New Threads

A recent Legal Week article asks a variety of senior associates and newly-made partners "Why private equity" and "What advice do you have for those hoping to make partner?". Thought I'd share what they said -- if you're applying to law firms with a big private equity client base, you'll often be asked this question at interview. It may also help you to explain why you are interested in other practice areas.

Carlos Gil Rivas: "I’ve always enjoyed the approach taken by financial sponsors to M&A, as well as the management team dynamic in transactions. In this pretty intensive environment you can build great rapport with small deal teams who can make decisions quickly, know their way around M&A better than you and rely on leveraging their advisers’ resources and expertise. In addition, it’s rewarding being part of transactions that represent significant life events for some of the individuals involved."

Daniel Borg: "It’s a great backstage pass. We see investments all the way from inception and structuring through to exit, and become trusted advisers to both our private equity sponsor clients and the management teams of their portfolio companies. It is also exciting to play a proactive role in the progression of sponsor-friendly terms that clear in the European debt markets."

Anela Musat: "Private equity clients are a smart, sophisticated, demanding and sometimes fickle bunch. Reaction times are fast, stakes are high and relationships are pretty easy to make or break on a whim, without the constraints of a legal panel. My advice is to build empathy, make sure you understand your clients’ business and the drivers behind an investment decision, and learn how to navigate boardroom politics and cultural differences. But there is one thing I found works universally well – when wining and dining clients, wait for coffee to talk business."

Peter Lewis: "A little bit of luck – as a first-seat trainee at Linklaters my principal was Richard Youle, a great private equity lawyer and a great mentor – and a little bit of judgement. I came into law to work on deals, and early on I recognised the opportunities for young lawyers to develop quickly doing lots of deals with seasoned PE dealmakers. It’s fast-paced and varied, and gives you the chance to build long-term collaborations with clients and their portfolio companies – it’s a fantastic environment to work in."

Will Aitken-Davis: "I enjoy the pace of the transactions and working with highly sophisticated clients. This means that you can focus on the points that matter and get deals done efficiently. Because sponsors are repeat transactors, you can also work closely with them on a consistent basis, which gives you the opportunity to build deep relationships."

Alastair Brown: "It’s the nature of the clients and the deals. Private equity is a dynamic market, filled with very intelligent, driven professionals, both from the client and legal side. It is both interesting and challenging to be able to work across lots of different sectors. It was really that excitement, competitive aspect and the challenge that drew me to private equity."

John Newton: "My involvement on a high-profile PE transaction from diligence to completion in my first seat as a trainee defined the course of my career. The high-stakes, public profile, fast pace, pressure and feeling of achievement – I was hooked."

Richard Jones: "As an M&A lawyer, private equity clients provide the most incredible opportunities – their entire business is doing M&A, they’re young and dynamic organisations, they thrive on complexity, they allow you to build relationships with the most senior decision-makers and, if you are doing it right, they place huge amounts of trust in you to deliver transactions for them."

Max Oppenheimer: "The variety that private equity offers is unparalleled and the execution speed that transactions often demand is both challenging and exciting in equal measures. One week you are advising a client on a minority investment in a fintech business and the next week (or the same day) you can be launching a takeover offer for a regulated business. We act for a large number of sponsors who look at assets across a broad range of sectors so you need to be able to quickly understand how a business operates, where the key risks may arise and how you are going to protect your client’s interests and achieve their commercial aims. There is never a dull day."

Owen Lysak: "As an advisory lawyer, I find the real challenge and enjoyment comes from the intellectual pressure of dealing with complex structuring and regulatory questions within a transaction timetable and setting. Private equity presents that opportunity to combine intellectual challenge with the demands of a deal, as well as contributing to the broader development of a business."

Ian Keefe: "Private equity is a small world and personal relationships can be important. It’s not about being super confident or extrovert, but you’re never too junior to start building your own network. If you work with someone on a deal, keep in touch – you never know when you’ll come across them in the future."

Clifford Chance have chosen to be a bit radical this year by asking applicants (I believe it's their only question?):
I get that this question will need a systematic approach, ticking off each point as it asks you to above. BUT, what about the writing style? I want it to flow well, almost like a story, but is this a requirement? Should I attempt to link everything so it becomes a painted picture of me, or should I be systematic and answer each bit like a check-list, attempting to make what I'm saying clear-cut and readable?

Let me know what you guys think!

What sort of weakness do you people usually give for this?

I found the whole giving a strength as a weakness approach (perfectionist etc) abit cringe and prefer using a small genuine weakness and talking about how your working on it?

Can anyone give any insight into possible responses to the following question:

Please choose a current legal issue that interests you and describe how it affects/may affect the current legal market? (300 words)

I tend to shy away from technology/AI in these questions as I feel like I would be setting myself up to fail if I did end up getting an interview as tech is not an area that comes naturally to me. I would normally talk about growth of emerging markets or something similar in response to this sort of question, but it doesn't quite fit with the wording "legal issue". Would appreciate your thoughts!

Hiya! I am currently drafting my application to Gowling WLG. Can anyone recommend how I should approach writing a pitch to a client?

"You have been asked to contribute to a pitch document for a potential new house builder client. Please write, in no more than 500 words, why this client should choose Gowling WLG as its preferred legal adviser."

Thank you

Hi guys! I'm working on my Baker McKenzie app and they have this question

Baker McKenzie place great value on Diversity and Inclusion. Please outline how you would apply the principles of diversity and inclusion in your role, drawing on any initiatives that you may have been involved in. (250 words max)

Does anyone have any idea how you go about answering this question? What sort of things are they looking for? Is it diversity in terms of your own background and how you can add that to the role?

Any ideas will be much appreciated!

Thanks

Hi everyone,

Just a quick question for people that were unsuccessful in their winter scheme apps...have you guys started to submit your summer app? I am just worried that I might be slightly behind with summer scheme applications I haven't even started any summer scheme apps just wanted to know whats the status of everyone with regards to this?

Hi, I recently spent a day of informal work experience at Addleshaw Goddard, one of the firms I'm applying to but I am struggling to incorporate my experience into my 'why AG?' answer. It feels cliched to talk about the large clients involved in the lease agreement I was adapting and as it was only a day, I'm not sure whether it works to talk about how the culture appealed to me.
Any advice would be appreciated!

Hi All,

You may have noticed some students have the "vacation schemer" badge from earlier this year. I'm in the process of redoing these badges for this cycle: if you have secured a vacation scheme, feel free to drop me a message and I will update your badge.

Best,

Jaysen

Linklaters Interview 2018

When was your Linklaters interview?

14 November 2018

What was it for?

Winter Vacation Scheme

Please describe the interview process at Linklaters.

HR Interview/ Case Study - E-intray/ Partner Interview

What advice would you give to future applicants for the Linklaters interview?

Technical only for Partner interview - focused only on the case studies (surprised me that they did not ask questions about me or anything else aside from the technicals of the case study and role of a trainee in this case study). For the competency HR interview - it included everything - motivation for law and Linklaters & what values you expect trainees at Linklaters to have/ vs what are your core values. Brush up on your technicals!

Hi guys, The Lawyer magazine recently released a very interesting article following a survey they undertook with law firms regarding their feelings towards Brexit and how it has impacted them so far. Bearing in mind what is currently happening in UK politics, I thought this would be a good time to share it!

Enjoy!

Dan

Introduction

In its 24th annual law firm survey, produced in collaboration with The Lawyer, Smith & Williamson sought the opinions of more than 130 law firm senior UK executives to understand their current attitudes towards Brexit and the broader levels of business confidence in the market. This barometer of the concerns and opportunities seen by senior industry figures has been running since 1995, providing insights into long-term trends. The clear messages coming out of this year’s survey show that law firms are continuing to fight for top talent in a competitive market but are increasingly confident about the opportunities available, despite the uncertainties ahead.

Brexit uncertainty

In stark contrast to last year, the views on Brexit have shifted, with a level of uncertainty creeping into what had been a clear-cut concern over the decision to leave the EU. Firms that had previously seen Brexit as a threat are now not so certain, presumably reflecting a view that maybe it won’t be quite as bad they had feared. This is the overriding sentiment across England, but in Scotland, the picture is very different, with over half of respondents still considering Brexit to be a threat.

Despite the uncertainty, both the short and long-term impact on levels of business continue to be the greatest threats that firms across the UK believe Brexit will bring. In addition to an impact on business, there is concern held in Scotland that Brexit will bring greater industry regulation, a view that is not held by firms in London. It appears the attitudes towards Brexit are becoming more polarised the closer we get to the departure date.

The level of uncertainty reported by firms, coupled with a growing economy and growing revenues, is perhaps the reason that many in England have not executed a Brexit-specific strategy plan. Again, Scotland stands out here, with over three-quarters of firms saying they had already executed a Brexit plan.

Whatever happens, the change that comes with Brexit will almost certainly generate new client demands, and those with substantial EU-related business should be adopting a more robust approach to contingency planning.

Confidence and competition

Despite uncertainty over Brexit, confidence across the legal market appears to be at an all-time high, which is a surprising result, given the uncertainties, not just around Brexit, that could impact the economy. Firms do, however, see competition within the legal marketplace intensifying over the next three years, reporting they expect to see increased levels of competition from their existing rivals and from niche players who have deep sector or product experience.

This year’s survey shows that law firms are increasingly confident about the opportunities available, despite the uncertainties ahead

One area of competition we believe has been underestimated by law firms is the Big 4 and their growing importance within the legal market. Both EY and PWC are making significant inroads into this market, with double-digit revenue growth that now challenges some of the UK top 50 firms and acquisitions that will enable them to compete, or even begin to lead, in certain markets and product areas. These firms also bring strong client bases and proven track records of delivery, begging the question, how long will it be before companies are just as comfortable asking one of the Big 4 to manage their legal requirements in the same way that they manage their tax and accounting requirements?

The war for talent

As with last year, firms report that attracting and retaining the right people is their number one concern over the next three years. The market has seen significant activity in this area over the past 12 months, with some US law firms pushing associate salaries up by almost 20% to retain the very best people. While these City salaries may not be matched across the regions, they are at the heart of a salary-inflation cycle that will affect all firms over the coming years.

The war for talent is not just confined to the associate-level lawyer. The past 12 months have seen almost a doubling in the number of lateral hires taking place, with the US law firms in London once again leading the way. Law firms are also beginning to see significant personnel changes outside of traditional legal positions, with a new breed of tech-savvy, legal-minded roles emerging. Firms are starting to recruit heads of innovation and to create teams of legal project managers to ensure smoother delivery of client work to time and budget. These roles are only expected to grow in importance and stature in the coming years.

Growth and acquisition strategies

In an increasingly competitive market, firms are looking for ways to stand out and, as in previous years, a focus on specialist sectors is seen as the biggest opportunity for respondents as they recognise the importance of differentiating themselves.

Around 40% of firms responding to our survey indicated they would be looking to expand geographically in the next 12 months but, quite surprisingly, given its imminent departure from the EU, most of these firms were seeking expansion within the UK, with only a few firms suggesting they would be looking for growth in Europe or elsewhere.

Although some firms are seeking growth, mergers and acquisitions are still not considered by many as a viable approach. Just over half of our respondents indicated that they would be seeking growth through more risk-averse methods, such as hiring a new team to build capabilities in new business areas.

Legal technology

Much has been written about how legal technology will impact the industry. However, our research has shown that, over the next 12 months, firms will be focusing their efforts on many of the traditional technologies used to deliver legal services to their clients.

There is continued investment in cyber-security as the legal market strives to ensure that clients’ confidential materials remain secure. Other areas of investment appear to concentrate on operational activities rather than the ground-breaking AI solutions that have been talked about. Investments in document management and workflow solutions appear to be the order of the day, while for firms in London there is continued interest in delivering remote working capabilities to their employees.

Most surprisingly, many respondents singled out AI technologies as areas they were least likely to be investing in over the next 12 months. It would appear that the market is polarised over this opportunity, as some of the larger firms have already made well-publicised investments in these technologies and are now taking their time to assess the return from these new systems. Those that have not invested in this area, however, are biding their time to see which solutions rise to the top and show clear added value to the legal process.

Still not getting the message on lock-up

Increasing competition, challenges in attracting the best people and pressure to deliver new legal technologies all require significant investment. Once again, our survey has shown that leading UK law firms appear to be banking on their ability to improve lock-up to provide the necessary funds. As in previous years, there are encouraging signs that firms are trying to address this issue, with some reporting that lock-up performance is now part of performance management and, in some cases, directly linked to remuneration. Despite these signs, the actual lock-up figures of the top 50 firms continue to go the wrong way.

In practice, firms find it hard to make significant changes to their lock-up and, with the investments in talent and technology taking several years to translate into increased profitability and cash flow, it suggests that firms may need to look to alternative approaches to funding.

To sum up, the legal sector is in a confident mood, with concerns over Brexit appearing to soften. Firms have plans for investments in technology and for business growth while keeping a close eye on familiar competition. Attracting and retaining the best talent remains a key concern and we expect the rising competitive threat from the Big 4 to add to those concerns.

So I will keep the firm anonymous. But basically I had applied for a vac scheme + a few other careers events over a month ago and heard nothing back. Today , I messaged the grad rec on Facebook concerning the careers events, only as they were fast approaching and I wanted to book trains and manage my week in advance and what not. Grad rec responded very quickly and let me know they were going to let people know soon? Then literally 2 hours later my Vac Scheme App got accepted and I got accepted onto the careers events. Im unsure whether this was pot luck but think its an interesting anecdote none the less; maybe showing some interest can speed along the process? (not that Id recommend messaging grad rec about your actual vacation scheme app)

Hey guys!

I've done the BPTC and my CV so far has everything Bar related i.e. debating experience, mooting experience, Inns of Court scholarships and mini-pupillages.

I am now considering applying for a TC for various reasons, but I'm not too sure where to start. I have a couple of questions, and was just wondering if anyone would be willing to share some guidance/their experience:

1. how did you decide on which firms to apply to?
2. what factors in particular would you advise I should consider when choosing a firm?
3. I understand that with TC applications it's better to focus on a few rather than many (with the Bar, the more applications the better). Please correct me if I'm wrong.If so, how many applications are advisable?
4. How do you stay commercially aware?
5. Would you happen to know of anyone who has done the BPTC and then switched routes? If so, did they have to do the LPC?
6. Given my background – do you feel I would have a hard time justifying to law firms why I switched routes? If so, would you have any advice on how I should approach the TC?
7. Would you happen to know whether firms do video interviews for TC or whether attending AC's is compulsory – I’ve just started a new job and I can’t personally afford to fly back for interviews.
8. When adding in the sections for work experience, how many would you recommend?
9. Any other general advice you may have and how I can build myself up so I can land a TC.

To help with this popular interview question, I will try to keep links/materials for different jurisdictions in this thread. Please feel free to contribute also.

Renewable energy in Africa: https://www.whitecase.com/publicati...m_source=LinkedIn&utm_content=LinkedInElevate

Foreign investment in Africa: https://www.thecorporatelawacademy.com/the-battle-for-africa/

Hi All,

Sign ups for our next commercial awareness class close tomorrow. See a snapshot of the prep material below.



Note this is our penultimate class of 2018.

This question often comes up in applications and I think that one opportunity for law firms is expanding into emerging markets such as China.

I recently found this article from The Lawyer magazine which I think offers a really good insight into China's Belt and Road initiative and the opportunities this creates for law firms. See below - I hope it is useful for people!

*EDIT: Only just realised that @yanerlim posted a similar thread on this so would probably best to be added to that*

The Belt and Road Initiative

A particular driver for growth in China right now – and, by extension, litigation in China – is the country’s ‘Belt and Road’ initiative. Also known as ‘One Belt, One Road’ (OBOR), the trade and infrastructure project is aimed at linking China with the West. Mirroring that ancient Silk Road route, China is planning to build roads, railways and gas and oil pipelines into the West.

For both Chinese and foreign firms alike, the opportunities are potentially huge. Firms are setting up teams to focus on the Belt and Road project and some Chinese firms are beginning pushes into locations sitting along the Silk Road route. For example, DeHeng launched in Almaty last year, in the knowledge that Kazakhstan – which borders China – could play a key role in the success of the project.

As research conducted by The Lawyer last year showed, international firms are especially focused on the Belt and Road. “We believe that lawyers and other service providers who properly understand the One Belt, One Road initiative and its potential ramifications for clients who do business, or are looking to do business and build relationships in the jurisdictions and target industries covered by the initiative, will be the most successful in capitalising on the expected growth,” says Akin Gump Hong Kong litigation partner Daniel Cohen.

“Outbound transactions emanating from China will require law firms to provide multiple areas of expertise such as financing, regulatory, contracting, environmental, and infrastructure,” adds Greenberg’s Ding.

“Given that many countries relying on the traditional Silk Road are in different stages of development, compliance issues such as anti-corruption should also remain a focal point.”

China-based lawyers agree that the Belt and Road initiative will undoubtedly lead to more disputes – such as litigation between Chinese state-owned enterprises and state bodies of developing countries along the route, as well as disputes between Chinese contractors and international sub-contractors.

“The OBOR initiative by nature has increased deal levels, particularly in the projects and infrastructure sector – one which traditionally sees a pipeline of disputes,” points out Clifford Chance Hong Kong litigation partner Cameron Hassall. “The mere fact that there are more deals in the market means that inherently there are more opportunities for disputes and challenges to surface that will need to be addressed. This may also involve contentious restructuring and insolvency work.”

Hi,

Does anyone know if you receive a VS or TC offer, do you need to provide copies of GCSE and A Level certificates? I can't find mine. I can request from the exam boards but they will charge per certificate so wondering if it is necessary? Thanks

Hey guys! I’ve been working on an A&O app which is taking me a little longer than expected, and a question I have particular doubts about is this:

“Provide an example of a change in the legal sector, which has happened or yet to happen, which interests you and discuss the impact it has had or could have.”

Has anyone answered this question, and have any tips on how to go about it? My main areas of concern are:

- Does it have to be strictly confined to the legal sector? If so LawTech might an (overly) obvious topic?
- In terms of impact, should I be linking it back to the firm and how it might be well placed to address those impacts?

Any thoughts or comments are appreciated!

Hey guys,

I have an upcoming White & Case interview (30 mins) with a Senior Associate and a member of HR. Has anyone done this/have any tips?

Secondly, I was wondering how you guys prep for competency questions - I feel like they could ask any question, and there's only so many scenarios I can extract from my work experience to demonstrate a skill! Also, what if they ask a competency skill and I can't think of a scenario where I demonstrated it - I can't exactly lie :/

Thanks guys

Has anyone been on the Skadden evening event? I don't know what to expect and how to prepare.

Hi All,

A while back you may have seen our posts inviting applicants to join our commercial writers team. The successful applicants have since been chosen: @bugsy malone, @kitk, @Angel and @Abstruser (forum usernames not all real names!).

Each week they will be publishing a commercial awareness update in the this forum. This will be made up of the most important business news that students need to know for that week. For each news story, they will also examine the impact on businesses and law firms to help you better understand the link between the two.

You can find their first summary here: https://www.thecorporatelawacademy.com/forum/threads/commercial-awareness-update-november-2018.798/.

A big thank you to our writers for working hard to put this together over the past week and a special thanks to @Angel for managing this week's post.

Hello, everyone! This week’s commercial awareness update is brought to you by a new team of commercial writers for TCLA. We will be posting weekly updates throughout the month and more. Do use this thread to share your thoughts and questions!

14th November 2018
______________________________________________________________________________________________________________________

1. UK Digital Services Tax

The story:

The UK has proposed to introduce a 2% digital services tax in April 2020. This would be levied on UK-generated revenues of “specific digital business models”, like search engines, social media platforms and online marketplaces, with global revenues of at least £500m.

This tax aims to ensure that large technology companies pay their “fair share” of taxes on the profits made from services which are provided to users in the UK. This can level the playing field between them and companies that are geographically bound and hence, have been paying a proportionately higher amount of tax.

The UK is now seeking feedback on the design and implementation of this tax ahead of its inclusion in the 2019-20 Finance Bill.

Impact on businesses and law firms:

There are concerns that, even with the minimum revenue threshold, the digital services tax could still unnecessary burden smaller technology companies. Also, given the extent of digitalisation of many businesses, it can be unclear which companies should be considered as entities which are subject to this tax.

Furthermore, as this tax could be seen as discriminatory against large technology companies like Google and Facebook, it could trigger retaliatory measures from the US, where many of these companies are based.

To ensure compliance with the digital services tax, law firms would have to advise their clients on issues like whether they are subject to the digital services tax and how they can structure their operations to minimise the amount of tax they need to pay.
Contributed by: Kit
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2. Danske Bank Money Laundering

The story:
Danske Bank, the largest bank in Denmark, has come under fire for the largest money laundering scandal in European history. It is estimated that $234 billion worth of questionable money was circulated in Danske Bank’s Estonian branch from 2007 to 2015.

Danske Bank is currently under criminal investigation by the US Department of Justice for money laundering activities. In 2013, 99% of the Estonian branch’s profits came from non-resident accounts. Many of these were based in Russia, which is currently the subject of US sanctions.

Impact on businesses and law firms:

Businesses breaching money laundering regulations may be subject to massive financial penalties. Just last year, Deutsche Bank was fined $630 million by UK and US authorities for its failure to prevent Russian money laundering activities. Earlier in September, ING Group paid a $900 million penalty for violating Dutch anti-money laundering regulations.

Such businesses may also face significant non-monetary sanctions, such as freezes on dollar funding. In February, the US Treasury accused Latvia’s ABLV Bank of laundering billions of dollars for North Korea’s ballistic missile program, and froze the bank’s dollar accounts. Cut off from the world’s most important market, ABLV subsequently collapsed and was wound up by the European Central Bank.

In addition to direct penalties, businesses associated with money laundering may suffer significant indirect repercussions. For instance, due to shaken investor confidence, Danske Bank’s share price has dropped by more than 30% this year.

The Danske Bank scandal highlights the importance of having active checks on internal anti-money laundering systems. Danske Bank had adopted a three-pronged anti-money laundering strategy, made up of operating guidelines, risk management and internal audit. However, due to the small size of the Estonian branch, Danske Bank did not actively monitor this defence strategy, which ultimately led to its downfall. In May 2018, Denmark’s Financial Services Authority published a report highlighting “deficiencies in all three lines of defence” at Danske Bank’s Estonian branch.

Finally, the EU is facing significant pressure from the US to strengthen its rules on money laundering. Under present rules, the European Central Bank has no independent power to investigate money laundering – it may only do so once a national authority has brought an issue to its attention. However, national regulators in smaller European countries such as Estonia or Latvia may not have the resources or expertise to detect sophisticated financial crime, allowing criminals a window of opportunity. In light of this, several pressure groups have expressed an interest in forming a centralised authority to police money laundering in the EU.

For law firms, the escalation in the global fight against money laundering may present direct opportunities in assisting businesses with drafting internal anti-money laundering policies, or conducting ‘Know Your Customer’ due diligence. Law firms may also be called upon to assist businesses with regulatory compliance and keeping up with their reporting requirements as the regulatory landscape may evolve in the coming years.
Contributed by: Shu Qin
______________________________________________________________________________________________________________________

3. US’s Iran Sanctions

The Story:
In response to Iran’s continued testing of ballistic missiles, on 5th November, Trump reintroduced sanctions that were once removed under the 2015 nuclear deal in exchange for Iran’s cease of nuclear tests. Sanctions imposed on 5th November are part of the second batch of sanctions, with the first batch of sanctions already imposed on August 7th, 2018. This second batch of sanctions is expected to be fatal to Iran’s economy as it targets the core sectors of the economy, from oil exports to banks. The sanctions were re-imposed despite the objections from the UK, Germany, and France, all part of the 2015 nuclear deal.

Impact of businesses and law firms:
What seems important is EU’s response. In a joint statement, the UK, Germany, France, and EU foreign affairs chief Federica Mogherini said that they will protect European companies engaged in legitimate business with Iran, in accordance with EU law. The EU is currently seeking ways to bypass the US sanctions. Some of the methods being discussed include creation of a new European payment system independent of the US-dominated SWIFT, and the use of special purpose vehicle (SPV), which will involve EU member states setting up a legal entity to handle transactions between EU companies and Iran.

These conflicting attitudes of the US and the EU means that lawyers would have to advise companies doing business with Iran on their obligations under US and EU law and how they can mitigate the impact of the sanctions. Law firms would also have to keep abreast of how provisions of US and EU law are being enforced and implemented. Since different firms are affected differently, depending on the industry they are in and their relationship with the US, law firms must make sure that the client’s specific circumstances are considered to accurately capture the impact of the US sanctions.
Contributed by: Sara
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I was wondering if any of you had read useful books on commercial awareness, interview answers and techniques, or just generally about careers in the city?

I find it hard to pick good ones just looking online.