Arent Fox Again Posts Gains in Revenue, Profits
The firm has seen revenue and profits grow each year since the Great Recession.
February 20, 2018 at 04:29 PM
3 minute read
The original version of this story was published on National Law Journal
Arent Fox capped off its most profitable year ever in 2017, said chairman Mark Katz, building on revenue and profit growth that has kept up unabated since 2009.
The Washington-based firm increased revenue nearly 7 percentage points last year to $303.5 million, according to preliminary ALM reporting. Revenue per lawyer ticked up 3.4 percent, to $877,000, as the firm added 11 lawyers for a total attorney head count of 346.
Profits per partner rose 6.7 percent to $1.067 million. The size of the equity partnership remained unchanged at 100 partners, while the firm's nonequity tier shed four partners, for 65 in all.
“We think that the reason for our strong growth over the period [since 2009] is a function of the strategy we've maintained of maintaining a balanced-practice mix,” Katz said.
While he said all of the firm's practice groups ended close to the firm's budgeted expectations, he cited four particularly strong areas: international trade, real estate and real estate finance, white collar and automotive.
Katz said the Trump administration's “America First” stance on trade had significantly boosted the firm's international trade practice. Going forward, he said he anticipates the firm's tax lawyers will be extremely active as they continue to digest the new tax legislation.
In terms of other 2018 expectations, “There is some uncertainty in connection in enforcement in some regulated industries,” said Cristina Carvalho, Arent Fox's managing partner in D.C. “So I think we are seeing a shift in the regulatory environment.”
Among partner moves last year, the firm brought on Robert Capers, former U.S. attorney for the Eastern District of New York, to its government enforcement and white-collar practice. Michael Kelley also left Akerman for Arent Fox's corporate and securities practice in late 2017.
Earlier this year, Arent Fox added sports partner Jennifer Pogorelec O'Sullivan to its New York office from Hand Baldachin & Amburgey, where she led the sports practice group.
Arent Fox's sports practice has grabbed attention in recent years, including counseling the Los Angeles Lakers on the practice facility they officially moved into last year, and the firm's work with the Tampa Bay Rays.
Last March, Arent Fox patent prosecution and intellectual property partner Robert Schulman in D.C. was convicted of insider trading in New York. Arent Fox hired Schulman in late 2015 as part of a four-lawyer team coming from Hunton & Williams, where Schulman worked when making the tip that led to his downfall.
Katz said the firm employs a “very careful” process of interviewing and vetting its lateral hires and that Schulman's conviction has not affected the firm's business.
“It's unfortunate what happened to Rob,” Katz said before noting that all of the clients that came with Schulman remained with Arent Fox.
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