Why US Law firms are thriving in London?
Vivian Ji, a US and Chinese qualified attorney who manages Barbri International’s legal education programme having previously worked for Baker McKenzie and practised in-house at United Technologies.
The key themes that were discussed were the culture of US-based firms v UK-based law firms. Further, they explored why US firms have been doing so well during recent years. The implications of Brexit; efficiency, technology and the future, and advice for training contract applications. Over the last few years US-based international law firms have poured resources into London, boosting their office sizes, developing trainee programmes and raiding UK rivals for some of their best talent. With newly qualified solicitor salaries at these firms considerably higher than the rates paid by magic circle rivals — and recently rising further — the dynamics of legal graduate recruitment are shifting. What’s more, the training infrastructure at many US firms’ increasingly chunky London offices is now as well developed as many UK outfits, while the route to partnership is ever more well-defined.
Part and parcel of the distinction is within the American culture that is innate within the London offices of the US giants. There is an embedded flat structure, and smaller teams. One of the panel members commented that the contrast with the UK City firms is the larger numbers which are discombobulated with production-line style tasks in a pyramid structure. Tasks in the US firms are distributed more equally, where trainees and associates can work within an equal structure. The quality of work is exceptional in US firms. One point to consider is the avoidance of M&A work, where many of the established UK firms have long-term relationships with big institutional, corporate clients. Private equity and energy work have become more streamlined with the US firms in London, in order to develop their practice in the States and, in particular, New York. Dual-qualification is always useful. The speakers noted that a number of US firms in London are willing to recruit New York and English qualified lawyers in particular areas such as bonds, high yield capital markets and international arbitration.
It was a wonderful event to attend, and provided a great wealth of knowledge about US firms in London, and their comparison to UK City firms. Certainly it provides the ambitious law student plenty of options to consider and reflect, and which particular firms to target in their search for that elusive training contract.