'No drama, no personal issue' – Youle and Bagshaw on Skadden's private equity play
Richard Youle and Ian Bagshaw on Youle's move to Skadden and its impact on White & Case
May 24, 2017 at 10:56 AM
6 minute read
Whispers had abounded within the private equity market for months that White & Case City private equity star Richard Youle was soon to be on the move. And earlier this week, Legal Week broke the news of his move to Skadden Arps Slate Meagher & Flom.
Youle, whose book of business at White & Case is rumoured to have been worth around $25m, is joining the rival US firm this summer, with junior private equity partner Katja Butler and a still to be agreed number of associates.
But why Skadden – and what does his exit mean for White & Case?
Speaking to Legal Week, Youle says: "Skadden is a global elite firm and it has private equity at the heart of how it wants to develop its M&A business. I think that combination makes this a fantastic opportunity.
"Clearly Skadden's strength in the US was a key attraction – my clients are doing increasing amounts of work in the US and Skadden has fantastic private equity clients that want to do more work in Europe. We will want to maximise our relationship with all those clients and build the business up."
Youle's hire ends a long hunt for a big-name London private equity partner for Skadden, which has been looking ever since the retirement of City private equity veteran Allan Murray-Jones in 2014.
According to its website, the firm has four London partners listing private equity as their first practice but it has lacked the heavy-hitting name of many rivals, despite a global roster of buyout clients including Doughty Hanson, LetterOne Technology, AXA Private Equity, Blackrock and Equistone Partners Europe.
Skadden's global co-head of transactions Scott Simpson explains: "Allan was the first big standalone hire we made in the London PE space. We were looking at continuing building in that area even before he retired, but when that happened there was a renewed focus on doing that. It's nice to design a strategy but it's even nicer to execute it."
He adds: "M&A, and within that private equity, has been a core part of our strategy since day one of our decision to build out in Europe and London in the 1990s. We see Richard joining this platform as further enhancing the PE business for the firm as a whole. It's a significant change for us, given who he is and his following."
Youle says he hopes to build on the relationships with non-traditional financial sponsors that Skadden already has, in addition to working with his existing client base and Skadden's more established buyout clients.
"It's not just about traditional clients like [Youle's clients] Hg Capital, Montagu and Oaktree. Skadden has a very strong financial sponsor practice but hasn't really marketed itself in Europe as having that specific focus. I hope that we can continue to work with some of my existing relationships and build stronger relationships with existing financial sponsor clients already with the firm."
While Skadden is best known for its work on multi-billion deals, Simpson makes clear that the private equity mid-market space in Europe – an area Youle has focused on throughout his career – is equally important. He comments: "Of course we continue to act on multi-billion marquee deals, but smaller ones drive the firm too. We serve a whole host of private equity and corporate clients that don't act in the multi-billion dollar range."
Youle adds: "Skadden is well known for acting on very large M&A deals, but all firms work better if you're also strong in the mid-market arena too. That's where private equity has its heart, so we will aim to do mid- and top of the market deals for a range of sponsors."
One former White & Case partner speculates that the move will give Youle more personal influence in building the firm's European private equity brand than was possible at White & Case.
He says: "Skadden traditionally works on strategic acquisitions in the US and less in private equity, so this will be more of a greenfield site for Richard. I imagine that's part of the attraction – at Skadden he can make a difference."
Given both Youle and Skadden's reputations and the fact Skadden has not made a lateral hire in London since 2014, any hire was going to attract attention, but Youle's long working partnership with fellow White & Case private equity co-head Ian Bagshaw has sent the rumour mill into overdrive.
The pair met as junior lawyers at Eversheds in the late 1990s and were later reunited as partners at Linklaters, going on to become co-heads of European and Middle East private equity at the magic circle firm.
After joining White & Case three years ago, they went on to be appointed global co-heads of private equity in October 2015.
Bagshaw and New York partner Oliver Brahmst will continue to lead the practice at White & Case following Youle's departure.
Bagshaw is upfront about his long-time friend's move and denies any rumours of a rift or disagreement. He says: "There is no drama, no personal issue between me and him. I've known him for 20 years and I look forward to meeting up for a beer and watching the football without talking about work. From a wider perspective, I think he just wants to work in a different, smaller team looking after core clients."
He is swift to reject the idea that he could follow Youle through White & Case's doors. "I'm committed to White & Case; I think they've been hugely supportive of us since we joined and have made a massive investment in us. In terms of our growth trajectory, we have built a large business with multiple clients and we will make sure they all get looked after."
"We've got a five-year plan as part of the 2020 strategy. Richard is a great partner but the PE practice globally does not depend on Richard Youle. We have built an institutionalised business and there are plenty of other partners committed to it."
One London partner at White & Case concedes that Youle's departure is "a regretted loss" and that he had hoped the rumours of a move were false, but maintains the practice will be fine. He says: "Ian is with us, as are his colleagues. We have 50 or so lawyers in London – I'm sure they will all rally around and take things forward. We have got a strong team here and this will continue, notwithstanding Richard's departure."
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