Musical Shockwaves Chairs: Skadden Rainmakers Defect to Kirkland & Ellis
When the New York Times stands up and takes note of law firm partner defections, you know you are talking about the kinds of people who are capable of making rain in the Kalahari:
David Fox and Daniel E. Wolf, two top partners at the New York law firm of Skadden, Arps, Slate, Meagher & Flom, have defected to Kirkland & Ellis in a move likely to send shockwaves through the Wall Street legal world.The loss of Mr. Fox, 51, who was among the highest-paid lawyers at Skadden, is a blow to the firm, where revenue has fallen across nearly all practice areas. A prominent mergers-and-acquisitions lawyer, Mr. Fox is leaving after more than 20 years with the firm, founded in 1948. It is rare for an established firm to lose such a senior lawyer to a less-known rival, and the move is the first time a partner in Skadden’s New York M.& A. practice has jumped to a competitor.
A “less-known rival”: were Kirkland & Ellis attorneys able to hear the compliment over the crack of the back of the NYT hand?
After the jump, the Times makes it sound like Skadden just lost Arps, Slate, Meagher and Flom.
Could this be a sign of a larger seismic shift in the top corporate firms?
The loss of two noted partners, who together generated tens of millions of dollars in fees annually for Skadden, could signal a broader shift in the corporate legal landscape as lawyers at large full-service firms leave for more focused, profitable shops. Last year, Kirkland generated about $2.47 million in profit for each partner, a closely watched measurement, compared to $2.07 million in profits per partner at Skadden, according to The American Lawyer, an industry magazine.
But wait, the Times throws some more gasoline on any bruised egos walking the halls of Skadden this morning:
Kirkland bills itself as younger and more entrepreneurial than some of its long-established competitors, which also attracted Mr. Wolf and Mr. Fox. The firm is also more focused on specific profit-producing areas like M.& A. and bankruptcy, while bigger firms like Skadden, Jones Day, and Latham & Watkins offer a vast swath of legal services.These legal superstores have been cutting costs as business dries up across several practice areas. This year, Skadden offered to pay its 1,300 associates a third of their base pay not to show up at work in 2009.
Wow. I don’t know about you, but when I read the word “superstore,” in my mind’s eye I see the aisles of a Costco. The word does not connote one of the elite law firms in the nation.
One Skadden client — Mark Gerson, Chairman of Gerson Lehrman Group (GLG) — had this to say about the move:
Now the Kirkland partners know what Jacob Ruppert must have felt like in December of 1919 — if he had signed Gehrig then as well as Ruth. David and Dan embody the very best qualities of their profession — intelligence and wisdom, sensitivity and discretion, careful attention to the details of a transaction while always acting strategically to serve its larger purpose. This is why there are so many global business and political leaders who consult David Fox with such frequency — the unique combination of gifts he offers his clients and friends comes along once in a generation…if that generation is lucky.
Yeah, but what if Harry Frazee had bought Ruth and Gehrig away from the Yankees for the Red Sox? Is Skadden planning a revival of No, No, Nanette?
Congratulations, Kirkland & Ellis. We expect K&E commenters to tell us all precisely what “victory” tastes like in the morning.
In Sign of Industry Shift, a Legal Giant Loses 2 Top Partners [New York Times via ABA Journal]
Earlier: Musical Chairs: O’Melveny Litigation Rainmaker Moving to Skadden
(108) Comments
Comments
Eat it, Skadden
1st
firsty
What you talking about, Elie?
Old news. Mr. Fox was a tool anyway. No one really liked him from what I heard.
N. Wacker Stud
Read between the lines, Eliephant. He was stealth laid-off, M&A is dead. Dude should've gone on that sidewinder program.
How are they to work for?
-Kirkland corporate guy
So how many partners have left Skadden now? Bad news for the associates there, I guess. Maybe they'll have to cancel their money-saving program where they paid people not to work.
I don't work at Kirkland, but to call K&E a "less known rival" is a bit much. Was this (i) an attempt to further sensationalize the story or (ii) evidence that the writer is a NY-centric douchebag?
BIG TREE FALL HARD
K&E is the worst kind of sweat shop.
I have an appointment today to pound Evan Chesler's tits while Rodge Cohen paints us.
Eric Holder
Garrrr . . . the ship be sinkin' matees!
Given that I have $250,000 and no job, I would rather film "Dances with Shai-Hulud" on Arrakis and become friends with the local tribes instead of listening to the whinings of departing partners.
12:
I take deep offensive to your suggestion that Evan Chesler suffers from manboobs. The man is a physical specimen like no other. The man can write a brief whilst pleasuring the Knick City Dancers!!! The man is the DiVinci of our time, people!!!!
Did they take any associates with them?
I'm pretty sure that last "tipster" is David Fox.
Lewis Zacharelli would like you all to know that you are all not as wealthy as he is.
That is all.
Dear MysTTTal,
Please let Lat handle these stories. kthxbye
Skadden responded earlier this morning by acknowledging the departures with a wish of good luck and then announcing the unveiling of a new mascot, the Skadden Ass Lobster.
9, I'm pretty sure it is (ii).
I have seen Evan Chesler without his shirt on and he does indeed have moobs.
Eric the Beholder
Or is this just Kirkland deciding to overpay "a name" that Skadden finally realized was not worth the money?
22,
Evan Chesler, the guy with hot fudge nipples.
18-
Speak for yourself.
These guys are worse than Dr. Yueh.
The two departing partners are mental midgets if pitted against a mentat like Thufir Hawat.
M&A is dead for a generation. Skadden gave him a buzz cut and his ego couldn't handle it so he left. Nothing shocking other than the fact that Kirkland has grossly overpaid for talent in an ebbing practice area.
I second the suggestion for the new Skadden AssLobster. It is too perfect for words.
28, you are dead on.
M&A is dead and it is never coming back. This recession is going to last for the next 10 years with only tiny, if any, increases in deal flow in that time.
I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain.
-- Skadden mid-level associate
27: very true, but look at the havoc Vladimir Harkkonnen was able to wreak with only Piter de Vries to guide him.
Yeah, I hear these two guys were so good that they could merge Iraq and Iran without a single bomb shoved up a protesters ass. So good, that they could make Mike Tyson and Robbin Givens copulate again without any bruises or incarceration. So good in fact, that they could still merger J. Lo's ass into size 2 jeans! Yes Kirkland, kudos to you! Hopefully you're paying them what they think they're worth!
Lewis Zacharelli could care less about any of you because of his incredible wealth and smoldering good looks.
That is all.
I don't know how you guys can so flippantly say that M&A is going to be dead for a while. Past recessions have ended by stronger companies bottom-feeding, ahem, merging with weaker rivals. Why would this recession be different. This is forward-thinking by K&E - wish my firm would do same.
19: it's kthxbai, shitbag.
what a coup for kirkland! m&a is really blasting off! maybe kirkland should also poach a bunch of partners who specialize in buggy whip and typewriter law.
did it ever occur to anyone that the move was mutual (in the sense that the partners wanted a cut of profits that skadden wasn't prepared to give them, given the plunge in the value of m&a lawyers)?
YOU ARE ALL IDIOTS
-SKADDEN SECURE
35: Because this recession (and the government's overbearing response) is not like recent past recessions. We're fucked.
The penalty for deserting one’s sietch is not only death, but to let the desert claim the offender’s water as well.
35,
Don't worry, you could always go to work for Drinker Biddle, who have set their goal to become the "Target" of law firms. They are thinking ahead...after all, who doesn't love shopping at Target for their legal advice!
YOU ARE ALL POOR!
-LEWIS ZACHARELLI
Elie fucks sheep.
True story.
32
Piter DeVries died early on thanks to the Duke's poison tooth given by Dr. Yueh and the Baron has floundered ever since then. With counsel from those two departing partners, the Baron made a gross misstep when he told the Count Hasimir Fenring of his plan to make Arrakis into a Harkonnen prison planet.
Professional malpractice and personal suicide.
17 - Looks like the "tipster" has gone on record.
agree with #6. this reeks of a stealth layoff...
31
This should be the standard morning prayer for associates everywhere and not just in Skadden.
~ A Skadden partner
An asslobster says, What?
QUINN REMAINS
Who is, Lewis Zacharelli?
G G GulchUNIT
I hear Kirkland also stole the very best partner away from Thompson Hine.
Apparently, Kirkland needed someone new for their mail room and figured a Thompson Hine partner would probably be qualified for that.
-Rogue Associate (you are paying me to write this about you)
As one of his junior associates, I can undoubtedly say that Evan Chesler does not have manboobs. He is lean, chizzled, and fabulous. I am grateful to be under his leadership.
33 - sounds like you're introducing the Stig! I like it
anyone who uses "kthxbai" is a total dork.
"buggy whip and typewriter law" ... made me laugh.
31 wins comment of the year so far.
47's use of a little squiggly instead of a dash intrigues me.
~ 55
Looks like a K&E strategy change. Private equity is dead. The funeral dirge has played and the burial is completed. M&A is sickly and probably will return to some semblance of health. Therefore, get some real M&A attorneys into the firm.
52
ITYM "chiseled" and not "chizzled".
Evan Chesler really does look like a clone of Mitt Romney.
Sounds like Monster Joe's gonna be disposing of two bodies.
38: secure people don't type in all caps...
That means there's an opening at Skadden? So you're tellin me there's a chaaance.
-middle of the pack grad.
55=47
Kirkland is thirty minutes away. I'll be there in ten.
Everyone here in Chicago is laughing about this move.
N. Wacker Stud
33 - are you bob hope circa 1988?
31/47
1906 - Well represented I see.
1L Patent Guy.
Does anyone else think it is ironic that their surnames are "Wolf" and "Fox"
IN ANY CASE: I worked in Skadden's M&A department for six years (until last year) and I specifically remember that MOST of David Fox's M&A work and ALL of Daniel Wolf's M&A work came from internal contacts at Skadden that are now cut off.
Without those internal contacts Wolf and Fox are not going to have the same level of business at Kirkland.
I've seen this happen before...where a successful partner leaves a large law firm for a smaller shop and his revenues plummet.
Fox was a major jerk Wolf was nice will be interesting to see if it works out for them.
What is ironic is that you all still think that Lewis Zacharelli even knows who you are.
Another mixed-up cultural reference for Elie.
Napalm in the morning smells like victory --> nothing in the morning tastes like victory.
I heard they were being asked to leave . . .
Kalahari?
Looks like Elie missed his chance to play Dune with the commenting board.
68: A 40 of malt liquor does!
People saying M&A is dead for a generation are overdoing it. But the golden age of M&A and the interesting elements of M&A practice are over. I recently talked to a guy who was at Skadden in the 80s, then at a hedge fund, then retired early. I asked him about M&A, and he said it would be stupid to start a career in M&A now. All the fun issues are figured out, and it's just repetition now. Bankruptcy and project finance are the cutting edge for business minded young lawyers starting out.
Matthew Fox and Scott Wolf? This is the cast of Party of Five. Best. Show. Ever.
_________ leaves a sinking ship first.
These guys are not rainmakers. Pacman Jones is a rainmaker.
57:
I would happily allow both to play tonsel hockey in my mouth.
Thanks for the spelling correction.
- Chesler Boy Toy
re: the economic outlooks by 35 and 39...
I can't take anything anyone says on this blog seriously anymore. You people made fun of a guy that killed himself. The comments on this blog are totally irrelevant. All you law students (and for Christ's sake biglaw partners too) take note that these comments mostly come from the bottom of the barrel. They do not represent the majority of young associates. These people are fucking losers and don't know shit. They just pretend to know what they're talking about under a blanket of anonymity.
7 - horrible and misrable, at least when it comes to Fox. Have fun.
Are Wolf and Fox taking Moose and Squirrel with them?
That Disney movie Fox and the Hound was great.
Tagline: Two friends that didn't know they were supposed to be enemies.
Plot: Two childhood animal friends find themselves forced to become enemies.
Steve Fraiden is playing the role of the old hunter.
31 - wins the contest for useful Dune references. The rest of them get the gom jabbar.
Why didn't he go to OMM? I know - they don't have a transactional practice. Ha ha. He he. Suck it AB.
Check out the Kirkland website. The firm is already touting this move as game-changing:
http://www.ke.com
"This recession is going to last for the next 10 years with only tiny, if any, increases in deal flow in that time."
I assume that by "for the next 10 years," you actually mean "forever." Because that would be more accurate.
David Fox is the biggest d**k on the planet...unless you're his client. Everyone below Joe Flom hated him including the cafeteria staff since he never paid for his meals. Good luck, Kirkland; you'll need it.
72
Your comment is happy news to the Werewolves of London who have been using cutting edge and project finance in sentences that reach wildly different conclusions.
The vast expansion of credit that fueled the dealmakers' rise has ended. It'll take a generation to pay off the debt if we're lucky. If we're unlucky and Uncle Bar gets his way we'll be living in mud huts and paying for our cornmeal with trillion dollar bills.
The vast expansion of credit that fueled the dealmakers' rise has ended. It'll take a generation to pay off the debt if we're lucky. If we're unlucky and Uncle Bar gets his way we'll be living in mud huts and paying for our cornmeal with trillion dollar bills.
DELETE 83. Fucking asshole posting links to porn pages.
DELETE 89 for being a whiny bitch
@77: Are familiar with the terms hypocrisy or irony?
"They just pretend to know what they're talking about under a blanket of anonymity." -- Posted by guest.
DELETE 89 for being a whiny bitch
@77: Are familiar with the terms hypocrisy or irony?
"They just pretend to know what they're talking about under a blanket of anonymity." -- Posted by guest.
we landed on the moon
Skadden is shit, the kind that smells really bad. They turn young know- nothing attorneys into older know-nothing attorneys. Never met one that was worth a damn.
Fuck you 89 et. al. I generally hate the people who asks for post to be deleted. But people should not be posting porn links on sites that people check at work. Some of still do have jobs and are busy and check ATL on a break. We're not all unemployed associates sitting at home jerking off into a sock.
-83
-
89/96,
I made the same mistake of thinking that Kirkland's website was "ke.com" and, upon discovering from my work computer that it was not, decided to share the fun with ATL's band of misfits. No harm meant, just a little joke. Chill.
Real 83
86-
Not saying project finance is booming right now, just that, with a long time horizon, it's a cooler place to start a career, given increasing globalism and international development and what not.
72
I didn't mean that I was 83. I was 89, upset with you # 83. I typed that wrong. Next time, feel free to keep it to yourself. Not the worst thing in the world. But looking at porn on work computers is not very funny.
-89/96
I herd Skatten lost another weiner (or too!)
Haha @ 80 Steve Fraidin will eat your young
Wow. I think all of the other Partners Kirkland brought along were a slam dunk. Not as sure about this one. Definitely ambitious though. They're really positioning themselves to emerge from this recession as 'the' preeminent law firm.
REGARDING NUM BER 83
just got an email back from the person at abovelaw who answers their email. he told me they have identified the IP address of number 83 and have traced it to his computer and will take appropriate action with his employer
it is unlawful to post that kind of pornography
REGARDING NUM BER 83
just got an email back from the person at abovelaw who answers their email. he told me they have identified the IP address of number 83 and have traced it to his computer and will take appropriate action with his employer
it is unlawful to post that kind of pornography
REGARDING NUM BER 103
just got an e-mail back from the person at your house who answers your mom's email. She wants you to shut off your laptop, stop making up retarded flames, and come upstairs for dinner.
It is unlawful to post that kind of stupidity.
How likely is it that Wolf and Fox were pushed out?
All about the rates. Skadden is very disciplined with its high rates, and it's losing clients. Partners are leaving because they want more flexibility with rates in a tough economy. Skadden better start adapting.
All about the rates. Skadden is very disciplined with its high rates, and it's losing clients. Partners are leaving because they want more flexibility with rates in a tough economy. Skadden better start adapting.