The real threat to Freshfields is not losing Maguire, it is losing CVC
What impact will Kirkland's latest Freshfields raid have on the premier City private equity practice?
January 09, 2019 at 11:12 AM
4 minute read
Another day, another top private equity partner joins a US firm in London. Only there is nothing routine about Adrian Maguire's move from Freshfields Bruckhaus Deringer to Kirkland & Ellis.
After all, Maguire was the UK's "most sought-after private equity partner at the moment", according to one partner at a top-tier US rival. The partner added that his firm would have jumped at the chance to hire Maguire – who is known for having a loyal client base that includes Cinven, Advent International and Warburg Pincus – had the opportunity arisen.
And yet the biggest issue for Freshfields is not actually Maguire's departure. His list of clients is strong, but none of them rank highly on the list of buyout firms that have the most money to spend at the moment. Some would say Advent is mainly a Weil Gotshal & Manges client, while Cinven was more associated with Maguire's former colleague David Higgins, who he has now been reunited with at Kirkland. And Freshfields' main buyout client relationship, with CVC Capital Partners, has been managed by other partners.
The significance of Maguire's departure is actually in what it means for the future of what remains of the magic circle firm's private equity practice.
The steady stream of partner losses to US firms pushed Freshfields to change its remuneration structure in order to compete more aggressively and retain its best people. Did it not do so well enough? Maguire's departure, so soon after the changes were introduced, suggests no one is off the table. And if US firms can still pay more (and they can), other departures could well be on the way, which could fairly quickly pose a threat to the firm's status as the City's premier private equity firm.
Such a prediction might sound harsh, but don't forget that the best UK legal advisers for large buyouts used to be Clifford Chance (CC) and Ashurst.
CC still has a credible practice, though it is notable that its best-known private equity partner, managing partner Matthew Layton, is not doing so much fee-earning these days, and many big names of years gone by, such Adam Signy, David Walker and Kem Ihenacho have moved to US firms. It is nothing like the force it once was.
Ashurst, meanwhile, has fallen way down the pecking order. Its top partners in the sector – Charlie Geffen, Stephen Lloyd and Gavin Gordon – all moved to US firms years ago and it is rare to see them on the biggest buyouts now.
Freshfields should view these as cautionary tales. The truth is that its position as the leading private equity adviser in Europe is now less assured than it has been for several years. Rivals also point out that buyout firms are increasingly interested in their legal advisers having a US capability – it is hard for firms such as BC Partners, Permira, Cinven and CVC to spend their huge funds entirely in Europe. And rivals also say Freshfields' capability on financing advice will be subject to close scrutiny.
The firm's relationship with Cinven, long a client of both Maguire and his new Kirkland colleague Higgins, is at the most serious risk. And there is already plenty of competition for Permira – arguably Freshfields' second most important buyout client – from the likes of Kirkland and CC.
But it is CVC that would prove a real game-changer, should it move away from Freshfields. It is Europe's biggest and most active buyout firm and has remained close with Freshfields over the years, no doubt thanks to the fact that Christopher Bown, the former Freshfields partner, has been a senior adviser at the fund manager since 2014. Still, at some point there could be hardly anyone left from Bown's peer group still at the firm.
Meanwhile, a host of other firms will be knocking on that client's door. CVC itself lists its European legal advisers as CC, White & Case, Freshfields, Latham & Watkins and Weil Gotshal & Manges. It is worth noting that Latham handled the largest public-to-private deal last year, acting for CVC and Blackstone Group on the £2.96bn acquisition of Paysafe Group.
Charles Hayes is now the CVC contact at Freshfields. A lot of pressure rests on his relatively junior shoulders in the coming years. That's if he sticks around.
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
© 2025 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 All![As American Firms Retreat, Will Loyal UK Firms Regain Asia Market Share? As American Firms Retreat, Will Loyal UK Firms Regain Asia Market Share?](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/90/75/87b77eed4db0a9e97ff5d7846f04/adobestock-428140313-767x633.jpg)
As American Firms Retreat, Will Loyal UK Firms Regain Asia Market Share?
![DeepSeek’s AI Power Move: Will Lawyers Be the Next to Adapt or Perish? DeepSeek’s AI Power Move: Will Lawyers Be the Next to Adapt or Perish?](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/a2/02/851bef1b4c8cae401eb37daefc0a/everdell-767x633.jpg)
DeepSeek’s AI Power Move: Will Lawyers Be the Next to Adapt or Perish?
6 minute read![Now That the Trump Era Has Begun, Change Is Coming. For Big Law, Change Is Already Here Now That the Trump Era Has Begun, Change Is Coming. For Big Law, Change Is Already Here](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/0f/8e/977f2d7649048ae0472590ba4579/adobestock-102001696-767x633.jpg)
Now That the Trump Era Has Begun, Change Is Coming. For Big Law, Change Is Already Here
6 minute readTrending Stories
- 1ACC CLO Survey Waves Warning Flags for Boards
- 2States Accuse Trump of Thwarting Court's Funding Restoration Order
- 3Microsoft Becomes Latest Tech Company to Face Claims of Stealing Marketing Commissions From Influencers
- 4Coral Gables Attorney Busted for Stalking Lawyer
- 5Trump's DOJ Delays Releasing Jan. 6 FBI Agents List Under Consent Order
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
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