Transatlantic firm posts a 26percent increase in profits per equity partner for FY 2021 to US$2.49 million
Global revenue increased by 12.9percent to $2.6bn and profit per equity partner (PEP) increased by 25.9percent to $2.49m for Hogan Lovell's 2021 financial year, the firms strongest ever results.
This is a substantial increase over the year 2021's sales increase of 2.8percent, demonstrating just how businesses law firms have shrugged off the impact of Covid-19 and not just in the lucrative US market since Hogan Lovells is a transatlantic firm with 53percent of its revenue generated outside the Americas.
Additionally, Hogan Lovells' revenue per lawyer increased by 16.5percent to $1.03m on the back of the firm's transactions practice, which Miguel Zaldivar described as a 'key driver' of the firm's performance.
"In addition to representing clients in some of the largest M&A transactions in 2021, we also have represented Oracle in its acquisition of Cerner," said Zaldivar. He added that it was the firm's experience with highly regulated sectors that made a difference in a number of these transactions.
A rise in litigation work was also noted, especially in jobs related to complex multi-jurisdictional differences and technology law.
Hogan Lovells' results came immediately after a similar performance by US top ten rival White & Case last week. White & Case posted 17percent increase in profit after tax to $3.514m against a 20percent jump in revenue to $2.87bn.
Hogan Lovells' three global practice groups were corporate and finance, global regulatory, intellectual property and media and technology, which accounted for 42percent of total billings, and labour, arbitration and employment, which included 28percent.
By region, the Americas and the EMEA each accounted for about 47percent of total billings, while Asia-Pacific only accounted for 6percent.
As part of its focus on financial discipline, the firm "achieved our business strategy" in 2021, after announcing a reorganization of its structure and management the year before which streamlined the cumbersome structure created when Hogan & Hartson of Washington DC merged with Lovells of the UK in 2010.
The number of the firm's offerings have been expanded in areas of growth for its clients like ESG and investments have been made in innovative services and products, including legaltech.
A Dublin office was opened by the firm on March 2021 following Brexit and focuses on practice areas associated with EU law like financial services, regulatory and competition law.
It has also been bolstering its corporate and finance bench strength in Europe, hiring a six-person M&A team from Watson Farley & Williams in Frankfurt in December and adding a five-person finance team from PwC Legal in Brussels on May 2021.
Earlier this week the company secured a new location for its London operation, adjacent to its current location at Holborn Viaduct.