil and Mayer Brown scoop leads on Nestlé’s $4bn US ice cream business sale

Weil Gotshal & Manges and Mayer Brown have advised on the sale of Nestlé’s US ice cream business to Froneri for $4bn.

Froneri is an ice cream focused joint venture by Nestlé and PAI Partners created in 2016. The deal means that brands such as Häagen-Dazs, Edy’s, Drumstick and Dreyer’s will join its portfolio which already includes Movenpick, Green & Blacks and Cadbury’s ice cream.

Weil advised Froneri with a team led by London managing partner Michael Francis and included London private equity partner Jonathan Wood, head of the technology and IP transactions practice Barry Fishley and banking partner Tom Richards.

Mayer Brown advised Nestle with a team led out of the US by partners David Carpenter, John Boelter and Michelle Gross.

Carpenter told Legal Business: ‘Nestlé has already contributed to the ice cream business in different parts of the world through this joint venture. The buyer is actually 50% owned by Nestlé and so it’s moving the ice cream business into a company that has a private equity partner. It will be focused on ice cream rather than being part of a big conglomerate.’

The transaction is expected to close in the first quarter of 2020.

Meanwhile, Freshfields Bruckhaus Deringer advised private equity firm CVC Capital Partners on the acquisition of a stake in WebPros Group by CVC Fund VII from Oakley Capital Private Equity and other investors.

WebPros is a web hosting automation software provider for server management and includes web hosting platforms cPanel and Plesk and web hosting management and billing software WHMCS.

The Freshfields team was led by global co-head of financial sponsors Charles Hayes, co-head of European leveraged finance Alex Mitchell and corporate and M&A lawyer Vincent Bergin.

Kirkland & Ellis advised Oakley Capital on the sale led by London corporate partners Rory Mullarkey and Jacob Traff as well as Ben Leyendeckerin Munich.

The deal is expected to close in the first quarter of 2020.

Elsewhere, White & Case advised on the $25.6bn IPO of Saudi Arabian Oil Company (Saudi Aramco), making it the world’s largest IPO. The company began trading on the Saudi Arabian Tadawul Stock Exchange on Wednesday 11 December under TADAWUL: ARAMCO.

The offering included subscriptions from institutions and individuals, comprising of SAR 446bn ($119bn). The Kingdom of Saudi Arabia sold 3bn shares of Saudi Aramco which accounted for 1.5% Saudi Aramco’s share capital.

The White & Case team was led by Dubai partner Sami Al-Louzi and included London partners Inigo Esteve, capital markets partner Alexander Underwood, Ronan O’Reilly and employment compensation and benefits lawyer Jack Gardener. The Law Office of Megren Al-Shaalan also advised Aramco with a team led by Megren Al-Shaalan and Doug Peel and included London capital markets partner Ibrahim Soumrany.

The $1.7trn valuation makes Saudi Aramco the largest company by market capitalisation. Over 400 White & Case lawyers from around 20 offices advised Saudi Aramco on the transaction.

Latham & Watkins advised the underwriters of Saudi Aramco on non-Saudi law matters. The team was led by New York partners Marc Jaffe and Ian Schuman and included London partner Craig Nethercott. London partners James Inness and Jeremy Green offered advice on corporate matters, Chirag Sanghrajka advised on finance, Rob Moulton advised on regulatory matters while Karl Mah advised on tax.

Prior to the listing, the largest IPO spot was held by Alibaba Group Holding Limited which listed in September 2014 on the New York Stock Exchange (NYSE) for $21.8bn.

Finally, Cleary Gottlieb Steen & Hamilton advised Qatar Investment Authority (QIA) on the $450m acquisition of a 25.1% stake in Adani Electricity Mumbai Limited (AEML) from Adani Transmission Limited as well as a shareholder subordinated debt investment by QIA in AEML.

AEML is part of Adani Group, an integrated business conglomerate based in India which includes six publicly traded companies, focusing on resources, logistics, energy and agriculture.

The Cleary team was led by London partners Tihir Sarkar and Nallini Puri.

Puri told Legal Business: ‘QIA is a very big investor to be partnering with. The Adani Group is a big group with lots of diversified interests and historically they’ve engaged in a lot of acquisitions, particularly within India. India’s done less with foreign investors. In some ways this is a very significant partnership for them because they’ve tied up with a very high profile investor.’

AEMl was advised by Indian firm Cyril Amarchand Mangaldas led by partners from the Mumbai office.

The deal is expected to close in early 2020 subject to customary conditions and regulatory approval.

[email protected]

This article first appeared on Legal Business.

Posted on

Dealwatch: Slaughters and Ashurst make headlines on i newspaper sale as DLA and A&O dine out on Bookatable acquisition

In a busy week for UK buyouts, Slaughter and May advised Daily Mail and General Trust on the £49.6m acquisition from JPIMedia of i newspaper and its website by its consumer media business, DMG Media.

The Slaughters team was led by corporate partner Rebecca Cousin while an Ashurst  team led by corporate partner Braeden Donnelly advised JPIMedia Group.

Donnelly told Legal Business: ‘The sale of the i newspaper to Daily Mail was a significant first step for JPIMedia in realising value for bondholders. It is also part of a wider trend we are seeing in the UK print media market where consolidation is picking up pace as media owners respond to slowing print sales and increased competition from online alternatives.’

The deal was completed on 29 November. Ashurst previously advised Johnston Press on its acquisition of the i newspaper business from Independent Print Limited in 2016.

Meanwhile, DLA Piper advised Michelin on the sale of London-headquartered restaurant reservation business Bookatable to TripAdvisor company TheFork.

The acquisition allows competitor TheFork to consolidate in the United Kingdom, Germany, Austria, Finland and Norway meaning that 14,000 restaurants on Bookatable will join the 67,000 restaurants available on TheFork.

The DLA team was led by London partner Tim Wright and Paris partner Simon Charbit while an Allen & Overy team led by Richard Browne advised TripAdvisor.

The acquisition follows Michelin’s content and licensing partnership with TripAdvisor and its subsidiary TheFork. The partnership means that Michelin guide inspectors will be grading restaurants according to the ‘stars, bib gourmand and Michelin plate’ on the TripAdvisor and TheFork websites. 4,000 restaurants in Europe will also be available on TheFork and the Michelin Guide’s digital platform.

French firm Gide advised Michelin on the partnership with a team led by partner Guillaume Rougier-Brierre.

Elsewhere, Travers Smith has advised New York Stock Exchange-listed company Noble Corporation on the acquisition of its 50%interest in the Bully I and Bully II drillship joint ventures by a subsidiary of Royal Dutch Shell for a value of $166m.

Shell will pay a final cash settlement of roughly $59m of to Noble for its two drillships. Nobel, which owns and operates fleets in the offshore drilling industry, issued a note payable to Shell which satisfied a portion of the buyout price.

The Travers team was led by corporate partner Richard Spedding and Shell was advised in-house.

Finally, Addleshaw Goddard advised the promotional products company Pebble Group on its flotation on the AIM market with a fundraising value of £135m. It is the eighth IPO on AIM this year and the largest in terms of funds raised. The firm also advised on the £28m essensys listing in May and the £57m Brickability Group IPO in September.

The Addleshaw team was led by corporate partner Richard Lee. Lee told Legal Business: ‘What it means for the group is that they are no longer a private equity owned business and they no longer have the debt structure that goes with the private equity ownership. It gives them an improved balance sheet because the funds they raised in the IPO have been used to pay off the debt which they were previously carrying.

‘There were preferred share structures in there, plus loan notes, plus bank debts and the purpose of the fundraising for the company was to clear out that debt,’ added Lee.

The equity fundraise was managed by Berenberg with Grant Thornton acting as adviser. A London Bird & Bird equity capital markets team led by Adam Carling advised Berenberg as broker and Grant Thornton as nominated adviser.

[email protected]

This article first appeared on Legal Business.

Posted on

Legal secretaries and support staff most at risk as industry loses up to 35,000 jobs by 2027

Legal secretaries and support staff will be the most affected by a decline in legal sector jobs in the next decade as the sector evolves and with increasing adoption of technology, according to a report commissioned by the Law Society.

Based on employment data gathered by the Institute for Employment Studies, the report estimates the UK legal sector will shed 13,000 jobs by 2027, a 4% drop on the 321,000 employed in 2017 and down from the pre-economic crisis peak of 345,000 in 2009. The most extreme prediction puts a further 22,000 jobs at risk if technology brings radical change to the workforce.

Legal secretary and support-staff jobs are the most vulnerable. While the number of legal professionals and associates is expected to continue rising by around 2% a year, legal secretaries have been declining since 2001 when they reached their highest proportion of the legal workforce – nearly a quarter – before dipping to reach 10% in 2017.

The research also predicts that legal secretary positions will fall by nearly two thirds in the next decade and ‘largely vanish’, while other office support staff will reduce by a quarter to account for 3% and 9% of the workforce respectively.

Based on interviews with senior representatives from 20 law firms and four in-house legal teams, the report says that legal professionals are becoming more self-sufficient in managing their diaries and that technological aids have been reducing the need for support from secretaries.

Office support roles are also becoming more ‘generalist’, combining personal assistant support for fee earners with other administrative tasks.

In 1998, there were two legal professionals to one legal secretary, but by 2017 ratios increased to five legal professionals per legal secretary, the report notes. By 2027, there are likely to be around 20 legal professionals per legal secretary, the report warns.

Related  The i-Team: The client perspective on AI

The last few years has seen several major City law firms cut legal support roles or relocate staff out of London in a bid to reduce costs, including Baker McKenzie, Freshfields Bruckhaus Deringer and Hogan Lovells, which last year cut 54 of around 500 business services roles in London.

The proportion of lawyers, meanwhile, is expected to increase strongly from 47% in 2017 to 57% by 2025. The report found the sector would therefore need to recruit 7,000 new lawyers a year, more than what is currently met by new graduates and those returning to work.

Staff with degrees or other higher qualifications will account for more than 99% of the legal professionals workforce, 76% of the legal associate professionals workforce and 80% of the senior support staff workforce.

But the most prevalent future skills gap in the profession is likely to centre around problem solving, client handling and planning and organisation, the study suggests.

‘For anyone aiming for a career in the law, it is worth noting that a common theme from employers was that firms were paying more attention in recruitment to people skills, such as communication and team working, whereas in the past they had only looked at technical legal skills. Commercial awareness and management skills were also seen as important,’ commented Law Society president Simon Davis.

[email protected]

This article first appeared on Legal Business.