The London managing partner of the international law firm McDermott Will & Emery has publicly tempered expectations around a potential private equity investment, stating that such a move remains "a long way away" for the firm.
Market Realities Dampen Deal Speculation
In a candid assessment of the current landscape, Will Samengo-Turner, who leads the firm's UK operations, indicated that while private equity interest in the legal sector is a persistent topic, the conditions are not currently conducive for McDermott. He pointed to the broader economic environment and the specific strategic focus of the firm as primary reasons for the distance from any transaction.
Samengo-Turner's comments come during a period of significant flux and speculation within the UK legal industry. A number of prominent firms have explored or secured external capital, but McDermott appears to be taking a more cautious, long-term view. The firm's leadership is prioritising organic growth and strategic hires over a radical financial restructuring.
Strategic Focus on Organic Growth and Key Hires
Instead of pursuing private equity, McDermott's immediate strategy for its London office revolves around strengthening its core practice areas. The firm has been actively recruiting laterals to bolster its teams, a sign of confidence in its traditional partnership model. This approach suggests a belief that internal development and selective expansion will yield stronger, more sustainable returns than an injection of external capital at this juncture.
The firm reported robust global revenues of approximately $1.56 billion for the last financial year, providing a solid financial foundation that arguably reduces the immediate pressure to seek alternative funding. This performance allows the leadership team to deliberate on any future financial moves from a position of strength rather than necessity.
Implications for the London Legal Scene
The stance taken by McDermott's UK boss is a notable data point in the ongoing debate about law firm ownership. It underscores that despite the trend, the partnership model retains powerful advocates among top-tier firms. For competitors and clients alike, it signals that McDermott is betting on its existing structure and deep sector expertise to navigate the coming years.
Ultimately, while the door to private equity is not permanently closed, Samengo-Turner has made it clear that any walk through it is not on the agenda for the foreseeable future. The firm's trajectory will be one to watch as it seeks to grow its London and international presence through more conventional means, setting itself apart from peers who have chosen a different path to capital.
