Chang, Pistilli & Simmons
Managing partner - Mark Pistilli
3 partners and 9 fee earners
Opening in Sydney - July 2006
Number of offices - One in Sydney
The announcement of founding partner Tony Hartnell to leave Atanaskovic Hartnell and retire seems to have acted as a catalyst in the decision of Diana Chang, Mark Pistilli and Danny Simmons to set up their own shop.
The departure of the three partners started a small exodus at the firm, as they have taken almost half the legal staff with them. It has spoiled Hartnell's plans to retire.
Since opening in July 2006 Chang, Pistilli & Simmons has hardly been able to handle the amount of work coming in. "We always turned away work that we didn't want to do or because we didn't have the expertise to do it, but now we also have to turn down work that we do want to do," says managing partner Mark Pistilli.
The firm did not wish to comment on what this means for its profitability, but it is thought that Chang, Pistilli & Simmons will easily surpass the already high profit per partner achieved at the partners' former firm, on the back of some large deals.
To keep up with the work, the company has shifted much of its attention to recruitment and recently announced the hire of Richard Graham and Andrew Henscher from Gilbert + Tobin, and Guy Miller from Clayton Utz. "We would like to have between six and nine partners at the end of the year and two or three of them should come from within the company," says Pistilli.
McCullough Robertson
Managing partner - Brett Heading
Number o32 partners and 157 fee earners
Opening in Queensland - 1926
Number of offices - One office in Brisbane and representative office in Sydney with 1 partner
McCullough Robertson has realised an annual compound revenue growth of 17% in the last three years and it can boast the hire of a number of high-profile partners in the last twelve months.
The strong financial performance has not made managing partner Brett Heading less conservative, and he warns that the good times will not last forever. "It's been a unique last ten years for the Australian economy, but it won't last. Inevitably there'll be some tough times."
But so far there is no sign of a slowdown yet. "This year has started very promisingly when we look at the first two months. If this trend continues than we'll definitely reach 17% growth again, but we're happy with 10%," he says.
Although McCullough Robertson has seen a few partners leave in the last twelve months (of which two have retired), the firm shook up the legal fraternity with several high-profile partner hires. Amongst them are Guy Humble, Jim Peterson, Michael Wynter, Mark Foy and Peter Kennedy. Lisa Nardone was appointed as special counsel in March 2006.
The firm made headlines in its advisory role to Excel Coal, in the multi-billion dollar takeover of the company by Peabody. McCullough Robertson has acted for Excel since it commenced business and even acted for managing director and co-founder Tony Haggerty since the outset.
Kennedys
Managing partner - Patrick George
8 partners and 12 fee earners
Opening in Sydney - June 2006
Number of offices - One Australian office in Sydney
British firms that have found their way to Australia include insurance specialist Kennedys, which set up shop in Sydney in mid-2006. The firm started business in June, with an official opening in September.
The decision to start a Sydney office was driven by clients in the Asia-Pacific region. Partner Mark Doepel, who comes from Minter Ellison, immediately created a stir when he declared, in an interview with ALB, to be eyeing a Melbourne office as well. "We've started preliminary talks with Melbourne lawyers and they're very interested," he said.
Chief executive Ric Martin of Kennedys reacted unamused to Doepel's statements. He was quick to declare that Kennedys is not looking for a national network in Australia, but he reluctantly admitted that Melbourne would be the first place to open another office when the opportunity presents itself.
To the question whether the Australian legal industry is not too competitive already for an international firm to try to get a foothold, he answered: "I think there'll be a flight to quality; not many firms can offer the quality of services we offer at the rate we offer. We have some of the best insurance lawyers against some of the best rates."
Holman Fenwick & Willan
Managing partner - Gavin Vallely
4 partners and 8 fee earners
Opening in Melbourne - March 2006
Number of offices - One Australian office in Melbourne
Maritime law firm Holman Fenwick & Willan opened a Melbourne office in March 2006, marking its entry into the Australian market. Its objective is to double the size of the office in the next two years. Managing partner Gavin Vallely says that the firm has "hit the ground running."
The firm started with four partners from Middletons and Blake Dawson Waldron and is led by managing partner Gavin Vallely. The office counts 12 lawyers in total. Holman also has Asian offices in Hong Kong, Singapore and Dubai.
Gavin Vallely says he made the initial contact with Holman. "I suggested to the members of the team that we ought to speak to one of the prominent English firms in our area - England is still the pre-eminent jurisdiction for international marine and trade law - to see whether they see any benefit in forming a relationship with us. The overwhelming consensus was that Holman Fenwick would be the best firm."
Vallely explains why they chose to have their first office in Melbourne: "Melbourne is still the prominent centre in Australia for bulk shipping and that's what our core business is. Sydney is more a container shipping centre."
Thomson Playford
CEO - Brett Goodridge
39 partners and 61 fee earners
Opening in Adelaide - Thomson merged in 1993 with Playford
Number of offices - Two, in Sydney and Adelaide
Thomson Playford's Sydney office merged in July 2006 with Cowley Hearne, making clear that the firm is serious about national expansion. It now has 19 partners in the city, almost as many as in its home base Adelaide.
It has led to some speculation on whether the firm is abandoning the Adelaide market, but chief executive Brett Goodridge makes it very clear that the South Australian city will always remain an important pillar. "Adelaide is critical to our future, but it's a market that doesn't have the depth to give you the growth possibilities that we have in Sydney."
This financial year, Thomson Playford expects to reach a revenue level of approximately A$50m. Last year the firm realised a fee income of A$35m, excluding Cowley Hearne.
Goodridge spent a lot of time on matching the firm's culture with the merger candidate and he says he will take the time to consolidate. "We don't want to bite off too much, so we can't chew," he declared.
Moray & Agnew
Managing partner - Brian Agnew
52 partners and 108 legal staff
Opening in Sydney - Brian Agnew acquired firm in1968
Number of offices - Five
Moray & Agnew has experienced major expansion in the last twelve months. It took over Hunt & Hunt's Canberra office and opened a Newcastle office. It has also added a considerable number of partners, including the entire insurance litigation team of Herbert Geer & Rundle in Melbourne, which is headed by Bill Papastergiadis.
The new offices and team in Melbourne contribute directly to the revenues of the firm, says managing partner Brian Agnew. "When we look at the contributions to the total billing, then Canberra is responsible for 8%, Newcastle for 14% and Melbourne makes up 19%. The vast majority is still realised in the Sydney office, which is good for 47% of total billing. We now fit in the top 25 of ALB's top 50, but we've kept it pretty low profile."
The growth of the firm means that it has been invited to bid on tenders where it was not asked before, says Agnew. "Clients tick off boxes. We were probably too small for some tenders before, but we now have enough size. It's a very meaty firm." After the rapid expansion in the last months he does not want to think about additional offices for a while. "Let's secure the beach before going in."
Piper Alderman
Managing partner - Gordon Grieve
51 partners and 130 fee earners
Opening in Adelaide - Piper and Alderman merged in 1988
Number of offices - Four
Although Piper Alderman has its roots in Adelaide, the firm is making strong headway along the Eastern Seaboard. Last financial year the firm showed one of the highest growth rates in Australia and secured some significant lateral hires.
Managing partner Gordon Grieve is four months at the helm, replacing Simon Ward. He indicates that the firm will focus on consolidation after a period of strong growth. The Brisbane office aside, the firm will aim for organic growth for which it has put in place a graduate recruitment program. In February the firm starts with 17 graduates. "We see strong growth continue, but more in a measured internal way," says Grieve.
The firm achieved an increase in revenues of 21% in last financial year. Grieve is a bit more conservative on this year's growth: "We've budgeted an increase from A$39m to A$42m this year, but it doesn't take into account the increases of staff that we've already had."
Growth will come predominantly from the area of commercial property. The firm recently hired Andrew Price as a consultant to its property and projects division in Sydney. Piper Alderman's team won an award at the 2006 ALB Australasian Law Awards for its role in the Chatswood transport interchange.
Cochrane Lishman
Managing partners - Ian Cochrane and Michael Lishman
3 partners and 3 fee earners
Opening in Perth - January 2006
Number of offices - One office in Perth
Ian Cochrane and Michael Lishman pulled out of Mallesons Stephen Jaques Perth office at the end of 2005 to set up their own boutique firm. The two lawyers are viewed as major players in the Perth legal industry.
Cochrane is highly respected for his expertise in capital markets and specialises in M&A and corporate governance. He advised the independent directors of Alinta Infrastructure Holdings (AIH) on its A$900m IPO. He is also involved with the Western Australia brewing industry and is chairman of the board of directors at Little World Beverages, parent company of the brewery that produces Little Creature beer.
Lishman is an energy & resources and corporate specialist. He was the head of Mallesons M&A group from 2002 to 2003 and the managing partner of the firm's Perth office between 1997 and 2000.
Not long after their departure, they managed to lure across two senior associates, Justin Harris and Paul Vinci, from Mallesons Stephen Jaques. Harris has since been promoted to the partnership. Cochrane Lishman also hired a third ex-Mallesons man with the appointment of Brandon Munro as a consultant.
Knight Coldicutt McMahon Butterworth
Managing partner - Kerry Knight
8 partners and 18 fee earners
Opening in Auckland - September 2006
Number of offices - Two, in Auckland and Wellington
The merger of commercial property firm Knight Coldicutt with commercial and business law firm McMahon Butterworth in September 2006 has created a specialist firm with a presence in some lucrative niches. The firm has offices in Auckland and Wellington.
Knight Coldicutt is a commercial property firm specialising in developments, especially high-rises. McMahon Butterworth specialises at commercial, company work, and stock market listings, mostly for small and medium enterprises, but also for a couple of blue chip firms.
"We have the philosophy of doing small niche work," says Niamh McMahon, name partner. "We've adopted a view of keeping a reasonably low profile. That came about from my own philosophy, that if you put your head above the parapet, it might get shot off, or somebody might think: why are they doing that work, I think we might pitch for them."
The merger between the two firms was facilitated by a common point of interest between McMahon and Kerry Knight. "Kerry Knight and myself each do post-settlement Maori Crown work," says McMahon. "Kerry acts for the Tenth Trust and they have received a substantial settlement for their grievances against the Crown in downtown Wellington. I act for a hapu of Ngati Whatua, one of the main tribes here called Te Uri o Hau, and they have received similar land and money. Kerry and I met up to pick each other's brains."
The issues surrounding the Treaty of Waitangi are an area that McMahon expects to grow. "I think our combined expertise will help us pick up more of that work. It's a narrow area of the law and is not an easy one, with more and more settlements being reached by Maori and indigenous groups with the Crown. The settlements include, in general, land and money and the land needs to be commercially developed and the money needs to be shrewdly invested."
Mortlock McCormack
Managing partners - Sue McCormack and Simon Mortlock
7 partners and 18 fee earners
Opening in Christchurch - April 2006
Number of offices - One office in Christchurch
The website of Mortlock McCormack states, "our firm was not established 473 years ago" and that is true. In fact, the firm of name partners Simon Mortlock and Sue McCormack merged in April 2006.
The Christchurch firm is regarded as a very focused commercial law firm. It deals predominantly in the area of commercial law, but let's not call them a boutique firm. This tongue-in-cheek firm does not like fancy terms or misplaced arrogance. "We combine intelligence and extremely good looks with unrivalled humility."
This asks for an explanation.
"It's hard to say what a boutique firm is these days," says Marcus Elliott, partner at Mortlock McCormack. "Firms call themselves 'boutique' and I'm always a bit unsure what that means in practice. In a market like Christchurch it will always be difficult to specialise."