Freshfields’ Asia managing partner Simon Marchant said he remains optimistic for the firm’s regional growth, despite it posting an 11% decrease in global revenues and a 3% decrease in profits per equity partner (PEP) in FY2009/10.
Global revenues at the Magic Circle firm dropped to £1.14bn (US$1.7bn), from £1.3bn (US$2.1bn) in the previous financial year, when revenue grew by 9%. PEP also dropped slightly to £1.4m (US$2.15m), from £1.443m (US$2.37m). The firm’s headcount in Asia also decreased from a combined 206 lawyers and partners to 181 this year.
In announcing declining revenues, Freshfields now joins other Magic Circle firms Linklaters (down 8%), Clifford Chance (down 5%) and Allen & Overy (down 4%) . Yet Marchant said that while global economic uncertainty remains, he is optimistic about his firm’s growth in Asia. “As people will be aware the economies in Asia came out of the downturn much faster than in other markets and this translated into strong activity by our clients and a good performance by our business in the region,” he said. “We made significant investments throughout last year in areas such as financial services, regulatory, disputes, global investigations, anti-trust, energy, capital markets and M&A.”
All eyes will now be on the firm’s new Hong Kong managing partner, capital markets lawyer Kay-Ian Ng, who took over the position from retiree Clive Rough in March. The firm is investing heavily in its Hong Kong practice where capital markets work has formed the backbone of the Greater China practice.
This work is becoming increasingly more competitive to secure amongst international law firms in Hong Kong. This year Freshfields secured roles acting for the issuers on the Hong Kong IPOs of L'Occitane (US$708m), China Merchants Bank (US$3.2bn), and NVC Lighting (US$196m).
Related stories:
- 2009 financial results of Asian firms (Aug 2009)
- GC coup for Freshfields (Sep 2009)
- Kay Ian Ng takes over Freshfields' Hong Kong office (Mar 2010)
