International giant Hogan Lovells is asking its equity partners to put £50m into the firm over the next five years to provide ‘working capital flexibility’ and to fund ‘significant investments’.
Equity partners will increase their capital contributions by 7.5% until 2021, contributing an average of £100,000 each. This will add up to to around £10m each year.
The initiative extends an existing plan under which partners agreed to increase their capital contributions by 7.5% in both 2015 and 2016.
David Hudd, deputy chief executive, said. ‘As the firm has grown over the past five years the amount of partner capital in the business has not grown at the same pace.
‘In 2015, we determined it was prudent to increase capital modestly each year as the business grows. We recently announced that we would be continuing that programme for the coming five years.’
He added: ‘We have always taken a conservative approach to our business management. We are long-term debt-free and prefer to utilise partner capital as our financing mechanism. This continued programme for increasing our capital will provide working capital flexibility, as well as supporting a number of significant investments we are making globally in technology, our people and our office spaces.’
Seperately, the firm revealed this week that it has taken on two trainees and one NQ from King & Wood Mallesons who are set to join this month and next month.
The firm said it has also filled a 'small number' of existing business services and PA vacancies with KWM candidates.
'We look forward to working with our new colleagues and welcoming them to Hogan Lovells,' a spokesperson said.