Paul Hastings is set to bolster its fast-growing finance practice with the addition of a nine-partner restructuring and private credit team from King & Spalding, led by Jennifer Daly. The move, which includes about 20 lawyers in total, reflects the firm’s strategic focus on expanding its finance and restructuring capabilities, and capitalizing on the burgeoning private credit markets, widely seen as a viable alternative to traditional bank lending. For more details, you can read the complete announcement.
The hiring comes after Paul Hastings’ significant recruitment drives in recent years, including the notable addition of the former restructuring practice from Stroock & Stroock & Lavan in 2022 and an eight-partner finance team from Vinson & Elkins in February. These investments have reportedly driven substantial growth in the firm’s finance and restructuring revenue, which saw a 90% uptick last year compared to the previous year. The trend continued with a 30% rise in the first quarter of this year, compared to a record transactional market in 2021.
Daly and her team bring a wealth of expertise, representing clients such as Blackstone and KKR in direct lending transactions and other financial matters. The new team members, including partners like Roger Schwartz, Matthew Warren, and others, will be spread across Paul Hastings’ offices in New York, Chicago, Houston, and Washington, D.C.
Daly’s team found the growth and momentum at Paul Hastings compelling, with existing client overlaps making the transition smoother. The firm’s strong relationships with traditional banks and their willingness to make substantial investments in their finance platform were highlighted as key attractions.
The traditional banking sector, meanwhile, continues to pay close attention to the private credit market. Recent moves by JPMorgan Chase to acquire a private credit firm and Goldman Sachs raising $21 billion for its direct-lending fund indicate the growing significance of this market. However, concerns about potential distress cycles in private credit were noted, emphasizing the importance of expertise in handling such situations, a capability that Paul Hastings is well-positioned to offer.
This strategic hiring underlines Paul Hastings’ ambition to establish itself as a leading player in the finance and restructuring sector, as demonstrated by past significant hires and ongoing client engagements in high-profile cases such as the bankruptcies of FTX and WeWork.