Weil breaks $2m PEP as Milbank ups pace

Weil Gotshal & Manges has broken the $2m(£1.03m) barrier for partner profits in 2007, as Manhattan rival Milbank Tweed Hadley & McCloy becomes the latest US firm to post double-digit increases in both turnover and profitability.

Profits per equity partner (PEP) at Weil Gotshal improved by 11% to reach $2.11m (£1.07m), up from last year's figure of $1.9m (£965,000).

Total revenue at the New York law firm increased by 12% to $1.175bn (£596.8m), up from $1.050bn (£533.4m) in 2006.

The news comes after Weil Gotshal last week reported a near doubling in PEP at its City arm, from £700,000 in 2006 to £1.35m last year. London revenue rose by 6.5% to £57m, with local chief Mike Francies citing private equity and capital markets as top-performing areas in the UK.

Milbank, meanwhile, more than doubled its growth rate of 2006 to record an 18.8% surge in global fee income, from $540.8m (£274.6m) to $642.5m (£326.2m).

PEP rose by a similar amount, up 16.4% to $2.53m (£1.28m), compared to $2.17m (£1.10m) in 2006.

The duo join a growing list of major US firms to post significant increases in fees and profitability, including Latham & Watkins, Mayer Brown and Texas leader Baker Botts.

Firms to have posted disappointing financials include intellectual property specialist Howrey, which saw PEP drop by 17.5%, and Cadwalader Wickersham & Taft, where profits dipped by 6% against a modest turnover rise of 5%.

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