One-third of the local partners at London-based Clyde & Co are departing, including all six members of its once-thriving cybersecurity practice.
The exodus comes as the firm grapples with financial challenges and continues its search for a merger partner.
The cybersecurity group, which had been a standout for Clyde & Co, is leaving to establish its own legal venture.
Two former Clyde & Co partners—crypto regulation expert Liam Hennessy and construction lawyer Phil Coady—are set to join Thomson Geer, taking 14 staff members with them.
Meanwhile, insurance litigator Jacques Jacob movedto Wotton + Kearney, along with six other employees.
The recent departures bring the total number of partners who have left or resigned from Clyde & Co in the past year to 24. The firm rejected a move to merge with insurance rival Gilchrist Connell late last year.
The firm, which entered the Australian market as a so-called ‘challenger brand’ in 2012 during a wave of British firms expanding internationally, has struggled to achieve profitability from its low-margin insurance work.
Founded in 1933, Clyde & Co also operates in major Australian cities including Sydney, Brisbane, Perth, and Melbourne, employing over 3,200 lawyers globally.
Attempts at Financial Recovery
In June, the firm made headlines by cutting six underperforming partners as part of a strategy to improve financial performance. However, this move has not halted the trend of partners and their teams seeking opportunities elsewhere.
Despite promoting eight partners internally this year, Clyde & Co is expected to be left with fewer than 20 local partners after the current departures are finalized. The firm currently lists 26 partners on its website.
This year alone, 92 fee-earning lawyers—approximately 32 percent of the firm’s workforce—have departed, primarily following their respective partners to competing firms.
Clyde & Co’s Australian division has been exploring potential mergers with other local firms following a rejected proposal to merge. Gilchrist Connell, confirmed that while discussions took place regarding a merger with Clyde & Co, they ultimately decided to maintain their independence.
A spokesperson for Clyde & Co stated that the firm is regularly approached by other firms and individuals due to its growth ambitions. They emphasized that Australia remains a key focus within their regional strategy and reaffirmed their commitment to serving clients in the Asia-Pacific region.
Impact of Departures on Financial Stability
The departure of nine partners—primarily from more lucrative non-insurance sectors—poses a significant financial challenge for Clyde & Co.
The legal industry has seen a downward pressure on insurance rates due to fierce competition for panel appointments and cost-conscious clients. Some partners have reportedly been billed at rates as low as $350 per hour, comparable to junior lawyers at leading firms.
Despite these challenges, Clyde & Co maintains that it continues to promote talent and attract top professionals in the market. The firm described the recent instability as part of an anticipated period of attrition and change.
In an email addressing the cyber practice group’s departure, local managing partner Rebecca Kelly (pictured) acknowledged the difficulties associated with such changes but expressed optimism about maintaining relationships with former partners.
“We will be staying very close to the team and it’s ‘see you soon’ rather than ‘goodbye’,” she stated.
