#28 The Legal Profession This Week: London Legal Market Insights and Newcastle United FC Sold​

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By Dheepa M​


A recent report by The Lawyer provides interesting insight into the London legal market. Despite the noise about the threat of US firms, all five Magic Circle firms surpass US firms when compared by total revenue generated in London. Only two US firms come close to the Magic Circle by this metric, Latham & Watkins and Kirkland & Ellis.

The Silver Circle, which includes firms like Norton Rose Fulbright, Simmons & Simmons and Ashurst still rank behind more “global” US firms like White & Case and Baker McKenzie. However, firms such as Herbert Smith Freehills and Hogan Lovells, which have pursued a more aggressive expansion strategy through M&A, seem to be performing better. For example, Hogan Lovells saw a 135% increase in revenue post-merger. Interestingly enough, in the early 2010s both Ashurst and Simmons & Simmons considered mergers with US heavy weights, Sidley Austin and Mayer Brown respectively, a move that in hindsight may have even propelled both firms ahead of the pack.

‘Business as usual’ – the notable deals and cases which went ahead this week:

Four firms are advising on the sale of Newcastle United Football Club to a group of private investors. The deal will see the club change ownership for the first time in 14 years, passing into the hands of Saudi Public Investment Fund (PIF) and two British private equity firms, PCP Capital Partners and Reuben Brothers. Allen & Overy is advising PIF, while Freshfields Bruckhaus Deringer and Reed Smith take the lead for PCP Capital Partners and the Reuben Brothers respectively. Dentons is acting for the sellers, Mike Ashley’s St James Holdings Limited.

Herbert Smith Freehills (HSF) and Allen & Overy are leading on what is reportedly the first special purpose acquisition company (SPAC) listing since summer (The Lawyer). HSF is representing the sponsor Disruptive Capital GP Limited as it plans to list the Disruptive Capital Acquisition Company in Amsterdam. Allen & Overy is advising the banks on the deal.
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