Two former senior partners from King & Wood Mallesons (KWM) in Australia have set up a new advisory boutique in Sydney less than a year after their departure from the firm.

Tim Blue, who was previously head of tax and M&A at KWM, and Tony O'Malley, the ex-Australian managing partner, have formed a firm called LCR Advisory, to provide legal advice at senior executive and board level on a project-by-project basis.

Blue, who worked for Mallesons for almost three decades, said the outfit aimed to fill the space between a traditional law firm and a corporate advisory business, managing large transactions and company projects in tandem with general counsels.

The intent was not to oversee documentation, he said, but to get involved at the early stages of deals to help identify risk and regulatory issues.

"What we're hoping to do is build good relationships with a small group of regular clients initially, advising them on how to go about implementing a transaction and acting as an extension of the in-house team.

"We're looking to make it a regional business ultimately since much of the work is cross border. We will recruit but we have to test the proposition first and see what response we get."

He added that the model will provide for project-based fee arrangements or fixed fees, unless clients specify they require hourly rates.

As a duo the lawyers will provide a broad spectrum of advice, but chiefly in relation to antitrust, competition, regulatory and corporate issues.

Blue and O'Malley announced plans to exit KWM in May last year, after working there for 28 years and 13 years respectively.

Tim Bednall took over as head of M&A and tax from Blue who retired 30 June 2013, while Sue Kench was appointed Australian managing partner in May. O'Malley retired from the firm on 31 December. 

Prior to the tie up with King & Wood, both partners had been part of a Mallesons' management trio along with the current global managing partner Stuart Fuller; with each appointed to their latest positions following the merger.

Blue previously held other senior roles at the firm, including six years as London managing partner and three years as head of the international and Asia practice.

He and O'Malley, who joined in 2000, were also involved in discussions leading up to the King & Wood and SJ Berwin tie ups, though neither have attributed their departures to the firm's expansion.