Fried Frank Harris Shriver & Jacobson had what global chair David Greenwald described as its best ever year in 2016, with the firm posting record numbers across all key metrics.

The New York-based firm's revenue increased by more than 10% last year to $556.5m (£458m), passing its pre-recession peak of $537.5m (£442m) set in 2007.

The significant growth in  revenue meant that the firm's average revenue per lawyer rose 3.3% to $1.26m, despite a 6.8% increase in total lawyer numbers to 440.

Fried Frank's growth in net income was even more impressive, leaping 15% to $263m (£217m) in the last financial year, which ended on 28 February.

This drove substantial gains in average profit per equity partner, which having broken through the $2m barrier for the first time in 2015, rose 13.6% last year to $2.51m (£2.07m).

"They're the best financial results in the firm's history," Greenwald told The American Lawyer. "Our fantastic financial performance reflects the efforts of everyone at Fried Frank – lawyers and staff."

The results represent another outstanding year for Fried Frank, which has seen a significant improvement in its financial performance since Greenwald took over as chair in 2014. In the past two financial years, its revenue has increased 21%, its net profit is up 36% and its profit per partner has risen 38%. This has  not been fuelled by a merger or massive expansion, however – the firm's total lawyer headcount has only expanded by 6% during the same period.

Greenwald, a former deputy general counsel at Goldman Sachs, said the firm's continued growth is partly due to an improvement in underlying market conditions – "in some ways, the rising tide is raising our boat", he said. But it also reflects a series of strategic and operational changes made by Greenwald early in his tenure.

Shortly after replacing former chair Valerie Jacob, who subsequently left the firm along with two other partners to join Freshfields Bruckhaus Deringer, Greenwald undertook a rigorous review of Fried Frank's business. This led to the implementation of a new, more focused strategy for the firm to target high-end work in the US and Europe across six core transactional areas: M&A, private equity, real estate, finance, capital markets and asset management.

The firm also pulled out of Asia, closing its Hong Kong and Shanghai offices, which were operating at a loss. "It was a question of discipline and good business judegment," Greenwald told The American Lawyer at the time.

Greenwald also set about improving the firm's efficiency and productivity. His initiatives have included a new partner self-assessment process and a timekeeping policy that fines partners $100 per day if they are late to record their weekly billable hours. This practice fixed the firm's issues with timekeeping "overnight", he said, while the other changes – and the improved financial results – have fostered a more positive, driven partnership culture.

"I think people are more focused on building the business, more optimistic about the future and generally more excited about being partners in the firm," Greenwald said.

Fried Frank achieved growth across all practice areas and offices in 2016, Greenwald said, with its London revenue "way up" compared to the previous year. (The firm would not disclose specific revenue figures for any individual office.)

Fried Frank established a London restructuring practice last year, hiring Ashley Katz, Mayer Brown's co-head of restructuring, bankruptcy and insolvency. The office also benefited from its asset management practice, which had its first full year of operation after launching in mid-2015 following the arrival of a three-partner team from Kirkland & Ellis. The firm also last year moved into new 32,000 sq ft offices in London.

Greenwald said that while Brexit has made the firm "more cautious" about its investment in London, it hasn't changed its overall strategy or dented its ambitions. "London has been a capital of finance for centuries – I don't see that changing anytime soon," he said. "Our results show an incredible improvement in London, but we have a lot more to do there."

Greenwald does think that the UK's decision to leave the European Union will cause continental Europe to become a "more important" market for global law firms. Brexit is widely expected to result in a shift of some business from London to cities such as Frankfurt and Paris. Fried Frank already has a small office in Frankfurt, and Greenwald said the firm is now "trying to figure out what to do there" in response to Brexit. "Things aren't going to change overnight – we'll have to see what we need to do to service our clients as the situation evolves," he said. "That almost makes it harder to address. You need to have a lot of foresight."

Fried Frank had another busy year of recruiting in 2016, making eight lateral partner hires. Greenwald said that increasing the proportion of the firm's contentious business is a key strategic priority, adding that the firm would like to double the size of its 25-partner litigation practice within the next five years.

Greenwald said he expects the firm to continue to grow in 2017. "We're optimistic about the upcoming year, despite the economic and perhaps more importantly political uncertainties that we and our clients are facing," he said.