Clifford Chance is positioning itself as “opposite” to major US law firms as it aims to expand its presence in the United States and address escalating competition within its own borders. “We are adapting and we will adapt to that market,” said Charles Adams, the firm’s global managing partner, referencing the US. “But also, everywhere, offensively and defensively, where the likes of Kirkland and Latham want to compete.”
The London-founded firm seeks to double its US revenue, relying on the lateral hiring market to add 12-19 partners annually over the next three years. This strategy builds on an impressive 2023 fiscal year during which Clifford Chance recruited 19 US partners and saw a 28% growth in its American revenue. Although the firm does not publicly disclose its US-specific revenue, its global revenue reached nearly $3 billion in its latest fiscal year, a record high with a 9% increase from the prior year. For more details on this, click here.
Adams noted the firm’s strategy hinges on offering multinational clients specialized local knowledge across the globe, distinguishing Clifford Chance from US-based firms that have established international offices to service specific client needs. He acknowledged the “Kirklandization” of law firms, pointing to Kirkland & Ellis’ influence on rising pay scales for top lawyers. The hyper-competitive US market will necessitate that Clifford Chance modernizes and adapts, including its compensation models. “It’s a big thing for Clifford Chance to be turning to the market. We’re turning everywhere to the market,” Adams stated in a comprehensive interview.
High-profile US firms have disrupted the London market by significantly increasing salaries for both associates and partners, a trend unmissable to UK-based firms like Clifford Chance, Freshfields, and A&O Shearman. Nevertheless, Sharis Pozen, Americas regional managing partner, emphasized that the firm isn’t merely “fighting back” against these US firms but is rather enhancing its global reach, which has long been a key value proposition for international clients. For an overview of the UK firms’ challenges in London’s salary battle against US entrants, see here.
Pursuing its US expansion, Clifford Chance launched a Houston office last year by onboarding 10 partners from rival firms, including Latham & Watkins. This move aimed to integrate American lawyers into its global energy and infrastructure practice, already strong in locations like London and the Middle East. Recently, the firm’s offices in Houston, Washington, New York, and Paris advised French multinational TotalEnergies on a US-based joint venture with Vanguard Renewables to develop renewable natural gas from food biowaste.
Although the firm has a relatively limited geographic presence in the US, Pozen expressed intent to potentially expand into California. This region aligns with the firm’s strategic sectors, such as healthcare, life sciences, technology, and energy. Last year, Clifford Chance’s Partner Christopher Morvillo successfully defended former Autonomy Inc. CEO Mike Lynch against fraud charges in what was described as one of Silicon Valley’s largest fraud cases.
Moreover, Clifford Chance played a role in launching one of the first spot bitcoin exchange-traded funds in the US earlier this year. Adams indicated that the firm would observe the progress of the Allen & Overy-Shearman & Sterling merger over the coming years, suggesting successful mergers could potentially stimulate more interest from other US firms.
In the midst of soaring compensation for top US lawyers—which has reached unprecedented levels of over $20 million annually for some—Clifford Chance remains committed to offering a balanced array of services to a diverse client base. Despite anticipating challenges ahead, Adams remains confident in the firm’s adaptability and resilience in the market landscape. “What we’re confident in is there is a sustainable, really exciting version of us that will see us through this,” he said.