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Overview

One of the most active and interesting foreign legal entrants operating in the City, New York-based Weil Gotshal & Manges built its reputation in its US heartlands on the back of its top-tier insolvency practice. Known for its tough contentious lawyers, the 300-partner firm is viewed as somewhat distinct from the 'establishment' end of the clubby Manhattan legal community.

Recent years have seen the firm further spread its practice, notably in non-contentious finance and with the growth of a respected private equity practice. With a total of 1,100 lawyers and foreign offices in London, Munich, Frankfurt, Paris, Budapest, Prague, Warsaw and Shanghai, Weil Gotshal has built a top 10 US practice in revenue terms with considerable international reach. The firm is also famed in London for being the first American law firm to recruit a top-level City lawyer with its 1996 recruitment of Clifford Chance rainmaker Maurice Allen, who joined the firm with a mandate to build a serious banking practice.

The firm's London outpost has since seldom been far from the headlines, living through a turbulent period that repositioned the practice around corporate and going on to build a lean but effective transactional business, even if the firm's City arm has often seemed unsettled. Critics would contend that Weil Gotshal's progress in London has been hampered by a sometimes fractious relationship with its head-office in New York. The practice received a notable jolt with the arrival of a respected buyout team from Lovells in early 2006, helping the office to last year generate around £50m in fees in 2007. With the firm benefitting from the current wave of big-ticket bankruptcy work in the US and Europe, Weil Gotshal remains, in so many senses, one to watch.

History

Formed in 1931 New York, it is a much-remarked part of the firm's DNA that it was initially set up by a group of Jewish attorneys who couldn't get hired in the WASP-ish environment of Depression-era Manhattan. While the firm's once-strong ethnic character has – as with all New York firms – greatly faded over the years, Weil Gotshal would be regarded as having preserved much of its firm culture, which at its best matches a go-getting style with a lack of pretension and a dash of humour.

The firm began to raise its profile in the US in earnest in the 1960s when it became one of the first law firms to target the emerging discipline of antitrust. However, it was during the 1970s slump that the firm came to real prominence, thanks to its top-notch bankruptcy practice. During that period the firm began branching out, launching a series of satellite offices after its 1975 opening in Washington DC.

Weil Gotshal's first tentative international steps came in Central & Eastern Europe, where the firm remains strongly committed after launches in the early 1990s in Budapest, Prague and Warsaw. However, it was not until the firm ended its formal alliance with London's Nabarro in 1995 to launch its own banking practice that Weil Gotshal really began to make its presence felt in the UK.

The firm quickly made a splash with the recruitment of Clifford Chance rising star Maurice Allen and the firm quickly attracted finance work for clients like Bankers Trust, SBC Warburg and NatWest Capital Markets. With the firm swiftly expanding its practice into corporate after the hire of fellow CC partner Francies, it seemed nothing could stop the firm.

However, tensions between Allen's banking team and New York became increasingly problematic after US corporate heavyweight Dennis Block quit Weil Gotshal in 1998 for Cadwalader Wickersham & Taft, citing concerns over the costs of foreign expansion (see story). Events were to come to a head with the resignation in January 2000 of Allen, swiftly followed by a group of highly-rated partners that he had recruited. The move left the office in crisis (see analysis) though Francies was ultimately to successfully stabilise the practice around its corporate practice.

The following years proved more settled for the firm as its much-vaunted bankruptcy practice hoovered up much of the stream of big-ticket insolvency work that hit the US market in wake of the dot.com collapse, among them Chapter 11s for Enron, WorldCom and Global Crossing.

In London the firm would hunt for some time for more corporate partners to attack the increasingly active European buy-out market, finally recruiting Traver Smith's Mark Soundy in 2004. During this period the firm, which had grown to more than 120 lawyers in the UK, generating more than £50m in fees annually, continued to handle a series of quality corporate mandates.

Weil Gotshal next made a splash in early 2006 with its much-touted recruitment of a private equity team from Lovells led by Marco Compagnoni, a move that has already secured the firm a number of new clients. A highly aggressive overhaul of its pay bands for UK assistants in June 2007 lifting starting salaries for its assistants from £75,000 to £90,000 was a signal that Weil Gotshal intended to compete with London's legal elite head-on.

Weil Gotshal also has a major advantage over many of its peers at present as its bankruptcy practice, particularly in the US, has been a major beneficiary of the 2008-09 recession, winning marquee roles on the insolvency of Lehman Brothers and General Motors. This has left the firm with few of the financial pressure facing many of its key rivals. In addition, the firm's City office seems to be performing solidly in its own right..

News, deals and comment on Weil Gotshal & Manges

Culture

Viewed as very much a positive for those that fit in with it. Definitely a firm for those who are ready to work, Weil Gotshal is regarded as a slightly manic meritocracy, with a liberal streak running through it. There is nothing stuffy about the firm's culture – at least, judged against its peer group. The firm also has a reasonable reputation for treating its staff. The culture of the firm's London office is somewhat distinct from the mothership since Weil Gotshal has unusually recruited down-to-earth UK lawyers with plenty of personality, rather than the dronish smoothies often favoured by Americans abroad.

Likewise, as 90% of its City arm is UK-qualified, the firm can be said to have genuinely adopted the local culture.

Legal Week Intelligence's 2009 Employee Satisfaction Report found Weil Gotshal's London office to have exceptionally motivated and engaged staff. Weil Gotshal was the highest-ranked firm out of 58 major practices, with [asset_library_tag 50,associates praising the firm's quality of work, culture of team and recognition of performance].

Key departments

As mentioned, the firm's bankruptcy practice, which was built up by celebrated lawyer Harvey Miller, is its most celebrated practice, being a team still regarded by many as America's top insolvency shop. However, the departure of Miller in 2002 for boutique finance house Greenhill & Co is viewed as having contributed to a loss of market share since its Enron peak several years back. Confidence was further dented by the departure of four bankruptcy partners in 2007 for arch rival Cadwalader, though Weil Gotshal is hoping Miller's return this year will help bring back some of the old magic.

For an in-depth analysis of the challenges facing Weil's US bankruptcy team, click here.

However, a string of high profile insolvency mandates for the firm in the wake of the collapse of Lehman Brothers in 2008 has silenced the critics who argued the firm was a fading force in bankruptcy.

Despite the attention that insolvency gets, corporate has for some time been the firm's largest practice and the firm's M&A team packs a real punch, especially in private equity. The firm's non-contentious finance practice is robust in securities and securitisation. Mainstream areas like litigation, antitrust and tax are as solid as you would expect for a quality US firm.

The private equity/restructuring axis is to a considerable extent repeated in London, which is far closer to a full-service practice than most US law firms attempt. Weil Gotshal also has a small but respected UK securitisation team and reasonable capability in competition, tax and litigation.

National/international coverage

A slightly unusual footprint. The firm is basically a New York practice that has built US branches, rather than a true national operation like Latham & Watkins. Its international practice is far from seamless but does punch above weight in several key markets, notably London and its respected offices in Prague, Warsaw and Budapest. The firm has also built a quality practice in France since its 2002 takeover of Paris boutique Serra Leavy & Cazals.

Unusually, the firm in 2007 announced that it was to close its Brussels arm, pledging to instead focus investment on its Asian network. As such, Weil Gotshal in September launched a new office in Hong Kong. The firm is also quick to highlight the work of its expanding Munich arm. The firm has more recently been focusing on building a presence in the Middle East.

Key clients

In London the firm has built up a number of major clients. Particularly important have been private equity names like Lion Capital, Terra Firma, Advent, Providence Equity Partners and Apax. The firm has also deliberately sought to bed down clients that it has gotten to know through private equity acquisitions, among them Premier Foods. The firm's banking practice is strongest in securitisation and structured finance, where it has acted for clients like Deutsche Bank, BNP Paribas and Barclays Capital. The firm is also a member of Barclays' securitisation panel.

The firm's restructuring team, meanwhile, has acted on a substantial mandate for Gate Gourmet.

Leading partners

In London, two names stand out: Mike Francies and Marco Compagnoni. Francies, well known for his workaholic tendencies, is regarded by many as the best UK corporate partner currently practising with a US firm. Compagnoni, for his part, is one of the most driven lawyers operating in the highly competitive private equity sector. Other respected names include Mark Soundy, Ian Hamilton and Compagnoni's fellow ex-Lovells' team-mate, Jonathan Wood.

The firm did recently, however, lose Will Rosen, one of its longest-serving M&A lawyers. Other notable London partners include Chris Mallon (restructuring and insolvency), Sarah Priestley (tax) and Doug Nave (competition). The effective Jacky Kelly (pictured) is the firm's stand-out name in finance.

A special mention should also go to David Aknin in Paris, one of France's most hotly-tipped younger corporate lawyers. In the States, long-time leader Stephen Dannhauser and insolvency legend Harvey Miller cast long shadows.

Career prospects

A matter of debate, in the UK at least. The firm has received some flak for lack of partner prospects in London, a factor that was apparently behind its recent pay hikes. Clearly, this is an ambitious firm but its relatively narrow focus means that its promotions prospects are somewhat limited. Some would say a firm so laden with big-name partners will have less prospects for advancement but the firm looks eager to address those concerns.

For its part, the firm says recent London partnership appointments in restructuring, finance and litigation are proof of its full-service credentials; the firm is certainly in growth mode in the UK.

Salaries

As mentioned above, following its market-jolting pay review in 2007, Weil Gotshal now pays near the very top of the market, anywhere. Newly-qualified lawyers get £90,000.

After that, salaries vary within PQE bands depending on practice and billing. At one year PQE, salaries range from £90,000 to £98,000. By 3PQE, the gaps become wider, starting at £102,300 going up to £126,300. The firm is also reputed to be generous with its bonuses.

In 2009, Weil Gotshal announced it was to freeze associate salaries at 2008 levels and introduce a new pay band of £85,000 for incoming newly-qualified lawyers, but the firm remains one of the best payers in the Square Mile.

Recruitment

Main recruitment contacts are HR head Thea Gaunt and graduate recruitment manager Jillian Singh. (Can we get some details on Weil Gotshal's City recruitment process? – Wiki Ed.)

Work-life balance

A firm for the serious deal junkie, Weil Gotshal makes no bones about its work ethic. Having said that, there are US firms that have a worse reputation in London for piling on the hours. Reported to operate in peaks and troughs, as opposed to an unrelenting conveyor belt.

The firm, seeking to refute long-hours claims, also points out that – unusually – it does not operate any chargeable hours targets and ensures that it gives lawyers breaks between deals. (Do the firm's claims for supporting work-life balance stack up? – Wiki Ed.)

Diversity

Like most US law firms, Weil Gotshal has made efforts in recent years to improve its diversity credentials. It is also one of the few law firms to put all staff through diversity training.

Pro bono/corporate social responsibility

The firm, which in 2005 won the Legal Business Pro Bono Initiative of the Year award, is acknowledged as a committed pro-bonoer. As such, Weil Gotshal expects all its lawyers to undertake at least 50 hours of pro bono service a year and was also one of the first to appoint a full-time pro bono officer.

Awards and third-party citations

Some of the more credible awards the firm has picked up in Europe give a good flavour of its credentials in private equity and restructuring. These include:

• Legal Adviser of the Year – Real Deals BVCA Private Equity Awards 2006;
• Restructuring Deal of the Year for Parmalat – IFLR Awards 2006;
• Deal Lawyer of the Year (Mike Francies) – Legal Week Awards, 2006; and
• German Law Firm of the Year – Juve Awards 2006.

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