Mishcon's profits bounce back as revenue jumps 22% to £230.7m
PEP grows 11% to match 2020’s £1.05m following dip to 900k last year
Revenue at Mishcon de Reya jumped 22% to £230m in the year to 9 April 2022, as profit per equity partner (PEP) returned to pre-Covid levels at £1.05m.
The City firm’s latest PEP matches what it reported in 2020 and marks an 11% increase on financial year 2020/21 when PEP dipped to 900k.
Managing partner James Lisbon described the results as a reflection of the firm’s “clear trajectory of growth” in line with the 10-year strategy it launched in 2016, part of which aims to see the firm achieve revenue of £400m by 2026.
That strategy was cited as one of the key motivators for the vast majority of Mishcon’s partners last year voting to go ahead with an IPO, a move Mishcon postponed at the start of this year, reportedly due to excessive market volatility, before shelving it in June.
The Financial Times reported last year that the aim was to float around 28% of the firm at a potential value of £750m, which would make Mishcon by far the most valuable listed UK law firm.
A number of partners left the firm in the run up to the planned IPO, including all five partners in Mishcon’s highly-rated fraud defence and business disputes group, who joined Greenberg Traurig in London last October alongside white collar and investigations head Jo Rickards. Their departure followed Mishcon’s head of international arbitration, Karel Daele, heading for the door in September to join Taylor Wessing.
Despite putting the IPO on ice Mishcon has moved to make good on its 10-year plan, growing its presence in Asia, combining with a UK firm and launching a litigation finance venture. The firm also said that it is continuing to invest in its data science capabilities.
In the same month the firm joined forces with tech-focused Cambridge legal and advisory firm Taylor Vinters, an arrangement that added 30 partners and 123 lawyers to Mishcon's UK network. It also unveiled its MDR Solutions I litigation fund, which was created in partnership with Harbour Litigation Funding and will see the parties allocate £150m to finance potential claims.
In December the firm moved to replenish its ranks, adding Alison Geary as a partner in its white collar and investigations team in London from WilmerHale, and has subsequently secured more partners including health and safety specialist Kizzy Augustin, who moved over from Russell-Cooke, and Campbell Forsyth, who joined the patents group from Dentons.
The firm also ramped up its ESG capabilities in February when it hired EY’s former global climate change and sustainability lead Juan Costa Climent for the new role of sustainability policy director.