LB272 P18-19 Biz Focus Goodwin.Indd 18 27/02/2017 16:18:40 FOCUS: GOODWIN PROCTER Thebusiness
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thebusiness FOCUS: GOODWIN PROCTER Growth spurts: Can Goodwin Procter’s impressive string of European hires hold it together? Madeleine Farman and Victoria Young sit down with Europe chair David Evans to discuss laterals, integration and the next steps in the region After its recent haul of new leadership style, Evans says he hires, it is hard to believe is ‘consensus-driven but with a Goodwin Procter’s 119-lawyer sense of direction’. offering in Europe began in 2011 Although all firms will opine with one partner, a telephone about culture, this is one part of and a desk in London. Europe the European growth strategy chair David Evans joined Evans has been very strict on. Goodwin after a 26-year stint ‘We were pretty ruthless in at Ashurst, where he had building the right culture from served as a board member. One the beginning. You don’t always month later he was followed get it right. All partners met by colleague Samantha Lake all laterals and a core group of Coghlan, a real estate funds partners will see all associates, partner. It was nearly a year and indeed all staff, that we before they gained their next hire. There’s probably only lateral partner, Linklaters’ global one person or maybe two in co-head of real estate Joe Conder. this entire office that I haven’t But in the last two years interviewed,’ Evans adds. Goodwin has really picked The London office is yet to up the pace in Europe. Since lose a partner permanently. launching its coveted private Hospitality partner Matthew equity practice with the hire Pohlman left Goodwin in 2015 of Richard Lever from King only to return in February & Wood Mallesons (KWM) in this year. 2015, Goodwin has expanded Evans describes the string beyond London, opening in of hires the firm has made in Frankfurt and Paris. Across ‘It was “Goodwin who?” for quite a the past 18 months as ‘strategic the three locations, 25 lateral rather than opportunistic’. The partners have arrived from firms while. We needed to get that brand office had to wait patiently to including KWM, Ashurst and built and find the right person. We build on its private equity pillar. Shearman & Sterling. ‘It really was “Goodwin Evans can boast a 40% year- kissed a lot of frogs.’ who?” for quite a while. We on-year revenue increase for needed to get that brand the London office over the past David Evans, Goodwin Procter built, we needed to get the few years, claiming London right infrastructure and then alone has brought in 50 new integrate a slew of new arrivals. firms were retrenching. Its we needed to find the right clients since January 2016, As one rival partner in the second pillar, private equity, person. We kissed a lot of frogs including Bregal Investments, City puts it: ‘It’s got to critical would follow. and the culture piece for us ECI Partners, Henderson Park, mass in a single jump and there ‘Real estate is not as was challenged quite a bit in Slate Asset Management, are a lot of mouths to feed. It infrastructure-hungry as it is with the private equity world. We Partners Group, Phoenix Equity needs to be quite successful quite PE on the law firm side,’ Evans eventually found Lever, who Partners and Capital Dynamics. quickly to feed these mouths.’ says. ‘It’s not as brand sensitive.’ fitted on so many different Firm-wide, Goodwin posted Evans has not strayed from levels for us.’ a third consecutive year of BUILDING UP his original strategy, which Lever, KWM’s former record revenue and profit, with Goodwin took on real estate is something partners praise corporate co-head, was the turnover growing 5% to $912m partner Evans to head up its in Evans’ leadership style. As catalyst for growth in the City in 2016. The firm’s profit per first London ‘pillar’ practice, Conder notes: ‘He’s very strategic private equity practice. ‘I wanted equity partner dropped slightly one of the four pillar business looking and thinking. He’s to go to a firm where private to $1.98m. law practices in the US: private receptive and open minded to equity was important and was But while growing rapidly, equity, financial institutions, other people’s points of view, and a leading part of the strategy,’ questions remain as to whether technology and life sciences, and takes that on board with strategic he tells Legal Business. ‘The push Goodwin’s burgeoning European real estate investment practices, thinking that he’s already done.’ factor at KWM was that it had offices can digest and properly at a time when the Magic Circle Describing his own completely lost its focus. Real 18 Legal Business March 2017 LB272 p18-19 biz_focus_Goodwin.indd 18 27/02/2017 16:18:40 FOCUS: GOODWIN PROCTER thebusiness estate did a lot of low-end stuff Due to Europe’s rapid that wasn’t profitable. They GOODWIN PROCTER – AT A GLANCE expansion, Evans, who became didn’t focus on the high-end the region’s chair in a new role stuff that Goodwin does, like Core London clients: Graphite Capital, GreenOak, Ares, Macquarie created last year, is considering acting for funds in real estate.’ Group, Deutsche Asset Management, PAI, TA Associates introducing formal practice Key transactions Lever PEP: $1,982,000 heads. Discussing the plans has been involved in since Equity partners: 216 with practice heads in the joining Goodwin include TA Non-equity partners: 135 US, Evans expects to make Associates’ $1.15bn acquisition Equity partners in London: Nine a decision on whether to of Russell Investments, an asset Non-equity partners in London: 12 introduce a new structure over management company, from the Revenue 2016 (global): $912m the next six months. London Stock Exchange Group. Rival partners are curious to He also led the team advising Recent key matters: see if Goodwin will be able to US snacks firm Amplify Snack n Spice Private Equity (Spice), a subsidiary of the Swiss keep the lateral hires it brought Brands’ acquisition of upmarket investment company, Spice Private Equity Ltd, in the $31.1m on from KWM. Says one partner: crisp and popcorn business sale of assets held by Spice. ‘It was a small, very collegiate Tyrrells Potato Crisps in a n NREP on a final closing of its NREP Nordic Strategies Fund II group of partners. They all £300m deal. with an investment capacity of €1.7bn. knew each other, they weren’t in Lever’s appointment opened n HSBC Alternative Investments (acting on behalf of clients each other’s pockets, but it was the floodgates for lateral hires, of HSBC Private Bank) and Hines UK on the £416m sale self-contained. You’ll find the spearheaded by Evans. In July of Broadgate Quarter in the City of London to The larger size means you can’t be Goodwin confirmed Lever’s Blackstone Group. as intimate as you were before. KWM colleague, leveraged n GreenOak on the acquisition of Grafton Advisors from UK None of them were brought in finance partner Simon Fulbrook, property developer Quintain, a wholly-owned subsidiary of to make up the numbers; they was joining in London. Just Lone Star Real Estate Fund IV. are a good group of lawyers. four months later, Goodwin As to whether that makes for a announced it was launching in good team where everyone will Frankfurt with a four-partner work well together – which is real estate team from Ashurst led not KWM’s forte unfortunately – by Stephan Kock. ‘I wanted to go to a firm where the jury is out.’ A year after Lever joined, private equity was a leading part of Evans is confident the Goodwin hired KWM’s Paris entrepreneurial yet isolating private equity team, bringing the strategy. The push factor at KWM culture SJ Berwin is known more than £8m in annual billings was that it had completely lost its for is not an issue. He says: with them. The move saw KWM ‘People tend to adapt to their later file a claim against Goodwin focus.’ Richard Lever, Goodwin Procter surroundings. People have of approximately £15m. Paris come to Goodwin from firms chair Maxence Bloch says: ‘From discussions with Gibson, Dunn the 67 lawyers it has now. which are a lot sharper elbowed. a Paris perspective, what you & Crutcher, Hogan Lovells Does Evans expect to hit 125? As long as you immerse them need these days in private equity, and Macfarlanes, although ‘I’m 55, I don’t know how long and surround them with good and especially if you’re doing Macfarlanes denies the firm held I’ve got, but we probably won’t cultural behaviour, they adapt.’ mid-market private equity, is a conversations. Fifteen associates shoot through 100 unless there ‘There’s a lot of time going very strong presence in London and five trainees joined with is an opportunity we would be into this and the hard work and a strong presence in the US. them. At the same time, KWM stupid not to take.’ starts now,’ comments Evans. This is if you want to be credible, agreed to drop the litigation Although Evans says the firm ‘The immediate part of that is to be able to step up on larger claim over the Paris hires. has ‘had its growth spurts’ he integration. I’m not worried transactions, if you want to When asked about the claim, does have plans for areas he’s still or obsessed about it because have the market knowledge and Evans explains: ‘It wasn’t one looking to bulk up – additional frankly the cultural piece of how market presence.’ of the things keeping me up at leveraged finance and private we accrue laterals means we’ve In December it emerged night, put it that way.’ equity capability in London, got a head start, but it needs time Shearman global private equity The next day it was confirmed real estate in Paris, and private and attention for sure.’ head Mark Soundy and tax the firm was bulking up with equity and regulatory funds in However there’s another partner Sarah Priestley were to another two hires in Paris, Frankfurt.