Clifford Chance (CC) is set to lose the bulk of its City funds practice, Legal Week can reveal, with a four-partner team exiting the firm to join Weil Gotshal & Manges in London.

The team comprises funds partners Ed Gander, Nigel Clark and Nick Benson, as well as tax partner Jonathan Kandel, who works closely with the funds team.

The departures will leave CC with just one City funds partner, Nigel Hatfield, who will replace Gander leading CC's remaining funds team.

The departing team, led by Gander – who rejoined CC as a partner in 2006 after leaving in 2003 to run his own private equity business – have worked with funds clients including BC Partners, Abraaj Capital and SRM. They have helped CC's funds practice maintain a top tier ranking despite the magic circle firm's former funds head Jason Glover announcing his departure to Simpson Thacher & Bartlett last July.

Weil voted on the hires early last week, with the appointments marking the end of a long search for fund formation partners in London. They follow last year's hire of CC partner John Fadely as a funds partner in Hong Kong and come just weeks after Weil hired Linklaters banking partner Stephen Lucas to strengthen its London finance practice.

London managing partner Mike Francies (pictured) said: "The funds practice in the US has been a key part of the growth of our private equity business and executive partner Barry Wolf and I have been looking for the European piece for some time, so are delighted that four partners of such high calibre will be joining us. It makes huge sense for us and I think will have a significant impact in the European private equity market."

The team walkout will be seen as a hugely significant loss for CC, particularly coming so soon after Glover left. CC stressed that the firm still had "plenty" of lawyers specialising in funds in other practice areas as well as a strong pipeline of associates in the private funds group that it expects to come through the partnership.

London corporate head Simon Tinkler said: "CC has a leading global private funds practice of over 150 lawyers. We will maintain the strength of our capability in London with a long-term strategy of a combination of internal promotions and transfers and possibly lateral hires."

However, one City private equity partner said: "This will be a very bad loss after Jason. I'd imagine it will play into the hands of Glover."

Weil's haul is arguably the most damaging team hire ever inflicted on a leading City law firm by a US practice. It also recalls Weil's ambitious attempt seven years ago to hire CC heavyweight private equity duo Matthew Layton and James Baird, which failed at the last minute after CC persuaded the pair to stay.

The move also comes amid a renewal of aggressive recruitment in the European private equity market by US law firms, with funds a particular target given the importance of reaching US investors.

There is now likely to be a period of tense negotiations regarding exit terms, current client matters and the possibility of associates transferring.

A City legal recruitment specialist said: "There's no doubt that the team has joined, in part, for money reasons. It is especially interesting because in the past Weil has been reluctant to buy people. But now, also with the recruitment of Stephen Lucas, there is no doubt that they have begun to open up their cheque book."

It is not yet clear when the team will be joining Weil, as discussions over exit terms are still ongoing; however, it is understood the partners could have to work out six months' notice.

For more, see CC funds chief Glover to set up City practice for Simpson Thacher.