Links, Herbert Smith vie for RenCap panel spots

Russian investment bank Renaissance Capital (RenCap) is in the process of drawing up its first formal panel of legal advisers, with Linklaters and Herbert Smith the main UK contenders for the roster.

RenCap's London-based global general counsel, Steven Wootton, is responsible for setting up the panel, which is expected to be finalised within the next few months.

It is understood that the bank is looking to cap its legal spend by formalising the panel. It plans to cut down the number of firms it works with to build deeper relationships with a smaller number - offering those that make the grade more work at lower rates.

RenCap is expected to choose around four firms for the roster, with UK and US firms likely to be equally represented. The bank has close links with US law firms Cleary Gottlieb Steen & Hamilton and Skadden Arps Slate Meagher & Flom.

Other UK firms with ties include Clifford Chance, Lovells and Simmons & Simmons, which in September 2007 recruited the bank's former general counsel, Konstantin Orlov, to lead its Russia law group.

Herbert Smith, which last year hired RenCap's former executive director and co-head of legal and compliance, Evgeny Zelensky, has been a significant adviser in recent years, advising on issues in the corporate, finance and regulatory areas, as well as on its international expansion.

London-based relationship partner John Balsdon (pictured) said: "We have acted for Renaissance Capital on a broad number of matters over the last two years and we very much hope to continue to do so."

Plans to cap legal spend at RenCap come as the Russian M&A market has seen a steep drop in both volume and value. International firms including White & Case, Simmons, Denton Wilde Sapte and Allen & Overy have all made cuts in the region, while some are agreeing fixed fees and significant discounts as they scramble for work.

RenCap declined to comment.