David Beattie

08/02/2012 Author: David Beattie

Does loyalty lie with the lawyer or the law firm?

Big changes were afoot in the London hedge fund legal scene last week, after New York-based Akim Gump swooped on Simmons & Simmons and secured the service of two of its hedge fund partners, Tim Pierce and Ian Meade.

While Simmons will be keen to play down the departures, London sources say the impact is already being felt, with three of the firm’s big names said to have been out on a charm offensive to reassure funds and prime brokers of the firm's continued ability to provide top-rated services.

Akim Gump meanwhile says it is looking forward to an increased presence in London when the new arrivals join some time later in the year. A six-month non-compete provision alongside gardening leave of sorts can be expected before the pair get their teeth into the new roles, HFMWeek was told. In the meantime, all eyes will be on which, if any, of the pair’s clients choose to move across with them.

Both lawyers are believed to have a number of significant funds in their Simmons portfolios that the firm is unlikely to want to lose.

“These days loyalty tends to lie with the individual lawyer rather than the firm,” one fund manager revealed to HFMWeek. “If I had to make a choice between a lawyer who’d looked after me well or a firm, I would be minded to move with him.”

With strength in depth and the coffers to pay for new recruits, it is unlikely Simmons will remain too rattled. More interesting will be the rate of progress made by Akin as it fights for business that is already stretched tight between Simmons and its two key rivals, Schulte Roth & Zabel and Dechert.

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