Reed Smith's Bay Area offices are seeing some churn this week, with banking and finance partner William Veatch and of counsel Catherine Hagerty joining Norton Rose Fulbright in San Francisco office as partners and Baker McKenzie mergers and acquisitions partner Craig Lilly joining the firm in Silicon Valley.

Veatch and Hagerty had been at Reed Smith since June 2017, where they arrived together from Morrison & Foerster.

"Bill and Catherine are highly regarded corporate finance lawyers who represent a wide range of clients in deals worth billions of dollars," Jeff Cody, U.S. managing partner for Norton Rose, said in a statement. "They are exactly what we are looking for as we grow our West Coast presence."

Veatch, in an interview, said the ability to do business globally, a commitment to innovation and his new firm's desire to increase its presence in California were all important factors in his and Hagerty's move.

Hagerty said they were confident that their client base would be moving with them over to Norton Rose. They declined to identify specific clients.

The duo said they hope to build out the practice at 2-to-1 leverage between associates and partners, so they have some hiring to do. They said they could not comment on whether additional personnel from Reed Smith would be among those they look to hire.

Veatch's practice centers around assisting clients with "banking, equipment leasing, venture lending and leasing, cross-border leasing and vendor finance," according to a firm press release. Hagerty advises financial institutions on complex debt financings, according to the firm.

Veatch also has an interest in how artificial intelligence will affect the legal profession and has written a book on the subject, "The New Logic of the Law, Vol. 1—Building a Foundation for Artificial Intelligence Applications in the Law," published in 2018.

"Bill and Catherine have a strong track record of guiding clients through complex transactions," Gene Lewis, head of Norton Rose's U.S. business practice, said in a statement. "They will provide innovative solutions and outstanding service to our clients in the financial institution and technology sectors."

Veatch said cross-selling to other practices and developing those relationships is going to be key for their success.

"A big part of what we will be doing is talking to attorneys in other sectors," Veatch said. "We want to integrate with the AI attorneys in Canada and the people in Texas and New York."

Meanwhile, in Silicon Valley, Reed Smith on Wednesday announced the arrival of new partner Lilly, who had been a partner at Baker McKenzie since 2016.

"I was particularly attracted to Reed Smith's culture of innovation and collaboration, and its commitment to client service," Lilly said in a statement. "Reed Smith's leading global regulatory enforcement group, with its extensive experience in data privacy, healthcare, CFIUS, and FDA, and other regulatory areas of increasing importance to my clients, is another distinguishing feature."

Craig Lilly, partner at Reed Smith. (Courtesy photo)

Lilly said in an interview that the cross-pollination between Reed Smith's various practices, including technology, as well as its commitment to building up its presence in California—where the firm has four offices—cemented his decision to make a move.

Lilly said he anticipates his clients following him over in the move, though he declined to name them.

"I have done extensive work with funds, strategics and private tech companies as well," he said. "I also have deep ties in the community and want those to continue."

According to his biography, Lilly's practice focuses on cross-border and domestic transactions, strategic investments and corporate governance.

Lilly, while citing the presence of "headwinds" when it comes to the 2020 M&A outlook, said he wasn't overly concerned.

"I'm an optimist. There are some headwinds, but deals need to get done," he said. "There is a lot of dry powder out there."

"We are very excited to have such an innovative and experienced partner join us in the Valley," James Tandler, chair of Reed Smith's global corporate group, said in a statement. "Craig has tremendous experience with financing for emerging technology companies in several areas where we are expanding, including artificial Intelligence, fintech and sustainability."

Baker McKenzie CEO Colin Murray wished Lilly well in a statement. Prior to his time at Baker McKenzie, Lilly was at Greenberg Traurig and Squire, Sanders & Dempsey.

Overall, Reed Smith has been in growth mode over the past 13 months, although most of that has been in the associate ranks rather than additional partners.

According to ALM data, the Pittsburgh-founded firm added 31 net new partners in 2019 but enjoyed an overall headcount increase of 206 lawyers thanks to strong associate hiring.

Norton Rose, on the other hand, has made 34 lateral hires in the last two years and has seen 135 departures over that same time frame, although only 31 of those were in 2019, according to ALM figures.

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