What does this practice area consist of?
Banking & Finance work covers a vast range of transactions, typically with an international flair. Typically, firms will advise a wide range of credit funds and hedge funds across the variety of transactions they undertake, including the deployment of capital (in LBOs and other leveraged financings, distressed transactions, acquisitions of debt portfolios and receivables finance) and in raising finance (by way of leverage facilities and working capital, co-investment and bridging finance). This practice area is constantly evolving, with new regulations brought in constantly. This work can be separated into several subsets, including:
- Straightforward lending
- Structured finance
- Project finance
- Asset finance
- Leveraged finance
- Real estate finance
- Islamic finance
- Acquisition finance
What are the tasks of these lawyers?
- Carry out due diligence to verify information passed by parties in a transaction.
- Monitor CP checklists to verify the progress of the deal.
- Negotiate with the other side to agree on the terms of the deal. The ability to compromise is key. Getting involved with negotiation competitions at university will be a great way to hone these skills.
- Structure financial models that comply with relevant laws.
- Gather all parties to sign off on the documents. This is required to complete the transaction, with many decisions required to be recorded in written resolutions.
- Finalise post-completion registrations.
- Meet with clients to establish to commercial context of a deal. This requires strong knowledge of the corporate world. Therefore, aspiring banking lawyers must immerse themselves in financial news, to the degree that jargon becomes second nature.
What are the realities of the job?
- Clients will be demanding. Expect a schedule that runs concurrently with those of the investment banks that you will be working with. However, this can enable the foundation of a strong network, which may lead to cushy exit opportunities.
- Along with this, cross-border transactions will require the knowledge and ability to work across multiple time zones.
- Working on deals can be exciting. Deal closings bring adrenaline highs and a sense of satisfaction. Of course, the point before a deal is closed will involve tremendously long hours.
- An appreciation of your clients’ ambitions is an absolute must. Deals may involve the transfer of funds over several jurisdictions, involving several different types of currency. Political changes can also add to the risk of certain deals.
- City firms act for investment banks on highly complex financings, whereas the work of regional firms generally involves acting for commercial banks on more mainstream domestic finance deals. Work is mostly centralised within the City, due to London’s position as a financial hub.
- Brexit remains a consideration for the banking and finance sector, therefore, those involved in the sector will need to learn how to adapt. However, Brexit may also lead to a rise in UK-US work.
Ten firms with a noted presence in this area:
- Clifford Chance
- Allen & Overy
- Milbank
- Mayer Brown
- Baker Mckenzie
- Ashurst
- Hogan Lovells
- Freshfields Bruckhaus Deringer
- Linklaters
- Shearman & Sterling
To keep up with the latest legal news, click on legal to get your daily dose.
Donate & Support