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Partner profits at Freshfields dip to £1.82 million as revenue creeps up 3%

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Magic circle player cites ‘challenging economic climate’

Freshfields has gone public with its latest set of financial results, with equity partner earnings dipping slightly to £1.82 million.

The Anglo-German giant posted a 3% uptick in revenue to £1.52 billion for the financial year ending 30 April 2020, with profit per equity partner (PEP) down 1% from £1.84 million to £1.82 million.

Freshfields said net profit remains “stable” at £685 million, down from a previous figure of £688 million, “despite investing significantly in the future of the firm”.

Stephan Eilers, managing partner at Freshfields, said: “This is a strong set of results, driven by a long-term strategy that has seen us progress despite the challenging economic climate. We have made some significant investments this year that give us an even stronger platform for the future, and I’m excited about what we can achieve.”

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He added:

“We continue to advise on the most dynamic mandates in the market and are forging ahead with our US expansion plans. I would like to thank our people for their outstanding efforts and above all our clients for trusting us with their business-critical matters right around the world.”

The results come after Clifford Chance announced yesterday a 5% increase in PEP to £1.69 million and a 6% uplift in revenue to £1.8 billion. Elsewhere, Allen & Overy and Linklaters saw their partner profits shrink slightly to £1.63 million and £1.61 million respectively. The remaining magic circle firm, Slaughter and May, does not disclose its results.

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9 Comments

SALTY GRAD

I always saw this coming, everyone has been talking about how FF was the new titans of the MC but the numbers don’t lie!!!!

Big daddy Klingsberg

Imagine linking your own pay to the business performance. Suckers.

Gherkin Receptionist (furloughed)

Pitiful. Can’t wait to see Kirkland’s PEP figure – will probably be on the cusp of 5m.

math major

LOL, try dividing Kirkland’s profits by the number of its partners. U.S. Firms like Kirkland and Latham exclude over half their partners when coming up with that number.

Chaz

It’s called profit per equity partner for a reason, Beta.

Annual Review

And no doubt you will eventually be an equity partner! Just work a little harder and bill a little more. As I mentioned last year, everyone loves you and says great things about you. Your chances of making equity partner are really good. Let’s talk again in a year.

Next!

Anonymous

Even if you include all non-equity partners, which would be silly, they’d STILL be more profitable than the MC firms, or at least Kirkland would be. To say nothing of the fact that many MC firms have non-equity partners too which they exclude from their own figures.

Kirkland NQ

Actually we only publish the metric That matters, LEP – Lambos per Equity Partner.

Spare change please?

Aww so sad, they must be really struggling

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