Top 100 law firms push through bumpy markets to hike revenue by 5.3% as PEP hits $1.4m

Despite the ominous shadow of Dewey & LeBoeuf's imminent collapse, America's largest law firms cast aside problems in the global economy last year to report solid – if unspectacular – financial results, with both revenues and profits per equity partner (PEP) across the group edging upwards in 2011.

The American Lawyer's closely watched results for the 100 largest US law firms found 2011 revenues increased by 5.3% across the group as a whole – taking total fee income to $71bn (£44bn), of which the top half of the table contributed $50.9bn (£31.7bn). Average fee income stood at $710m (£442m), with 17 law firms posting turnover of more than $1bn (£622m).

The average increase in turnover came against a slightly smaller growth in PEP of 3% to $1.4m (£871,000), with the top half of the table seeing PEP climb 4.8% to $1.6m (£995,000), while those ranked 51-100 enjoyed a 1.4% increase to $1.1m (£684,000).

Eighty-three firms saw increases in revenue – 25 more than the previous year. Baker & McKenzie held onto its position as the world's largest law firm by fee income, followed by DLA Piper and Skadden Arps Slate Meagher & Flom, with DLA overtaking Skadden to take second place.

The firms with the largest gains in 2011 were those to have entered into Swiss vereins or formal mergers. Transatlantic firms SNR Denton and Squire Sanders both saw revenues soar by more than 40% on their legacy US figures, with SNR Denton posting a 58% increase in revenues and Squire Sanders posting growth of 43%. More established Swiss verein-backed firms Bakers and DLA Piper  both saw significant growth on the back of headcount gains and emerging markets growth.

The gains in profit and turnover prompted bullish recruitment strategies and came against growth in overall headcount, especially in the associate and other non-partner lawyer ranks. Total lawyer count across the Am Law 100 grew by 3.3% to 86,272, with non-equity partner numbers jumping by 5.7% (after declining by 1.7% in 2010).

Equity partner headcount grew by 1.4%; however, excluding the vereins' contribution to this metric (a 7.7% increase), the rest of the Am Law 100 saw equity partner numbers stay static. Revenue per lawyer failed to match the growth figures in revenues and profits across the Am Law 100, with a marginal rise of 1.9%.

Despite a relatively resilient performance, it was a generally lean year for leading Wall Street firms, which were hit by a slowdown in transactional activity in the second half of 2011 while energy and regulatory work remained buoyant.

Among top performers, the continued activity in the litigation sphere translated to another stellar year for West Coast disputes leader Quinn Emanuel Urquhart & Sullivan, which reported the highest profit margin of any Am Law 100 firm (64%) while also adding 190 lawyers (a 42% rise in total lawyer count), including some across new offices in Moscow and Washington DC. Quinn was one of the top five firms for PEP growth in 2011 and finished second in the profits ranking behind Wachtell.

Managing partner and founder John Quinn (pictured) said the firm was especially busy in patent and structured finance litigation, and also cashed in on contingency fees. Among several headline cases, the firm is advising the Android-powered handset manufacturers – Samsung, HTC and Motorola – in litigation with Apple, currently one of the world's largest disputes. Meanwhile, as one of few firms willing to sue major banks, it has picked up a range of instructions from buyers of subprime products in the wake of the last financial crisis.

Quinn says: "After the first four months of the year, we are ahead of last year. We added a lot of lateral partner talent throughout 2011 and we have continued on the same path this year, with the number one goal being to grow the international arbitration practice."

Bakers London managing partner Gary Senior comments: "Being global is in our DNA – we were one of the first firms to hire partners locally around the world. Nearly 40% of our revenues stem from Asia-Pacific and Latin America, which is more than you would find at other firms. This, in combination with our strength in key developed markets, such as London, really is our strength."