K&L Gates looks to offset rent costs as City partner pay surpasses profit

K&L Gates put more than 10% of its One New Change offices up for let last year as it sought to reduce its exposure to the high rental costs at the prime London location. The move comes as the publication of the firm's UK limited liability partnership (LLP) accounts showed it paid out more to partners in 2012 than they brought in in terms of profit. According to the LLP filing, the deficit generated by the UK partnership, taking into account members' remuneration and profit distribution, was £1.75m. To fund this shortfall, the firm's Delaware LLP paid £2.7m to the UK LLP.

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