The phenomenal, lateral hiring-driven rise of U.S. firms in the UK and particularly London market in recent years is THE trend
BY:
Caterina Conti
Media Operations
PROJECT COUNSEL MEDIA
19 June 2020 (Paris, France) – Only seven UK-headquartered firms generate more revenue in London than their closest US rival, a new report from The Lawyer reveals, with the gap between the largest UK and US firms in the City now closer than it has ever been.
NOTE: although we are subscribers, we cannot share the full report. The following is a summary.
The largest firms ranked by the revenue they generate out of their City offices are the UK’s big four of Linklaters, Allen & Overy, Clifford Chance and Freshfields Bruckhaus Deringer followed by Slaughter and May, CMS and Herbert Smith Freehills (HSF).
Linklaters currently holds the number one spot with an estimated £695m generated out of its London office from last year’s global turnover of £1.629bn.
HSF takes seventh place in The Lawyer’s City ranking, which is included in this year’s US Top 50 Firms in London report, with £390m but in eighth place is Kirkland & Ellis on £348.6m, closely followed by Latham & Watkins on £336.9m.
The phenomenal, lateral hiring-driven rise of US firms in the UK and particularly London market in recent years is a trend that is most evident in the City 50, a unique data set which merges the London-only revenues of the largest US and UK firms in the country.
The resulting table of 50 firms is remarkable. It confirms the extent to which US firms in London are now fixtures of the City market. Indeed, our exclusive ranking strips away any lingering doubt that a US-headquartered giant like Kirkland is anything other than a major player in the City.
[If you click on the following link you’ll see the basic ranking chart]
In this year’s ranking the next three places in the rankings are taken by firms that are either headquartered in the US or, in the case of Hogan Lovells in 10th place, dual-headquartered in the US and UK. In eleventh place is White & Case while in 12th, up one from last year, is Baker McKenzie.
And it is worth pointing out also that the next firm in the ranking, Norton Rose Fulbright, while headquartered in London has two large-scale US mergers under its belt, with legacy Fulbright & Jaworski and Chadbourne & Parke.
Indeed, there is more than just a sense that, when it comes to the top end of the market, the elite firms are consolidating their lead over some of their less focused (in City practice area terms) rivals, notwithstanding the fierce competition between these firms for talent.
Simpson Thacher & Bartlett rises no fewer than five places in this year’s ranking after a year that saw its London office break through the $200m mark. Simpson Thacher’s London office now generates more fee income in the City than Taylor Wessing and has eclipsed US rivals such as Weil Gotshal & Manges.
Quinn Emanuel Urquhart & Sullivan’s rise up the rankings is even more dramatic, jumping seven places from 48 to 41.
Dechert also rises seven places in this year’s ranking while Milbank rises four spots.
A total of 22 US firms’ London offices are big enough to make it into the City 50 this year, ranging from Kirkland with a London revenue of £348m to Covington on £79.3m. If dual-headquartered giants such as Hogan Lovells, Bryan Cave Leighton Paisner, DLA Piper and Eversheds Sutherland are included the total is 26.
In other words, more than half of the largest law firms in the City are now headquartered in the US or dual-headquartered in the US and UK.
