DLA Piper gets £30m cash injection from all-equity move
DLA Piper International was boosted by a £30m cash injection after it converted to an all-equity partnership structure while capital contribution demands fell by 15 per cent as a result of the switch.
The firm switched to all equity on 1 May to reduce the its exposure to the bank lending. In the 2011-12 financial year the international LLP had £71m in bank loans and overdrafts, down from £88.5m the previous year. According to co- chief executive Nigel Knowles and Edwards the firm is looking to reduce bank exposure purely because it can afford to.
Knowles said: “[The switch to all equity] was done for a number of reasons: to align us with the US side of the firm, to give everybody the same interest in the firm and to take away artificial barriers to earning.”