Hogan Lovells made a remarkable resurgence in 2023, boasting unprecedented global revenue and equity partner profits. According to the firm’s report, they soared to $2.68 billion in gross revenue, marking a notable 10.3% increase. Profits per equity partner surged by an impressive 20%, reaching $2.7 million. Moreover, the revenue-per-lawyer metric reached an all-time high, surpassing $1 million, with just under 2,500 lawyers across 48 offices worldwide.
Background
The firm’s success is particularly noteworthy following a challenging 2022, where Hogan Lovells, like many others in the Big Law market, experienced unexpected declines in key performance indicators. Formed in 2010 through the merger of U.S.-based Hogan & Hartson and European-based Lovells, the firm demonstrated resilience in bouncing back from setbacks.
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Factors Driving Growth
CEO Miguel Zaldivar attributed the remarkable upturn to a record-breaking year in mergers and acquisitions and related practices. Notable contributions include facilitating the $12.7 billion merger between self-storage giants Extra Space Storage Inc. and Life Storage Inc. Additionally, the firm played a pivotal role in Mercedes Benz Group AG’s joint venture for electric vehicle charger construction.
Strategic Vision
Zaldivar expressed pride in the firm’s growth trajectory, inching closer to his ambition of positioning Hogan Lovells among the elite group of $3 billion-per-year law firms. Recognizing that only a handful of firms had achieved this milestone, he emphasized the effectiveness of their strategy in establishing the firm as a top-tier, “global elite” entity, renowned for handling complex matters in highly regulated sectors and markets across the globe.
Geographic Distribution
Highlighting the firm’s global reach, Hogan Lovells disclosed that nearly half of its work (48%) was billed in the Americas, while Europe, the Middle East, and Africa accounted for 47%. The remaining portion originated from the Asia-Pacific region, showcasing the firm’s extensive international presence.
Recruitment and Expansion
The firm bolstered its ranks by adding over 50 partners globally in 2023. Notable hires included Jeff Keitelman and Joshua Sohn, who joined from Stroock & Stroock & Lavan, bolstering Hogan’s real estate and litigation practices, respectively. Additionally, the recruitment of former DC attorney general Karl Racine and others reinforced the firm’s capabilities, particularly in the state attorney general practice.
Future Outlook
Looking ahead, Hogan Lovells remains committed to strategic expansion, evident in its recent lateral hiring spree, including a team of finance and M&A lawyers from Orrick Herrington & Sutcliffe. Zaldivar emphasized plans for continued growth, particularly in key markets such as New York, Europe, Washington, London, California, and Texas.
Industry Trends
Hogan Lovells’ impressive performance mirrors a broader trend among top-25 firms by revenue, with Paul Hastings reporting significant revenue growth of approximately 9% to over $1.8 billion. This underscores the resilience and adaptability of leading firms in navigating challenging market conditions.
By capitalizing on strategic initiatives, bolstering key practice areas, and expanding its global footprint, Hogan Lovells stands poised for continued success in the ever-evolving legal landscape.
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