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US law firm Latham & Watkins increased its revenue by more than a fifth last year, hitting $7bn for the first time as a resurgence in dealmaking bolstered the coffers of American firms.
The 23 per cent rise in revenue helped to push average profits per equity partner, a key metric that shows the proportion of profits accruing to the firm’s more than 500 partners, up by 29 per cent to $7.1mn, it said on Tuesday.
Latham, one of the world’s largest law firms by revenue, has grown in the past decade through a spate of investment in its global offices and strong returns from its M&A and private equity practices, more than doubling revenue in the past seven years.
The firm advised on 31 US initial public offerings — more than twice the amount of any other law firm — last year. Other important mandates included advising Anglo American on the $3.8bn sale of its coal portfolio and Permira on its $7.2bn take-private acquisition of Squarespace.
“We were at the centre of many of the year’s landmark deals and high- profile cases,” said Latham chair and managing partner Rich Trobman, adding that the firm “serves more public company clients than any other firm”.
Latham has been battling it out with Kirkland & Ellis in recent years to be the world’s largest law firm. Kirkland, which is yet to report its 2024 financial results, broke through the $7bn barrier in 2023, recording revenues of $7.2bn, according to legal publication The American Lawyer.
Latham has also invested heavily in London over the past decade. While the firm does not break out its financial results by office, revenues from the UK capital increased 25 per cent last year to $850mn, according to a person familiar with the firm’s financial performance. Trobman said London was “a major driver of growth” for the firm.
The firm advised investment company EQT and others on the sale of global school operator Nord Anglia Education to a consortium led by Neuberger Berman for a valuation of $14.5bn, in what was the biggest UK deal last year. It also advised UK cyber security company Darktrace on its $5.3bn acquisition by US private equity firm Thoma Bravo.
Latham has grown its London headcount by nearly 50 per cent over the past five years to 140 partners.
