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The weekly Newspaper for the Legal profession Monday, november 12, 2007
the nlj 250
Reed Smith follows its clients onto
the world stage
Profits soared, and now
the firm ranks among
the elite powerhouses.
By Sheri Qualters
staff reporter
mergers since 2000 have kept Reed
Smith’s firmwide managing partner, Greg Jordan, globe-hopping for 180 days each year,
tending to a far-flung ­legal empire that caters to
an equally global client base.
“We thought we saw globalization accelerating, with major companies in key sectors becoming more global,” Jordon said. “We decided
to embrace the trend, not lament and fight it.”
Copying its corporate clients’ global ambitions has transformed Reed Smith from a regional Pittsburgh firm into a global powerhouse
with 1,447 lawyers. It also pushed the firm into
the top 10 of the NLJ 250, The National Law
Journal’s survey of the nation’s largest law firms.
Just five years ago, the firm ranked No. 34,
with 739 lawyers. Revenue jumped to $644 million in 2006 from $314 million in 2002, though
the firm’s 2006 profits per partner of $940,000
lagged behind the most profitable firms.
Still, profits per partner have nearly tripled
since 2000’s take of $315,000, and the firm is
continuing that upward trajectory, Jordan said.
“The profitability improvement isn’t in spite of
our growth, it’s driven by our growth,” Jordan
said. “It’s allowed us to have a stronger firm doing more high-end work for stronger companies
and leading companies.”
Legal consultant Peter Zeughauser of the
Zeughauser Group said Reed Smith deserves
credit for making a very good start toward becoming a global powerhouse. The challenging
part is capturing the profitable work in Asia, he
said. “There’s a lot of price pressure in Asia in
different ends of the market.”
The merger train accelerated this year with
ten
three additions: Richards Butler
Reed Smith has taken steps
in the United Kingdom, United
to strengthen its service to global
Arab Emirates, Greece and
clients through an extensive
France; Sachnoff & Weaver in
Reed Smith University training
Chicago; and Richards Butler
program. The firm has a partnerHong Kong in China, a
ship with the Aresty Institute of
deal scheduled to close on
Executive Education at the
Jan. 1, 2008.
Wharton School of the UniverReed Smith opened its doors
sity of Pennsylvania. Additionin 1877 and still represents the
ally, its general counsel liaison
legacy companies, universities greg jordan : “We decided to embrace the visits clients to collect feedback.
and foundations of ­ original cli- trend, not lament and fight it.”
“To expand [the relationents such as Andrew Carnegie,
ships] and improve the service,
H.J. Heinz and Andrew Mellon. It was jolted asking them how we’re doing is critical,”
into change in 2000, when it watched other
Jordan said.
firms help its biggest clients move to Europe,
Such efforts have paid off, said consultant
Jordan said. Merging with London-based War- Michael B. Rynowecer, president of The BTI
ner Cranston in 2001 enabled the firm to help Consulting Group Inc. in Wellesley, Mass. Durlong-standing client Mellon Financial Corp.— ing the past few years, Reed Smith has been in
which now is the Bank of New York Mellon the top 20 of The BTI Client Service A-Team
Corp.—with its British expansion.
ranking of law firms, based on interviews with
Since then, Reed Smith has developed sig- 250 corporate counsel, Rynowecer said.
nificant relationships with banking clients Bank
“If you go out and talk to the clients, they
of America Corp. and ­Wachovia Corp.; private tend to embrace the merger and think more
equity companies such as the Blackstone Group; highly of you,” he said.
and pharmaceutical companies such as Eli Lilly
With a global network in place, Reed Smith
and Co., Merck & Co. Inc., Pfizer Inc. and Wy- now wants to enhance its corporate, mergerseth. The firm has expanded those ties as it and-acquisitions and securities practices, and
has grown.
“anything to do with financial services and life
Overall, Reed Smith has tripled its business sciences,” particularly in major commercial
with its top 250 clients during the past four to centers such as Hong Kong, London and New
five years to an expected $500 million this year, York, Jordan said.
Jordan said. “Whichever city we’re in, I end up
New York is a priority, since the firm has a
going to call on the same clients,” he said.
mere 100 lawyers there compared with about
Reed Smith, like Kirkpatrick & Lockhart 330 in London, Jordan said. It is one of a few
Preston Gates Ellis, is one of a very small num- firms with strong positions in the United States,
ber of firms with a credible, three-continent Europe and Asia, and it plans to build on that,
platform, said K&L Gates Chairman and global he said.
managing partner Peter Kalis.
“Even modest-sized companies these days
Reprinted with permission from the November 12, 2007 edicompete in global markets,” Kalis said. “The tion of The National Law Journal © 2007 ALM Properties, Inc.
question is whether their law firms are going to All rights reserved. Further duplication without permission is
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be there with them.”
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