In comparison with a few of its flashier US rivals, it’s honest to say Davis Polk has not taken the quickest path to increase within the Metropolis.
Regardless of having an workplace in London for greater than 5 a long time, the agency solely began practising English legislation in 2012, and has been comparatively cautious about lateral recruiting ever since. Till now.
With the addition of 4 companions in London over the past six months, the agency has overhauled its technique within the Metropolis, serving to to take London lawyer rely above 60.
Discussing this shift, firmwide chair and managing associate Neil Barr tells Authorized Enterprise: ‘We realised that our London platform wasn’t scaled to ship the complete spectrum of companies we wished for our shoppers, which prompted us to rethink our method.’
London M&A associate Will Pearce (pictured), who heads up the agency’s Europe apply, factors to personal capital-driven work as a key progress alternative for the workplace, and a principal driver behind the latest recruitment. ‘With the elevated significance of personal capital for transactions, and in line with developments in New York, it grew to become clear there was an actual client-driven alternative to strengthen our finance functionality and add UK and European-focused personal fairness to our M&A apply.’
This strategic concentrate on personal capital displays what Pearce describes as a ‘pure evolution of what we’ve achieved in London over the past ten years or so.’
Lateral leap
Nonetheless, not all of Davis Polk’s latest inroads into the London lateral market are instantly related to personal capital.
Most just lately, the agency secured the hires of Mark Knight and Jifree Cader, the co-heads of Sidley’s London restructuring group, to launch a Metropolis apply for the agency.
Barr described their hires as a ‘pure subsequent step,’ kickstarting its European restructuring providing.
The hires got here after Davis Polk additionally welcomed Luke McDougall, the previous international co-head of Paul Hastings’ finance apply in Could, adopted by personal fairness associate Gordon Milne from A&O Shearman in August.
With McDougall’s addition and the latest promotion of finance counsel Aaron Ferner to the partnership, the London finance group now includes 4 companions, together with apply head Nick Benham. As Barr notes: ‘this expanded group brings better depth and scale, enhancing our capacity to service issues that aren’t solely US-based but in addition sourced out of the UK.’
For McDougall, a part of the enchantment in becoming a member of Davis Polk was the ‘distinctive alternative’ to hitch at a ‘crucial’ juncture within the improvement of its London operations, bringing with him a sturdy repute and in depth expertise in UK and cross-border leveraged finance, company finance, and restructuring
In the meantime, Milne will lead the expansion of the agency’s transactional M&A and finance apply in London, working US personal fairness funds investing in Europe and globally.
‘US PE corporations are more and more seeing potential worth in European property, and we see clear alternatives in our capacity to advise our US shoppers on present European market apply,’ Milne advised Authorized Enterprise. ‘Moreover, European PE shoppers and their portfolio firms are more and more seeking to purchase property within the US or faucet the better swimming pools of capital within the US.’
‘London stays a world hub,’ he continued, ‘it’s basic to have top-tier authorized experience in London.’
As Pearce summarises: ‘In Luke and Gordon, respectively, we discovered a visual, well-connected leveraged finance associate with a observe report of enterprise progress, and a seasoned personal fairness associate with longstanding European relationships.’
Barr continues: ‘We recognised them as legal professionals with established consumer followings, who had been extremely more likely to deliver these relationships to Davis Polk, and that has certainly confirmed to be the case.’
Underscoring its dedication to London, the agency has additionally signed a lease for 31,800 sq ft of house within the Sq. Mile’s Whittington Constructing.
Staying aggressive
Davis Polk’s shift in method doesn’t apply solely to London – it has additionally made a lot of high-profile hires within the US.
In August, the agency strengthened its New York finance group by bringing in three distinguished asset administration companions – Andrew Ahern, Alisa Waxman, and Luke Eldridge – from Debevoise & Plimpton. Moreover, Elena Millerman, previously international head of White & Case’s venture improvement and finance group, joined as co-head of infrastructure finance, alongside sponsor finance associate Nick Caro from Goodwin. Rounding out these strikes, Simpson Thacher & Bartlett funds associate Chris Healey joined the funding administration group in Washington DC, with the agency additionally regarded as eager to broaden in California.
A key side of its method to lateral recruitment has additionally concerned altering its remuneration construction in response to the heightened competitors in markets like New York and London, the place a handful of prime names at the moment are on packages value greater than $20m.
The agency initially shifted away from its its conventional lockstep mannequin in 2020, however began taking a look at additional modifications to its pay mannequin this 12 months amid rising competitors and heightened concentrate on pay.
Commenting on the agency’s new method to hiring, one London recruiter advised LB that Davis Polk’s London progress thus far had been restrained by its comparatively conservative spending method. ‘They’ve centered on solely hiring the very best, however haven’t been prepared to open the checkbook sufficient,’ he mentioned, including: ‘With an open checkbook, they’ll possible goal prime expertise.’