Freshfields reaches end of sweeping equity overhaul

Freshfields Bruckhaus Deringer has wrapped up its partnership restructuring in a process that will see the firm end up with around 420 partners at the beginning of May.

The magic circle firm is notifying the final partners who are to move from the equity with the firm's German and UK hubs in line for the highest number of demotions.

The firm now has about 160 partners in London and, following expected departures in the coming weeks, is due to have around 15 fixed-share partners in the UK by May.

The firm indicated that its 140-partner German practice will initially have "around 10%" of its partners on fixed-share status.

While non-equity partners will at first make up about 10% of the partnership, this number is expected to rise to around 15%.

Worldwide, the firm is estimated to have demoted as many as 50 partners. The firm has also seen 32 partners take a principal consultant role following changes to its pension.

The review to decide which partners would become fixed-share partners began in the autumn and was the culmination of what partners in the firm say was a three-year plan to cut the firm's equity.

However, Freshfields is also expected to promote a large number of lawyers to its partnership in May. The firm promoted just 10 associates in 2006 - the lowest haul in four years.

Former partners have said demoted partners will receive 50%-60% of their current drawings while newly-promoted partners will draw about 40% of equity equivalent.