It is hard to believe that there has ever been a US reporting season that has been as keenly watched by the magic circle as this one. Global market conditions, continued international integration and the weak dollar mean the City’s leaders have never had a better chance of closing the gap on New York’s elite.
Last year, Linklaters joined Slaughter and May as the only UK practices in the world’s 10 most profitable law firms. This year, given the initial results from the US, it looks like Allen & Overy (A&O), Clifford Chance (CC) and Freshfields Bruckhaus Deringer will come tantalisingly close. On a rough estimate, to have an outside shot of making that select band, the UK triumvirate need profits per equity partner (PEP) of at least $2.4m (£1.2m). This means Freshfields needs bottom-line growth of 16%, A&O 17% and CC 18%.
