Shearman & Sterling posts fifth straight year of London growth
US firm sees London revenues rise to $144.6m (£93m) alongside 3% firmwide growth to $845m (£544m)
February 26, 2015 at 10:40 AM
3 minute read
Shearman & Sterling has posted a 7% rise in London revenues for 2014, marking the fifth consecutive year of growth for the US firm's City base.
The result, which means London revenues now stand at $144.6m (£93m) comes alongside 3% firmwide revenue growth to $845m (£544m).
Over the year, global profit per equity partner (PEP) climbed 5.8% to $1.9m (£1.2m) as revenue per lawyer rose 1.5% to $1.03m (£663,000).
Shearman has a London lawyer headcount of 172, more than 20% of a firmwide total of 821.
The financial growth comes after the firm posted an 18.4% jump in PEP to $1.8m (£1.01m) for 2013, with London revenues rising 20% to $134.8m (£80.9m), accounting for almost a third of the firm's 2013 global revenue increase, which grew 9.1% to $820.5m (£492.1m).
Nick Buckworth, Shearman's managing partner for Europe and London, said: "We made a number of investments last year. There were several lateral hires and we also have made some strategic moves, such as slimming down our German business and investing in London."
Over the course of 2013, the firm closed two offices in Dusseldorf and Munich leaving only one base in Frankfurt. "Germany went through a quiet patch, and that's changing. We refreshed our leadership team."
In contrast, the firm's London base has enjoyed consistent financial growth in recent years, with revenues rising by almost 50% since 2009.
"It's quite a nimble business. Our partners from the US brought high yield to the London market and then we built on that," said Buckworth. "Last year, our capital markets business – especially our high yield business – did well, followed by disputes and M&A," said Buckworth.
He added that the firm plans to recruit across all sectors in London this year, while hiring more selectively elsewhere in Europe. "We are looking to create more energy [in London] to push out to our European platform to create more opportunities for them."
The results come after Latham & Watkins posted record results earlier this week, with global revenue soaring 14.3% to $2.61bn (£1.69bn) and PEP surging by 16.5% to $2.9m (£1.88m).
Other US firms to have already reported their 2014 results include McDermott Will & Emery, which saw revenues rise 2.2% to $899.8m (£591m), and Baker Botts, which posted an 11% increase in revenue to $653m (£429m) against a 26% increase in PEP.
Dechert's 8% increase in global revenue to $839.4m (£558.9m) fuelled a 6.9% rise in PEP to $2.3m (£1.5m), while Weil Gotshal's 16.5% increase in PEP to $2.4m (£1.6m) was achieved off the back of a 1.2% increase in revenue to $1.15bn (£758m), up from $1.1bn in 2013.
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