Freshfields

Freshfields Bruckhaus Deringer has posted revenue growth of 5% for 2018-19, equalling last year's moderate showing. 

The Magic Circle firm has this year added £70 million to its top line for a £1.47 billion total, and has also improved its net profit by 1% to £688 million. 

Profit per equity partner (PEP), meanwhile, now stands at £1.84 million, having climbed by £96,000 (6%) on last year's figure. Last year, the firm posted a 12% PEP increase.

Managing partner Stephan Eilers told Legal Week that the firm had this year "thrived" in a "difficult environment", and that a tough economic climate "played to our strengths". He emphasised the role Washington, D.C. played in the firm's overall fortunes, adding that the firm was "turning Washington into a regulatory government-facing offering".

He said he was "proud of these results" and that the successive 5% revenue increases put the firm "on a growth track for this year as well". He added: "There has been no slowdown in Q4, and I expect to see something similar this year."

The firm saw several star partners leave during the most recent financial year, including arbitration heavyweight Reza Mohtashami to Three Crowns and private equity partner Adrian Maguire to Kirkland & Ellis.

Following several departures, the firm is reviewing its remuneration model.

The firm's global financial investors (GFI) group last year accounted for 16% of its overall business, private equity partner Victoria Sigeti said, with global co-head of the financial sponsors group Charles Hayes adding that the practice was now "turning work away".

The GFI group – which comprises the private equity, sovereign wealth funds and leveraged finance offerings, among others – this year promoted three to partner and expects to make up two more next year.

In May, Freshfields triggered a City-wide pay war at the junior end of the payscale, upping its newly qualified salaries to £100,000, prompting others in the City to make similar moves. 

Freshfields becomes the second Magic Circle firm to release its financial results for 2018-19, with Clifford Chance having yesterday (July 2) posted modest revenue and PEP growth of 4.3% (to £1.69 billion) and 1% (to £1.62 million) respectively.