Paul Weiss, known for its robust global operations in the Biglaw community, had intentions of expanding to Houston to capitalize on the burgeoning city’s proximity to private equity and oil and gas sectors. Unfortunately, the endeavor has not gone as smoothly as anticipated according to a report by Bloomberg Law.
The success of the said expansion hinged largely on the ability to attract key partners to staff the new office, an area in which Paul Weiss seems to have fallen short. The firm underwent discussions with partners at a range of prestigious law firms including Kirkland & Ellis, Latham & Watkins, Sidley Austin, and Baker Botts. However, a myriad of these individuals, some who had been offered guarantees of $10 million to $15 million for multiple years, declined the proposition.
These partners decided to remain at their current firms, largely due to the established presence these firms hold in the Houston market, thus presenting a significant hurdle for Paul Weiss’ expansion plans.
Nevertheless, Paul Weiss is not ready to give up on the Houston dream. The firm recently put into practice a black box partner compensation system to allure more lateral partners. With Houston’s attractiveness for Biglaw firms only continuing to grow, it seems it is just a matter of time before Paul Weiss can get its foot in the door of this market.
This is not so much a failure of judgment on Paul Weiss’ part but a reveal of the loyalty and comfort partners have with their established firms in Houston, setting a high bar for an incoming firm to persuade them to switch teams.