Photo: John Disney/ ALM

While it couldn't match its double-digit growth from 2018, Paul Hastings hiked its gross revenue and partner profits once again last year, continuing a decade-long run of increases for the firm.

Total revenues were up 4%, reaching over $1.26 billion, with profits per equity partner rising 5% to more than $3.4 million. Revenue per lawyer grew 3.3% to $1.33 million.

Overall head count remained flat, inching up less than 1% to 956 lawyers in 2019, while the size of the firm's equity tier also held steady at 186 shareholders. The number of non-equity partners declined 7% to 78.

"Every year we are increasing the market share for the most mission critical work for the world's leading companies," said Seth Zachary, chairman of Paul Hastings since 2000. "It is that work and that strategy that continue to propel our growth."

Zachary said that while the firm has not been looking to make any fundamental changes to its approach, it has decided to "narrow our aperture" and deepen its focus on certain practice areas.

The firm cited three practice areas in that framework that performed particularly well during the 2019 fiscal year: finance and funds, private equity and investigations and white-collar. Zachary said doubling down in those areas has helped gain and retain clients' trust for their highest priority legal work.

"This strategy is built upon the idea that every day we have to earn the confidence of our clients and demonstrate our ability to propel them onward in their journey," he said.

Paul Hastings had some wins across all the areas. In finance and funds, the firm was adviser to the lenders in KKR's acquisition of Campbell's Soup; helped Caithness Energy, a renewable energy/natural gas developer, finance $1.6 billion of a combined-cycle natural gas electric generating facility in Ohio; and advised multiple banks  as arranger in Bain Capital's purchase of a majority stake in Kantar from WPP.

The firm handled a number of significant private equity matters. It advised private equity firm Francisco Partners on $7 billion worth of deals in 2019, including the company's purchase of LogMeIn for $4.7 billion. Paul Hastings also advised Francisco on its sale of ClickSoftware to SalesForce for $1.4 billion.

On the investigations front, the firm highlighted its work for Airbus in the aircraft manufacturer's overseas corruption case, negotiating a $4 billion settlement in what was one of the largest Foreign Corrupt Practices Act investigations of all time.

Geographically, Zachary said the firm saw strong results from its London, New York, Washington, D.C., and Northern California offices as well as its Asia practice.

London in particular was a hot spot for financing and private equity. The firm advised Credit Suisse, Goldman Sachs and Citibank on a £2.5 billion first/second-lien financing for private equity firm Advent International's public-to-private bid to acquire Cobham. The firm also advised Investindustrial as the group raised more than €3.75 billion through a number of vehicles for private equity buyout investments in Europe.

For the second year in a row, Paul Hastings had more lateral partner departures (17) than hires (11). The firm cited as highlights the additions of a private equity trio from Hogan Lovells, most of Shearman's Sao Paulo office back in August 2019, and a corporate practice pair from Baker Botts.

The firm said it was happy with strides it had made around diversity and inclusion over the course of the year. That includes a 2020 partner class that is 83% combined diverse and female and the ongoing process of becoming Mansfield certified. The firm also extended its parental leave program, making it one of the most progressive in the industry.

Zachary said the firm, as it does every year, reviews potential billing options with clients and is open to alternative fee strategies, but it comes down to client preferences.

"Every year, the substantial majority of our work is done on an hourly basis," Zachary said. "Every year clients ask us to work with them on their risk profile. We want to work with them on the best way to fuel their growth."

As far as 2020 is concerned, Zachary said the firm is off to a good start, reporting a record February in its initial fiscal month of 2020. He said there are some concerns that have emerged on the horizon—most obviously the coronavirus and its ever-expanding effects on global business—but nothing the firm can't withstand.

"I'm encouraged by the year ahead," Zachary said. "With that said, it is a very strange moment in our lives. We can't predict a pandemic's effect on our business, but we are extremely optimistic for 2020."

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