Herbert Smith Freehills Kramer, the combined law firm created by the merger of Herbert Smith Freehills and Kramer Levin, has reported revenue of $2.4bn for its first full financial year since the tie-up. The figure represents a 12% increase on the combined revenue of the two firms in the prior year, according to a statement released on Tuesday.
Profit per equity partner rises 16%
Profit per equity partner (PEP) reached $1.6m, up 16% from the pro forma combined PEP of the predecessor firms. The merger, which completed in May 2024, created one of the largest law firms globally with over 2,800 lawyers across 20 offices.
“Our first full year as a combined firm has demonstrated the strategic rationale of this merger,” said Justin D’Agostino, global CEO of HSF Kramer, in the statement. “We have seen strong demand across our core practices, particularly in disputes, corporate, and finance.”
Revenue growth driven by disputes and corporate work
The revenue growth was led by the firm’s disputes and corporate practices, which benefited from increased client activity in cross-border litigation, arbitration, and M&A advisory. The firm also highlighted its energy and infrastructure practice as a key contributor, advising on major projects in the Middle East, Asia, and the Americas.
HSF Kramer’s revenue of $2.4bn places it among the top 20 law firms globally by revenue. The merger combined Herbert Smith Freehills’ strength in the UK, Asia, and Australia with Kramer Levin’s presence in the US and France.
Cost savings and integration progress
The firm reported cost synergies of $80m, ahead of its original target of $60m, driven by office consolidation and technology investments. Integration of the two legacy firms is largely complete, with a unified management structure and practice groups in place.
“We are now fully focused on executing our growth strategy, leveraging our combined platform to win more complex, high-value mandates for our clients,” D’Agostino added.
The results come amid a period of consolidation in the legal industry, with several major law firm mergers announced in the past year. HSF Kramer’s performance is seen as a bellwether for the success of cross-border tie-ups in the sector.
