KWM opts against US merger in favour of best friends network as veteran partner relocates to NY
King & Wood Mallesons (KWM) has decided against actively pursuing a merger in the US just months after the firm set up a six-partner strategy committee to investigate potential opportunities in the jurisdiction.
September 08, 2014 at 08:03 PM
4 minute read
King & Wood Mallesons (KWM) has decided against actively pursuing a merger in the US just months after the firm set up a six-partner strategy committee to investigate potential opportunities in the jurisdiction.
The Hong Kong-headquartered outfit, which last year merged with UK firm SJ Berwin to help bolster its cross border transactional capability, has instead chosen to build a formal 'best friends' network, through which it hopes to form closer relationships with around a dozen top American firms.
"We acknowledge and appreciate the importance of the US market in doing global business and we have good relationships with a number of US firms," said global managing partner Stuart Fuller (pictured).
"Our vision is to be a top tier global law firm based in Asia. US law is an important capability that a global law firm needs to have, and we will possess the US law capabilities we need in specialised areas to service our global clientele, but we do not aim to compete for US work in the US domestic market."
As part of what is expected to be a major push into the US market, KWM is relocating senior funds partner George Pinkham – previously with legacy SJ Berwin – from Hong Kong to New York to boost its capability on the ground. Pinkham will move to New York next month along with managing associate Parik Dasgupta, who is currently based in London.
KWM has made no secret of its plans to tap the US, particularly in the wake of last year's SJ Berwin tie-up. The firm currently has two small representative offices located in New York and Palo Alto, California, both set up by legacy King & Wood partners to service Chinese clients.
Last year, Fuller told Legal Week that he was open-minded about future US strategy, but that it would likely be dictated by the needs of the securities, international funds and private equity practices.
The firm's US strategy committee was set up in May this year, led by Sydney M&A partner David Friedlander and including representatives from China and London, with former legacy SJ Berwin corporate head Steven Davis and Beijing-based global corporate head Rupert Li also playing key roles. The committee's remit included looking at the best way to grow the firm's US footprint.
As part of its US strategy the firm has also bolstered its US-qualified securities team in Asia with the hire of Linklaters counsel Hao Zhou as a partner in Hong Kong. Dual-qualified in the US and Hong Kong, Zhou's hire is part of a move to ramp up its US-qualified team in the hopes of attracting more work from Chinese companies looking at Hong Kong or New York IPOs. It is currently among the law firm line up advising on Alibaba's New York listing, but is providing counsel on PRC law only.
Commenting on the hire, Fuller said: "An essential element in our strategy of becoming a top tier securities practice in the HK market is to acquire US securities law capability, and to use that capability to support our issuer clients across Australia, China and Hong Kong. Hao's appointment is the first – and a very important – step in building this capability, and I expect that we will continue to add further capability in this practice area in the region."
Separately, the firm is also stepping up its plans for expansion into Singapore, with at least two partners thought to have been chosen to be based permanently in the city-state subject to obtaining the necessary approvals from the Ministry of Law (MinLaw).
Those relocating include Sydney-based legacy Mallesons partner John Sullivan, whose practice focuses on Asian and Australian M&A, and legacy SJ Berwin funds partner Tony Gibson, who is currently based in Hong Kong and whose specialisation is private equity, asset management, financial services, and energy and infrastructure.
The relocation of Gibson and Pinkham will leave the Hong Kong office with no legacy SJ Berwin partners.
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