'It rips the heart out of the practice' – partners react to KWM's private equity loss
Partners weigh in on what the departure of the firm's eminent Paris PE team means
April 10, 2016 at 07:08 PM
20 minute read
The original version of this story was published on Law.com
King and Wood Mallesons (KWM) has had "the heart ripped out" of its European private equity (PE) practice, former and current partners of the firm say.
The damning verdict comes in response to the resignation of six PE partners from the firm's Paris office last week.
A London based KWM partner says: "It's a challenging time for the firm. No one would pretend the Paris news was welcome. Those guys are well regarded."
Led by Christophe Digoy, managing partner of KWM's Paris office and corporate co-head, the team will leave to launch a Goodwin Procter Paris office once they have served out their notice periods.
Digoy joined from Clifford Chance and was instrumental in setting up the legacy SJ Berwin Paris PE offering in 2003.
KWM corporate partners Maxence Bloch, Jerome Jouhanneaud, William Robert, Pierre-Louis Sevegrand and Thomas Maitrejean will join Digoy at Goodwin.
KWM said it was "disappointed" with the Paris team's departure - but one ex-partner said that a European PE practice no longer fits in with the Sino-Australian firm's overall strategy.
Private equity is known and used in the Australia office but it's not a core plank of their business
They comment: "PE isn't a known concept in China. It's known and used in the Australia office but it's not a core plank of their business which is more focused on projects, infrastructure, and structured finance."
Another ex-partner agrees: "Mallesons and King & Wood had no PE practice to speak of. They [SJ Berwin and KWM] weren't businesses that had great synergies."
The Paris moves follow a raft of legacy SJ Berwin heavyweight PE departures over the past 18 months from the firm's London office. These included corporate co-head Richard Lever who departed to spearhead the growth of Goodwin Procter's London PE team alongside PE partner Simon Fulbrook and PE partner Tim Wright who left to join DLA Piper.
One ex-partner says that legacy SJ Berwin previously consisted of "an amazing roster of PE partners across Europe". He adds: "They had real expertise and a fantastic client base."
The legacy SJ Berwin PE practice was widely regarded as a market leader, particularly in the fund formation arena, but was not unhampered by issues even before the KWM merger.
In 2004, the firm rejigged the practice structure to persuade partners Jonathan Pittal and Perry Yam to stay after they initially resigned to join Olswang. And the 2007 departure of Justin Dolling, Mark Mifsud and Richard Watkins to Kirkland & Ellis was particularly bruising.
They had real expertise and a fantastic client base
Yam eventually left in 2012 to set up Reed Smith's PE practice after 19 years at legacy SJ Berwin.
While the firm has continued to be seen on a number of plum mandates since - including the 2010 $755m (£490m) sale of UK private equity group Pantheon and 2011 €640m (£557m) disposal of the microconnections unit of French electrical goods manufacturer FCI by Bain Capital - there are questions in the market now over whether the firm can maintain a client list of this calibre after the most recent exits.
Global managing partner Stuart Fuller firmly refutes this, saying that private equity is extremely important to the firm as a whole.
He says: "Any suggestion that the firm isn't strong in private equity in Australia and China or that it's not core to our business is just nonsense, and I have no doubt that our 250 busy PE lawyers in those jurisdictions would say the same."
He adds: "Private equity has long been synonymous with KWM the world over, and there's good reason for that. In Australia alone we completed well over 100 private equity mandates last year."
Private equity is not only at the core of KWM Europe - it's at the core of KWM
Fuller says that strength "comes from the combination of all our European offices, not just one".
But with the French office's PE offering halved following last week's resignations, the European arm has clearly suffered a significant blow to its once formidable PE capabilities.
One ex-partner says: "Private equity was the jewel in their crown but they've lost the major profit generating partners from that practice. You won't get deals in PE if you don't have the people."
King and Wood Mallesons (KWM) has had "the heart ripped out" of its European private equity (PE) practice, former and current partners of the firm say.
The damning verdict comes in response to the resignation of six PE partners from the firm's Paris office last week.
A London based KWM partner says: "It's a challenging time for the firm. No one would pretend the Paris news was welcome. Those guys are well regarded."
Led by Christophe Digoy, managing partner of KWM's Paris office and corporate co-head, the team will leave to launch a
Digoy joined from
KWM corporate partners Maxence Bloch, Jerome Jouhanneaud, William Robert, Pierre-Louis Sevegrand and Thomas Maitrejean will join Digoy at Goodwin.
KWM said it was "disappointed" with the Paris team's departure - but one ex-partner said that a European PE practice no longer fits in with the Sino-Australian firm's overall strategy.
Private equity is known and used in the Australia office but it's not a core plank of their business
They comment: "PE isn't a known concept in China. It's known and used in the Australia office but it's not a core plank of their business which is more focused on projects, infrastructure, and structured finance."
Another ex-partner agrees: "Mallesons and King & Wood had no PE practice to speak of. They [
The Paris moves follow a raft of legacy
One ex-partner says that legacy
The legacy
In 2004, the firm rejigged the practice structure to persuade partners Jonathan Pittal and Perry Yam to stay after they initially resigned to join
They had real expertise and a fantastic client base
Yam eventually left in 2012 to set up
While the firm has continued to be seen on a number of plum mandates since - including the 2010 $755m (£490m) sale of UK private equity group Pantheon and 2011 €640m (£557m) disposal of the microconnections unit of French electrical goods manufacturer FCI by
Global managing partner Stuart Fuller firmly refutes this, saying that private equity is extremely important to the firm as a whole.
He says: "Any suggestion that the firm isn't strong in private equity in Australia and China or that it's not core to our business is just nonsense, and I have no doubt that our 250 busy PE lawyers in those jurisdictions would say the same."
He adds: "Private equity has long been synonymous with KWM the world over, and there's good reason for that. In Australia alone we completed well over 100 private equity mandates last year."
Private equity is not only at the core of KWM Europe - it's at the core of KWM
Fuller says that strength "comes from the combination of all our European offices, not just one".
But with the French office's PE offering halved following last week's resignations, the European arm has clearly suffered a significant blow to its once formidable PE capabilities.
One ex-partner says: "Private equity was the jewel in their crown but they've lost the major profit generating partners from that practice. You won't get deals in PE if you don't have the people."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllLatham, Skadden Among Firms Acting on Mubadala's $3.4 B Acquisition of CI Financial
3 minute readMcCarthy Tétrault Welcomes Former CPP Investments Leader to Its Business Law Group
2 minute readPérez-Llorca, Deloitte Legal and White & Case behind €1B Green Deal in Spain
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250