GTM pauses 18-month recruitment drive to focus on corporate

Greenberg Traurig Maher (GTM) is set to invest primarily in transactional corporate work with a focus on the energy sector, pulling away from further expansion in other areas.

The policy marks a shift for the US-based law firm, which has been one of the most active lateral hirers in the City since launching in summer 2009, bringing in 12 partners in 2010 and 15 in 2009.

London founding partner Paul Maher confirmed that as the office is now full service, future investment will be primarily in the corporate transactional practice, with an emphasis on the projects and energy sectors.

The change in strategy comes as it emerges that London restructuring head Lyndon Norley has left the firm after less than two years. Norley, who joined GTM in October 2009 from Kirkland & Ellis, is believed to be speaking to a number of other US firms in London. His departure leaves GTM with four restructuring lawyers in London, including Jason Salman, who replaces Norley as head of the practice.

Maher (pictured) said: "We have been fully operational in London for over 18 months now and have had a good opportunity to stress test the assumptions in the original business plan. Over the next 18 months we want to continue to build a strong transactional practice in London – this is where most of our continued investment will go."

He added: "We will continue in restructuring, but not build it out as fast as we had initially planned. The market is a tough one for restructuring lawyers."

The news comes several months after its UK limited liability partnership accounts showed that GTM's London office had made losses of £3.3m during its first nine-month accounting period.

Despite posting a turnover figure of just under £3.5m for the period between 1 June 2009 and 31 March 2010, the firm recorded operating costs and administrative expenses of £7.1m, which took the loss for the financial period to £3.26m.