US firms continue their push into London
The past few years have been dominated by the arrival of US firms into London. Typified by investment bank type salaries, plush offices and whopping private equity deals, London has been a prime target for investment and development. And it seems to have paid off. 3,900 lawyers are deployed in London by US law firms and last month US firms were proudly announcing bumper end of year results – White & Case’s 37% increase in turnover being one such example.
Partner hires in 2007 exceeded the previous year but did not quite reach the 2005 peak, perhaps a reflection of the weak dollar as much as the struggle to recruit lateral hires. As most UK firms have struggled to meet associates’ career aspirations, US firms have been quick to lure associates with the carrot of partnership or ‘of counsel’ roles. This is encouraging news for those high-flying associates currently frustrated by a lack of opportunities and with US firms now adding trainees into their recruitment plans, the battle for recruitment and retention is set to hot up even further this year.
If the dollar remains weak, US firms will concentrate even more resources on external markets, and the strength of the pound makes London a natural focus for their attentions. Come 2009, we may witness even greater revenue growths from our US cousins. Nevertheless, those US firms that have not embraced a wider client base may struggle to grow at the same level as in previous years. Many US firms have concentrated in the profitable capital markets and M&A area and so diversification will be essential in order to maintain their dominance in 2008.
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