In the heart of August, on a warm Friday evening, partners from two prestigious American law firms gathered at Chicago’s Wrigley Field. They were there to enjoy a concert by Bruce Springsteen and the E Street Band, relishing the classic hits like “Born to Run” and “Wrecking Ball.” Among the crowd, Jon Ballis, the chair of Kirkland & Ellis, mingled with other Springsteen fans including a top lawyer from Paul, Weiss, Rifkind, Wharton & Garrison. This rare social gathering between rivals masked deeper tensions brewing between the firms, tensions that would soon erupt as Paul Weiss began poaching Kirkland lawyers in a bold move to swiftly build a private equity practice in London.
Kirkland, founded in Chicago at the dawn of the 20th century, has always relied on its entrepreneurial drive to challenge established law firms on Wall Street. Its strong connections to the private equity industry have propelled it to become the highest-grossing law firm in the world. On the other hand, New York-based Paul Weiss has long been regarded as an establishment firm but lacked a significant presence in London. A month after the Springsteen concert, Paul Weiss shocked the industry by recruiting 12 partners from Kirkland in a swift and massive raid. Siobhán Lewington, a managing director at legal recruiter Fox Rodney, described the move as “huge” and creating a “very significant player in the London private equity market.” She added, “Putting a team together is the ultimate fantasy football.”
This episode highlights that the industry-wide competition for highly sought-after lawyers, who can now demand salaries upwards of $20 million, shows no signs of slowing down. Trusted advisers to private equity firms remain valuable commodities.
The Financial Times spoke with multiple partners from both firms about the raid and discovered that the seeds were planted in late July when Kirkland’s Ballis called Roger Johnson, one of the firm’s top-billing lawyers in London. Ballis informed Johnson that Alvaro Membrillera, who was Paul Weiss’s most senior lawyer in London at the time, would be joining Kirkland along with some junior colleagues. This news surprised Johnson and other London-based partners who expected to be consulted about such a significant hire. Law firms often face the challenge of balancing the need to keep new hires confidential while also informing other partners in advance. Ballis and Andrew Calder, a Houston-based energy lawyer who had previously worked with Membrillera, had played key roles in the hiring decision. Johnson reacted angrily to Ballis, expressing concerns about the process. Colleagues reported that Ballis was furious about Johnson’s response, and the situation quickly escalated, leading to Johnson’s dismissal on August 1. The next day, Membrillera’s move to Kirkland was announced.
According to insiders, Johnson’s departure and the decision by US-based executives to bypass London partners when hiring Membrillera left Kirkland vulnerable to a raid from a well-funded competitor. This vulnerability was unusual for Kirkland, as the firm’s 505 equity partners, who share in the profits, earned an average of $7.5 million last year. Kirkland has managed to attract lawyers with payment deals that rival firms could not match. In comparison, Paul Weiss’s equity partners made an average of $5.7 million last year. Alongside concerns about the hiring process, the loyalty of some long-standing Kirkland lawyers had dwindled due to a perception that the firm had lost its entrepreneurial spirit. In early August, senior Kirkland lawyers, including Neel Sachdev, a debt finance lawyer with over 20 years of experience at the firm, initiated discussions with counterparts at Paul Weiss, including chair Brad Karp. These talks quickly evolved into a plan for Paul Weiss to assemble a team of lawyers capable of advising buyout firms across all aspects of dealmaking. The firm’s long-term goal is to hire up to 200 lawyers in London and replicate its deep relationship with US buyout giant Apollo for European clients. Currently, Paul Weiss employs just over 30 lawyers in London.
While the plan, codenamed “Project Springsteen” within Paul Weiss, carried considerable risks, the talks were conveniently conducted in secret as most lawyers were on vacation. Paul Weiss also had to contend with Kirkland’s financial strength. The latter firm had been known to offer over $2 million to retain partners who were considering leaving. Additionally, Kirkland had the power to terminate their contracts. By the time Ballis attended the Springsteen concert on August 11, the plans for the raid were in motion. On August 13, Kirkland’s team of eight lawyers, including Sachdev, resigned. Paul Weiss followed up with another push, adding three more Kirkland partners, a lawyer from Linklaters, and even Johnson himself by early September.
Forced into a defensive position, Kirkland, a firm accustomed to orchestrating raids rather than countering them, began reaching out to clients to reassure them that the departures would not compromise the quality of their service. The firm also promoted several individuals internally in London, especially those at risk of leaving. It even offered one-time cash bonuses to lawyers who had been considering a move to Paul Weiss. Kirkland successfully prevented at least one partner from joining the rival firm. However, one insider noted that while these short-term efforts may succeed, they come at an incredibly high cost.
Both Kirkland and Paul Weiss declined to comment on the matter. Meanwhile, Paul Weiss finds itself betting on the private equity sector just as the golden era of low interest rates for the industry comes to an end. Firms operating in this arena now face higher financing costs and a more challenging environment for generating returns. Despite the defections, Kirkland’s position in London remains formidable. The recent hiring of Membrillera enhances the firm’s relationship with US investment giant KKR. Over the past decade, well-funded US firms have shaken up London’s legal market, driving up salaries and causing some “Magic Circle” firms to abandon their traditional pay structures. Headhunters and lawyers predict that Paul Weiss’s move will trigger a wave of job movements among top firms in the capital, leading to significant disruption in the industry.
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