‘We know which lanes we want to run in’: Latham’s new City chief on practice priorities, pay and partner moves

‘As a agency, we’re pushed, formidable and progressive, and we thrive in aggressive markets like London,’ says Latham & Watkins’ new Metropolis head Ed Barnett, as he sits down to debate his first 100 days within the function and his imaginative and prescient for the way forward for the workplace.

Since taking up from Stephen Kensell in September, Barnett – who joined the US agency from Allen & Overy eight years in the past – has had his palms full; juggling not solely his M&A observe and new management function but in addition managing an out-of-character knock to Latham’s London play – a sequence of high-profile associate exits.

In October, high-yield companions Scott Colwell and Patrick Kwak left for Sidley Austin, following a staff of 5 sponsor-side leveraged finance companions, together with former London managing associate Jayanthi Sadanandan and Sam Hamilton, who stop for a similar agency in August. Earlier in the summertime, CLO associate Alex Martin moved to Milbank, taking six finance attorneys with him.

Regardless of the departures, Barnett stays assured within the place of each Latham’s finance staff in London and the workplace extra broadly. ‘Though companions could transfer on for various causes, and we want them properly, our staff stays exceptionally sturdy, and we proceed to steer the London finance market,’ he stresses.

Whereas additional progress for the observe is on the playing cards, it had already bolstered its ranks forward of the exits by way of the excessive profile addition of a banking and finance staff from Cahill led by Jonathan Brownson, which Barnett cites as a significant strategic win.

‘The lender finance staff is an impressive addition and has made a significant affect on our already sturdy observe,’ he stresses. ‘They’re a superb cultural and observe match and share our ambition to contribute to what we’re constructing within the Metropolis.’

And the staff has hit the bottom working with a sequence of high-profile mandates. Latest work has included advising the arrangers and underwriters on the financing for Apollo’s £2.7bn acquisition of UK supply firm Evri from Introduction Worldwide, in addition to advising the lenders on the financing for EQT’s acquisition of a majority stake in Eutelsat’s floor station infrastructure enterprise.

London lanes

Whereas there could also be a extra fast give attention to finance, in the long run, Barnett plans for Latham’s second largest workplace are a lot broader, as he strikes to make sure the main focus of the Metropolis base is consistent with the broader agency’s international technique.

‘We now have formidable objectives in London – we all know which lanes we wish to run in,’ he says, citing key observe areas together with M&A, personal fairness, leveraged finance, capital markets, restructuring, litigation and regulatory.

Substantive strikes made by Latham’s London arm in recent times have  included launching a monetary regulatory observe in late 2016 with the hires of Ashurst duo Rob Moulton and Nicola Higgs, strengthening its leisure, sports activities and media bench in 2019 with the addition of Patrick Mitchell from DLA Piper, and bulking out its M&A credentials in 2020 with the rent of former Freshfieds associate Sam Newhouse, who now serves as international vice-chair of M&A.

This 12 months, the agency additionally added M&A associate Melanie Howard from Baker McKenzie and power and infrastructure (E&I) specialist Pedro Rufino Carvalho from various funding agency Patria Investments, whereas the agency additionally welcomed again funds associate John Guccione after lower than 18 months at Linklaters.

‘We’ve invested considerably in sectors driving the worldwide financial system, together with E&I, healthcare, tech, sports activities, leisure, and monetary providers,’ says Barnett.

The funding implies that regardless of the exits – which additionally embrace senior disputes duo Oliver Browne and Stuart Alford KC, who joined Paul Hastings in February this 12 months – the Metropolis workplace stays a powerhouse, with an identical variety of attorneys in London to elite UK gamers similar to Slaughter and Might and Macfarlanes.

‘With near 600 attorneys, we’re the second-largest workplace after New York and a big contributor to the agency’s international income,’ he explains. ‘Our success comes from creating main practices in key industries.’

Expertise acquisition

Whereas progress stays a precedence, Barnett expects a slight slowdown within the agency’s aggressive recruitment technique, which noticed the London fee-earner headcount develop by near 40% underneath Kensell’s management.  

As a substitute, his focus will likely be across the form of the workplace and incremental progress in precedence areas similar to disputes, sponsor-side acquisition finance, M&A and funding funds.

He factors to the agency’s extra measured lateral recruitment processes as a differentiator. ‘We’re centered on hiring the perfect companions who share our values and ambition,’ he says. ‘Our course of is deliberately rigorous, making certain that every new associate aligns with the agency’s DNA. Nobody is imposed on the partnership; it’s all the time a consensus-driven determination.’

For Barnett, Latham’s latest overhaul of its compensation mannequin, together with the introduction of a ‘tremendous factors’ rank, underscores the agency’s dedication to rewarding high performers. This new rank of greater than 20 companions, together with two in London, are capable of earn practically double the revenue share of these on the high of the agency’s core lockstep – however Barnett stresses that compensation is not only about catering to a handful of stars.

‘Companion compensation displays our core values – it’s about selling the fitting behaviours and fostering a tradition of ambition, teamwork, and aggressive drive,’ he says.

Stressed ambition

Barnett’s personal determination to affix Latham in 2017 after 20 years years with A&O was pushed by partly by the enchantment of what he noticed as a extra entrepreneurial mindset, which he believes is a key driver of the agency’s success.

‘At Latham, there’s no presumption that work will come to us simply due to the identify. The agency’s DNA is about continuously pushing ahead, looking for alternatives, and rising. It’s that stressed ambition that defines us.’

This ambition is embodied by the actual fact all agency leaders want to keep up an lively observe alongside administration duties. ‘We’re a working partnership, and all leaders should keep engaged of their observe. It’s a significant a part of our tradition,’ Barnett provides.

For Barnett, the longer term for the Metropolis workplace is obvious. ‘We now have an outstanding platform in London and one in every of my high priorities is making certain that we hold our momentum and proceed to construct and put money into our observe and our individuals.

‘We now have unimaginable momentum, a robust observe report, unmatched international platform, and a transparent imaginative and prescient for the longer term—individuals wish to be a part of what we’re constructing and a part of our tradition,’ he concludes.