Photo Credit: Diego M. Radzinschi/ALM

Fresh off a record financial year, Willkie Farr & Gallagher has added a string of partners in the first quarter in New York, London and Houston.

In one of its latest additions, Willkie Farr said this week that it had hired Mark Proctor, who advises fund managers on structuring, establishing and operating private investment funds.

Proctor, who was most recently leader of the fund formation practice at Vinson & Elkins, previously served as a vice president and associate general counsel at Goldman Sachs & Co.

Willkie also added New York tax partner Russell Pinilis, who joined from KPMG in early March; Houston-based energy transactions lawyer Steven Torello in February, arriving from DLA Piper; and Simon Osborn-King in London, who joined this month from Slaughter and May.

“When you have tremendous financial success,” said Willkie co-chairman Steven Gartner, “you become a more attractive venue.” Gartner added Willkie is on the radar of more laterals and has seen more inquiries about potential moves.

The firm said it beat its prior performance across all key metrics in 2017. Gross revenue rose nearly 12 percent to $772 million; profits per partner rose 13 percent to $2.969 million, and revenue per lawyer rose 5 percent to $1.199 million, according to preliminary ALM reporting.

The firm increased its profitability even as it boosted its size, with total attorney head count rising 6 percent to 644 lawyers. The firm's equity partners ranks increased by 3 partners, to 145.

Gartner said private equity and mergers and acquisitions work were key drivers of the growth, but litigation, restructuring and asset management were also “big contributors.” He said there was substantial contribution from the firm's London, Frankfurt and Paris offices.

In particular, the firm's London office generated $53 million in revenue, up from $36 million in 2016, the firm said. The London office has more than 50 lawyers focused on compliance and enforcement, insurance, asset management, restructuring, private equity and antitrust.

While sharp billing rate increases are a strong driver of revenue growth for many New York firms, Gartner said Willkie's rate increases were “a small part” of the revenue rise, as the firm saw total hours billed increase.

Co-chairman Tom Cerabino said in a statement that the firm had a very busy fourth quarter, “which bodes reasonably well for 2018.”

In 2017, Willkie represented private equity clients including Aquiline Capital Partners, Centerbridge Partners, FFL Partners, Genstar Capital, Insight Venture Partners, The Sterling Group, Warburg Pincus, Ardian, IK Investment Partners and PAI Partners in many transactions.

Willkie's M&A team advised internet provider Level 3 Communications when it was acquired for $34 billion by telecommunications company CenturyLink, while the firm's restructuring group represented Brookfield Business Partners in its pending acquisition of Westinghouse Electric Co., the bankrupt nuclear services company, for $4.6 billion.

On the litigation side, the U.S. Court of Appeals for the Second Circuit in July reversed the convictions of Willkie client Anthony Allen and Anthony Conti, former Rabobank traders, in a LIBOR manipulation case. And Willkie dove into pro bono work related to some of President Donald Trump's executive orders, including representing an Iranian child traveling to the United States for eye surgery and filing an amicus brief to enjoin enforcement of Trump's amended travel ban.

Gartner said the firm is in discussions with other potential laterals, but has no other imminent additions to announce. In the long run, Willkie has become more receptive to group additions, Gartner said, after hiring a 12-partner insurance sector transactional team from Dewey & LeBoeuf in 2012. Gartner laid out the benefits of group hires: “You get cohesiveness, a client base, not leaving behind people who will compete with you, it's easier to bolt on,” he said.

Gartner said some of the firm's hiring in the last two years was replenishing the firm's ranks after retirements, but most of the additions have been aimed at “adding strength.”

Meanwhile, Gartner brushes off questions about potential merger talks with other firms. “I would never say never,” he said, but there's very little interest in a merger, given our recent and anticipated financial success.”