Deep pockets, an upwardly mobile brand and some strong City recruits bode well

While the world and his wife seem to be reviewing their transatlantic merger options, Proskauer Rose's recent spate of London hires marks something of a U-turn after years of casting around for a sizeable City union.

Last week's announcement that Nigel van Zyl and Oliver Rochman from SJ Berwin and Kate Simpson from US rival Kirkland & Ellis were set to join the top 50 US law firm came after the arrival in the spring of high-profile corporate duo Russell Carmedy and Michael Nouril from Jones Day.

Coupled with earlier lateral hires of investment funds partners Bob Barry and Peter McGowan from Travers Smith and Berwin Leighton Paisner respectively, the New York-based firm looks set to replicate its key strengths – funds, corporate and high-end employment – while finally being able to transition some of its US relationships across the pond. However, the firm was not always so clear-sighted about what it wanted to achieve in London.

Its first foray into the UK market – an operation spearheaded by former O'Melveny & Myers London managing partner Matthew Hudson in 2007 – proved a halting start. Hudson had a remit to replicate the firm's key strengths in the US with a particular focus on investment funds and mezzanine finance. However, those with knowledge of the firm say this strategy was effectively put on hold as chaos gripped global markets in 2008.

Proskauer had remained a low-key player in London when it entered merger talks with SJ Berwin in early 2010, which coincided with the departure of Hudson. He was replaced with US funds partner Mary Kuusisto (pictured) shortly thereafter. Despite their length, the SJ Berwin talks broke up without a deal last summer. "Proskauer undoubtedly had an interest in a UK deal right from the start, having held fairly protracted merger discussions with legacy Richards Butler six years ago," says a US funds partner. "They've completely reversed this strategy now by going for the organic growth model – a sensible conclusion after the SJ Berwin [talks]."

Helpfully, the firm's profitability has risen steadily in recent years, with a turnover of $645m (£396m) in 2010 and average profits per equity partner jumping by 7% to a new high of $1.56m (£959,000) – allowing it to attract some big names in the London market. The hire of Carmedy, a respected corporate operator who presided over Jones Day's 2003 merger with Gouldens, was the first real indication that Proskauer had decided to invest more heavily in its London presence.

"At first, we thought he had been hired with a remit to broker a deal with a UK firm, but it turns out he wanted to go back to client work," says one London managing partner of a rival US firm. "After over a decade in management… he definitely has the ambassadorial skills to see the firm's organic growth strategy through."

Likewise, van Zyl, one of the most highly regarded younger partners in the City funds market, will be seen as a hugely promising hire. The firm is currently tipped to be looking to build a US securities and litigation practice in London.

The bottom line is that, despite previous slow progress, Proskauer is viewed as a potentially potent player in the City if it is willing to put in reasonable investment. The firm – whose clients include KKR and Apollo – has been one of the most upwardly mobile US law firms of recent years, hugely expanding its funds and transactional practice beyond its traditional core labour practice. It also has the resources and exportable strengths that should play well in the City – if it has the patience.

Says one former Proskauer partner: "Finally they are building a deep funds bench in London with the appropriate functions to support it – they would have saved a lot of time and money if they had stuck with this strategy from the beginning."