An economic downturn doesn´t necessarily mean that partners stay put or firms are discouraged to bring on lateral partners. For a partner-level attorney there are many opportunities for lateral movement. According to The American Lawyer´s 2010 “Lateral Report,” 2,774 partners made lateral moves in the year ending September 30, 2009, a 10.6 percent increase from the preceding year.

This holds true in the Asia and Middle East markets as evidenced by Norton Rose´s recent survey showing a significant perceived shift in economic power from the west to the east. Last year, Norton Rose moved even more partners to their Hong Kong office and Clifford Chance saw more work in all of its offices in Asia. The majority of opportunity for partner level candidates stems from the continued interest of Western law firms in these emerging markets as US and UK law firms try to diversify and hedge their risks in a down US economy. More established firms are looking to diversify their platform in such areas as international arbitration, restructuring, private investment funds and energy and/or build out their core strengths internationally by making opportunistic hires and internal transfers (typically from their US or London offices). Newer offices are taking advantage of the turn in the market and increase in lateral partner movement to avoid the risk and expense of growing organically by hiring partners with regional experience and expertise. That said, while lateral movement has been scattered among practice areas, most US and UK firms are looking for the same profile: a solo corporate partner with a sustainable and portable book of business valued at a minimum of $2.5 million and significant experience and contacts in the region. In 2009, we saw over 55 lateral partner moves in Asia and the Middle East and 15 so far this year.

The demand for partners with regional experience is greater than ever. It´s safe to say that a new office has a much greater likelihood of success by bringing in well-reputed partners who have been on the ground, have a viable book of business and local relationships and know-how, including cultural business and social norms and administrative and regulatory expertise. We saw a record number of office openings in 2009 and already 10 have opened in 2010. Just look at Ropes & Gray and Fried Frank who have both made great strides in China by bringing on well-reputed partners with local experience and both Western and Asian client bases. While many recent office openings in Asia and the Middle East have been driven by increased needs of a US or UK client base, these newer offices must also compete for work in a new legal environment, and bringing on a partner with a strong base of business and/or relationships in the region can make or break a new practice. Of course, “reasonable” billing rates, flexibility, cultural awareness, brand equity, international presence, a firm-wide commitment and a lot of patience also help a firm´s success in the region. Read More...

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