A strangely familiar buyout hire looks more promising than its boom-time predecessor

Kirkland & Ellis moves to dramatically bolster its London arm, two private equity partners quit a prestigious City practice, seven-figure sums are bandied around and feathers are well and truly ruffled… No, this isn't a flashback to Kirkland's much-hyped recruitment of Linklaters duo Graham White and Raymond McKeeve at the height of the credit boom in 2006. But you don't have to look too hard to see the similarities in the recruitment this month of Gavin Gordon and David Arnold, two well-regarded young partners in Ashurst's corporate practice.

The departures have clearly left Ashurst feeling bruised and somewhat baffled as to why two lawyers who have gone through its trusted selection and grooming process should quit for a US invader. And not even a proper Wall Street brand, at that, but a thrusting outfit hailing originally from the Windy City. As such there has been much internal angst regarding the move, with the more senior Gordon (pictured), who worked closely with senior partner Charlie Geffen, in particular having been touted as a major name for the future. One Ashurst partner sums up the mood: "There are going to be people saying, 'Gavin is Charlie's boy, he's had every advantage and look what he's done.'" Some argue that the self-confident Gordon has had his head turned by the advances and largesse of Kirkland, taking the chance, in the words of one observer, to become "the best-paid 35-year-old in the City".

But while there is widespread agreement that the departures are a blow for Ashurst, opinion is divided over how much work will move across, with some arguing Kirkland has had only moderate success at winning work from European buyout houses. Gordon has worked regularly with clients like Cinven, LGV Capital and Gala Coral, but none of those will be easily prised from Ashurst's grip. Nevertheless, Ashurst must now tread carefully. With so much more competition in recent years, the days of a two-way carve -up with Clifford Chance in private equity are long gone. Some suggest Ashurst can no longer take for granted that it remains a top-tier player in the sector. Still, given the gloomy mid-term outlook for private equity, a firm boasting Geffen and partners like Stephen Lloyd, Bruce Hanton and Simon Beddow is hardly on the critical list. But it has unquestionably lost relative position and will now have to address a succession issue. There must be a temptation to scout around the senior associate/junior partner ranks of rivals like Travers Smith to deepen its bench.

Obviously, the view looks rather more upbeat at Kirkland, who can point to what appears to be a genuine coup. While Legal Week declined to join in the widespread plaudits that greeted the recruitment of White and McKeeve, this move looks more promising. True, given the state of the buyout market, there is widespread shock that Kirkland has put down this kind of money for two young partners – packages reportedly in the region of £1.4m and £800,000 respectively. But this still appears a sound long-term investment for a firm who even its detractors concede has made a long-time commitment to its European practice.

Yet the move will probably rise or fall on the issue that caused so much bafflement at Ashurst: the question of whether a firm like Kirkland can offer a long-term career path to talented young partners. US firms have made progress over the last decade. But those firms that aspire to serious transactional credibility have been insufficiently focused on mentoring, developing and retaining the best young City deal lawyers, instead obsessing about who can bring in business immediately. In this case, the CVs, personalities, timing and practice look capable of building something more lasting than another much-hyped but soon-forgotten hire. How this plays out will prove a fascinating test of whether Kirkland and its peers are learning from the past or just repeating it.

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