Latham & Watkins' global revenue soared by 14.3% in 2014 to $2.612bn (£1.691bn), with profits per partner (PEP) surging by 16.5% to $2.9m (£1.88m).

The results mark a historic high for the firm. 

The rise in PEP is distributable across 457 equity partners, up from 441 in 2013, while the increase in fee income means revenue per lawyer jumped by 12.1% to $1.24m (£0.8m), also a record high. 

The growth is significantly up on the previous year, although the revenue and PEP result in 2013 was the firm's second highest in its history. Latham saw revenue climb 2.7% to $2.29bn (£1.38bn) in 2013, while PEP edged up 1.9% to $2.49m (£1.49m).

The financial growth in 2014 comes against a steady increase in headcount, which rose by 2% to 2,100, up from 2,060 the previous year.

Commenting on the firm's performance in London, local managing partner Nick Cline said: "Our core practices have continued to perform strongly and we've added breadth and depth to our offer while increasing market share across the board."

Bill Voge, global chair and managing partner, said the firm's private equity (PE) and M&A lawyers made a "high contribution" in the past year, followed by capital markets and finance, but added that revenue increased across all practice areas.

The firm has made a string of new hires in past 24 months, particularly in PE and M&A due to rising client demand, said Voge. "London and New York will continue to be an important market for us. Germany is a very big economy in Europe and we do expect we'll have continued growth there."

In February the firm added Clifford Chance (CC) global PE head Oliver Felsenstein and partner Burc Hesse to its German PE practice. They were the latest in a number of partners leaving to join Latham in recent years, as the firm has aggressively built up its European presence.

Latham hired CC's Africa co-head, Kem Ihenacho, in London last year and in 2013 the firm recruited CC's then global private equity head, David Walker, and private equity partner Tom Evans.

More recently, Latham also hired a six-partner team from O'Melveny & Myers, including the head of the firm's entertainment, sports and media group Joseph Calabrese and prominent London-based partner Libby Savill.

Latham's results, the firm's strongest ever performance, mean the firm has posted the highest revenue and PEP figure of any US firm to have announced its results so far.

 Weil Gotshal also posted a 16.5% rise in PEP, but this took the figure to $2.4m (£1.6m), achieved off the back of a 1.2% increase in revenue to $1.15bn (£758m), up from $1.1bn in 2013.

Other US firms to have already reported their 2014 results include McDermott Will & Emery, Orrick, Baker Botts, Dechert and Akin Gump.

 

Latham results

Gross Revenue
2014: $2.6bn 
2013: $2.28bn
Increase 14.3%

Profits Per Partner
2014: $2.9m
2013: $2.5m
Increase 16.5%

Revenue Per Lawyer
2014: $1.24m
2013: $1.11m
Increase 12.1%

Headcount
2014: 2,100
2013: 2,060
increase: 2%

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