Norton Rose, Ashurst and Herbert Smith race up Global 100 league as UK firms make confident showing
UK law firms have moved sharply up the league of the world’s 100 largest law firms as evidence mounts that the City’s top firms are poised to outperform key US rivals in a prolonged slowdown.
The Global 100, a joint project by Legal Week and The American Lawyer, this year ranks 17 UK-based law firms in the league of the world’s largest law firms, including 10 in the top 50.
The combination of robust growth at UK practices and the relative strength of sterling against the dollar during the last financial year saw many London-based firms rise up the revenue rankings.
The fastest-rising UK firm in the rankings is Norton Rose, whose placing leapt from 70 to 56 in revenue terms. Other firms to see sharp improvements in their global standing include Herbert Smith, which moved from 40th place to 31, and Ashurst, which moved from 55 to 47. CMS Cameron McKenna, Simmons & Simmons and SJ Berwin also saw notable rises in their ranking.
As expected, magic circle firms continued to improve their relative standing, with four firms featuring in the top 10 by revenue and Freshfields Bruckhaus Deringer, Slaughter and May and Linklaters among the top 10 most profitable firms. In total 25 Global 100 law firms achieved profits per equity partner in excess of $2m (£1.14m), including seven UK-based firms.
With major Western economies facing the likelihood of recession, UK firms’ international expansion has been of increasing importance to their growth.
In contrast, the 2001-03 slowdown saw US firms outperform their UK counterparts thanks to lower cost-bases and strong countercyclical practices in litigation and bankruptcy.
Clifford Chance managing partner David Childs (pictured) said that London firms’ focus on key emerging markets like the Middle East and Asia was now paying off. He commented: “Our offices in these markets are doing very well and will continue to do so through this financial year.”
Weil Gotshal & Manges London head Mike Francies said: “The UK firms now have widespread networks that are very successful but the downside is that they still have a huge number of mouths to feed in London.”
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The Global 100
The American Lawyer is a US sister title of Legal Week.
