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  • August 29, 2008 | International Edition

    A taxing issue at the wrong time

    With the deal market not exactly motoring and law firms trying to cut costs, the timing of news that they will no longer be able to claim back tax relief on fees they are shelling out to recruiters for lateral partner hires is unfortunate. Recruiters are regularly charging around 25%-35% of annual salary for top name partner moves so, given average partner profits at the magic circle stood at more than £1.3m for the last financial year, we are not talking about insignificant amounts.With that in mind it is understandable that the prospect of losing the ability to offset those recruitment costs against tax due to a tougher implementation stance from tax authorities is not going down well. After all, in theory a firm that was making heavy partner recruitment could pay several hundred thousand pounds more in tax a year.

    1 minute read

  • August 29, 2008 |

    A taxing issue at the wrong time

    With the deal market not exactly motoring and law firms trying to cut costs, the timing of news that they will no longer be able to claim back tax relief on fees they are shelling out to recruiters for lateral partner hires is unfortunate. Recruiters are regularly charging around 25%-35% of annual salary for top name partner moves so, given average partner profits at the magic circle stood at more than £1.3m for the last financial year, we are not talking about insignificant amounts.With that in mind it is understandable that the prospect of losing the ability to offset those recruitment costs against tax due to a tougher implementation stance from tax authorities is not going down well. After all, in theory a firm that was making heavy partner recruitment could pay several hundred thousand pounds more in tax a year.

    1 minute read

  • August 28, 2008 |

    US firms hit lowest revenue point for seven years with 9.1% PEP fall

    Revenue growth at US law firms over the first half of 2008 was the weakest it has been for seven years, with profits per equity partner (PEP) falling by 9.1% over the period, according to research compiled by Citi Private Bank.

    1 minute read

  • August 27, 2008 |

    Weil Gotshal appoints new Washington head

    Weil Gotshal & Manges has named litigation partner Michael Lyle as the new managing partner of its Washington DC office. Lyle will take up the position from David Berz on 1 October. In addition to leading the office he will continue to head the firm's products liability and mass tort litigation practice. Environmental law partner Berz will return full-time as head of the environmental practice group.

    1 minute read

  • August 15, 2008 |

    Dechert set for Beijing debut after licence win

    Dechert has become the latest firm to win a licence to practise in Beijing. The Philadelphia-based firm revealed today (15 August) that its licence application to open an office in Beijing has been approved. The new office will mark the second in Asia for Dechert, after the firm opened in Hong Kong at the beginning of the year.

    1 minute read

  • August 7, 2008 |

    Lovells sounds out contenders for MP role

    Lovells partners are gearing up for a management election this autumn as David Harris nears the end of his first term as managing partner. Harris's term does not officially end until April but the process of sounding out any potential rival candidates is already underway. The pre-nomination period to identify likely candidates runs until the end of August, with senior partner John Young then writing to all partners to invite formal nominations at the beginning of September.

    1 minute read

  • July 30, 2008 | International Edition

    Shearman and Weil to advise on GE's Abu Dhabi investment tie-up

    Shearman & Sterling and Weil Gotshal & Manges have come together to advise on a multibillion-dollar partnership between Abu Dhabi's state investment vehicle, Mubadala, and General Electric (GE). Shearman's New York office has taken the lead role for Mubadala, which last week (22 July) announced it is set to become one of GE's 10 largest institutional investors through the agreement, which will also see each company invest $4bn (£2bn) in a jointly-owned financial services company based in Abu Dhabi.

    1 minute read

  • July 30, 2008 |

    Shearman and Weil to advise on GE's Abu Dhabi investment tie-up

    Shearman & Sterling and Weil Gotshal & Manges have come together to advise on a multibillion-dollar partnership between Abu Dhabi's state investment vehicle, Mubadala, and General Electric (GE). Shearman's New York office has taken the lead role for Mubadala, which last week (22 July) announced it is set to become one of GE's 10 largest institutional investors through the agreement, which will also see each company invest $4bn (£2bn) in a jointly-owned financial services company based in Abu Dhabi.

    1 minute read

  • July 30, 2008 |

    Cadwalader faces its 'cataclysmic event'

    Just last year, Cadwalader Wickersham & Taft was riding high. Double-digit growth in profits per partner over the last five years had catapulted the…

    1 minute read

  • July 29, 2008 |

    Simpson Thacher to lead on multibillion-dollar KKR listing

    Simpson Thacher & Bartlett is to advise longstanding client Kohlberg Kravis Roberts & Co (KKR) on the private equity powerhouse's public offering, reports The American Lawyer.The transaction is a significant departure from KKR's original plans, announced a year ago, to raise $1.25bn (£627m) through an initial public offering. Instead, KKR will go public by taking over its Amsterdam-listed investment fund, KKR Private Equity Investors (PEI). After the transaction is completed, shares of KKR will be listed on the New York Stock Exchange. The proposed deal values KKR at a reported $12bn-$15bn (£6bn-£7.5bn).

    1 minute read