Ashurst LLP

Somewhere over the rainbow

One of the pack of international firms surrounding the magic circle, Ashurst is a renowned high performer. Since its founding in 1822, and subsequent shaping by a genuine Victorian eccentric and two City gents, the firm has nurtured a quality reputation for big deals, good client relationships and good manners. Cast in the standard Square Mile mould, Ashurst is essentially a corporate and finance outfit (these departments net 31% and 25% of revenue respectively) and Chambers UK ranks it highly in both areas. Never underestimate the value of Ashurst’s litigation and real estate teams though. The excellent banking litigation practice was particularly busy advising in relation to the problems of Northern Rock, Bradford & Bingley, Bear Stearns and Lehman Brothers among others.

Three failed merger bids at the turn of the century convinced Ashurst that an organic approach to growth was best. An injection of vigour in the form of a rainbowthemed rebrand quickly followed. While the new branding was an affirmative move away from what had become a rather stuffy image, Ashurst has not quite shaken off all of its conservatism. According to graduate recruitment partner David Carter, rather than “a series of whizz-bang announcements,” Ashurst’s approach to its own development is rather measured. “We simply follow the business and build up our presence in the centres where our clients want us to be.” Senior partner Charlie Geffen vowed in September 2008 that the firm was to place a greater focus on Asia and the Middle East, and just two months later Ashurst staked a claim in Hong Kong by entering into an association with Jackson Woo & Associates. The tie-up complements Ashurst’s offices in Singapore and Tokyo.

While Carter admitted that Ashurst “hasn’t attacked these markets as much as competitors,” the firm does have India covered thanks to a New Delhi liaison office set up in 1994. A 1995 Bombay High Court ruling effectively bars international firms from taking advantage of the subcontinent’s blossoming economy. As Ashurst has been the only European firm with a licensed office in this increasingly influential country, it makes no bones about the fact that it’ll be standing at the front of the queue when, and if, the Indian profession opens up to outsiders. As for the Middle East, the hire of Dechert’s Islamic finance group head Abradat Kalampour bolstered Ashurst’s relationships in this important region. It already had two Middle East offices – Abu Dhabi and Dubai – and earlier in 2009 London-based Abradat proved his worth by winning a major instruction to advise on the creation of a £700m offshore sukuk programme for a group of Kuwaiti-backed bankers.

Seeing stars (and stripes)

Ashurst has had a small New York office since 2000, but until recently it largely served as a meeting facility. The recession dealt the firm a lucky hand stateside, and it all came about following the demise of its NY and DC-based ally McKee Nelson. McKee Nelson’s heavy reliance on the ailing mortgage-backed securities market (the type of debt conjuring that got us all into such a heroic mess) forced it to lay off around a third of its lawyers. Ashurst nabbed McKee Nelson’s 30-lawyer structured finance team, which it’s worth pointing out is one of the best in the USA. It is said that the line between genius and madness is fine, perhaps even blurred. When we questioned the firm, we were told “the opportunity was unusual” and the decision was “bold rather than bonkers.” Lest you think this shift away from Ashurst’s self-confessed caution represents a change of philosophy, don’t be deceived. We see the US strike as more of a Newton’s apple situation: essentially a good opportunity fell into Ashurst’s lap, with the arrival of the McKee Nelson team bringing clients of the likes of Goldman Sachs, Morgan Stanley and Merrill Lynch.

Does Ashurst’s global groove filter down to trainees? It seems so. “You can pretty much guarantee an international flavour to your work,” our sources confirmed. One trainee working on a leveraged finance deal that stretched “literally across the globe” learned that organising conference calls was “quite tough.” It sounds as if recruits are up to the job though: previously known for its penchant for classic Oxbridge applicants, Ashurst’s trainee group now has a distinctly pan-European feel with several people coming from even further afield. Meanwhile, UK-reared trainees commonly speak second (or third) languages. As one noted: “Ashurst is definitely moving ahead quite rapidly, and the use of languages will become increasingly important.” Whether through translating foreign documents and making client calls abroad, or by going for full immersion in an overseas seat, there’s ample scope to make the training as international as you’d like. The list of foreign offices now taking trainees includes Brussels, Dubai, Singapore, Paris, Milan, Madrid and Tokyo. Such posts are not reserved for linguists, but with 100 or so trainees at the firm competition is certainly fierce. A proven interest in your chosen destination won’t go amiss.

Like many of its City peers, Ashurst requires trainees to complete both a corporate and a finance seat. However, compared to some competitors, its training is still pretty broad, despite these mandatory placements. There are other options available in real estate, employment, EU and competition, environment and litigation, as well as regular client secondments to the likes of Citi and IBM. Those lucky enough to score a client secondment found the experience enhanced their knowledge of the role of a legal adviser. “It helps you understand how the client works and the business rationale that goes behind instructing solicitors.” Getting “more responsibility with less supervision” was another bonus for the more independent-minded.

A traditional first-seat destination, the finance department provides newbies with “a very good grounding.” Said one: “Bearing in mind I had no previous experience in the specifics, everyone in the team was great at explaining things.” Seats are split between real estate finance, leveraged finance, and securities and structured finance (SSF). Of course, the mega-deals had largely disappeared when we spoke with trainees, but it was clear that Ashurst was still managing to bag some major instructions, one example being online betting company William Hill’s £1.2bn refinancing, one of the largest capital raisings of 2009. The team also advised a consortium of sponsors in connection with the acquisition of Gatwick Airport, and worked alongside Linklaters on a £207m rights issue for Greene King to enable it to buy more pubs. On larger deals trainees are generally cast in administrative roles, “making sure things are signed on time and by the right people,” as well as taking minutes at meetings and drafting basic documents. While the tasks may not be the most challenging, trainees relish being involved. Even the real estate finance team, which has taken quite a beating, still has top-quality clients including Tesco and Westfield, London’s latest retail cathedral.

Responsibility is easier to come by in the SSF seat. “It’s a very steep learning curve,” remarked one source. “When I look back over the six months, it’s just ridiculous how much I have done.” The hours in finance go up and down, so each trainee has a horror story or two to share. “At the end you just feel broken,” admitted one. At least the team (which is almost 50% female at partner level) “tries to get you involved as much as possible.” Regular departmental drinks are occasionally themed; apparently a superhero event featured some “quite brave” costumes.

Waxing lyrical about restructuring

Market conditions have led to mixed experiences in the fêted corporate department, and perhaps for this reason some of the most enthusiastic comments were reserved for the busy restructuring and insolvency team. Ashurst has taken various companies through restructurings, including airline Zoom, Land of Leather, MFI, Jessops and MK One. There is still corporate activity among healthy clients – motorway services provider Welcome Break was bought for £500m by investment fund Apia, and Merlin Entertainments (London Eye, Alton Towers and LEGOLAND) bought the London Aquarium. Ashurst oversaw Merlin’s £2bn merger with Madame Tussauds in 2008, so the relationship was already established. Once again the strict hierarchy on bigger deals means trainees find themselves “drafting documents and supporting clients… it’s a lot of logistics work.” The team ethos usually makes up for what can sometimes be mundane work: corporate is known for its “larger-than-life characters” and “there is a definite work-hard, play-hard culture.” Trainees state that when a deal is going strong “you will stay late,” but equally “if it’s quiet you can leave at six and not get a second glance.” The department has regular Friday evening ‘sundowners’, for which the managing partner has a tab in a local pub.

The popular energy, transport and infrastructure (ETI) seat has lately been one of the busiest. In December 2008 Ashurst redeployed three corporate partners and three finance associates to support the ETI team, and there have been a number of lateral hires. The work is very international, with much coming from the Middle East and Asia. Trainees tend to “get a flavour of all the different areas,” making for a diverse six months. So what can you expect in this seat? Simple answer: loads. Ashurst advised the Petrochemical Industries Company of Kuwait on a £17bn joint venture with multinational Dow Chemical, and was involved in three new petrochemical and refinery projects in Libya. Closer to home ETI clients include Crossrail, various waste management bodies, and participants in the largest Building Schools for the Future (BSF) project to date – a £600m scheme to build/refurbish ten secondary schools in Kent. Once again trainees were complimentary about the team: “They are a good laugh and really make an effort to get you involved.” On the subject of getting involved, the general downturn in work across the City led Ashurst to engage trainees more in business development activities. This can only be an advantage to all.

The litigation department has particular strengths in life sciences, product liability, competition, banking and fraud. While around 50% of trainees opt for a three-week litigation course instead, those who choose the Full Litigation Monty tend to enjoy getting their hands dirty with legal research. “I feel like I’ve gone back to law school, going to the library and picking up various textbooks.” Many trainees were of the view that “it’s very important to spend at least three months in the department because you really get a chance to understand the law.”

Pachyderms and prospects

Like the celebs who frequent The Ivy, Ashurst types just love to glam things up. As well as themed departmental socials, the annual dragon boat race is generally conducted in costume, and the trainee ball took on a 1920s theme last time. We heard a particularly memorable tale about a partner who dressed up as an elephant for Red Nose Day. “He put a suit on top so he looked professional.” If fancy dress isn’t your thing then the firm’s obsession with sport could save the day. The football team earns high praise and there are also netball, hockey, rugby, tennis and basketball teams. Essentially, “whatever you love playing, you can send an e-mail round to see if people fancy getting a team together.”

When asked about their colleagues, one comment from a trainee summed things up: “At every single law firm you are going to get a certain number of tools, but I think at Ashurst you get a lot less than at others.” Another source told us: “If I had to make the decision again I would choose Ashurst every time.” A third commented: “I’m always amazed at how many of the senior people say they have trained here… any firm that trains people and retains them up to partner must be doing something right.” The thing that really stands out for us is how well personal recommendations work for Ashurst’s recruiters. Time and again trainees attributed their presence at the firm to wise words from a sibling, other relative or friend – Ashurst is clearly a word-of-mouth kinda place. In 2009 42 of the 53 qualifiers took up NQ positions. Although it followed the lead of others, freezing associate salaries and shrinking NQ pay packets, in contrast to many firms of its size, Ashurt did not have a major redundancy programme or defer new trainees’ start dates.

And finally...

Ashurst combines top-quality work with an engaging office environment in which people’s personalities have room to move. It has shown an ability to evolve with changes in the legal marketplace without compromising its character.