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SJ Berwin Reacts to Tough Market Conditions With Partner Exits
Legal Week
November 06, 2009
SJ Berwin has joined the growing rank of London law firms restructuring their partnerships. The top 20 U.K. firm is asking a number of partners to leave.
SJ Berwin confirmed that it has asked a group of partners to leave in recent weeks, with both equity and non-equity partners understood to have been affected.
The firm would not clarify the precise number of partners affected by the cull beyond saying that "less than six" of its 170-strong partnership had been asked to go.
At least three of the departing partners are understood to be in the firm's London real estate practice, but other practice areas have also been affected.
The firm's partnership has not been consulted on the decision and only those affected by the cuts have been formally informed of the measures. The departures will be subject to standard notice periods, which vary according to each partner's contract terms.
SJ Berwin managing partner Ralph Cohen said: "There are a small number of partners that we have been talking to and that will be leaving. It is an ongoing review of the shape of our practice and regrettably we have had to ask a small number of partners to move on."
Commenting on the cuts, one partner said: "It should be a good thing -- the market has shrunk and we have probably over-expanded in recent years. However, my feelings depend on who they have chosen."
The firm, which has a strong focus on private equity and real estate, was heavily hit by the financial crisis and saw profits per equity partner drop by nearly 50 percent during 2008-09 to 410,000 pounds ($680,000).
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