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Matthew Dwyer
Private Practice team
London
UK Law Firms in London
In the recent past a partnership was for life. This is not the case today.
Currently, almost all firms in London are looking to hire partners and tax always remains a key priority. Some of the bigger firms have a need for partners in a number of different tax disciplines.
The result of this enormous demand has been that many individuals now find themselves with a choice: to stay or to move on.
Types of UK firms
There are vast numbers of UK law firms in London that can be categorised into:
- Magic Circle practices
- Medium to large practices (including national law firms that have large London practices)
- Small to medium-sized practices
- Niche law firms
There is also the developing group of 'super medium-sized firms'.
Demand for tax partners within UK firms in London
Magic Circle firms do not recruit many partners into their London practices. When they do the recruitment tends to be strategic in nature. Partners in demand at this level will often share clients and be known by the hiring firm. Demand tends to be for specialist tax lawyers with a reputation in certain areas, i.e. finance, real estate and increasingly, private equity and funds.
Medium to large firms are highly active in recruitment. Much of the hiring is strategic, although many firms of this size are also opportunistic. In reality it is often a combination of the two.
Mostly, demand is for partners with a blend of experience across the following areas.
- Corporate M&A
- Banking and Finance Tax
- Structured Finance/Securitisation
- Capital Markets/Debt
- Private Equity
- Real Estate
- Fund Structuring
Small to medium-sized firms are driven by business case. A strong tax capability is essential. However, additional tax partner hires are likely to be strategic, such as:
- Short to medium-term head of department
- Succession planning
- Supporting niche areas in the firm
- To support a new department/team
- Replacing departing partners
It is most likely that tax partners will be either general corporate tax specialists or private client tax relationship partners.
Niche firms tend to operate – and recruit specialist tax partners – in such areas as IP, IT, employment, commercial property, corporate and private client. These firms often compete with larger practices and attract top quality lawyers in their specialist fields.
Followings required to be considered for UK firms in London
Tax is one of a very small number of areas where a partner is not expected to have a guaranteed following. Any following/network of work providers would be considered a bonus.
Capital contributions
These vary enormously from firm to firm. The most common level for plateau equity partner is between £150,000-200,000. In practical terms this figure can be as low as £100,000 and as high as £500,000.
Notice period
The vast majority of equity partners in the largest firms are on 12 months’ notice. This is often six months within the smaller London firms.
