As the industry enters the New Year with a renewed sense of optimism, ALB singles out ten firms that are set to have a bigger 2010 than most. The reasons for including some firms, such as the newly merged Norton Rose or the legal leviathan that is Dacheng, are obvious. The other names on the list might be not as familiar, but they are equally capable of distinguishing themselves with their own unique brand and philosophy. Keep an eye on these ten firms throughout 2010

 ALB 2010 Watchlist: Firms at a glance

• Appleby
• Arendt & Medernach
• Dacheng
• Hwang, Mok & Park
• Kensington Swan
• Khasawneh & Associates
• Marks & Clerk
• Norton Rose
• Shin & Kim

• Withers

  NEXT: The world’s largest offshore law firm is set to become even bigger in 2010

 APPLEBY

The world’s largest offshore law firm is set to become even bigger in 2010.

2009 has been a busy year for Appleby by every measure: A merger, two new offices and an expansion of existing ones meant that the firm ended 2009 as the largest offshore law firm in the world by headcount. In June, the firm opened new offices in the niche, yet fast-growing, Seychelles and Bahrain markets and in July became the first international law firm in Mauritius to obtain approval to practice both local and international law for the office it had opened in early 2007.

Arguably its crowning achievement was its merger with Isle of Man firm Dickinson Cruickshank. The merger, which was finalised in October, made Appleby only the second international offshore law firm to have a presence in what is widely known as a hub for investment into India (the other firm is Cains) and rounded off its already impressive suite of offshore jurisdictions — for the time being, at least. But further growth is on the cards for this aggressive offshore player. And while the firm has said that establishing a presence in Guernsey will be its number one growth objective for 2010, the bigger question is whether it will look to penetrate the lucrative South American market, like some of its fellow offshore firms.

“Appleby will be continuing to carefully watch developments in Asia, particularly Shanghai, Beijing and Singapore. We are not committing to new offices in the region, at this stage, but will reconsider that as the year wears on… Globally, we have one more major offshore jurisdiction in our sights, Guernsey, but we will keep our eyes open for new areas of business or new locations that our clients may benefit from,” said Peter Bubenzer, group managing partner. 

 ARENDT & MEDERNACH

A niche – yet in demand focus – make this Luxembourg firm one to watch in 2010

After opening an office in Hong Kong in 2009, Arendt & Medernach became the first law firm from Luxembourg to have an office in Asia and the only to provide advice on its laws.

Speaking to ALB earlier this year, Guy Harles (pictured below) a founding partner of the firm and head of international development and strategy, said that the move was hastened by the increasing volumes of trade between Luxembourg and Greater China, especially in the areas of public and private funds and direct investment.

“Hong Kong, due to its unique position as one of the global leading financial centres, is a centre that cannot be ignored in the global strategy of financial institutions and large and mid-sized companies of the industrial sector. Our clients in the region seek information on the Luxembourg financial centre, which helps them assist their contacts in the greater China region,” he said.

The fact that Luxembourg is the world’s second largest investment fund centre and the second most active country in terms of concentration of financial and banking activity will ensure that Arendt & Medernach’s Hong Kong office will be busy in the year ahead, making it one to watch in 2010.

“As outward investment funds from Asia are likely to increase fairly dramatically over the short term, and given the changes and reforms that are being implemented in multiple jurisdictions, the need for up to date advice and expertise is likely to grow. We see this strategic move of ours as timely,” said the firm’s Claude Niedner.

 NEXT: How much bigger can Asia’s biggest firm become?

DACHENG 

2009 was a momentous year for the firm one lawyer famously dubbed the ‘Baker & McKenzie’ of mainland China and Asia’s largest law firm. Dacheng not only opened 13 offices on the mainland in 2009, but also further strengthened its international network.

It sealed a joint law venture with Singapore’s Central Chambers which subsequently yielded a best-friends relationship with India’s Vaish Associates Advocates and an alliance with Malaysian firm Chris Chew & Co; opened an office in Taiwan; became the only Asian member of the World Service Group (WSG); and announced strategic alliances with Israel’s Shibolet & Co and US firm Matthews Wilson and Hunter out of which it has gained a Los Angeles office.

It’s the firm’s commitment to further expansion in terms of both coverage and headcount that make it one to watch in 2010. We eagerly await the next installment in Dacheng’s already riveting growth narrative and ask what market is next for this aggressive Chinese law firm. Watch for Dacheng to swallow niche players in the domestic PRC market and to open in the Middle East in the year ahead.

NEXT: A merger, a mainland China presence and some big deals mean this firm has the momentum to shake the Korean legal services hierarchy in 2010

HWANG MOK PARK

A merger, a mainland China presence and some big deals mean this firm has the momentum to shake the Korean legal services hierarchy in 2010

Hwang Mok Park may have been flying under the radar in a mega-firm dominated Korean legal market, but its 2009 merger with Hanseung, a boutique litigation outfit, and its work on some high-profile M&A deals such as eBay’s acquisition of Gmarket has well and truly catapulted it into the ranks of the country’s largest firms.

 Its merger will not only elevate it into the Top 10 law firms by size in Korea but gives it the size needed to move even further up the increasingly fluid legal market hierarchy. “Our merger with Hansueng earlier this year took us to 120 lawyers, and in Korea, 100 has typically been the critical point for achieving good specialty practices,” declared one of the firm’s managing partners, Park Sang Il, early this year.

Critical mass wasn’t the only thing that the firm gained out of the merger; it also inherited a Shanghai office, which although only in the early stages of its development is already being seen as crucial to the firm’s broader growth strategies. “So far the office largely assists Korean businesses going into China,” he said. “But in the long term when Chinese companies are seeking to do business in Korea, we’d see the Shanghai office as a good foothold for that. We’ll be developing a strategy going forward on how to achieve that growth.”

KENSINGTON SWAN

Kensington Swan is breaking new ground with its office in Abu Dhabi – blazing a trail that many firms in Australia and New Zealand will be looking to follow in the future

Kensington Swan has been building relationships in the Gulf for over five years, but in December it took the plunge and opened an office in Abu Dhabi. The office caters for locally based companies, New Zealand and Australian companies looking to set up business in the Gulf region or looking to attract direct foreign investment out of the Gulf region, and the government sector, which has long been a Kensington Swan specialty. It’s an intriguing move, particularly coming from a New Zealand firm.

It is the Australian firms which are usually in geographical expansion mode, yet Australians have generally eschewed the Gulf for proximity reasons. Colin Biggers & Paisley is believed to be the only other Australian or New Zealand firm to have a partner permanently on the ground in the Gulf, and that firm also has a joint venture operation in Dubai with local firm Lutfi & Co. The Kensington Swan model, based on the competitive advantage of an NZ-dollar cost base, and the capacity to provide quality advice in areas traditionally neglected by global firms, is one to watch.

KHASAWNEH & ASSOCIATES

2009 was a year of phenomenal growth for Middle East outfit Khasawneh & Associates but how will they keep the momentum going?

Khasawneh & Associates’ regional coverage coupled with its equally wide practice offering set it apart from other ‘domestic firms’ in the Middle East and make it one Gulf firm to watch in 2010. The firm, through its membership of KSLG, a regional association of firms across the Gulf, boasts offices in Amman, Baghdad and Dubai and says that further expansion is imminent.

“The firm’s regional expansion will proceed in a significant manner in the coming year,” said Nasser Ali Khasawneh, the firm’s founding partner. “On January 1, KSLG will announce the launch of its office in Saudi Arabia, in partnership with the law firm of Mohammed Al-Dhabaan & Partners, a leading firm in the country with a proven track record in various sectors.  KSLG will also be opening an office in another GCC country by the summer of 2010,” he said.

Despite a financial crisis which has seriously impaired the growth strategies of many firms in the region, Khasawneh & Associates has ploughed on, both increasing its headcount by 30% in 2009 and outlining a commitment to delivering more of the same in the year ahead. Watch for the firm, which already has enviable regional outside counsel relationships with companies such as Microsoft and Philip Morris, to continue to lure blue-chip clients away from the larger players in the Middle East. “Our firm is a regional firm that employs leading lawyers from the region and around the world, and is committed to international standards of excellence. We aim to provide top of the line legal services to our clients, and maintain close involvement with the client at the partner level. We are also engaging in an ambitious regional expansion plan through KSLG. It is this combination of a region-wide firm with international standards of excellence, as well as a growing capacity to cover the work throughout the region, that sets us apart from many of our competitors,” said Nasser Ali Khasawneh
 

 MARKS & CLERK

What lies ahead for one of Asia’s market leading IP firms?

A new Malaysian office, a high-profile lateral hire in the form of Gerard Samuel and a commitment to further expansion make specialist IP firm Marks & Clerk one to watch in 2010 — although the firm is a little circumspect when it comes to this tag. “We don’t aim to make headlines,” said the firm’s chairman Keith Hodkinson. “We focus on going about our business quietly and delivering the best possible client care.”

Hodkinson’s preference for an understated approach aside, Marks & Clerk is set for a bigger 2010 than most others. Its presence in KL means that the firm now has one of the most extensive networks of any specialist IP firm in a region which is becoming increasingly important to the growth strategies of IP law firms (it has offices in Singapore, Hong Kong, Beijing and Shanghai).

Expect the firm to dip into local employment markets in the region to reinforce its Asia offices.  “We are actively looking at other Asian markets and looking to pick up talent from the firms who have fared less well in the recession,” said Hodkinson. “Our business in Asia continues to grow and it grew significantly through the recession. By offering a quality value proposition, the businesses who have a medium-term view have stuck with us. Long-term values survive short term shocks.”

NEXT: Norton Rose’s acquisition of Deacons Australia not only created headlines in 2009, but will continue to do so in 2010 … perhaps for different reasons
 
NORTON ROSE

Norton Rose’s acquisition of Deacons Australia not only created headlines in 2009, but will continue to do so in 2010 … perhaps for different reasons

Although Norton Rose’s announcement that it would merge with Deacons Australia from January this year stole a fair share of headlines in 2009, there is more than enough to suggest that the combined firm— which will become one of, if not the, largest international law firm in the region— will continue to be to one to watch.

For one, the firm has outlined its commitment to further expansion, both in terms of its presence in the region and its core areas of practice. “Asia Pacific is a strategically important market for Norton Rose Group and we intend to continue to expand our business and improve the depth and breadth of our service to clients in the region, focusing on our key strengths of financial institutions, energy, infrastructure and commodities, transport, and technology,” said the firm’s group chief executive, Peter Martyr. Expect the firm to look to strengthen its manpower in these “headlight” areas in the year ahead.   A few headlines may also be generated by the logistics of the union itself.

Apart from the challenges associated with obtaining full financial integration, which Australia managing partner Don Boyd says is about “18 to 24 months away,” the transition of the merged entity to limited liability status is also set to throw up hurdles of its own. Either way, the Norton Rose Group will be one to keep an eye on in 2010. “The financial crisis has not affected our development plans materially.  We instigated some strategies such as our staff ‘flex’ work program which has given us flexibility to cater for the downturn without adversely impacting business. It has been well received by staff and management across the firm. We are committed to growth and development for the long term and we will stay focused on what we do best,” said Peter Martyr. 

SHIN & KIM

A merger involving one of the ‘big-four’ could create a mega-firm

Shin & Kim’s admission that it is on the look out for a merger partner in 2010 means it truly merits inclusion on our Watchlist. A slowdown of work in its core areas of practice has hastened the need for diversification, and the firm is seeking out a synergy to knit with its market-leading banking & finance, securities and M&A practices and has highlighted litigation, IP and health and pharmaceuticals as key areas in any merger.

 “We are currently seriously thinking about an acquisition or a merger – it’s one of the growth objectives we have for 2010,” a spokesperson for the firm said. And, it’s the very real possibility of a mega-merger that is exciting. “We can’t rule anyone out at this stage,” the spokesperson said. But mergers aren’t the only thing to look for from Shin & Kim in 2010. It has, like many of its fellow Korean law firms, established an international dispute resolution group with the hire of former Shearman & Sterling lawyer

Benjamin Hughes as its co-chair and will no doubt be looking to bring its offering in this area to critical mass in the year ahead. In addition, the firm has also said that it will open its second PRC office (in Shanghai) in March or April this year in addition to seeking out alliance partners in emerging markets such as Vietnam, Central Asia and Russia.

WITHERS

How will the firm that has a knack for ‘breaking new ground’ in the legal market keep up the trend in 2010?

2009 was a year of firsts for Withers. Not only did it set up its first Asia office in Hong Kong but, in an unprecedented move, it became the first onshore law firm to enter the offshore legal market when it established a presence in the BVI. On top of this, it has seen growth in its Asian client base, ostensibly made up of high net worth individuals such as entrepreneurs, family offices, CEOs, private banks, entertainers and professional sportsmen. But even though the world’s wealthy weren’t immune from the downturn, Withers kept busy, helping restructure around £20bn of client wealth in the last year alone.

But just how will it keep the momentum going in 2010? Apart from the very real possibility of opening in Singapore, the firm will be looking to partner-level lateral hires to grow its practice in the region and will be pursuing some innovative strategic directions. “In 2010 we intend to create the world’s first international family practice, providing clients with advice on pre-nups, divorce and dynastic trust planning,” said the firm’s newly installed Asia senior partner, Joe Field.

“This is especially critical where family interests are situated internationally. The globalisation of private wealth requires expert cross border and cross disciplinary legal advice, which from a private-client perspective is hard to find in Asia. Adding to this the continued political drive for increased tax sharing of information between governments, and the continued erosion of privacy for wealthy people, suggests continued growth for the services we provide,” he said. ALB