Chart-topping law firms

Transcription

1 Chart-topping law firms Survey: Who Represents Latin America's Biggest Companies 2014? We analyse which law firms came out on top of our research into Who Represents Latin America s Biggest Companies Law firms working in Latin America, just like their clients, are very used to being flexible in the face of unpredictability. For multi-jurisdictional firms, that means spending more time with companies in growing jurisdictions than in those which have economically ground to a halt, or in which the political scenario is not welcoming to private business. Local firms will shift capital markets lawyers to focus on debt and restructuring when times are bad, or focus more heavily on regulatory or compliance work. The current outlook for companies in Latin America in 2015 is of just this kind of unpredictability. While deep reforms in Mexico plus a recovering US seem to spell a spurt in growth in the northern part of the region, Brazil s more recessive economy is dragging down the southern region significantly. Even in Chile, normally the region s poster child for stable, steady growth, commercially unfriendly tax reforms have helped to create an environment that is less familiar and less foreseeable than counsel are used to. Nonetheless Latin America remains a promising area of the world for professional legal services. Despite these blips, in the long-term significant growth is likely, and more importantly the region s companies are rapidly professionalising, requiring more assistance as they grow through acquisitions, require better capitalising, and even get themselves into disputes with their governments or each other. Our research into 'Who Represents Latin America s Biggest Companies' maps this growing world of legal advice in the region (see here for the introduction and methodology, or here for the full results of the research). Each year, the number of law firms we list grows, which we think points to both inherent growth in the region s legal markets, and to deeper and better mapping of the universe of firms as relates to the region s biggest companies.

2 1) Most popular firms in the region As our list of the region s largest 100 companies is heavily dominated by Brazilian companies, so it of course follows that Brazilian firms and international firms, which advise companies all around the region, vie for the top slot when it comes to who is the most popular law firm in Latin America (see figure one). This year, that award is tied between the US s Cleary Gottlieb Steen & Hamilton LLP and Brazil s Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados. The other firms that have done well in our overall rankings are of a similar type either top-level US firms with broad transactional practices across the region, or leading Brazilian full-service firms. Of course, these two types of firms not only do not compete with each other, but they most often actively partner with and refer clients to one another. By comparing like with like (figure 2) for international firms, a clearer picture of the most popular UK and US-based firms in the region emerges.

3 2) Leading international firms For these firms, unpredictability is the day-to-day, and they are not concerned by a more complex economic picture in the region for the next few years. We have seen Latin American and other emerging markets heat up and cool down many times over the course of the last couple of decades, says Donald Baker, the head of the Latin American practice at White & Case LLP, which comes second in our rankings. But the overall story has remained the same Latin American companies and financial institutions are sophisticated domestic, regional and, in some instances, global players We believe that the economies of Mexico and Brazil, as well as Peru, Colombia and Chile, among others, will continue to show measurable, steady international growth over the medium and long-term with entities increasingly using sophisticated tools to raise capital from international investors. This long-term view is a critical strategic lynchpin, notes Nick Grabar, a partner with Cleary Gottlieb, which has led the international rankings in our research for two years running. Our firm has been focused since its founding on the opportunity to serve Latin America s largest and most sophisticated companies, he says. Over the years, other firms have discovered Latin America, but we had a head start and we ve kept it by remembering to earn our franchise every day. There is no doubt that these firms operate in a competitive world, and indeed, more and more US- or UKbased but global firms have launched practices in the region in recent years. However, when operating in uncertain environments, deep geographic knowledge, and long-term relationships, clearly pay dividends.

4 In Brazil, a year of little or no growth plus the re-election of a government which many in the business and legal community would have preferred to see cast out of Brasília has helped create a more difficult environment than law firms have enjoyed over recent years. But there too, the country s managing partners are quietly optimistic: We see moderate growth [in the next couple of years], as legal work is always important just the nature of the work changes, says Celso Costa, managing partner of Machado, Meyer, Sendacz e Opice Advogados, which came a close second in our research into the most popular Brazilian firms (figure 3). Besides that, after some internal reorganisation, Brazil should also recover its growth in 2016 or 2017, continues Costa. We believe that there is an enormous availability of funds in the world today, and they need to be invested. In this context, Brazil still presents good opportunities because of its infrastructure demands, the good size of its domestic market, its young population, etc. Therefore, it should attract new investment in the near future. 3) Leading Brazilian firms The Brazilian marketplace has seen dramatic changes over recent years, and firms need a clear strategy to stand out from the crowd, with a number going through root-and-branch restructurings to attract more clients as is the case with Mattos Filho, which has led the Brazilian rankings in this research for two years running.

5 During the last few years we have been focusing in making the firm more full service, developing smaller practices and initiating practices that we did not use to have, explains the firm s managing partner Roberto Quiroga. We have also put a lot of effort into raising the profile of all the practices. We believe that such initiatives are starting to produce good results as more clients use our firm for a wider range of matters and new clients are coming to the firm through different points of contact and different practices. Focus and attention, as well as honesty, are critical in appealing to large, busy clients, thinks Thomas Heather, a partner at Ritch, Mueller, Heather & Nicolau SC, which is joint first in our research for Mexico (see figure 4). Our focus has been on delivering quality services on an on time basis, and being available even under the most pressing circumstances, he says. We also know where and when we may have limitations and do not hesitate to disclose shortcomings to our clients. 4) Leading Mexican firms While much of the attention has been on Mexico, its legal reforms and its potential growth of late, Heather remains cautious, noting that the reforms have had a limited effect on the legal market. We are busy with several new projects but in context, not that dissimilar from last year, he says. The reforms to the insolvency legislation have proven to be useless and thus, the consequences of filing for bankruptcy protection remain questionable at best. He also notes that energy reforms remain in early stages, while the fall in international oil prices has stalled new projects. Unpopular legal reforms are also leading counsel in Chile to be cautious, predicting a more challenging 2015: Due to some controversial legal reforms due for discussion or approval during next year, investment decisions

6 are being held up until final legislation is enacted, explains José Luis Letelier, partner at Cariola Díez Pérez- Cotapos & Cía Ltda, the firm which tops our research for the country (figure 5). 5) Leading Chilean firms Despite the subsequent cut in predicted growth rates for 2015, careful strategising can continue to afford his firm room for growth, thinks Letelier: A clear vision of where you want to be and a careful allocation of resources to such an end is essential to reach growth goals in the long term, he notes. For our firm, catering for international clients has been a key element of our growth. Chile has long been attractive for international companies thanks to its stable growth, and that trend has seen an extra boost in recent years with the signing of international trade pacts with other countries along the Pacific Rim, which many see as compelling more growth for those countries. Indeed, 2014 saw a dramatic turn of events in the Pacific-side legal market, with a cross-border merger between leading Chilean and Colombian law firms the first such merger the region has seen.

7 Indeed, the Colombian legal market has also seen growth over 2014 (see figure 6), with many of the country s leading firms representing more large companies in our resarch. Brigard & Urrutia Abogados, the country s largest firm, has led our research for the past two years running. 6) Leading Colombian firms In Peru, firms are also positive about the future. As a result of economic trends in the region, we see a tremendous potential for growth in traditional practices such as M&A, infrastructure development and projects, says Jose Daniel Amado, partner at Miranda & Amado Abogados, the Peruvian firm which has edged ahead of its rivals in this year s research (see figure 7); he also adds that growth was also likely in newer or more supplementary practice areas. 7) Leading Peruvian firms

8 Amado also sees a lot of potential in new business from fellow Pacific Rim countries. First, the Pacific Ocean Latin American companies are focusing more and more in East Asia and Oceania. Second, investors coming from countries such as Australia and China have already established significant presence in the region beginning with our side of the continent, he says. That should allow the western Latin American countries to serve as natural link between the Pacific Basin and the rest of the region. If the Pacific-side countries are growing together in terms of their growth opportunities and legal services, in some ways they are following in the footsteps of the Central American firms, which led the way in the regionalisation of legal services in Latin America more than a decade ago. We were able to identify soon enough the necessity of providing regional services to companies that were interested in the Central American region as a whole, explains Alvaro Castellanos, a partner in the Guatemalan office of Consortium Centro America Abogados, which has also led our research for sub-region the last two years. 10 years ago we decided to act based on this need, and our strategic goals have been fundamental in achieving results. 8) Leading Central American firms The past couple of years have seen dramatic changes in the Central American legal profession, with a number of firms opening new offices, acquiring rivals, or making high-profile lateral hires. It is very true that we are facing more competition, specially during the most recent years, notes Castellanos. This only demonstrates

9 that we were right 10 years ago that is, that Central America makes more sense for business and investment, if taken as a whole. Reality is proving it. Greater regional interconnectedness is just one of the fundamental trends which ensures that, despite a complex economic and legal picture pervading the region as a whole in 2015, those law firms which have proven successful at advising Latin America s largest companies are confident of continued growth for the region s legal markets. Greater detail on Who Represents Latin America s Biggest Companies, including covering other jurisdictions, will be included in the first LACCA briefings of 2015.