Ben Thomson, LawFuel contributing editor
Another month, another law merger, this time a $2 billion revenue combination between Herbert Smith Freehills (HSF) and New York-based Kramer Levin. For Herbert Smith Chair Rebecca Maslen-Stannage (pictured) the merger furthers the firm’s US expansion ambitions.
The new firm will have 2,700 lawyers and comes on the heels of the Allen & Overy-Shearman Sterling merger earlier this year, signaling a continued trend of transatlantic consolidation in the legal business.
The combined size of the firms place the new entity among the top 25 largest law firms globally, which is comparable in scale to the recent Allen & Overy-Shearman Sterling merger, which created a $3.5 billion revenue firm.
The merger, set to take effect on May 1, 2025, is still subject to partner approval at both firms.
A Strategic Move
The combined entity will operate under the name Herbert Smith Freehills Kramer, with HSF Kramer as its moniker in the United States.
Following the model set by A&O Shearman, the new firm will use a single global profit pool rather than using the verein structure.
While HSF brings a larger global footprint to the table, with 23 offices spanning Europe, Asia-Pacific, the Middle East, New York, and South Africa, Kramer Levin contributes higher profitability.
In 2023, Kramer Levin reported a profit per equity partner of $2.41 million, outpacing HSF’s £1.315 million for the 2023-24 fiscal year.
Herbert Smith Ambitions
This merger represents a significant step in HSF’s long-standing ambition to expand its U.S. presence. Rebecca Maslen-Stannage, HSF’s chair and senior partner, described the deal as “transformational,” emphasizing the immediate growth potential for both firms.
Justin D’Agostino, (pictured) HSF’s Global CEO, views this as just the beginning of a strategic long-term move.
Kramer Levin, led by co-managing partners Howard Spilko and Paul Schoeman, brings to the table a strong U.S. presence with offices in New York, Washington D.C., and Silicon Valley, as well as an established Paris office.
Kramer Levin boasts top-tier Legal 500 rankings in several practice areas, including advertising and marketing litigation, immigration, land use/zoning, and both corporate and municipal restructuring.
Complementary Strengths
The merger promises to combine HSF’s traditional dispute resolution expertise with Kramer Levin’s strengths in commercial disputes, employment litigation, and appellate work.
Kramer Levin’s transactional capabilities in mid-market M&A and private equity will complement HSF’s existing practice areas.
Both firms have highlighted their shared strengths in private capital, M&A, restructuring, securitization, real estate, white-collar corporate crime and investigations, class actions, IP, and arbitration.
Kramer Levin brings higher profitability, with 2023 profit per equity partner of $2.41 million compared to HSF’s £1.315 million
But the alignment of practice areas and cultural values suggests a trans-Atlantic legal merger that creates yet another major legal services entity intent on building its global footprint.
