LLP shows top 50 firm called on partners to cover investment

Taylor Wessing asked its partners to contribute £5m in cash during the last financial year to help fund its London office move last November.

The top 30 law firm collected an average of £100,000 from each of its 54 equity partners in December 2007 to help fund costs associated with its move to a new building in New Street Square in the City.

The injection was intended to cover costs such as architecture and accountancy fees, as well as updating the law firm's IT systems.

Details of the firm's first ever capital call are contained within Taylor Wessing's limited liability partnership (LLP) accounts, which were filed last week with Companies House.

The 2007-08 figures show the firm raised £5.26m to place in reserve, with Taylor Wessing saying the pot was also intended to fund overseas expansion as well as to bring its capital levels in line with those of its competitors. Average profits per equity partner for the year stood at around £613,400.

Outgoing managing partner Michael Frawley said: "All firms increase their capital from time to time to fund major investments. We are no different and in our case we wanted to invest in our infrastructure and systems without having to call on the firm's overdraft or other bank facilities."

Frawley is set to step down in August, with the firm currently drawing towards the end of the election process to find his successor. The election is due to close at the end of this month.

News of Taylor Wessing's capital injection from partners comes after similar moves at several other firms, though recent capital calls have been directly related to the current downturn.

Magic circle duo Allen & Overy (A&O) and Clifford Chance (CC) have both asked for a capital injection from partners, with A&O recently asking equity partners for an average of £30,000 each and CC asking partners for up to £150,000 each late last year.

A&O is expecting to raise £11m from partners to help fund the £44m restructuring that is set to result in the loss of 9% of fee-earners, support staff and partners.

CC said that its capital injection, which raised £60m, will be pumped back into the business, with the firm stating it was a "normal part of managing its finances".