Hello and welcome to the Fides Weekly Update. Take a look at this week’s key trends, moves and developments in legal and compliance.
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This week:
1). Cubism Law becomes first New Law venture to enter Administration
Following mass lawyer departures to rivals Keystone Law and Gunnercooke, new law outfit Cubism Law entered administration on Wednesday, with insolvency specialist Quantuma LLP and Pinsent Masons handling the wind-down.
This follows news that emerged last month that a 16-lawyer team departed to join Gunnercooke, with an additional six consultants moving to Keystone Law. Since then, other Cubism lawyers have departed to boutiques around London, including charity specialist Bates Wells Braithwaite, commercial outfit Laytons, white-collar boutique Eldwick Law in Mayfair and Marylebone-based Kyriakides & Braier.
The new law market in which Cubism was based has expanded in recent years and comprises non-traditional law firms looking to offer more affordable legal services using innovative internal structures and enhanced technology.
Established in 2007 by ex-Fieldfisher disputes partner Andrew Pena, the firm was set up to recruit senior lawyers with established clients and provide the branding and office infrastructure they needed.
The consultancy basis upon which Cubism operated saw lawyers have oversight of their own practices, and the implementation of a fee-sharing model which allowed consultants to retain a proportion of the income they made.
However, the firm faced a tough few years financially, with records showing debts at the firm increased from £1.6m to £2.3m for the 2018 financial year. The average monthly number of people employed by the company also increased from 29 to 38.
This shows that despite the innovation and efficiency displayed by these firms to support clients, they are still prone to falling short in the highly competitive UK legal market.
2). Movers & Shakers
Moves
KPMG Appoints Australia-Based New Head of Global Legal Services
Former King & Wood Mallesons global managing partner Stuart Fuller will soon lead the KPMG’s worldwide legal offering, which includes 2,300 legal professionals across 76 jurisdictions
Travers’ Former Managing Partner Joins Deloitte Legal
Andrew Lilley, who was the City firm’s managing partner for five years until 2015, will be the head of the employment law practice at the Big Four operation
Allen & Overy Hires Funds Partner in Paris From Dechert
Antoine Sarailler advises French and international financial institutions on the structuring, setting-up and marketing of institutional and retail investment funds, as well as on a wide range of regulatory matters
White & Case Hires Milan Partner Duo from Latham & Watkins
Andrea Novarese, the European head of Latham’s automotive industry group, and M&A partner Maria Cristina Storchi are set to join White & Case’s Milan office
Orrick Adds White-Collar Defence Partner in Milan
Jean-Paule Castagno joins from Clifford Chance, where she was of counsel
King & Spalding Hires Baker McKenzie Banking and Finance Partner in Paris
Anne Vrignaud, who advises on acquisition finance, real estate finance and debt restructuring work, is the fifth partner to join King & Spalding’s Paris office since mid-2018
Clyde & Co Picks Up Pinsent Masons Construction Pair in Singapore
Pinsent Masons’ Singapore office joint head Jon Howes and senior associate Sean Hardy join Clyde & Co as partners
Financials
Gordon Dadds Grows Revenue By Two-Thirds as Acquisitions Pay Off
Addleshaws Revenue and PEP Growth Cools as Profits Hit £100M
Linklaters Matches Fellow Magic Circle GDL Grant Hikes
Shoosmiths Posts Modest Revenue and Profit Upticks
Two Bristol-based Firms Close In on £100m Revenue Mark
Stewarts PEP continues to plummet from sky-high £2m figure
Osborne Clarke’s PEP falters as revenue hits €300m
Baker McKenzie Ramps Up Europe Financial Integration
Inclusion and Diversity
Would Mandatory Psychologist Appointments Reduce Burnout in Big Law?
Reed Smith Adds On Even More Perks for Associates
Depression and Anxiety Prevalent at Small and Medium-Sized Australian Firms
Harassment Complaints to the SRA Soared by Nearly 500% Last Year
Technology and Innovation
Simmons & Simmons Strikes Latest Legaltech Deal
Other
Litigation funder launches sector’s first-ever training contract