June 3, 2024
In a strategic move to bolster its finance and restructuring capabilities, U.S. law firm Paul Hastings announced Monday the addition of a significant team from King & Spalding, including Jennifer Daly, the co-leader of King & Spalding’s global finance and restructuring practice.
Major Team Move
Paul Hastings is welcoming at least ten other partners from King & Spalding into its offices in Chicago, Houston, New York, and Washington, D.C. This acquisition is part of an ongoing hiring spree within the finance and restructuring sectors for Paul Hastings. In recent months, the firm has integrated teams from Stroock & Stroock & Lavan, Latham & Watkins, and Cahill Gordon & Reindel, further cementing its position in these lucrative practice areas.
Driving Revenue Growth
These strategic hires have proven to be a revenue boon for Paul Hastings. According to a firm spokesperson, these additions have contributed significantly to a 20% increase in revenue in the first quarter of 2024. This growth has been fueled by high-profile engagements, including representing creditors in the FTX Chapter 11 case, where partner rates have soared to $2,300 per hour, led by Kris Hansen, a former leader from Stroock’s bankruptcy practice.
Impact of Strategic Hires
The integration of Kris Hansen and his team from Stroock in 2022, which consisted of over 40 restructuring lawyers, was particularly impactful. This team was responsible for nearly a third of Stroock’s revenue in 2021 and their departure played a key role in Stroock’s subsequent collapse.
Jennifer Daly’s Perspective
Jennifer Daly cited Paul Hastings’ undeniable hiring momentum and strong client relationships as major factors in her decision to join the firm. Daly, along with finance partner Roger Schwartz, has a track record of representing major clients such as U.S. investment firm KKR, although specific client names were not disclosed by either Daly or Schwartz at this time.
King & Spalding’s Response
In response to the departures, a spokesperson from King & Spalding wished the departing lawyers well, highlighting the amicable nature of the transition despite the significant impact on their team.