Category: Legal Industry

Paul Weiss Recruits Top M&A Lawyers from Skadden

Paul, Weiss, Rifkind, Wharton & Garrison LLP has strengthened its asset management practice by recruiting two prominent dealmakers from Skadden, Arps, Slate, Meagher & Flom LLP. The New York-based law firm announced on Thursday the addition of David Hepp, co-head of Skadden’s financial institutions group and leader of its asset management transactions practice, along with partner Matthew Collin.

Hepp and Collin have an impressive track record, having advised major clients such as BlackRock on high-profile transactions, including the $12.5 billion acquisition of Global Infrastructure Partners earlier this year. Their client portfolio also includes industry giants like Wells Fargo, Affiliated Managers Group, and Dai-ichi Life.

The move comes as demand for legal services in corporate transactions is on the rise, following nearly three years of subdued activity. According to a recent report from the Thomson Reuters Institute, law firms are experiencing a surge in M&A work in the second quarter of 2024.

Paul Weiss and Skadden are both recognized leaders in the U.S. legal market for M&A advisory services. Hepp, a 25-year veteran of Skadden, will lead a newly established asset management M&A practice within Paul Weiss’ corporate department.

Reflecting on the growing importance of asset management in the M&A landscape, Hepp noted, “Asset management M&A has grown and continues to grow into a really robust segment of the M&A market. The deal sizes are getting bigger, attracting more attention, and the clients are becoming more significant.”

This recruitment marks the second significant loss for Skadden’s financial institutions group in recent months, following the departure of co-leader Sven Mickisch to Simpson Thacher & Bartlett LLP, where he now serves as managing partner of the financial institutions practice.

Contact: Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019
Phone: (212) 373-3000
Website: www.paulweiss.com

This strategic hire underscores Paul Weiss’ commitment to expanding its capabilities in asset management M&A, reinforcing its position as a leading law firm in the sector.

New York Law Firm Milbank Announces Summer Bonuses Amid Increased Workload

Milbank LLP, a prominent U.S. law firm, is set to distribute seniority-based bonuses to its associates and counsel globally, with payouts reaching up to $25,000. This move, announced via an internal memo on Thursday, is likely to prompt similar actions among rival firms.

The bonuses will start at $6,000 for first-year associates and will increase depending on seniority. According to the memo viewed by Reuters, these special bonuses are scheduled to be paid by September 30.

Milbank chairman Scott Edelman acknowledged the firm’s intense workload in the first half of the year. “We know that the first seven months of the year have been extremely busy for the firm,” Edelman stated in the memo. He also indicated that the workload is expected to remain high throughout the summer and the rest of the year.

The decision to issue these bonuses comes in the context of a broader trend within the legal industry. In 2021, many U.S. law firms, driven by a surge in mergers and acquisitions (M&A) activity and stiff competition for associate talent, issued mid-year or other discretionary bonuses. Traditionally, such bonuses were reserved for year-end distributions, but one firm’s decision to offer bonuses often influences others to follow suit.

Although the M&A market has cooled in recent years, the demand for legal services related to corporate transactions is showing signs of revival. A recent report by the Thomson Reuters Institute, covering law firms’ performance in the second quarter of 2024, noted that while transactional practices are recovering, the majority of growth in demand for legal services has been driven by litigation and bankruptcy practices.

Milbank’s announcement follows its 2023 decision to raise associate salaries to $225,000, a move that triggered similar salary increases across the legal industry. The firm is the first major New York-founded law firm to announce summer bonuses this year, setting a precedent that could influence compensation trends in the sector.

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