City firm ramps up hedge fund and asset management focus with non-exclusive relationship

Simmons & Simmons has secured a boost in the US by sealing an alliance with specialist funds outfit Seward & Kissel for hedge fund and asset management work.

The non-exclusive relationship with Seward – which is highly rated by Chambers and Partners for hedge funds and shipping finance work – hands Simmons a long-coveted foothold in the US market.

The UK firm's move comes as part of a drive to expand its offering to hedge funds and their managers, with the tie-up allowing Simmons' clients access to advice on specialised US matters. A memo announcing the agreement, seen by Legal Week, details how partners and senior associates from each firm will travel between the US and UK, visiting clients and speaking at each other's client events.

It continues: "We will be introducing streamlined billing arrangements and agreed competitive pricing for start-up managers and funds. Partners from each firm will be available to participate in person or by video conference (or telephone) in joint client presentations and pitches for new business."

Seward, which has 45 partners across offices in New York and Washington DC, has existing referral relationships with several UK firms including Norton Rose. Both Simmons and Seward will continue to work with other referral firms. The alliance is not expected to lead to a future merger.

Simmons senior partner Colin Passmore (pictured) told Legal Week: "The alliance was formed in response to a specific opportunity. We've had a longstanding relationship with Seward and we're pleased the alliance is up and running."

Seward managing partner John Tavss added: "With the alliance, we hope to increase the work that we do for hedge fund clients based in the UK, Europe and Asia. We wanted to be able to offer our clients a more co-ordinated and seamless approach to doing business globally, and felt that we could offer clients very strong teams of hedge fund lawyers on both sides of the Atlantic."

Earlier this year, Simmons outlined plans to secure a US practice in three to five years, with Passmore stating that the firm needs to "do something" in the key legal market. 

The firm also this year set out a new three-year strategy, with asset management added as a fifth sector to its previous four-pronged approach. It now forms a new standalone sector alongside energy and infrastructure; financial institutions; life sciences; and technology, media and telecoms.

Key hedge fund and asset management clients for Simmons include Lansdowne, Egerton, Marshall Wace, BlueCrest, Brevan Howard, Capula and Winton. James Cole, the partner responsible for Weil Gotshal & Manges' London hedge fund practice, commented: "It is a very astute move for both parties. Seward is the leading hedge fund firm in New York. It is a defensive and offensive move on their part, but they will get an awful lot of referral work."

Key roles Seward took during 2011 included advising Arden Asset Management on its $1.3bn (£807m) acquisition of the Robeco Group's fund of hedge funds business, and assisting New York investment manager Emerging Sovereign Group on its sale of a 55% stake to the Carlyle Group.

Dechert financial services partner Peter Astleford said: "US capability is critical for legal advisers to investment managers in today's markets. This is an important first step for Simmons."

One partner from a rival firm added: "Seward doesn't need this as much as Simmons does – Simmons needs US capabilities to stay on major bank panels, and it knows it has this weakness."