The Financial Times quotes Edwards Gibson in article on ‘The City law firm that found wealth in private capital’

Edwards Gibson is delighted that Director Scott Gibson has been quoted in the Financial Times article ‘The City law firm that found wealth in private capital’, written by John Gapper, which explores how Macfarlanes has evolved from a traditional private client practice to one of London’s most profitable law firms and how the emergence of US law firms potentially threatens this position.

The article examines how Macfarlanes has successfully grown from its roots as a private client firm to a key player in global wealth and private capital, ranking only second to Slaughter and May for profit per equity partner in the UK. By maintaining its focus on English law and honing its strengths in areas such as tax, private client, mid-market private equity and complex disputes, the firm has grown enormously with average profits per equity partner reaching £3.1m.

The piece also explores how the arrival of US firms in London have created both opportunities and threats; while this has led to increased rates for private equity and capital work for Macfarlanes, it has also increased competition in terms of top pay and poaching top talent. Since the financial crisis, sponsor‑led US private capital firms have undergone a quantum leap in profitability and scale, reshaping the very top of London Big Law — at the expense of the incumbent UK‑founded elite, Slaughter and May and the rest of the Magic Circle included. As such, Scott Gibson notes in the article that “the firm is very profitable by UK standards, but its relative position has slipped”, given that a narrow cadre of elite US firms now sit on a completely different economic plane altogether.

However, the overall consensus is that Macfarlanes has evolved much faster than previous peers, and it has fared well to keep its position at the top.

Read the full Financial Times article here