A&O managing partner Price departs pre-merger as revenue passes £2bn

Allen & Overy has announced the shock resignation of managing partner Gareth Price amid a set of financial results that saw the Magic Circle firm break £2bn in revenue for the first time.

The firm said Price’s resignation was due to ‘personal reasons’ and came as revenue jumped nearly 8% from £1.94bn last year to £2.1bn in 2022/23. While eye-catching, the level of turnover growth fell slightly short of the 10% uptick achieved last year, of which more than half was attributed to A&O’s US business.

Profit per equity partner (PEP) dropped 6.6% from £1.95m to £1.82m, while profit before tax dipped slightly to £892m after a 9% hike to £900m last year.

Price was elected A&O’s managing partner in February 2020. News of his departure has been met by surprise, not least because he had been hotly tipped internally to stand again for managing partner in the firm’s 2024 leadership elections, a move that could be seen as a vote for continuity as A&O faces inevitable challenges posed by its proposed merger with Shearman & Sterling.

‘The board has asked me to step in to cover the [managing partner] role’, senior partner Wim Dejonghe told Legal Business. ‘They will make a decision on a more permanent solution in the autumn. Leadership elections were scheduled for early next year, after the merger vote. The board also has to decide whether they stick to that schedule or not.’

On the financials, A&O reported strong growth in private capital revenue of more than 60% for the last two years. In the US, ‘growth and expansion has remained a high priority’ – unsurprising given the firm’s pursuit of the Shearman merger. A&O pointed to the region as one of its strong performers, alongside Africa, Europe, and the Middle East, which saw its ‘strongest financial performance ever’, driven by what it describes as ‘a hot IPO market’, as well as by opportunities in Saudi Arabia.

A&O’s Advanced Delivery & Solutions (AD&S) business also grew by 13%.

While the US accounted for over 50% of the firm’s revenue growth last year, this year Dejonghe said it accounted for less than half. ‘It’s up in absolute figures, but it’s not 50% of the growth,’ he said.

A&O also reported strong performance in energy transition, technology, and private capital: ‘With the energy transition, there’s a lot of financing needed in the energy and infrastructure space. That’s definitely a strong growth point for us. Technology, both on the litigation and the transactional side, has also seen massive growth, as has private capital on the debt side,’ Dejonghe added.

Dejonghe explained the drop in PEP with reference to macroeconomic conditions and a competitive legal market. ‘We’re in an inflationary environment. Costs generally have gone up. And of course there’s been a salary war in the industry around the world. We’ve defended our position, and we’ve had to spend quite a bit more on salaries to keep and recruit the best talent.’

A&O has no plans to slow its investment. ‘In terms of sectors, we’re focusing on technology, energy transition, and private money. We’re investing quite heavily in those practices around the world.’

But, unsurprisingly, the lion’s share of attention will go to the proposed combination with Shearman. ‘Obviously, the merger will be a priority going forward’, said Dejonghe. ‘There’s no doubt about that.’

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This article first appeared on Legal Business

The Law Surrounding Domestic Abuse in England and Wales

Elizabeth Barlow, student at The University of Winchester, analyses the changes brought about by the Domestic Abuse Act 2021.

Until recently the term ‘domestic violence’ has been used to describe abuse in the family home. However, the very word ‘violence’ indicates a physical assault and therefore disregards the many other forms of abuse that both men, women and children can experience.

The move to the term ‘domestic abuse’ has been enshrined in statute with the new Domestic Abuse Act 2021. Section 1(3) of the act establishes the different forms of abuse, including but not limited to violent or threatening behaviour, economic abuse and coercive and controlling behaviour.

Unfortunately coronavirus and the cost-of-living crisis have added pressure to many households, which in turn has seen a large increase in domestic abuse cases.

The need for reform came from the substantial lack of guidance and assistance for victims. The lack of duty on local and national authorities to offer help and support, and the outdated outlook on what domestic abuse consisted of.

Following 2021, authorities now have a duty to provide appropriate and safe accommodation for a person or family fleeing abuse. It also ensures that fleeing abuse does not result in the loss of right to lifetime or assured tenancies when these were in place.

For the first time local authorities will be held accountable following the creation of the Domestic Abuse Commissioner. They will also report back annual statistics to consider best how to tackle the problem as well as establishing a chain of command and processes to improving the support services

One significant change sees the recognition of children in the abuse cycle. Prior to 2021 children could witness horrors within the family home and were simply considered witnesses. Now, however, a child who witnesses abuse will be treated as a victim in their own right.

With emotional abuse being recognised within statute it would be contradictory to leave children as witnesses when the sheer emotional effects of witnessing abuse are, in fact, a form of abuse all of its own. This welcome change affords them further protection and support.

As well as children, both men and women suffer domestic abuse. However, it is significantly disproportionate and is still very much a gendered offence. A lot of abuse comes following what is known as a ‘trigger point’.

The most common trigger points are pregnancy, post-separation, drug and alcohol use and chronic illness. This can be when most abuse starts or gets worse during a relationship.

Practice Direction 12J guides the judiciary in child arrangements proceedings where there is alleged domestic abuse, and it clarifies that domestic abuse can be a single incident or a series of incidences.

It also goes into more detail on ‘Coercive and Controlling’ behaviour, a form of abuse that is by no means new, but newly recognised in law.

It includes acts of assault, intimidation, and humiliation, where the perpetrator desires to make the victim feel subordinate or dependant by isolating them. If you are a victim or know of a victim of domestic abuse you can make an application to obtain disclosure from the alleged perpetrator.

The introduction of the Domestic Violence Disclosure Scheme (DVDS), first implemented in 2014 and known more widely as Clare’s Law, allows the police to disclose any relevant information regarding a partner or ex-partner.

This is managed in two ways, by establishing a ‘right to ask’ and a ‘right to know’. This enables the victim to make informed choices on whether they should leave a relationship for their own protection or refrain from going back.

Sadly, on average, a victim of domestic abuse returns to the abuser seven times before they leave for good. Either the victim or a family member can make an application for disclosure.

Anyone suffering abuse can reach out to a number of organisations for initial help, including a solicitor for legal advice. Whilst some people will be eligible for legal aid, the service is stretched far beyond its means and many people cannot access it.

With that in mind, domestic abuse is not discriminatory, and anyone can be a victim regardless of wealth. With increasing use of social media, victims are open to newer forms of abuse such as ‘revenge porn’.

Revenge porn is the disclosure of any sexual photographs or videos with intent to cause distress. The most recent case involved celebrity Stephen Bear, who was sentenced to 21 months’ imprisonment for voyeurism and two counts of “revenge porn”.

This case highlighted that even those in the public eye still have a right to privacy and that the law would not enable perpetrators to abuse this right. However, whilst the Act supports some groups of people, it’s support tis lacking for others.

The new Domestic Abuse Act is far from perfect, there have been criticisms over its lack of protection for migrant women and for not making judicial training mandatory in order to ensure judges have a deeper understanding of domestic abuse and its many forms.

Yet it has been praised for its forward thinking with regards to the inclusion of a new offence, Non-Fatal Strangulation (NFS). NFS has been a tool in which perpetrators hold over their victims, the act itself is a way of them showing the victim they quite literally hold their life in their hands.

Considering the long-term medical effects of partial asphyxiation, making NFS a criminal offence of its own is a welcome change.

Another positive addition relates to the court process, a process that can be incredibly intimidating to a survivor of domestic abuse. Being in the same room as the abuser is sometimes terrifying, and up until 2021 if the abuser was a litigant in person, they were entitled to cross-examine the victim themselves.

This was clearly not effective in ensuring a witness gave their best evidence.

Now, if an abuser is a litigant in person, they will ensure a separate third party is available to cross-examine where appropriate. The introduction of special measures has also made the court process a little easier for survivors, and are suitable in criminal, civil and family court.

A survivor can be kept separate from their abuser at all times, this may mean using a separate entrance at the courthouse, having a curtain drawn whilst in the witness box, giving evidence via video link or ensuring they have a special room to wait in whilst court is adjourned.

Ultimately, there are safeguarding measures in place to protect survivors of abuse all whilst allowing them to have their say. It is important to recognise the difficulties victims face and that the justice system provides an environment that allows them to speak up, whilst feeling safe and secure.

The law is by no means perfect but is certainly a step in the right direction to ensuring victims are supported.

The difficulty remains where the Act predominantly supports those pursuing criminal charges, which leaves a large gap for those pursing civil remedies following domestic abuse.

Where so many cases will fall short of the CPS threshold, there should be the ability and support for those who fall through the gap to utilise civil law whether it is to provide an injunction, by way of a non-molestation order, or to assist in a fact-finding hearing during children proceedings.

Either way, more must be done to offer protection, especially to those most vulnerable.

 

Helpful Contacts

National Assistance

 

Financials 2022/23: Taylor Wessing sustains global growth for fifth year in a row

With the financial reporting season in full swing, Taylor Wessing has unveiled its latest results, becoming a €500m firm for the first time.

The firm experienced slower growth compared to the previous season, as it did not achieve double-digit growth as it did in 2021/2022. The firm saw a 4% increase in global revenue to £439m in this year’s financial results, up from £420.6m last year, which its highest recorded international revenue to date.

It witnessed a similar increase in UK revenue, which went up 4% to reach £227.1m, surpassing the figure of £219.3m reported for the 2021/2022 period.

UK profit, however, dropped by 12% from £93m to £87.1m, but it is still the second highest on record for the firm. The firm did not disclose some figures, but PEP is estimated to be £809,000 and RPL in excess of £500,000.

UK managing partner Shane Gleghorn (pictured) told Legal Business: ‘We’re delighted to see growth in both the UK business and international business. We’re very pleased we managed to maintain growth in those circumstances where the markets, certainly in the UK, were more muted in relation to fundraising and corporate work.’

Talking about the latest developments, he continued: ‘We’ve got big investment in our new premises in London, and we’ve moved into new premises in Cambridge and Dublin. There’s been quite a lot of lateral hiring and promotions taking place, particularly across London, Dubai and Dublin. We’ve been growing out our IP offering and broadly speaking, the plan is to create a holistic IP offering across Europe. We’ve started to implement that, and it has been a very significant point of investment for us.’

This year marked the launch of Taylor Wessing’s latest three-year strategy, following the introduction of its previous strategy in 2020, which Gleghorn said resulted in significant revenue growth in the UK, increasing from approximately £157m to over £227m, a growth rate of 44%. Additionally, global revenue also increased from around £365m to approximately £438m, a growth rate of over 20%.

Commenting on the fall in UK profit this year, Gleghorn said: ‘We do anticipate that the profit will improve next year, but it wasn’t an unexpected turn of events for the profit to be flat at this year. We anticipated that the market would be slower in some of our core areas. We are very confident about our profit position because, when you view it in the context of the preceding two years of growth, it is still the second-highest profit that we have ever earned.’

Discussing which practice areas had made the greater contribution, he continued: ‘It’s fair to say it was across the board contributions. In London, patents, private equity, private client, disputes work, and employment have all had strong years. Tech and life sciences have also had a strong year, but there’s no doubt that the second half of the financial year was more challenging for most firms who focus on that area.’

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This article first appeared on Legal Business.

Financials 2022/23: HFW posts best-ever results

HFW has posted its best-ever financial results for the financial year 2022/23. After a slight dip of 1% to £198.7m in 2022, revenue climbed by more than 13% to £225.3m. Profit per equity partner and revenue per lawyer were up too: PEP rose by more than 17% to £786,000, while RPL hit £455,000.

In London revenue increased by 16%, accounting for about 40% of the firm’s total revenue. The most impressive increases around the world, meanwhile, were in the Middle East (32%) and Australia (24%).

Last year aside, these figures continue a strong upward trajectory for HFW, which has seen the firm grow its RPL almost 25% in four years, and its revenue more than 60% since 2015.

In conversation with Legal Business, the firm explained its success as the result of a strategy focused on broadening its international coverage and extending its offering in its core sectors of aerospace, commodities, construction, energy, insurance, and shipping.

‘We’ve built up a good network’, said managing partner Jeremy Shebson (pictured). ‘We were building foundations, and now we’re looking to build on top of them.’

Senior partner Giles Kavanagh concurred. ‘We have a network of 20 offices around the world. The focus now is to build on the network, not to extend it further.’

That said, Kavanagh noted that the firm was not opposed to expanding into new areas ‘where there are good opportunities’. On this front, HFW recently received permission from China’s ministry of justice to open a representative office in Shenzhen. ‘It’s a very big commercial area’, explained Shebson. ‘The numbers are eye-watering, and the opportunities are considerable.’

In addition to the firm’s sector-focused international strategy, Shebson noted the importance of HFW’s strength in contentious work as a factor behind its continued growth in what he called a ‘difficult economic environment’. Results for 2023 showed the proportion of revenue generated by contentious matters held steady at around 70%.

Moving forwards, HFW intends to double down on its existing strengths. In Kavanagh’s words: ‘We are looking to attract laterals, teams, smaller law firms, and even something more ambitious than that.’

This approach has paid dividends over the last year: the firm reports ten lateral partner hires in 2022, and a further six in the first two months of this year.

As for that something more ambitious, Kavanagh was candid. ‘We’re open to discussions, not just with bolt-ons, but with larger-scale firms.’

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This article first appeared on Legal Business

‘A powerful position’: Youle succeeds Trivedi as Skadden London head

Rich Youle, Skadden’s much-admired co-head of private equity, has taken over from Pranav Trivedi as the head of Skadden’s London office.

Youle (pictured) took the helm on 1 July and will continue as global co-head of the firm’s private equity group alongside Ken Wolff in New York.

Widely regarded as one of the most influential dealmakers in the Square Mile, Youle joined Skadden from White & Case in 2017 amid much fanfare.

For his part, Trivedi has been at Skadden for 30 years and is widely held to have been a strategic and effective London leader throughout his ten years in the role.

Commenting on his appointment, Youle said: ‘I’m honoured to take over from Pranav, who has served the office so brilliantly during his tenure. As Skadden celebrates its 75th year anniversary and 35 years in London, with a new home in the City, it is an exciting time to reflect upon our growth. I’m looking forward to working with our talented team to build on that success.’

Trivedi added: ‘It has been such a pleasure to lead the London office for ten years. I’m proud to say that the office has grown exponentially, becoming one of the cornerstones of the firm’s global network. Rich’s impressive leadership capabilities, business acumen and deep understanding of the market, will undoubtedly continue to drive forward our success.’

Executive partner Eric Friedman concluded: ‘Pranav has served the London office with unwavering dedication and leaves it in a powerful position. Rich embodies our core values and has a proven track record of delivering outstanding results for clients and for his exemplary leadership skills. I know we are in good hands as he leads the London office into its next chapter.’

For more on Youle, read Legal Business’ 2018 Life during Law interview

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This story first appeared on Legal Business

Ince unable to pay creditors in full as administration draws to a close

Following their appointment as joint administrators for Ince on 28 April 2023, Andrew Hosking and Sean Bucknall of Quantuma Advisory have filed a statement of administrator’s proposal (the Quantuma proposal) at Companies House.

A pre-pack sale of Ince’s business and assets to Axiom Ince has now been completed. The Quantuma proposal states: ‘Of the total sale consideration of £2,200,000, £1,000,000 has been received to date and the remaining £1,200,000 will be collected as and when it falls due for payment.’

Ince owes secured creditors a total of £16,854,792 in banking debt at the date of the appointment of the joint administrators. This includes an estimated £15,000,000 debt owed to Investec Bank.

The firm does not have any preferential creditors. All its employers were TUPE transferred to Axiom Ince and there are therefore no preferential claims.

However, HMRC is a secondary preferential creditor and is expected to make a claim of around £15m. This includes liabilities for VAT, PAYE income tax, employees’ NIC, CIS deductions and student loan deductions. A Compass Evaluator report filed with the Quantuma proposal and commissioned by Tony Mead, a director at Axiom Ince, detailed the challenges faced by the beleaguered firm. It notes that while Ince had been hoping to find a solvent trade on solution, its considerable arrears with HMRC have proved challenging.

The directors of Ince had sought a time to pay agreement for the arrears to avoid administration but this was rejected by HRMC. ‘Enforcement action is imminent,’ according to the report. Additionally, the report highlights that the audited accounts for the year ended 31 March 2022 are outstanding and ‘the shares have been suspended since 3 January 2023.’.

The total owed to creditors amounts to £41,188,082.40. The firm has accumulated a wide range of creditors during its troubles, including individuals, universities, law firms, and The Law Society.

The Quantuma proposal states ‘it is anticipated that there will be insufficient funds to pay a distribution to secondary preferential creditors in full or the unsecured creditors.’

To conclude the administration the remaining deferred consideration from the purchaser, amounting to £1,200,000, needs to be collected. The joint administrators will also need to discharge their statutory duty to investigate the affairs of Ince. The Quantuma Proposal states: ‘the administration is expected to conclude in c.30 months by exiting to dissolution.’

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This article first appeared on Legal Business

The Implications of Artificial Intelligence in the Legal Profession (Winner of the Legal Article Writing Competition)

The article below was written by Julita Gajewska, winner of the Legal Article Writing Competition, run in conjunction with The University of Westminster Corporate Law Society.

Artificial intelligence (AI) has emerged as a catalyst for transformative change across industries, with the legal sector undergoing its own revolutionary transformation. The integration of AI into legal practices is reshaping the legal landscape, introducing  a myriad of opportunities, challenges, and potential benefits in the sector. In this article, the narrative focuses on the implications of AI in the legal system, unravelling the current state of AI implementation and uncovering its potential for transformation.

The term ‘AI’ was coined by John McCarthy, although there is no universally accepted definition, as highlighted by the Carnegie Endowment for International Peace. The report ‘a pro-innovation approach to AI regulation’ has divided the term into two key characteristics: adaptivity and autonomy.

The integration of AI in the legal system provides numerous advantages that enhance efficiency, access to justice, and the general practice of law. By leveraging AI-powered tools, time-consuming processes can be streamlined, allowing legal professionals to work more efficiently and focus on more complex strategic matters. The positive impact of these technological developments is highlighted in ‘AI-assisted lawtech: its impact on law firms’, which showcases a model that promotes workplace efficiency and collaboration. Eurojust and eu-Lisa also reported similar benefits of AI, emphasising its ability to improve effectiveness and reduce costs, ultimately leading to increased access to justice. Particularly, administrative tasks, such as document review or due diligence, which currently consume a significant amount of energy for legal professionals, can be greatly aided by AI. Lawtech estimates that this boost in productivity could be worth up to $2.1 billion.

Conversely, there are potential challenges that occur with this technological transformation. In particular, there is a limited understanding of current AI methods, particularly in the legal sector. A recent case involving Steven Schwartz highlights the current lack of accuracy, as citing non-existent cases in court demonstrates the potential defects of AI. Nonetheless, PwC suggests that AI has the potential to improve accuracy by up to 80% in the near future.

The integration of AI in the legal system is poised to revolutionise the future of legal practice and redefine the delivery of legal services. While it is acknowledged in ‘AI-assisted lawtech: its impact on law firms’ that the traditional model may not change immediately, it is notable that an increasing number of companies are launching products to assist the legal profession and driving remarkable technological developments in the field. The investment in Lawtech is projected to reach $2.7 billion by 2026, highlighting the growing momentum and enthusiasm surrounding the integration of AI in the legal sector.

The integration of AI into the legal system represents a transformative shift in the practice of law. As AI technologies continue to advance, they offer numerous opportunities to enhance efficiency and improve access to justice. By acknowledging and addressing its potential challenges, the integration of AI in the legal system can be guided by a responsible and balanced approach.

Julita Gajewska

‘An excellent foundation from which to build’: Clifford Chance appoints new office managing partner in New York

Less than two weeks after Clifford Chance revealed the opening of a new office in Houston, the firm has announced the appointment of long-time CC real estate lawyer Ness Cohen as managing partner for its New York office, while also continuing to serve as real estate practice leader of the Americas.

Speaking to Legal Business, Cohen said: ‘The firm decided that it would make sense to have a New York office manager generally, especially with New York being one of our largest offices and also with our growth ambitions in the US.’

Cohen said that regional managing partner for the Americas, Sharis Pozen, approached him and said many of his fellow partners put his name forward for the new role. Pozen is based in CC’s Washington office, although she will be in New York for one week a month.

‘We just had an offsite meeting in Philadelphia for the US partners, as well as our colleagues in São Paulo, mainly to talk about our overarching global strategy. The alignment between the two is very clear. The global strategy identifies, among other things, that the US is a focus area,’ Cohen explained.

Cohen started at New-York based Roger & Wells back in 1998. The following year, the firm merged with Clifford Chance and Pünder Volhard Weber & Axster in Germany in a three-way merger. ‘[It] was really ambitious. To do one merger is feat, imagine pulling off a three-way merger that brought together three best-in-class firms,’ he added.

He was promoted to CC partner in 2007 and his practice focuses on real estate private equity, joint ventures, acquisitions, dispositions and financings involving real estate.

Earlier this month, the firm announced the opening of a new office in Houston, bolstering its global energy and infrastructure practice in the US.

‘Our entry into the Houston market is underway by an extremely appealing range of lateral candidates, which exemplifies the essence of our US strategy. The New York strategy is very similar, and we’ve brought in a fair number of laterals recently, integrating them into our office and the region,’ Cohen said.

‘There are some other ambitions that are underway with respect to potentially other locations. It’s safe to say that the firm as a whole sees the US as a region it can really achieve outsize growth.’

Cohen explained that the firm’s key focus areas are energy and infrastructure, technology, life sciences and healthcare, while it also seeks to build on other sectors.

‘We see our existing team as an excellent foundation from which to build further and grow out further. In other areas where the firm outside the US is extremely strong, we can use that and leverage it to build further. Houston is a good example of that.’

Cohen has also headed up the firm’s Personal Committee since 2011. He said ‘I really enjoy that role. It deals with everything, including our lawyers’ work-life balance. But that’s something that probably we’ll be looking to transition, since it wouldn’t make sense for me to keep that role with this.’

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This article first appeared on our sister publication Legal Business

‘I want the firm to be more ambitious and more confident’: Stephenson Harwood rebounds with double-digit revenue growth

Stephenson Harwood has reported an 11% rise in turnover to £228m from £206m for 2022/23, the firm’s highest-ever revenue. It comes after the firm reported largely flat financials for the year 2021/22.

This time around, profit per equity partner (PEP) is up 6% to £725,000 from £685,000 in 2021/22. The firm has added 22 equity partners, with 11 lateral hires and 11 internal promotions over the last year, while four partners have retired from the partnership.

Speaking to Legal Business about the revenue increase and the firm’s ambitions Eifion Morris (pictured), the firm’s chief executive, highlighted its five-year strategy, which launched in May 2022 with the aim of doubling the firm’s turnover by 2027. Morris said: ‘We want growth, we want ambitious partners, and we want to grow in all sectors. If you want to double revenue in a short space of time, you need an active program of lateral hires. We have had a lot of radical change in a short period, and we are starting to see that pay off. This is not the endpoint but the start.’

The strategy will focus the business on five key sectors to increase profitable growth: decarbonisation, life sciences, private capital and funds, technology, and transportation and trade. These were identified by the firm as sectors which will see strong growth and development over the next few years.

Stephenson Harwood also intends to maintain its 50-50 litigation-transactional balance. 50% of the firm’s revenue currently comes from disputes, which has always been a notable strength of the firm and several of its contentious practices are ranked in The Legal 500. This includes commodities disputes and pensions dispute resolution, which receive a top-tier ranking; commercial litigation: premium, and contentious trusts and probate, which are ranked tier two; and banking litigation: investment and retail, property litigation, and intellectual property patents (contentious) which are ranked in tier three.

The current revenue breakdown across the firm’s practice areas is finance 24%, commercial litigation 28%, corporate 21%, marine and international trade 12%, employment, pensions and private wealth 10% and real estate and projects 6%.

‘At the heart of our strategy is maintaining and leveraging the 50-50 litigation-transactional balance of the firm. This has been very important for maintaining growth, and we are a very well-hedged business,’ Morris said.

The firm has also been bedding in a new global leadership team as part of its ambitions moving forward. The team is 50% male and 50% female. Morris highlighted the importance of this: ‘With the new global leadership team, I wanted to encourage diversity of background so that the team would bring different ideas and life experience to the table. The team formed during Covid, and we have had to deal with a lot of difficult decisions, but this meant we formed a very strong team.’

Stephenson Harwood highlighted several key mandates for the year across its life sciences, dispute resolution, rail and road, and corporate practices, including advising Bicycle Therapeutics on its radiopharmaceuticals deal with Novartis to develop several oncology radioligand therapies. It also represented Trafigura in the Trafigura v Gupta case and advised on Abellio UK and Nederlandse Spoorwegen management buyout.

Other highlights include advising WindAcre Partnership on its part of the acquisition of Nielsen Holdings, valued at over $16bn and LXi REIT on its £773m debt refinancing.

Looking forward, Morris is committed to raising the firm’s profile. ‘I want the firm to be more ambitious, and more confident. One of our best clients told us that we were “the best law firm you’ve never heard of”. That is something I want to change,’ he said.

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This article first appeared on our sister publication Legal Business.

‘Our clients led us to Houston’: Clifford Chance launches energy-focused Texan office as part of US expansion plans

Clifford Chance has opened a new office in Houston, bolstering its global energy and infrastructure practice in the US.

The firm has hired seven Houston-based partners to join the office, including Jonathan Castelan and Trevor Lavelle, who both join from Latham & Watkins. However, at this stage, Clifford Chance was unable to confirm the names of the remaining five partners or the firms they are moving from.

The lateral hires will be joined by existing Clifford Chance partners Devika Kornbacher, Alexander Leff, and Anthony Giustini. Kornbacher is co-head of the firm’s technology group, while Leff is a renewable energy and infrastructure partner and Giustini is the senior partner for the firm’s worldwide projects group, co-leader of the energy transition initiative, and leader of its clean hydrogen task force.

Speaking to Legal Business about the Houston launch, regional managing partner for the Americas, Sharis Pozen said: ‘This play in Houston is all about extending our energy and infrastructure practice. We have a market-leading practice globally and the one piece of it that was missing was Houston and having a hub in the US for energy and infrastructure. So that’s what drove us to Houston.’

She added: ‘We have about 700 folks in total in the United States. We have almost 500 fee earners and 95 partners. So, we’ve been fortunate to be able to build a fantastic team in the US that’s very connected to the rest of our firm.’

The new office will primarily focus on energy and infrastructure, with the Texan location dictated by the needs of existing clients.

‘Our clients led us to Houston. Many of them are global clients headquartered in Houston and they are primarily energy and infrastructure clients. Houston right now is an incredibly dynamic marketplace. It is the fourth-largest city in the United States, one of the most diverse, and it’s really the hub of the energy transition,’ Pozen explained.  She added that she was hopeful that the Houston base would prove to be an attractive offering for new clients as well.

The launch has been several years in the making. Commenting on the process, Pozen said: ‘We’re discerning, and we play our own game. That’s who we are. So, we’ve watched other firms with some global reach go into Houston and watched the successes and those that haven’t been as successful, and we’ve learnt. In our world, there isn’t always that first-mover advantage. Often history shows that the person who sits back and watches goes in even stronger and better.’

Pozen also credited the reach and foresight of global managing partner Charles Adams as a driving force behind the office opening. The firm plans to expand the Houston office with more growth expected over the coming year, with the strategy for the next three to four years to remain on the lookout for new talent and continue to grow the team when it makes sense.

‘We will look to build out the team further for sure. That is the plan. It’s part of our plan to expand in the US generally, and we have been expanding in the US. We plan on continuing to strategically grow. We are not just a growth-for-growth’s-sake firm. We are a strategic grower and meticulous about our execution,’ Pozen added.

Currently, Clifford Chance’s Americas revenue makes up 13% of its global turnover. However, with the move into the Texan market, the firm is placing its bets on the energy transition sector as the route to breaking the US. As the magic circle firms consider their US expansion plans, the proposed Allen & Overy and Shearman & Sterling merger will see another magic circle firm make headway in Texas, giving them access to offices in Austin, Dallas, and Houston if the partner vote is passed.

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This article first appeared on Legal Business