Cleary elects long-serving funds lawyer as next managing partner
Elite US firm chooses Michael Gerstenzang as new leader
September 13, 2016 at 08:20 AM
3 minute read
Cleary Gottlieb Steen & Hamilton has elected Michael Gerstenzang as its new managing partner, with the private funds partner set to take up the post on 1 January 2017.
In his new leadership role, Gerstenzang replaces Mark Leddy, who was named Cleary's managing partner back in late 2010. Leddy, a Washington DC antitrust partner, will remain with the firm. He maintained his practice throughout his two terms as managing partner and will continue to help lead Cleary's global antitrust practice.
Gerstenzang likened his new role to that of a "listener in chief", whose job it is to speak with partners across the firm's 16 offices to hear their concerns and "constantly reinforce the institutional glue and culture".
That method of leadership is essentially how Cleary's managing partner is selected, Gerstenzang said. Leddy and members of the executive committee engaged in a months-long process of consulting with every partner in the 1,203-lawyer firm to develop a consensus around who should be the next leader.
Managing partners at Cleary are elected to three-year terms and it is typical for them to hold the top leadership role for two terms, as Leddy did, Gerstenzang said. There is a partnership-wide election but it serves mainly to reflect and formalise the consensus that has already been developed internally.
"I doubt I will ever tell somebody what to do," Gerstenzang said of his new position. Aside from his new administrative duties, he will continue with his current practice, just as Leddy and others before him.
Leddy replaced former Cleary partner Mark Walker, who had also served two terms in the firm's top leadership role. Walker left Cleary for investment bank Lazard soon after being replaced as managing partner.
In a statement, Leddy said that Gerstenzang "embodies the internationalism that is at the core of our firm". Gerstenzang organises and advises credit, private equity, venture capital and other types of funds. His major clients include The Blackstone Group, KKR and TPG Capital Management, according to his firm biography page.
After serving two clerkships, Gerstenzang has spent his entire career at Cleary. He worked in the firm's Brussels office during the 1990s, before relocating to New York.
Cleary had a record financial year in 2014 but saw gross revenue decline 3% in 2015 to $1.213bn (£915m), while profits per partner dipped 4.7% to $3.08m (£2.32m).
Cleary's management shakeup is the latest in a series of leadership changes at Am Law 100 firms in recent months. Last week, K&L Gates announced that long-term chair Peter Kalis will step down next year. Venable also announced a new chairman and co-managing partners this year, while five partners are vying to replace McDermott Will & Emery's co-chairmen. Meanwhile, Williams & Connolly's executive committee chair Robert Barnett was succeeded in June by commercial litigation partner Dane Butswinkas.
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