Macfarlanes

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Overview

A genuinely distinctive practice, the 300-lawyer Macfarlanes is one of a handful of independent City practices, alongside Travers Smith, that focuses on the upper end of the UK corporate market but also has the muscle and credibility to turn up occasionally on cross-border work that is usually the preserve of much larger firms. In many ways Macfarlanes most closely resembles the breed of tightly-focused, high-quality independent firms like Cahill Gordon that are still a force in Manhattan but have become increasingly marginalised in London. Macfarlanes is best known for its corporate practice, which includes a well-respected private equity team, though in reality the firm maintains a full-service offering that, unusually, includes a top-tier private client team.

Macfarlanes, which is the 27th largest law firm in Legal Week's 2008 top 50 rankings, is further defined by its rejection of the orthodoxies of modern law firm management. This City thoroughbred very rarely makes lateral hires, though it has relaxed that once-iron rule in recent years. In contrast, the firm is obsessive about attracting top-quality young recruits (and is prone to agonising about how it is seen by the best law students). The firm also has no foreign offices and even avoids having foreign international alliances, though it has a wide group of decent referral partners. The firm is often compared to Slaughter and May, though Macfarlanes lawyers tend to be far more entrepreneurial.

The firm is also regarded as one of the most driven meritocracies in the City. Such diligence provided results, with the firm in 2007 becoming the first non-magic circle firm to break the £1m average profits per equity partner barrier within the top 50. Turnover also cracked the £100m mark for the first time in 2007 (with fees rising 14.1% to hit £105m). However, the firm's 2007-08 results were not quite so positive, as PEP inched down from the £1.125m achieved in 2007 to £1.1m. Senior partner Charles Martin cited the firm's investment in property over the period as a factor in the profits figure remaining largely flat, with the impact of the credit crunch also taking its toll on the firm's practice. Turnover increased by 4.5% to a new high of £110m.

History

As a firm that is more renowned for its quality lawyering than strategic dash, there's not that much to say about the firm's recent development, aside from the fact that Macfarlanes has maintained enviable growth in recent years. That said, the firm's profile has to a considerable extent been defined by two high-profile leaders, Vanni Treves and Robert Sutton. Treves made partner back in 1970 but came to real prominence when he assumed the senior partner role in 1987. Holding the role until 1999, Treves established himself as one of the most polished and assured lawyers in the City (though he was later to attract controversy as chairman of Equitable Life).

Treves was replaced by a polar opposite in the shape of the robust, idiosyncratic but respected corporate lawyer Sutton, who was to serve three terms as senior partner. Sutton was once reported to have explained his management philosophy, with black humour, as believing that lawyers should be miserable.

Significant developments in recent years have seen the firm flirt with moving towards a more explicit international referral model, in particular with German practice Noerr Stiefenhofer Lutz, though the firm was to retreat from this path to stick with a wide but informal patchwork of firms. Management aside, other significant moves included the decision in 2003 to substantially expand the firm's acquisition finance practice to complement its private equity team with two partner hires (one each from Kirkland & Ellis and Norton Rose). The firm has also made a handful of lateral hires in recent years (it made its first-ever as recently as 1986), including in the 2006 the recruitment of Hammonds pensions partner Jane Marshall and the 2007 hire of Jones Day planning specialist Ian Ginbey.

The big news regarding the firm was the announcement in April 2007 of a new management team to next year take over from Sutton and managing partner Paul Phippen. The new appointees are heavyweight private equity specialist Charles Martin and corporate head Simon Martin, which gives an indication of Macfarlanes unashamed transactional aspirations. Though Macfarlanes is (predictably) promising business as usual, it seems apparent that there will be a change in style as the firm moves to reposition itself to deal with the increasingly globalised City legal market.

News, deals and comment on Macfarlanes

Culture

The firm has a reputation for being a very tight knit partnership, a factor underlined by the rarity of senior departures. As mentioned above, the firm is also distinguished by an entrepreneurial style and driven meritocracy. Likewise, Macfarlanes is one of the few firms to actually live up the client-focused hype that so many modern law firms espouse, a fact often backed up by independent client research. It is less clear that the firm's collegiate style translates to the junior ranks, though its style sits well with entrepreneurial and ambitious lawyers. The firm is, however, viewed as a little old-school in how it treats its assistants - a reputation the firm has shown some signs of wishing to change.

Key departments

Despite being clearly driven by corporate, in which the firm is arguably the most respected practice operating outside London's top 10 largest law firms, Macfarlanes is avowedly full-service, boasting sizeable litigation and property teams. Also has a top-tier private client practice and enjoys a punch-above-weight reputation for contentious IP and brand work in general, thanks in part to a track record with the advertising industry. Here, the firm points to the profile accorded to The Brandbook, written in 2005 by litigation partner Geoff Steward. The book was subsequently reissued the following year (as Logos and No Gos) in conjunction with the Chartered Institute of Marketing.

National/international coverage

Famously London-centric, the firm handles all its international work through a polished but pretty informal and broad set of referral relationships.

Key clients

In private equity, key clients include Alchemy Partners, 3i and Oaktree Capital. Pernod Ricard and CSN have also handed the firm major instructions in recent years, while Umbro and Anheuser Busch are among the household names to have turned to Macfarlanes' contentious team. Greycoat Estates, Development Securities and Invista Real Estate feature on the property group's client roster.

Leading partners

Star private equity partner Charles Martin is probably the firm's most high-profile name, while private client man John Conder and Hugh Arthur in pensions are also well-regarded. Other key names at the firm include:

• Jeremy Courtenay-Stamp (advertising & marketing);
• Julian Howard (acquisition finance);
• Marc Israel (competition);
• Tim Lewis (corporate finance);
• Sean Lavin (employment);
• Ashley Greenbank (tax); and
• Paul Davies (environment).

Awards/ third-party citations

The firm points to an impressive 51 partners (well over half its partnership) with rankings in established directories. Notable citations saw the firm in 2006 pick up the London Legal Team of the Year award at the Society of Trust & Estate Practitioners, while private client grandee John Rhodes picked up a Lifetime Achievement Award.

In 2005 the firm was named the Mid-Market M&A Team of the Year at the Legal Week Awards.

Career prospects

As Macfarlanes does not make up a lot of partners, this is a firm for those who are confident of their talents. That said, Macfarlanes does clearly favour internal development over lateral hiring, so there's hope for grafters. The firm made up four partners in 2007 and six the previous year.

Salaries

Pay at Macfarlanes is in line with top City rates:

• trainee: £37,000 (first seat);
• NQ: £65,000;
• 1PQE: £71,000;
• 2PQE: £82,000;
• 3PQE: £88,000.

Macfarlanes pays a bonus, based on firm-wide performance, that is reported to be mid-range in terms of its peer group.

Recruitment

Key contacts are graduate recruitment manager Vicki Dimmick and HR chief Rob Hind. The firm takes on 30 trainees a year.

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Work-life balance

The firm has a reputation for being particularly driven and that includes an expectation that you will put in the hours. Basic target hours are 1,500 billables a year, which is pretty standard for proper deal firms.

Diversity

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