Herbies' neo-cons reap Norton Rose investment

Herbert Smith has always made something of a virtue of its conservatism. While being a first mover can sometimes prove decisive, the legal market is littered with examples of firms that have lived to regret their bravado. And while the Johnny-come-lately approach doesn’t always work either, it is often a good idea to learn from other people’s mistakes – or, in the case of Herbert Smith’s imminent Dubai launch – successes.

Given Herbert Smith’s energy/projects focus, its failure to set up an office in the Middle East was looking a little tardy even by its own standards. Then last Thursday Legal Week revealed that the firm had hired two Norton Rose finance partners – Zubair Mir and Nadim Khan – for the imminent launch of an office in Dubai (see story).

Herbert Smith has often faced criticism for its conservatism in Europe, but its refusal to go on the merger trail in that heavily-lawyered market does give it the freedom to focus its considerable firepower on the emerging markets - a point made by one Deal Week commentary back in August (see article).

However, you have to feel sorry for Norton Rose, which a year ago showed its faith in Mir and Khan by making them partners. Now they have pinned their colours to a different mast. Neither is this the first time Norton Rose has invested in talent only to see it disappear off to another firm. It was a similar story when its up-and-coming securities team jumped ship for Baker & McKenzie last year (see comment).

It will be scant consolation for Norton Rose but at least it has a burgeoning track record of developing talent. And its management team insists the firm has moved on from some European strategic blunders and is now firmly back on track. If they are right, partner raids like the one inflicted last week by Herbert Smith will eventually dry up – and for all the right reasons.