London lawyers at risk as Wall Street giant’s partners vote on closure

Partners at US-headquartered Weil, Gotshal & Manges, where profits per equity partner exceeded $5 million last year, were yesterday asked to vote to ‘pursue an orderly wind-down’ of the 95-year-old firm. The announcement follows a series of high-profile partner departures to rivals.

In a statement yesterday, the firm said: ‘Following a careful review of strategic alternatives, the firm’s management committee has recommended to the partnership that the firm pursue an orderly wind-down. The partners are expected to vote in the coming days.

‘During the wind-down process over the coming months, the firm will continue serving clients with the dedication and excellence that have defined it since its founding and will remain committed to supporting its colleagues.’

However orderly that wind-down, the collapse is one of the biggest firm failures in the international legal sector. The firm has 45 partners and 200 solicitors at its London offices in Fetter Lane, next door to the Rolls Building.

Last month M&A lawyer Michael Aiello, a leading ‘rainmaker’ for the firm left for Cravath, Swaine & Moore. A finalist in the American Lawyer 2026 awards, Aiello had advised on M&A transactions in excess of $110bn. New York partners Chris Machera and Stephanie Srulowitz left for Simpson Thacher & Bartlett. London co-managing partner David Avery-Gee joined Sullivan & Cromwell.

Merger would have been a preferred strategic alternative, and talks were held with at least one rival, Willkie Farr & Gallagher. The talks failed, and the firm’s incoming executive partner Ramona Nee informed Weil Gotshal’s management committee she would now not take the role.

According to the New York Times, the firm hired advisers from law firm Davis Polk & Wardwell to help it with a range of options, which this week turned to discussions about the possibility of winding down.

Weil Gotshal has low debt levels. But despite its reputation and standing in the market, competitors have pulled ahead on headcount and profits, taking a greater share of the lucrative private equity deals market. Revenues last year were $2.1bn, behind rival Simpson Thatcher ($3.6bn) which has a PEP of $7.7m. Others have a lower turnover but realised higher PEP. At Sullivan & Cromwell, PEP is $6.7m.