Firm Profiles- Shearman & Sterling

An introduction:

New York’s Shearman & Sterling has an impressive reach around the globe, continuously closing “sterling” deals and cases. Considered to be a member of Wall Street’s “White Shoe” group of firms, Shearman’s name carries tremendous weight in the legal world too. Shearman & Sterling was founded in New York City in 1873 by Thomas Shearman and John William Sterling, who concentrated on litigation and transactional matters respectively. The young firm represented financier Jay Gould and industrialist Henry Ford and cultivated several important business ties that would evolve into long-standing client relationships, such as with the Rockefeller family. The firm’s history is an incredibly interesting one, with roots stretching back to several members of the American elite.

Despite this, do not be fooled into thinking that Shearman’s London office is a mere satellite office- it’s been established in the capital since 1972! Due to this, lawyers at the firm tend to view it as a “British firm in an American firm’s clothing”. On top of this, Shearman is a truly international firm, with a position as one of the first major law firms to expand into Africa. Additionally, Shearman & Sterling was one of the first firms to grasp the future strategic importance of the Asia-Pacific region, establishing offices in Hong Kong in 1978. Given this winning combination of prestige, top-quality work, excellent pay, top training, and a huge international network, a traineeship at Shearman is a truly “sterling” opportunity.

Facts about the firm:

• After four successive years of profit per equity partner growth, the firm has seen a tougher financial year. PEP dropped 22.9% to $1.9 million (£1.4 million) and revenue dipped 11% to $861 million (£624 million). This can partly be explained by the firm’s specialisation in energy work, which was initially hit hard by the pandemic. Of course, these numbers are nothing to scoff at, given the firm is still one of the world’s largest.
• With 23 offices in 16 countries, the firm’s global reach is nothing short of impressive- especially given Shearman’s strong reach across each continent.
• Shearman typically hands out 15 training contracts a year. Confining the stereotypes of US firms, deal teams are typically much leaner than those at a Magic Circle firm, which may lead to early responsibility for trainees who prove themselves worthy.
• First-year pay stands at £50k, second-year pay stands at £55k, and once qualified, lawyers take a small £145k gross- plus a very sizeable bonus. Pay rises sharply through the ranks, with those who make it to 6PQE taking a whooping £250k home. Under the assumption that student loan payments are outstanding and no pension contributions are paid, this works out to a huge £123,618 after taxes, student loan contributions, and national insurance is paid. For context, that could buy one Porsche Taycan a year, with money left over.

Key practice areas:

Perhaps best known for its prowess in project finance, M&A, arbitration, and antitrust, Shearman offers London seats in the following areas:
antitrust; funds; M&A; project development and finance; finance; litigation; international arbitration; financial institutions advisory; tax; employment; financial restructuring and insolvency.

Notable recent deals/cases:

• Shearman & Sterling advised Abu Dhabi National Oil Company (ADNOC) and ADNOC Drilling Company PJSC (ADNOC Drilling) in connection with the initial public offering of ADNOC Drilling on the Abu Dhabi Securities Exchange (ADX). The listing raised over $1.1 billion, making the ADNOC Drilling IPO the largest-ever ADX listing to date and saw significant interest, with total gross demand of over $34 billion.
• Shearman & Sterling advised ALD Automotive, one of the leading global providers of mobility solutions, in connection with the creation of a joint venture with Ford dedicated to providing new integrated fleet leasing and management solutions across Europe under the name of Ford Fleet Management.
• Shearman & Sterling is advising the banks in connection with the senior financing in support of the £2.3 billion public-to-private acquisition of Aggreko plc by TDR Capital and I Squared Capital.
• Shearman & Sterling advised AlbaCore Capital Group (AlbaCore) about its investment of up to $200 million in Babylon Holdings Limited (Babylon). The investment is sustainability-linked, whereby the interest rate of the notes is linked to the delivery of affordable healthcare to under-served areas.
• Shearman & Sterling advised Allgaier Group on a comprehensive restructuring of its financing involving a guarantee of the state Baden-Württemberg.

To keep up with the latest legal news, click on legal to get your daily dose.