US legal giant Kirkland & Ellis lost a string of key partners to Paul Weiss this year. It has now turned to a familiar rival to restock its ranks — New York private equity law firm Simpson Thacher & Bartlett.
Two of Simpson Thacher’s top finance partners in London, Ian Barratt and Sinead O’Shea, joined last week in the latest in a flurry of hires by Kirkland from its US rival.
Their appointments are the latest evidence of a Simpson Thacher-heavy hiring policy at Chicago-founded Kirkland.
READ Kirkland & Ellis hires Simpson Thacher private equity duo in London
Other recent recruits include Paul Weiss London head Alvaro Membrillera, a former Simpson Thacher partner who joined Kirkland in the summer alongside his team. It also hired debt finance partner Adam Shapiro from Simpson Thacher in August in New York.
Kirkland is now rebuilding after losing a team to Paul Weiss led by debt finance heavyweight Neel Sachdev and M&A partner Roger Johnson.
Simpson Thacher alumni have become increasingly important at Kirkland in recent years, with four of the partners on the firm’s governing executive committee hailing from the New York firm: Andrew Calder, Douglas Bacon, Melissa Hutson and Peter Martelli.
Calder is seen by people familiar with the firm as one of the key factors behind the influx of Simpson Thacher partners.
He is one of the firm’s most influential partners and is tipped by current and ex-partners to be Kirkland’s next leader.
However, others caution chair Jon Ballis has a long time left on his management term and there is no thought at the firm of any sort of succession process.
The rise of Calder
Kirkland and Simpson Thacher are two of the US’s most successful and profitable law firms, thanks to their focus on the private equity industry, which has boomed in recent years.
Kirkland is the world’s largest law firm, with revenue of more than $6bn and average profit per equity partner of $7.5m; Simpson Thacher posted revenue of $2.2bn last year and average profit per equity partner of $5.3m.
Calder, 44, joined the firm in 2014 from Simpson Thacher to spearhead its launch in oil and gas hotspot Houston. The office was an immediate success and grew rapidly amid the shale gas boom that made the US one of the world’s largest energy producers.
Calder, a University of Edinburgh graduate from Scotland, quickly became influential within the firm and was able to bring on board a string of his former Simpson Thacher colleagues.
Signs of his recent influence include Kirkland’s new push to establish itself in Saudi Arabia. This was an energy-focused move, which he was involved in driving, according to people familiar with the matter.
READ Kirkland & Ellis promotes 205 new partners. Here are the names
He also played a role in the firm’s launch of a European infrastructure practice last year through a series of hires from Magic Circle law firms Clifford Chance and Allen & Overy.
The firm’s latest London hires focused on Calder’s former colleagues at Simpson Thacher. It also represents a play for one of his key clients: private equity firm KKR for whom the new hires also act.
However, a person familiar with the firm said Calder was not involved in the firm’s most recent London hiring, which they said was led by senior partners in the UK and US, and ultimately the firm’s chair Ballis.
A new, strong voice
The arrival of the former Simpson Thacher finance and M&A teams at Kirkland in London will inevitably change the complexion of the firm’s London office.
Experienced partners of the calibre of Membrillera, Barratt and O’Shea are likely to have a strong voice in the future direction of the firm’s City base.
Their arrival adds to the already influential cohort of ex-Simpson Thacher partners who have joined the world’s largest and most profitable law firm in recent years.
From Financial News
https://www.penews.com/articles/kirkland-ellis-rebuilds-by-raiding-rival-simpson-thacher-for-partners-20231024
