Global legal giant Norton Rose Fulbright has moved to publicly defend its international organisational model, following a period of high-profile partner exits and questions over its financial performance. The firm, which operates as a Swiss verein, insists this structure remains the optimal framework for its worldwide ambitions.
Standing Firm on the Verein Framework
In a recent statement, the firm's leadership robustly endorsed its chosen model. A Swiss verein is a popular structure for international professional services firms, allowing separate member entities in different countries to operate under a common brand while maintaining distinct finances and liability. For Norton Rose Fulbright, this has been the bedrock of its expansion, creating a network that now spans more than 50 offices globally.
The firm explicitly stated that it has "no plans" to alter this foundational setup. This declaration comes as a direct response to industry speculation, which has intensified following the departure of several key partners from its London office. Notably, a team of infrastructure finance lawyers, led by partner James Freeman, recently left to join US firm Paul Hastings.
Addressing Performance and Partner Moves
While defending its structure, the firm also addressed its recent financial results. According to figures submitted to Companies House, the UK LLP member of the network reported a dip in average profit per equity partner (PEP) for the 2022/23 financial year. The figure fell to £758,000 from £809,000 the previous year. However, the firm was quick to contextualise this, attributing the change to significant strategic investments.
These investments include the onboarding of over 40 lateral partners in the last year alone, a move that naturally impacts short-term profitability but is designed to fuel long-term growth. The firm emphasised that its revenue trajectory remains positive, with global turnover rising by 6% to approximately $2.3 billion. The performance across its key sectors—including energy, infrastructure, and financial institutions—was highlighted as particularly strong.
The partner exits, particularly in London, have undoubtedly drawn attention. Beyond the infrastructure team, other departures include projects partner Patrick Wallace and finance partner James Perry. The firm's stance is that such movement is a normal feature of a competitive legal market and does not indicate a systemic problem with the verein model.
The Future of Global Legal Practice
The debate around the Swiss verein model is a persistent one in legal circles. Proponents argue it enables rapid global integration and brand cohesion without the complexities of a full financial merger. Critics, however, sometimes suggest it can lead to fragmented management and less incentive for cross-border profit sharing.
Norton Rose Fulbright's forceful defence signals its belief that the benefits far outweigh the challenges. The firm pointed to its successful combination with US firm Fulbright & Jaworski in 2013 as a testament to the model's effectiveness in facilitating major international unions. Its leadership contends that the structure provides the flexibility needed to navigate different regulatory environments and market conditions across the dozens of jurisdictions in which it operates.
The firm's strategy appears focused on leveraging its global scale while continuing to invest in high-value practice areas. By publicly reaffirming its commitment to the verein, Norton Rose Fulbright aims to quell internal and external uncertainty and present a united front. The coming year's financial results and partner retention figures will be closely watched as the ultimate test of this strategy's success in a volatile global market for legal services.
