NYC - Still a Helluva Town
"Whatever the next new new thing turns out to be," reported The American Lawyer, "for the practice that launches New York's next Latham-like success story -- it will help to have the right connections."
That's not news to us.
California-based Latham & Watkins, damsel at the Manhattan dance twenty years ago, has since risen to legal New York's top tier, by sticking to a few basic best practices. But it's getting harder and harder to come to New York, say law firms who've tried it lately -- not because the Big Apple's lost any of its cachet, both to serve existing clients and to attract new ones. New York is still the financial capital of the world and a major center of commercial litigation, with the appeal to foreign clients essential for any firm's global ambitions. Some would-be contenders ultimately withdraw, sadder but wiser. Others, like Latham & Watkins, hang in for a big payoff, whatever it takes -- and however long.
So what does it take?
In a recent article, The American Lawyer boiled it down to four durable basics -- laser focus, client base, long-range vision, and oh yeah, luck. But "what it takes", in the current business of law firms, has changed in some key respects. For one thing, outside firms once routinely mined New York's lode of midsized law firms for talent and a local presence, complete with lucrative client lists. But that once-rich lode of midsized law firms is pretty much played out, so client lists are harder to acquire, and not by merger alone. Alternatively, Kirkland & Ellis arrived in 1990 with ten homegrown lawyers and an active group of private equity clients. So the firm was able to "stick to the knitting," says Kirkland's Kirk Radke, "stick to what we're very good at."
But some firms never get momentum in New York because of the intense competition, both for clients and for talent. And the battle for business is now being fought in the lateral market. "If you're coming to New York with economics that don't match the firms already in New York," says Bradford Hildebrandt of Hildebrandt International, "then you're going to have trouble recruiting talent."
So is it too late to make it in New York?
"Absolutely not," says Kenneth Bezozo, who came from Dallas in 2004 to open Haynes and Boone's Manhattan office. But it's now more important than ever to have the map -- and the sherpa who knows his way around critical "on the ground" matters. Issues like name recognition, professional critical mass, unique practice areas, local market expertise. Moreover, per-lawyer costs in New York are higher than in a firm's other offices, so it's crucial to match the right people to the right task.
That's not news to us.
California-based Latham & Watkins, damsel at the Manhattan dance twenty years ago, has since risen to legal New York's top tier, by sticking to a few basic best practices. But it's getting harder and harder to come to New York, say law firms who've tried it lately -- not because the Big Apple's lost any of its cachet, both to serve existing clients and to attract new ones. New York is still the financial capital of the world and a major center of commercial litigation, with the appeal to foreign clients essential for any firm's global ambitions. Some would-be contenders ultimately withdraw, sadder but wiser. Others, like Latham & Watkins, hang in for a big payoff, whatever it takes -- and however long.
So what does it take?
In a recent article, The American Lawyer boiled it down to four durable basics -- laser focus, client base, long-range vision, and oh yeah, luck. But "what it takes", in the current business of law firms, has changed in some key respects. For one thing, outside firms once routinely mined New York's lode of midsized law firms for talent and a local presence, complete with lucrative client lists. But that once-rich lode of midsized law firms is pretty much played out, so client lists are harder to acquire, and not by merger alone. Alternatively, Kirkland & Ellis arrived in 1990 with ten homegrown lawyers and an active group of private equity clients. So the firm was able to "stick to the knitting," says Kirkland's Kirk Radke, "stick to what we're very good at."
But some firms never get momentum in New York because of the intense competition, both for clients and for talent. And the battle for business is now being fought in the lateral market. "If you're coming to New York with economics that don't match the firms already in New York," says Bradford Hildebrandt of Hildebrandt International, "then you're going to have trouble recruiting talent."
So is it too late to make it in New York?
"Absolutely not," says Kenneth Bezozo, who came from Dallas in 2004 to open Haynes and Boone's Manhattan office. But it's now more important than ever to have the map -- and the sherpa who knows his way around critical "on the ground" matters. Issues like name recognition, professional critical mass, unique practice areas, local market expertise. Moreover, per-lawyer costs in New York are higher than in a firm's other offices, so it's crucial to match the right people to the right task.
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