Star property recruit leaves BLP feathers unruffled – but can the firm keep on recruitment push?

The instinctive suspicion of Berwin Leighton Paisner's (BLP's) voracious lateral hiring spree has not really dissipated, but rivals are grudgingly admitting that the firm is making expansion work.

Herbert Smith real estate partner Chris de Pury is only the latest hire to set tongues wagging, in a move reminiscent of the recruitment of Clifford Chance property partner Robert MacGregor back in 2005. Actually, BLP rarely goes for headline-grabbing names, preferring to fill the gaps in key practice areas with solid, but lower-profile, hires. But it has shown itself to be uncommonly committed to expansion through senior recruitment.

Money has been the source of most of the speculation surrounding de Pury's move, with indications that he switched for as much as £1.5m.

It is also an example of BLP once again being prepared to break its modified lockstep to attract a big name, a move shied away from by many firms for fear of internal discord. MacGregor is believed to have been offered a £1.3m package in 2005, at the time more than twice BLP's average partner profits. The firm has also on occasion cut above-lockstep deals since then.

Still, few would dispute that de Pury, as the most widely-touted partner in Herbert Smith's punch-above-weight property team, is worth the cash. The upper-end corporate/funds slant of de Pury's practice and his well-renowned client skills fit perfectly with where BLP wants to position its real estate team.

Avoiding tension

But perhaps there are two reasons why BLP's wider expansion has been achieved with relatively little internal tension. For one, the firm is credited with having more forethought about where it wants to grow its business, at least compared to the back-of-a-fag-pack opportunism in evidence at some rivals.

In this context, the firm's renewed and sustained commitment to real estate – correctly judging the expansion of the upper end of the property market just as many rivals were downsizing – looks an astute judgement call.

It is also a lot easier to sell above-lockstep deals to the partnership if everyone can see the benefit of expanding the business. As one recruiter comments: "When your income has gone from £300k to £600k in a short period of time, you are not going to be arguing about paying outside lockstep."

The other reason that BLP appears to have made the lateral work is sheer experience. Processes, including the partner discussion groups before a lateral hire, the 'integration programme' and partner 'buddy system' are 'soft' factors that are credited for the smooth transition of partners into the firm. Given the sheer level of recruitment, they have hired the odd duffer, but BLP's batting average is way better than, well, the average.

Much credit is also given to human resources head and former accountant Geoff Griffin, who is responsible for many of the internal processes and whom one high-profile headhunter calls a "phenomenon", commenting: "If we get stuck, we call Geoff."

One area where the firm does risk losing hearts and minds is within the ranks of associates hoping to make partnership. Recruiters report rumbles of discontent (sentiments reinforced in some of the posts on BLP's bulging Legal Week Wiki entry) despite the firm's line that it brings laterals in only where there is no-one coming up through the ranks to fill the position.

Ultimately, the substance of BLP's lateral hiring also has to be tested by a dip in the market. As one BLPer conceded last week: "As Warren Buffet said, it's only when the tide goes down you get to see who's naked."