Private Equity

Eugene Stearns Eugene E Stearns 250 Cape Florida Drive D John Devaney Above the Law blog.jpgHere’s a sign of changing times: lawyers are picking up luxury real estate holdings that hedge fund guys can’t afford to keep.
From the Daily Business Review:

A high profile Miami litigator is expanding his real estate holdings on Key Biscayne.

Attorney Eugene E. Stearns and his wife, Diana, purchased a two-story home at 250 Cape Florida Drive for $8 million Aug. 31 from United Real Estate Ventures owned by trader D. John Devaney.

The 7,852-square-foot house has eight bathrooms, six bedrooms and a first-floor master suite. The house built in 1985 features cathedral ceilings.

Who says the Miami real estate market is dead? A thousand bucks a square foot, for a single-family house not on the island of Manhattan, doesn’t sound half-bad.
Discussion continues after the jump.

double red triangle arrows Continue reading “Lawyerly Lairs: Star Litigator Bails Hedge-Funder Out of $8 Million Mansion”

Here’s the latest Job of the Week from Lateral Link, ATL’s career partner:

Title: Attorney In Charge Of Firmwide Private Equity Knowledge Management

Location: Chicago

Description: This position is a combination business and legal position at a top international law firm, with no billable hours and no client development expectations. The position is full-time, affording the attorney holding the position the ability to remain deeply involved in private equity law with a more regular and predictable schedule than most private equity attorneys experience.

The attorney would have responsibilities in a number of areas related to the firm’s highly regarded private equity practice — precedent, training, publications and knowledge development, among other things. This firm offers a highly competitive salary and bonus eligibility, which is expected to be comparable to the salary and bonus eligibility of an attorney at a similar level of experience. This position is ideal for a private equity attorney seeking to scale back their practice and increase their role in business development, marketing and management.

More details, after the jump.

double red triangle arrows Continue reading “Job of the Week”

piggy bank Above the Law blog.jpgIf you look up the term “private equity” in Black’s Law Dictionary, the entry reads: “Lucky bastards who make three times as much as you do, even though you graduated from college at the same time.”
But perhaps lawyers should think warm-and-fuzzy thoughts, as opposed to envious and resentful ones, about private equity types. Today’s DealBook has an interesting item about how private equity deals are keeping law firms busy — including a number of shops outside the private equity “Holy Trinity” of Simpson Thacher, Cleary Gottlieb, and Ropes & Gray.
The DealBook item is based on an article in the current issue of the American Lawyer, which contains this tidbit about lateral moves from Simpson:

An unintended consequence of our level of market share in private equity is that as private equity firms have grown, they’ve all developed in-house legal staffs, starting from zero, five years ago,” says Simpson partner Alan Klein. “They’re trying to populate those staffs with our associates.”

Seven lawyers left Simpson for private equity shops last year, according to Corporate Counsel, a sibling publication of The American Lawyer. Partly to stem defections, Simpson raised associate salaries in January, prompting a raise-a-thon among its competitors.

Remember when D.C. bar president James Sandman, of Arnold & Porter, posed this question?

“I don’t understand what causes a firm be the first to increase the salary of a brand-new lawyer from an already eye-popping $145,000 to $160,000. There is no competitive advantage in doing so. Other firms will surely follow suit, and the firm that led the market will quickly be indistinguishable from the rest of the pack.”

Well, there’s your answer, Mr. Sandman. Simpson isn’t competing with you and other non-NYC firms; it’s competing with private equity and investment banks. And your profits per partner are just collateral damage.
More Law Firms Crowd into Private Equity Deals [DealBook]
Corporate Scorecard: Gargantuans at the Gate [American Lawyer]

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