Dealmaker: John Balsdon
Herbert Smith energy finance supremo John Balsdon on Russia, the tyranny of email and cows listening to Vivaldi
July 23, 2008 at 10:38 PM
5 minute read
Who has been the biggest influence on your career?
Tony Williams, former managing partner of Clifford Chance. I worked with him for four years and his approach remains with me to this day.
What's your proudest professional moment?
Being part of the Moscow team when it won the award for the European Law Firm of the Year in 2004. Herbert Smith invested heavily in 2002, bringing in two London partners to Moscow – Allen Hanen and Robin Wittering. At the same time I joined the firm and with hard work, teamwork and a fair bit of luck the office went from strength to strength. Attaining recognition for that was a fantastic achievement.
… and worst day on the job?
Being involved in a public creditor meeting of a Russian bank in liquidation. A representative of the owners of that bank stood on a stage in front of a large number of pensioners who were likely to lose their life savings and he told those pensioners to put their savings – whatever was left from the liquidation – into a new bank established by the owners. The cynicism shocked me and it remains a thoroughly unpleasant memory.
Aside from your own firm, which lawyer do you most admire and why?
Scott Senecal at Cleary Gottlieb Steen & Hamilton. He is smart, tough and commercial, but has a great sense of humour.
What's your strongest characteristic… and worst trait?
My strongest is probably optimism. My worst is lack of tolerance for individuals who are not team players.
What advice would you give to young deal lawyers starting out?
Firstly, gain as much experience as possible during the first few years of their career. Secondly, be aware of the likely shift in economic power across the globe over their careers and be prepared to adapt to that. Emerging markets are going to present huge growth opportunities for law firms, and associates willing to work in those markets will do extremely well and have interesting and fun careers.
What most annoys you about the legal profession?
Inherent conservatism.
What's the best part of your job?
Firstly, developing a client relationship to a point where we become the first choice for advice. Secondly, nurturing associates and watching them grow in confidence and in due course become partners or successful in other careers.
If you could change one thing about the profession, what would it be?
If we could restrict emails to material matters and stop the culture of copying everyone on an email.
What do you think of all these new lawyers flocking to Moscow?
There was a big influx of lawyers before the crisis in 1998 and those that stayed on after the crisis did so because they enjoyed the challenge of working in Russia. I sincerely hope the lawyers flocking to Moscow are motivated not just by money – the country is undergoing enormous change and, as lawyers, we have some responsibility to assist in the successful interaction between Russian companies and international counterparts and to help train the current generation of Russian lawyers.
Most memorable deal you ever have worked on and why?
Acting for INPEX Corporation on its acquisition of the 10% stake of Lukoil in the ACG field in Azerbijan. This deal was completed in three months and required enormous effort. I had just joined Herbert Smith and it was the largest disposal by a Russian company at that time.
Ten years working in Russia during the privatisation years – you must have some great war stories?
One of my favourites involved spending time in Kagalym, west Siberia, on a due diligence matter involving Lukoil. The general director was proud of his scientific approach to management. During the due diligence discussions he indicated part of the operations involved a dairy farm and he had established that cows produced 8% more milk if they listened to Vivaldi. More in jest than anything, I asked to see the dairy. Sure enough, in the middle of Siberia, with snow drifts of six foot or more around the cow sheds, there were cows listening to Vivaldi. A surreal experience.
Do you see yourself having a career outside law?
Yes. I believe it is good to have several careers over a lifetime, but I would be surprised if I move outside the law before my mid-fifties. Too many interesting things to do!
What's your favourite item of clothing?
A pair of shorts that I bought from Crew.
What's your favourite cheese?
Comte.
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