'It will act as a catalyst' – partners cite Brexit factor as Kirkland's Paris play turns heads
Partners warn clock is ticking on 'old London model' as Brexit turns attention to other European centres
October 31, 2018 at 12:03 PM
4 minute read
The recent news that Kirkland & Ellis is set to launch in Paris with the hire of two Linklaters partners has marked the latest example of the US firm's much-heralded decisiveness when it comes to recruitment.
During the past year, the firm been picking off some of the top private equity talent on both sides of the Atlantic – including Freshfields Bruckhaus Deringer heavyweight David Higgins and Latham & Watkins practice leader Jennifer Perkins – but the move into Paris is particularly notable given that outside of London, Kirkland has to date had just one continental European base: its 15-partner Munich office, which opened in 2004.
Private equity partners say the attraction of key European financial centres such as Paris is only likely to increase as the impact of Brexit takes hold.
White & Case global and EMEA private equity head Ian Bagshaw says: "It will happen more because of Brexit. Firms will be looking to do private equity on a more local basis rather than doing it from London. The old London model is becoming less relevant as time goes on."
Weil Gotshal & Manges Paris corporate partner David Aknin agrees that Brexit could raise questions about whether firms have the requisite coverage across Europe. "London has been the financial centre of Europe until now – the question is: is this old model of working from only London still sustainable? If Brexit happens, the answer will be no," he argues.
The Linklaters partner duo joining Kirkland – Vincent Ponsonnaille and Laurent Victor-Michel – will launch the new office after the US firm receives approval from the Paris Bar Association, joining a market that already boasts a line-up of international firms with well-established private equity practices, including Latham & Watkins, Linklaters, Clifford Chance, Willkie Farr & Gallagher, White & Case and Weil.
The arrival of more international entrants is also likely to have a knock-on effect for domestic firms reliant on referral work from international allies. "Domestic firms tend to have relationships with US firms that don't have a presence in Paris, because they get work from them sent to be done locally," says Aknin. "But if the US firms move there, this could all change – everyone is going to have to adjust to the new perimeter."
Kirkland is well versed in plucking top talent from rival firms to build its brand, and partners expect it to take the same approach in the French capital – potentially putting leading French firms such as Bredin Prat, Gide, AyacheSalama and De Pardieu Brocas Maffei at risk.
Bagshaw says: "There probably will be some firms in trouble – Kirkland aren't going to settle with just two partners. They will want more corporate partners coming in. But it's not that big a market, so they will have to take talent from other French firms."
As Brexit moves ever closer, and London's status as Europe's financial centre faces growing uncertainty, all eyes will now be on Paris to see which international firms will make the move next – and who else Kirkland will snap up for its new base.
"Outside of London the private equity market is much smaller, so it shakes it up more when something like this happens," says Bagshaw. "It will act as a catalyst for firms to reassess their position in the market, to think where their strengths lie, and for people to re-evaluate whether they're in the right place."
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
© 2024 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 AllTribunal Dismisses AML Case Against Kennedys’ Chief Risk Officer, But Ex-Partner Fined
2 minute readLatham, Skadden Among Firms Acting on Mubadala's $3.4 B Acquisition of CI Financial
2 minute readDLA Piper Takes Greenberg Traurig’s Corporate Partner for Seoul
Cuatrecasas Elevates Seven to Partner in Spain and Latin America
Trending Stories
- 1Judge Denies Sean Combs Third Bail Bid, Citing Community Safety
- 2Republican FTC Commissioner: 'The Time for Rulemaking by the Biden-Harris FTC Is Over'
- 3NY Appellate Panel Cites Student's Disciplinary History While Sending Negligence Claim Against School District to Trial
- 4A Meta DIG and Its Nvidia Implications
- 5Deception or Coercion? California Supreme Court Grants Review in Jailhouse Confession Case
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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