Latest news with #Linklaters
Reuters
22-07-2025
- Business
- Reuters
Law firm Linklaters says US growth fueled record year
July 22 (Reuters) - Linklaters saw a surge in U.S. profits last year, the London-founded law firm said on Tuesday, boosting its global revenue and profits to record highs as it worked to further expand its U.S. business. The firm reported an overall 14% increase in profit before tax to 1.08 billion pounds ($1.46 billion) in its financial year ending April 30. U.S. profits grew by 57%, the largest increase among Linklaters' core markets. Linklaters, which has about 3,000 lawyers globally, is among the large London law firms that have prioritized adding lawyers and winning work in the United States. The firm said it now has more than 50 U.S. partners in its New York and Washington, D.C. offices. Recent hires included a litigation team from Patterson Belknap Webb & Tyler and a finance group from A&O Shearman. Revenue grew by 11% overall to 2.32 billion pounds ($3.13 billion), including a 26% U.S. revenue increase over the prior year. Profit per equity partner jumped by 15% to reach 2.2 million pounds ($2.97 million). U.S. partners worked on some of the firm's large corporate deals, including representing Dow in its agreement in December to sell a 40% stake in some U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management for $2.4 billion. ($1 = 0.7418 pounds)
Times
22-07-2025
- Business
- Times
Macfarlanes partners crack £3m pay barrier to beat ‘magic circle'
Partners at an elite City law firm that caters to the super-wealthy have broken through the £3 million barrier for average pay, outstripping its larger 'magic circle' rivals. Macfarlanes revealed on Tuesday that average pay for full-equity partners at the firm had risen by 8 per cent to £3.1 million each. That took average partner pay at the renowned 'private client' practice roughly £1 million ahead of that at the four international City firms that make up the so-called magic circle. The announcement from Macfarlanes came just hours before Linklaters was the first of that group of four to publish its annual financial figures, which showed that average partner pay at the firm leapt by 15 per cent to £2.2 million. Based on last year's figures, that rise had Linklaters level pegging with average partner pay at A&O Shearman. Freshfields is standing on an average partner pay figure of £2.1 million, with Clifford Chance on £2 million. A&O and Clifford Chance are expected to report earnings and profit within the next few weeks. However, Freshfields said last year that it would no longer actively publicise its figures, although as a limited liability partnership the practice remains obliged to file an annual report with Companies House. Slaughter and May, the fifth member of the magic circle, has remained a traditional partnership and is therefore not required to reveal financial figures. But partners at the firm are still thought to be the highest earners in the Square Mile, with average pay estimated to range between £3.5 and £4 million. Tuesday's figures from Macfarlanes and Linklaters will fuel speculation that partner pay at the rest of the magic circle and across other prominent City practices will rise well above inflation, which in the UK unexpectedly jumped last week to 3.6 per cent. It could also cast a harsh light on City partner fees. In February, a senior costs lawyer lambasted the 'greed' of City lawyers for charging up to £1,600 an hour and allowing fees to spiral 'totally out of control'. Rocketing pay for junior lawyers has also fallen into clients' crosshairs in the past few years. Newly qualified solicitors at the City offices of US firms can start on as much as £180,000. Starting pay at Linklaters and Macfarlanes trails slightly behind at £150,000 and £140,000, respectively. Macfarlanes reported that its overall turnover for 2024-25 rose by more than 10 per cent to £371.4 million, which generated an operating profit of £206.5 million. Sebastian Prichard Jones, the firm's senior partner, hinted that concern over the incoming Labour government's fiscal plans had 'underpinned a standout performance from our private client and tax practices'. Meanwhile, revenue at Linklaters for that period exceeded £2.3 billion, an 11 per cent increase. The firm said that translated to a pre-tax profit of £1.08 billion, an even bigger 14 per cent increase to eclipse £1 billion for the first time in the firm's nearly two-century history. Linklaters said its best-performing international region was the US, a market that City firms have struggled to crack. Growth in the American market rose by 57 per cent, the firm said, and this year, partners in its New York office advised General Motors in a deal with TWG Motorsports to form the Cadillac Formula 1 Team, which will join the championship grid next March. Asia at 13 per cent growth was Linklaters' next highest performing region, with the UK domestic market at 8 per cent and Europe lagging at 3 per cent.
The Guardian
12-07-2025
- Business
- The Guardian
Thames Water spent £136m on securing emergency funding, leaked document suggests
Thames Water spent at least £136m on the effort to secure emergency funding over 12 months, according to a leaked document that suggests costs outstripped the £130m the struggling utility paid in fines. The law firms Linklaters and Akin Gump received £45m and £26m respectively during the financial year to March 2025, and another 10 firms were paid more than £1m, according to a document listing 'atypical expenditure' for the year, seen by the Guardian. It is the first time the fees paid by Thames Water have been detailed publicly. The water company scrambled in the last year to secure emergency funding to avoid temporary nationalisation as it struggled under a £20bn debt pile. That effort led to a court showdown in January and February to force losses on some debt holders in exchange for up to £3bn of rescue cash to see it through this year. Thames, which is quickly burning through that cash, is in talks with the regulator, Ofwat, over a takeover by creditors who hold much of its debt, after the private equity firm KKR walked away from an auction. Lenders, ranging from big institutional investors such as Aberdeen, BlackRock, Invesco and M&G to US hedge funds including Elliott Management and Silver Point Capital, propose injecting £5.3bn in new debt and equity. The creditors argue they will need relief from future fines – and possibly the reversal of past fines – if they are to invest in Thames, which provides water and sewage services to 16 million customers in London and south-east England. Yet the figures show that fees paid to advisers in the process to refinance and sell Thames – under the codename Project Crabtree – rival the fines levied by Ofwat for sewage spills and illegal dividend payouts in the last year. Thames was forced to pay the fees for its own advisers and for those of creditors, as is usual in restructuring processes. Thames has also faced criticism for refusing to recover millions of pounds in bonuses paid to senior managers. The UK water industry is also likely to face scrutiny over the coming weeks, as heatwaves lead to drought conditions in some parts of the country. Yorkshire Water and South East Water, covering Kent and Sussex, announced hosepipe bans in the last week. Legal fees related to Crabtree appear to be significantly larger than Thames's previous estimate, which were provided in a letter dated 30 May to Alistair Carmichael, the Liberal Democrat MP who chairs parliament's environment committee. In that letter, the Thames Water chief executive, Chris Weston, wrote that 'legal fees' in relation to the recapitalisation were £67.6m. However, the internal document suggests that fees paid to Linklaters, Akin Gump, A&O Shearman and Quinn Emanuel totalled £79m that year. Thames did not explain the disparity. Consultancies AlixPartners, Bain, Deloitte, KPMG, Kroll and Teneo were also paid £39m collectively under exceptional spending during the year. AlixPartners received £12.8m, including amounts not related to the recapitalisation. The payments to the company continued after partner Julian Gething was seconded to Thames Water to act as its chief restructuring officer in December 2024. Bankers at Jefferies representing the creditors received £3.1m, while Rothschild received £1.5m. People close to the process said the fees reflected its complexity, involving a restructuring worth billions of pounds, hundreds of creditors, and the UK's biggest water company. The highest legal fees coincided with the court case. The documents suggest Linklaters was paid £10.1m in January 2025 and £5.5m in February, while Akin Gump was paid £3m and then £3.7m. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Thames Water and the creditors have said all fees related to the recapitalisation will be funded by lenders rather than customers. Nevertheless, the payment of fees represents spending of money that might otherwise have been available for investment in Thames's infrastructure. Ofwat has also said customers will not bear the cost of the Project Crabtree fees, arguing that its calculation of water bill increases does not take into account advisory costs. Charlie Maynard, a Liberal Democrat MP, challenged the debt restructuring in court, arguing it would be better for bill payers for the company to enter special administration – essentially a temporary nationalisation. He drew attention to the high level of fees in court. 'This a massive fee bonanza for advisers,' Maynard said. 'Whether these charges are directly put on our bills or loaded on to the walking disaster that is Thames Water's balance sheet, either way this is money out the door. If the customers aren't paying, can Ofwat explain who is?' A Thames Water spokesperson said: 'Customers will not pay for these fees, and fees relating to the recapitalisation will not lead to an increase in any customer bills. Adviser fees are commercially sensitive information, so we will not comment on their accuracy and cannot verify the source of information.' A spokesperson for the creditors said: 'The creditors have submitted a £17bn recapitalisation of Thames Water, expected to represent the largest financial loss suffered by investors on an infrastructure asset in British history. Several billion pounds of debt will be written off to restore financial resilience, improve environmental performance and restore customer trust as quickly as possible, with no taxpayer risk.' AlixPartners, KPMG and Teneo declined to comment. The other advisers were approached for comment but had not responded by the time of publication.
Sky News
09-07-2025
- Business
- Sky News
Jingye and Whitehall officials hold talks over British Steel future
The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers' determination not to compensate it for seizing control of the company. Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the stand-off. Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution. Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April - a move triggered by the Chinese group's preparations for the permanent closure of its blast furnaces in Scunthorpe. Such a move would have cost thousands of jobs, and ended Britain's centuries-old ability to produce virgin steel. Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant's transition to greener steelmaking, but was offered just half that sum by ministers. British Steel has not yet been formally nationalised, although that remains a probable outcome. Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel's equity was essentially worthless. Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time. Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it. News of last week's meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of President Donald Trump's trade war. Sky News's economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week. Jingye declined to comment, while a spokesman for the Department for Business and Trade said: "We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel's long-term future requires private sector investment. "We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site."
Zawya
16-06-2025
- Business
- Zawya
Re:link is now open for business in the Middle East
Linklaters' flexible lawyer platform, Re:link, has established its presence in the Middle East bringing its model for high-performance legal talent to one of the world's most dynamic markets. Fully integrated within Linklaters, Re:link connects clients with Linklaters-approved, high-calibre, flexible lawyers who can support them with their interim legal resourcing needs. It offers clients a responsive, efficient way to access expert legal talent on demand. This helps businesses address complex legal challenges, bridge resource gaps, and manage costs effectively. For legal consultants, Re:link provides high-impact work along with the freedom and flexibility today's professionals increasingly seek, delivering a sustainable business solution for both clients and lawyers. The expansion comes at a pivotal time for the Middle East, as rapid economic transformation, rising deal volume, regulatory reforms, and cross-border activity fuel demand for more adaptive and agile legal solutions. Re:link's model is designed to meet this need – giving businesses a smarter, more sustainable way to resource legal talent amid shifting priorities and accelerated timelines. Since its inception in 2019, Re:link has supported over 100 clients earning a 5/5 client service rating from Chambers & Partners UK. Deepening its presence in the Middle East signals a strategic commitment to one of the world's fastest-growing hubs for finance, energy, infrastructure, and innovation. Re:link is set to unlock the platform's full potential by connecting clients with on-demand, high-calibre legal professionals. Committed to building strong relationships, Re:link aims to evolve alongside their needs, not only delivering flexible legal solutions but also contributing to the future state of flexible resourcing in the region. Martin Laing, Head of Re:link, said, "The Middle East's remarkable growth and dynamism makes it the ideal next step for Re:link's growing global footprint and marks our first international office. It marks an exciting development in Linklaters' client offering in the region, allowing us to match clients with top-class Re:link lawyers who are brilliantly equipped to help them to navigate the many complex challenges they face. Re:link is an integral part of Linklaters' trusted brand and our clients can be confident that, when partnering with Re:link, they are accessing exceptional talent who meet our high standards.' Re:link Middle East Client Manager, Simi Ahuja, added: "We are thrilled to be establishing Re:link's presence in the Middle East, a region undergoing extraordinary economic and legal transformation. Re:link's adaptable model is perfectly positioned to help businesses navigate challenges and seize opportunities in this dynamic landscape. It's exciting to connect high-calibre legal talent with rewarding opportunities while providing clients with the agile, tailored support they need to thrive.' About Linklaters LLP Linklaters LLP is a leading global law firm, advising the world's leading companies, financial institutions and governments on their most important and challenging transactions and assignments. We combine legal expertise with a collaborative and commercial approach to help clients navigate constantly evolving markets and regulatory environments, pursuing opportunities and managing risk worldwide. With offices in major business and financial centres, we deliver an outstanding service to our clients anywhere in the world. Our 3,100 + lawyers, located across 31 offices in 21 countries, specialise in industry sectors as well as practice areas across three divisions: Corporate; Litigation, Arbitration and Investigations; and Finance.
