Rich List Law Firm Hits Headwinds
London law firm Withers, which specializes in providing services for high-net-worth individuals, has required junior partners to stump up with money as a capital contribution towards the firm at a time of downturn in the legal world.
Withers is a major law firm with a global presence, boasting a team of over 160 partners and more than 1,200 employees across 18 offices worldwide.
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The rumours of some of the biglaw firms making calls for capital contributions during the downturn has been prevalent for some time, but Withers has been the first to take the action.
The cash call will raise between £2.2 million and £4.6 million for the firm as about half of the firm’s 220-strong partnership is liable for the contribution.
To enable junior partners to be more fully involved in the ownership of the business, the firm has announced the new capital contribution requirement.
Junior equity partners will have to contribute between £19,780-£41,538 ($25,000-$52,500), depending on seniority, marking the first cash call from a major London law firm amid the current economic slump.
Withers emphasized that the decision to issue the cash call was taken two years ago and that it has not issued a general cash call, with no changes made to the capital requirement for senior equity partners.
The 125-year-old legal law firm describes itself as the “law firm for success” that advises “some of the world’s most remarkable individuals and organisations in realising their ambitions.”
The firm has expanded considerably over the past decade, especially in the US and Asia.