DLA Piper posts 15% global revenue hike to reach new $2bn-plus high

DLA Piper saw global revenues soar past the $2bn mark in 2011 to set a new firm record, reports The Am Law Daily.

The firm's total revenue jumped 14.6% to an all-time high of roughly $2.25bn (£1.42bn) during the year, while average profits per partner rose almost 8% to $1.225m (£775,000) - just $70,000 (£44,000) below the peak profit figure the firm achieved in 2008.

Part of the revenue gains came from the financial integration of DLA's Australian ally, Phillips Fox, which took place last May. Speaking after the firm announced its 2010 figures, global co-chair Frank Burch said that the merger would add around $300m (£190m) to the firm's top line. The tie-up also made DLA the world's largest firm by lawyer headcount.

The formal union with Phillips Fox came amid a sustained period of lateral hiring that continued to swell the firm's lawyer and partner ranks. DLA brought in 87 new partners last year- more than any other top 100 US firm, according to The American Lawyer - and promoted a further 53.

Total lawyer headcount grew by almost 400 lawyers to 3,745, meaning that DLA's revenue per lawyer rose by a more modest 2.6% to $600,000 (£380,000), while the firm's profit margin inched up from 24% to 25%.

Last October DLA announced the trophy hire of former Linklaters managing partner Tony Angel as co-global chairman and senior partner of its business outside of the US, while in June, the firm announced that former US Senate majority leader and onetime firm chair George Mitchell was returning to the business after two years in the Obama administration.

The firm also recently set out its new US leadership team, with Roger Meltzer, chair of the corporate and finance practice, and Cameron Rains, co-chair of the global corporate practice, set to become US co-chairs for a four-year term from January 2013. Joint chief executive and managing partner Nigel Knowles was also reappointed for another term.

DLA is currently mulling over full financial integration of its US and international profit centres as part of its three-year business plan, while the firm is also gearing up to usher in an all-equity partnership across its international limited liability partnership, which comprises the firm’s operations across Europe, Asia and the 
Middle East.

The recently-filed limited liability partnership accounts for DLA Piper International, which covers all operations outside North and South America, include a revenue figure of £619.9m for the financial year ending 30 April 2011.

By Chris Johnson