Baker Botts and Vinson & Elkins, two venerable law firms founded in Texas more than a century ago, engaged in partner tug-of-war in New York and Washington, D.C., that has ended with Baker Botts taking four of Vinson & Elkins' corporate partners.

Mike Rosenwasser, a leading lawyer specializing in master limited partnerships, and Adorys Velazquez, who does securities, capital markets, and M&A work, joined Baker Botts as partners in New York this week.

Partner Michael Swidler, whose practice focuses on corporate law, business and commercial law, capital markets, finance, M&A and private equity, moved to the firm's New York office two weeks ago. And Catherine Gallagher, whose practice focuses on representing underwriters and issuers in corporate securities transactions, also joined Baker Botts two weeks ago as a partner in Washington, D.C. All four lawyers have extensive experience with master limited partnerships.

Rosenwasser, Swidler and Gallagher joined Vinson & Elkins in 2000 as part of a large lateral group that was hired away from another large firm with Texas roots—Andrews Kurth Kenyon.

Baker Botts managing partner Andrew Baker said the laterals are exceptional lawyers who add to the firm's broad energy credential, and to the firm's lateral hiring momentum.

“This builds a strong presence in private equity, it strengthens our energy sector, capital markets … and of course it increases the diversification of our energy practice in the Northeast,” Baker said.

Rosenwasser, who practiced at Vinson & Elkins for 18 years and for 30 years at Andrews Kurth, said he is excited about the move because Baker Botts is focused on expanding its practice on the East and West coasts, where a lot of non-energy business is located, and also wants to be competitive with the many firms moving to Houston.

Texas has seen an influx of out-of-state firms over the past few years, and more and more are opening offices and trying to seize market share.

“I'd like to end my career not with a firm fighting to kind of hold it, but with a firm that's trying to increase its status,” Rossenwasser said. “That monopoly the three or four or five principal firms had in Houston for so long clearly doesn't exist anymore.”

Even at age 71, Rosenwasser, an originator of master limited partnerships, said he expects to learn at Baker Botts because of the sophistication of some of the capital markets work lawyers do. “They have clients here that do capital markets stuff that involves derivatives, that involves targeted stocks. Very few firms in the country know how to do that,” he said.

The team making the move to in New York and Washington is the second major corporate group to join Baker Botts within the last year. The firms made another major lateral hiring move when it reached into the Norton Rose Fulbright Houston office for nine transactional partners who work in the energy sector.

Baker Botts has hired 20 lateral partners over the last 12 months, Baker said.

But the firm has lost some partners over the last year as well—an indication of just how heated the lateral hiring market in Texas has become. In 2017, Baker Botts lost six energy partners to Gibson, Dunn & Crutcher, which opened an office in Houston a year ago. Also, three trial partners left Baker Botts to form Jordan, Lynch & Cancienne, a Houston-based civil litigation boutique.

Vinson & Elkins chairman Mark Kelly issued a statement regarding the departures. “We thank these attorneys for their contributions and wish them well,” he said.