Some of the US’ biggest firms have posted strong results for 2007, with Latham & Watkins announcing record results to break $2bn (£1.03bn) in turnover.
The top 10 US firm emerged as a star performer after boosting both turnover and average profits per equity partner (PEP) by more than 20%. Revenues jumped by 23% from $1.62bn (£830m) in 2006 to $2.005bn (£1bn), while PEP rose from $1.86m (£954,000) to around $2.27m (£1.17m).
Commenting on the Latham results, the firm’s London managing partner Andrew Moyle (pictured right) told Legal Week: “We have doubled our revenue in just four years. The year-on-year increase is a testament to the strength of our global platform and the diversity of our practices.”
New York firm Cleary Gottlieb Steen & Hamilton saw more modest growth, with partners estimating that revenues grew by around 8.5% to take turnover to $882.1m (£452.6m). The firm’s PEP increased by a smaller figure of around 3.5% to move from $2.1m (£1.08m) last year to $2.17m (£1.12m).
The results come on the back of a strong performance from the firm’s corporate practice as well as capital markets and litigation work. They were also boosted by continued antitrust work relating to Cleary’s role on the 2006 Arcelor-Mittal merger.
Paul Weiss Rifkind Wharton & Garrison also unveiled solid results in 2007, increasing revenue by nearly 10% from $594m (£302m) in 2006 to a new mark of $651m (£331m). PEP grew by 4% from $2.5m (£1.27m) to $2.6m (£1.32m), with the number of partners at the New York firm increasing from 109 to 111.
Meanwhile, McDermott Will & Emery posted a 14% increase in revenues to hit $978m (£501m), up from $860m (£441m) in 2006 while PEP increased by 8% to hit $1.52m (£779,000).
However, some firms saw financial performance dip in 2007 with Howrey following Cadwalader Wickersham & Taft to post a drop in PEP. Profits fell by 17.5% from $1.22m (£623,000) to $1.01m (£516,000). Revenue still increased over the 12-month period with turnover inching up from $457.1m (£233m) last year to a new mark of $475.2m (£243m).
The firm attributed the drop to overseas expansion, with chairman Robert Ruyak commenting: “Some law firms borrow money to invest but that is not how we work. Every time we invest PEP is down, but we have to invest to grow. Thus you will see our results go up and down.”
Earlier this month New York leader Cadwalader Wickersham & Taft confirmed that PEP had dropped by 6% over the last year to $2.72m (£1.38m).
