For the second straight year, Milbank, Tweed, Hadley & McCloy produced significant growth in revenue and profits. Gross revenue in 2014 was up 7.8 percent, to $761 million, while revenue per lawyer rose 3.8 percent, to $1.24 million. Profits per partner increased 7 percent, to $2.745 million, on net income of $395 million, an increase of 12.4 percent.
The firm’s head count increased 3.7 percent, to 614 lawyers, and the number of equity partners rose from 137 to 144. Meanwhile, the firm’s small class of nonequity partners dropped from 13 to eight, and nonequity compensation fell from $16 million to $7.5 million.
In 2013, Milbank’s gross revenue increased 6 percent, and profits per partner rose 5 percent.
The firm’s chairman, Scott Edelman, who is in the midst of handling a trial in Manhattan federal court for music publisher BMI in a royalty dispute with music streaming company Pandora, was not available to discuss Milbank’s financial results on Wednesday. But he provided this comment to The Am Law Daily: “Our strategic focus on transactions and litigations that really matter to our clients continues to pay off … The result was that our lawyers were busier across all of our offices and practice groups.”
Edelman has continued his litigation practice since he took over as chairman in March 2013. Last year, he won an important court victory for Citigroup Inc. in a dispute with the Saudi Abbar family over a $383 million investment gone sour.
Last year, the firm bolstered its litigation ranks by luring back George Canellos, the former co-chief of the Securities and Exchange Commission’s Division of Enforcement, to become the global chairman of Milbank’s litigation and arbitration group. It also hired former federal prosecutor Antonia Apps, who worked on insider trading cases against hedge funds, including the prosecution of SAC Capital Partners. In the corporate arena, it picked up Eric Reimer, who was the corporate finance chairman at O’Melveny & Myers, and Fiona Schaeffer, an M&A partner from Jones Day.
The firm has been busy with corporate leveraged financings, including work on collateralized loan obligations. According to Milbank, its CLO team advised on 38 transactions valued at more than $20 billion. It also represented dealer managers in Verizon Communication’s record breaking $13.3 billion private exchange offer. In bankruptcy and restructuring it’s representing Lightsquared in its Chapter 11 case and advised debtors of Cengage Learning.