Buoyed by Young Partners, Davis Wright Tremaine Posts Near-Double-Digit Revenue Gain
The firm's 2019 performance caps a decade in which Davis Wright Tremaine grew gross revenue by $138 million, or nearly 50%.
March 04, 2020 at 05:29 PM
4 minute read
Davis Wright Tremaine posted one of its best years in a decade in 2019, growing both revenue and profits, which management attributed to increased demand and relationships driven by young talent.
Gross revenue grew by 9.6%, from $377.9 million to $414.1 million in 2019. Profits per equity partner saw a 5.3% increase, from $781,888 to $823,563. And revenue per lawyer jumped 8.4%, from $725,669 to $786,314, according to preliminary data submitted to ALM.
The revenue high point caps a decade in which the firm grew gross revenue by $138 million, or nearly 50%, since 2009.
Managing partner Jeff Gray said much of the Seattle-based firm's growth was driven by younger partners with 10 to 15 years of peak productivity ahead of them. Of the top eight originators at the firm last year, five are younger attorneys with many years to go, he said.
"I think we're just scratching the surface of what we can accomplish," Gray said.
Davis Wright's Pacific Northwest litigation team netted a big win last year with a $1 billion jury verdict secured on behalf of rural counties and local taxing districts in Oregon. The firm's media practice—which has represented news outlets including CNN, CBS and The New York Times—scored a victory fending off a defamation suit filed against Gizmodo and Splinter.com.
But it wasn't a big case or transaction that propelled the firm this year, Gray said. Rather, the firm's success was driven by an overall increase in the volume of work.
"It's been the continuing growth of things we've always done—middle-market M&A, media cases, food and beverage—as opposed to a super large matter," he said.
Davis Wright has also been looking to capitalize on the growing media portfolios of the technology companies it already represents, such as Microsoft, Amazon and Facebook. The firm has been handling work for their studio arms and helping bring new products, often regulated by the Federal Communications Commission, to market.
To that end, one of Davis Wright's most significant hires was former in-house attorney Marisa Brutoco, who joined in October. The California-based attorney has worked in-house for Google, Apple Inc. and, most recently, Amazon. While at Amazon, Brutoco worked on high-profile licensing deals, including one that integrated Netflix with Alexa and the Amazon Fire TV. She also was involved in a deal for Amazon Fire to stream the ESPN and Apple TV apps.
In April, the firm brought on former New York-based Akerman partner M. Darren Traub, a media and entertainment IP attorney whose clients include e-sports companies and music festivals.
Davis Wright's equity tier grew by only two lawyers, from 165 to 167. The firm's head count grew by six attorneys, or 1.1%, to 527 total lawyers.
One major loss for the firm was litigator Jeff Coopersmith, who is defending former Theranos president and COO Ramesh "Sunny" Balwani. He left Davis Wright for Orrick, Herrington & Sutcliffe along with two other lawyers in October.
Asked about other departures affecting overall head count, Gray said many stemmed from retirements.
Looking ahead, in addition to expanding its media and tech portfolio, Gray said the firm is going to focus more on California and continue executing on its five-year plan—it's currently two years in.
"Something over the past years we've tried to hone in on is: 'How can we help our lawyers be better?'" Gray said. "It's not particularly sexy, but with this approach we're in a position to weather any change in the economy."
Read More
In-House Lawyer for Apple, Amazon and Google Joins Davis Wright Tremaine
Davis Wright Tremaine Sees Gains in Revenue and Profit
Orrick Adds White-Collar Trio, Including Ex-Theranos COO's Lawyer
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