Sidley Austin

Sidley Austin is one of the largest law firms in the world by revenue, but despite an early presence in London, traditionally maintained a fairly modest mixed practice there. The firm has distinguished itself in the past five years by investing in its private equity and leveraged finance teams more aggressively than perhaps any other firm in the City, transforming its per lawyer revenues and profitability in the process. Prior to 2015, Sidley Austin had nearly no presence in private equity or leveraged finance in the London market or otherwise. Like many firms, it saw these transactional areas as key strategic focuses for expansion. Like many firms, it recognised that the way to achieve this was through strategic lateral acquisitions of partners with large private equity clients. Unlike many firms, Sidley Austin had the ambition, speed, and deep financial coffers to execute this plan. This began with lateral moves for a number of partners connected with private equity firm Apollo. Through landing Apollo as a regular client, Sidley Austin’s London office was able to establish itself fairly quickly as a serious player in the market. The lateral acquisitions did not stop there however, with things particularly ramping up in 2023-24. This year has brought with it a flurry of moves for the firm, culminating in an eight partner raid of competitor Latham & Watkins. Tom Thesing, Managing Partner of Sidley Austin’s London office, has been explicit that this has marked a shift in strategy. Whereas prior lateral hiring came with the intent of breaking into private equity and leveraged finance spaces, this more recent round is about achieving a network effect. Specifically, the firm aims to have enough top-tier teams in this area to be considered in the ‘top tier.’ This is important, Thesing suggests, because capital sponsor clients are favouring a single firm approach. This aggressive London growth push appears to be a long-term play, rather than a short-term move. This is evidenced by Sidley Austin’s evident desire to bulk out its junior associate ranks. First, the firm has openly pursued many of the associate teams associated with their lateral partner acquisitions. Second, the firm has a trainee intake which is much larger than its revenue comparators in the City. For instance, whilst it has similar UK revenues to Milbank, it is currently taking on nearly twice as many trainees. The desire to grow its UK presence is also confirmed by the firm’s market leading pay. Not only is the firm (like many of its US compatriots) on the Cravath scale, but it implements pay increases months earlier than those firms. Furthermore, it is rumoured to have a more generous bonus scheme than nearly any other firm in the City.