Macfarlanes is one of the most distinctive mid-sized law firms in the City, with a corporate department that regularly competes with the Magic Circle on deals. The impressive profit each of its equity partners took home in 2013/14 - £1.19 million - surpassed even 2007/8's whopping £1.1 million, and put them on more than their Magic Circle counterparts at A&O and Clifford Chance.
One of the reasons for this is that Macfarlanes keeps a tight lid on the equity. It has 81 partners, of which 47 will be equity partners. It also eschews costly foreign offices in favour of a referral network. To this extent the firm is very much a miniature Slaughter and May, which of course means that assistants can expect to be similarly Slaughtered by the hours. Still, at least they earn the same sort of cash (plus a bonus scheme of up to 15% of salary), and the work is some of the best in the City.
The firm's two big revenue creating departments, corporate and real estate, inevitably saw a downturn over the last few years. But the firm managed to keep its turnover relatively steady - a 2009/2010 drop in revenue from £99m to £92.4m was partly down to the firm's adoption of GAAP procedures and in reality was a drop of just 2%. Now it seems to be blazing - an increase to £139.74 million in 2013/14, 22% up on the previous year, has shown that its revenue has more than recovered. The firm's rep for quality rather than the quantity of deals has and should continue to make them profitable.
Macfarlanes unveiled pay rises in July 2016. NQ's are now paid £71,000, with
performance bands for 1PQEs of £77-79,000, for 2PQEs of £80-88,000 and
for 3PQEs of £85-98,000. It also gave its lawyers an average bonus of
9.3% for the May 2015 - April 2016 period, on top of a 5% bonus
received by all staff. For the May 2016-April 2017 period, the firm raised the lawyers' bonus limit to 25%. Which means that with the
addtional 5% firmwide bonus, which Macfarlanes is maintaining, a
prodigal 3PQE could earn £127,400.
Major clients include Goldman Sachs, 3i, RBS, Reebok, Barclays Wealth and Paramount. And the firm's been keeping its nose in some very tasty deals, such as Duke Street Capital's secondary buy-out of the Wagamama's chain and it advised Brit Insurance on a $1.3bn cash offer for Apollo Management VII and CVC Partners. The firm also represented oil company Trafigura in the Abidjan Personal Injury Litigation, the largest group litigation ever brought in the English Courts and possibly one of the most controversial. It also recently advised Verizon on its $130bn purchase of Vodaphone's interest in the company.
Like many firms, Macfarlanes was forced to make redundancies in 2009, but things now seem to be very much on the up. In September 2012 it managed 92% trainee retention, and though it had a bit of a wobble in September 2013, keeping on 18 of its 24 trainees - around 75% - in September 2014 the firm achieved a creditable 84%, retaining 21 out of 25 trainees.
Like Slaughters, Macfarlanes has a reputation for being a fairly old-school outfit. The partners may deny this, and certainly the firm has taken steps towards showing its progressive, funky side - in the past corporate assistants have been invited on free skiing trips. And whilst associates claim there are many partners "who let you share their Werther's Originals and know a good story about a bridge
" there are others who are "down with the kids
" and even some who "like the rap music
So maybe it's the law firm equivalent of your father trying to dance at the school disco. But the lawyers we've met all seem like a very nice bunch, and since senior partners are taking home some pretty serious wedge we imagine they quite frankly couldn't care less.
The firm is also seen as one of the most meritocratic in the City. So aside from the money and partnership prospects, there are other clear advantages to training and working at Macfarlanes over and above the larger City practices: chiefly, its small size means that you can expect proper, hands on experience from the day you start. And whilst it's generally referred to as a corporate boutique, it also has a cracking private client department if that's your bag - a rarity in such a profitable firm.
The downside is that there's nowhere to hide - if you're crap you'll be found out in double quick time - and given the lack of foreign offices it's not the best place to go if you fancy heading off to the Med for a little R&R.
The firm's performance in RollOnFriday's Firm of the Year
survey is improving, and it scored a mid-range, but satisfactory score of 69% this year. Lawyers still complain that the firm "embraces change reluctantly
" and that "the sacrifice of life outside the office is totally expected
". Others worry about a logjam higher up the ranks, with one saying the firm "still needs to address hierarchy problems and how to manage with large number of senior solicitors and few partnership places
". But there was a lot of praise for the "genuinely friendly
" collegiate atmosphere, the "very bright people
" and the "interesting and challenging work from trainee level up
". Partners are described as "approachable"
and the firm's Senior Partner, Charles Martin, received praise for his leadership. As for its fuddy-duddy ways? "The firm's classic retro charm is bang on trend with hipsters"
Clearly this is a good firm at which to work, as long as you're happy with tough hours and have the intellectual ability to cope with early responsibility. Along with Travers Smith (same work, slightly less crusty), it's one of the better mid-sized firms in the City.
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