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Vinson & Elkins Bolsters New York, Global Offices
The American Lawyer
April 29, 2008
Houston-based Vinson & Elkins announced Monday a realignment that will strengthen its presence in New York and abroad.
Seven partners will relocate to New York to focus on capital markets and M&A while others will move to London, the Middle East and Asia. The firm also is bringing on a new hire in Hong Kong, former Linklaters international arbitration and litigation partner Christopher Walker.
Texan firms like Vinson & Elkins and Baker Botts have largely been spared from recessionary pains thanks to the spike in oil prices and in the energy sector generally. Vinson & Elkins posted $596.1 million in revenue for 2007, up 12 percent from the year prior. Profits per partner hit $1.2 million, up 6 percent.
"That just shows the strength of the energy area going forward," says managing partner Joe Dilg. The extra cash and stability is seen as something that could enable the firm to bolster its national and international M&A and litigation presence. "We're using the weakness in the market to our advantage," says New York bankruptcy partner Denis Cronin.
Growth at Vinson & Elkins only recently has become feasible. The collapse of Enron Corp. in 2001 robbed the firm of one of its biggest clients and posed a death threat, as Vinson & Elkins found itself drawn into shareholder and creditor litigation. So bad was it that V&E retained Cronin, then of New York bankruptcy boutique Cronin & Vris, to advise the firm on bankruptcy matters.
Instead, in June 2006, Vinson paid a $30 million settlement to settle claims with Enron's estate. Then in January 2007, plaintiffs dismissed Vinson & Elkins entirely from the Enron class action. Growth suddenly became possible again. As if to show that the firm was healthy and alive, Cronin and his five-attorney firm joined Vinson as some of its first post-Enron laterals in August.
"I think now that the Enron shadow is behind Vinson & Elkins, the firm feels it's better able to adopt a strategic plan that allows for substantial growth," Cronin says. V&E retained consulting firm McKinsey & Co. for advice on how to deploy its lawyers.
Seven partners, led by energy practice Co-Chair Marcia Backus, will relocate to New York in the business, corporate, and tax practices. From Houston, M&A partner William Creighton Smith will relocate to Abu Dhabi, while corporate finance partner James Knight will move to Dubai. Heading to Tokyo is James Atkin, while Dallas-based William Young will head to London.
Lateral hiring is under way as well. "We continue to be very opportunistic, particularly in the New York and London markets," Dilg says. Along with Walker, the firm plans to announce a new hire in finance from a Magic Circle firm "fairly soon," Dilg says.
In New York, Cronin says the firm is in the midst of interviewing several lateral partners and associates to bolster its litigation, M&A, finance and private equity practices. "The New York office will grow substantially, probably double or more, over the next three to five years," Cronin says. It currently has 54 lawyers, including 18 partners.
On the flip side, V&E's plans for global operations may have resulted in the loss of an international trade group in Washington, D.C. Four partners -- William Barringer, Daniel Porter, James Durling and Christopher Dunn -- left last week for Heller Ehrman after only two years with the firm. (They were previously at Willkie Farr & Gallagher.)
Porter recently told Legal Times they left because they realized Vinson's sights were on the Middle East rather than Asia, where their practice is focused. Dilg says their departure was separate from the firm's overall reorganization plan.
Internal management changes are underfoot as well, Dilg says. Practices at the firm have traditionally had chairs based in each local office. Now, the practice head responsibility will be given to global leaders. "We're reorganizing a number of groups along global lines instead of local lines," Dilg says.
