Musical Chairs: A Recent Lateral Partner's Mysterious Departure

Why would a high-profile lateral leave his new firm so quickly and with such little notice?

“Beware the serial lateral partner.” That’s conventional wisdom in some circles of the legal profession. Here’s a pattern you often see: someone who gets poached by one firm, presumably lured by a big pay package, then laterals to another firm after the period of guaranteed compensation runs out, to enjoy another few years of guaranteed comp.

Today’s lateral partner story is a bit different. This high-profile partner is leaving his new firm after less than a year there (surely to the great disappointment of any recruiter who might have been involved in his original move).

It’s a strange story. What could be going on here?

As you may recall, back in February we wrote about Leonard Klingbaum moving from Kirkland & Ellis to McDermott Will & Emery. Sources told us that Klingbaum — who specializes in representing companies and lenders in financing matters, especially in distressed or bankruptcy situations — left K&E for MWE because he wanted to be “a big fish in a medium-size pond rather than a medium-size fish in a big pond” and was “promised the moon” by McDermott.

Did that moon turn out to be made of green cheese? Less than nine months later, Klingbaum is leaving McDermott, sources tell us. He is joining Willkie Farr (where he’ll be reunited with another prominent Kirkland refugee, private-equity lawyer Kirk Radke). Although Klingbaum remains on the MWE website, we understand that he gave notice sometime last week. (We’ve pasted his bio on the next page in case it gets pulled sometime soon.)

What could be going on here? One source initially wondered whether it might be for family reasons — Klingbaum’s family lives in Florida — but dismissed that possibility after noting that he will remain in New York.

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Another line of thinking: Does Klingbaum know something bad about McDermott that other people don’t? We’ve heard reports of another partner, a group head, sending out what was described as an “embarrassing” email suggesting that Klingbaum’s departure raises worrisome transition issues. (We’d love to get our hands on that email; feel free to email us or text us (646-820-8477) if you can share it.)

One source of ours expressed nostalgia for happier times, back when New York partner Timothy Alvino served in MWE’s leadership ranks. Another tipster told us that morale under New York office head David Goldman — who played a major role in recruiting Klingbaum, we’re told — leaves something to be desired. (On the staff side, we’ve heard complaints about morale as well, due to issues relating to raises — or the lack thereof — and bonuses.)

What could be going on here? Compensation issues? Culture issues? Disputes with other partners — perhaps certain NYC restructuring partners who didn’t get much of a say when Klingbaum got hired?

We have reached out to both McDermott and Willkie for comment on Klingbaum’s move but have not heard back yet. If and when we do, we will update this post. If you can shed light on this mysterious situation, feel free to drop us a line.

UPDATE (10/24/2014): Klingbaum and Willkie confirmed the move to Am Law Daily:

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Reached by phone, Klingbaum says his decision to leave Kirkland for McDermott was in part because of a mismatch in client focus. “I am more focused on middle market transactions, while Kirkland’s successful growth is more based on big transactions,” he explains.

Klingbaum says Willkie Farr’s substantial presence in private equity, debt and finance, as well as the work flow within the firm’s debt group, are what motivated him to move again eight months later. Although both Willkie Farr and McDermott target middle market transactions, he says he thinks Willkie Farr could offer him a better platform.

“This opportunity at Willkie gives me the best position I need for personal and professional development,” Klingbaum says.

You can read the full story, including Willkie’s statement, here.

Earlier: An Update On Goings On At Kirkland & Ellis
What’s Going On At Kirkland & Ellis?

(Flip to the next page for Lenny Klingbaum’s McDermott bio.)