King & Wood Mallesons partner exits continue

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Partners continue to leave King & Wood Mallesons (KWM) and the firm has also asked partners in Europe and the Middle East for capital contributions to boost capitalisation.

Bloomberg Law counted five partners who have left or have announced they are leaving the global firm just in the month of July.

Jeremy Cross, KWM’s former finance chief for Europe and the Middle East, was hired by Cadwalader, Wickersham & Taft early this month.

Covington & Burling has landed Elaine Whiteford, commercial litigation partner, and Greg Lascelles, disputes parter, from KWM.

Also this month, K&L Gates was reported to be the destination of Hilger von Livonius, investment management partner, as well as counsels Philipp Riedl and Michael Harris.

Meanwhile, dispute resolution partner Paul Stothard is joining Norton Rose Fulbright.

Nonetheless, Bloomberg Law also noted that KWM hired real-estate partners Simon Burson and Jeremy Brooks from Eversheds this month.

The notable turnover at the global firm comes as they issued a cash call to partners in Europe and the Middle East.

According to a report from Legal Business, partners in said regions have been asked to contribute between £80,000 and £240,000 based on their points in the firm’s compensation ladder which doubles each partners’ capital contribution to the firm.

Moreover, each salaried partner has reportedly been asked to contribute £60,000 into the firm, a first for the global firm. 

London-based funds veteran Michael Halford is behind the plan after he led an evaluation of the KWM’s capitalisation in the region.

Legal Business noted that the move follows frequent delays in quarterly profit distributions and an increase of the firm’s Barclays loan facility from £20m to £25m.