Looking around

I have recruited private client lawyers for well over ten years and have acted for many of the world’s leading firms, working closely with their management teams and private client departments, advising them on partner and team acquisitions and in some cases mergers/acquisitions of firms. I have also worked with a number of firms recruiting more junior members for their private client teams. I place and advise private client lawyers in a variety of firms all over the world, including Bermuda/BVI, the Channel Islands, Switzerland, Monaco, Luxembourg, the Far East, Africa, the US and, of course, the UK.

Money talks

I asked myself what you, a private client lawyer, would want to hear from me about the market, and decided that arguably there were several areas that would generate the most interest: salary, recruitment patterns and lawyer retention.

So, what are my firms paying private client lawyers at the different levels? Obviously, I can only comment on the clients/firms that I work for, and, as previously mentioned, they are the leaders in private client and the salary levels reflect this. There are a mixture of types of firms that specialise in private client, ranging from some of the biggest corporate-focused firms to the medium-sized well-known private client firms, international firms, regional firms ?(a number of them now with London offices) and niche private client firms. The figures I have quoted have come from actual placements made, as well as client guidelines on individual current and historic requirements.
Equity partner earnings. The range of earnings for equity partners in private client is vast and it really depends on the firm and its profitability. At a number of the London firms known for private client the equity partners are earning between £250k and £500k, with a majority earning in the late £300ks to mid £400k. There are exceptions and you can find a few individuals whose remuneration level exceeds £1m, but their business and client following reflects the high earning level.

The range in hourly charge-out ?rate varies, but a core of the private client partners in the market are ?charging themselves out at between £380 and £500 per hour. Again, ?there are exceptions, and some of my clients are charging their partners ?out at £700-£800 per hour. Overall, ?the leading law firms in private client ?are still not charging as much as some ?of the leading accountancy firms, ?with a number of the partners in ?these firms charging themselves out ?at £900-£1,000 per hour. The equity earnings in private client in the regional heavyweights vary hugely, because ?of a number of poor performing firms ?in the current market. However, there ?are still a number of firms where the partners are earning between £150 ?and £350k.

Follow the leader

Salaried partner earnings again vary depending on the firm – in the current market a salaried partner in London will earn anything from £95k up to the low £200ks. The vast majority of known London private client firms are paying their salaried/junior partners between £120-£180k. There are a number of fixed share/junior equity private client partners earning £200-£300k in the London market.

A strong associate in the current market should be earning £70-£85k, with one or two earning up to six figures, but these few higher-earning associates are very close to being promoted to partner level. There are some offshore clients who pay more ?than magic circle law firm rates for ?their junior lawyers, with some entry level/NQ equivalents being paid a package close to six figures. In the regions, private client lawyers (non partners) can expect to earn anything between £40k up to £70k.

Overall, your remuneration is roughly a third of what you or your team brings in, regardless of level. If you are an equity partner looking to make a move, with a following/billing of £1.5m, you can expect to join the equity of a firm and, depending on its profitability, you would want to be earning circa £400-£600k. There are some leading firms that have a policy never to recruit direct into the equity; however, they will offer a remuneration package that mirrors the equity of the firm. If you are an associate with a track record of billing £250k, you can’t expect much more than £80-£85k, otherwise, if you were expecting more, the figures would not work for the firm recruiting you.

Are firms recruiting? I have a number of firms recruiting private client lawyers at the moment. We have several vacancies, mainly at partner level, with firms based in London, UK regions, Switzerland, Monaco, Channel Islands and New York.

A majority of my clients would like to recruit private client partners who can bring some form of a client following. Not all of them are expecting a complete following, but there is certainly an expectation of some clients and contacts moving with them. I do have one client in London who is recruiting at the senior level and is not looking for a following, as two thirds of the business is already there. It is more important for this client to recruit the right calibre lawyer – a lawyer who is used to dealing with ultra high-net-worth families.

Face in the crowd

There is an increasing trend for well-known regional UK law firms opening up in London. Some of these firms are looking to move into the international private client area, with one or two clients looking to continue building their well-known UK-focused private client business.

What areas of private client are in demand? The London market is generally focused on international private client (trusts, tax, wealth planning), however, there are a couple of firms that are recruiting in the landed estates area of private client. The demand for associates in London always seems to be in the international area, with only one client over the past couple of years looking for a UK-focused private client junior lawyer, which was hard to find in the London market.

Most of my clients outside of London in the UK are recruiting partners with a UK entrepreneurial client focus; however, there are one or two law firms that are looking to recruit international private client partner specialists (south east/south west based). ?I have one or two regional clients moving into London who have an interest in going after the City workers ?– the circa £1/2m per year earners. ?They see a gap in the market servicing this type of client base.

We are seeing several UK firms opening up offices in Switzerland. We are also seeing levels of interest rise from young partners and associates wishing to work in this jurisdiction, taking advantage of the lower rate of tax. Overall, most of the deals that I have completed are with private client lawyers who are advising very wealthy families with international interests. This is quite simple. One of my clients said to me the other day that there are three types of lawyers: finders, minders and grinders. He added that to be a partner at his firm, a partner needed to be all three.
Overall, when I speak with managing partners, CEOs and heads of private client, a majority of them want the following:?

• excellent technical capability;

• a business generator;

• someone who is going to fit into ?the partnership;

• and a following of clients.

 

Richard Park is managing director ?and founder of Charles Park Search and Selection