Clifford Chance
Revenues surpass £2bn with profit per equity partner maintained at £2mn
Leading global law firm Clifford Chance today released the firm's financial results for Financial Year 2023 (FY23).
Financial summary for the year ended 30 April 2023 (FY23)
- Eighth consecutive year of revenue growth - surpassing £2 billion for the first time
- Revenues were GBP 2,062 million, up 5% on the prior financial year
- Partnership profit1 was GBP 781 million, in line with prior year
- Profit per equity partner (PEP) was GBP 2.0 million, in line with prior year
- In US Dollars2, these figures are equivalent to revenues of USD 2,495 million, profit USD 945 million, PEP USD 2.4 million
- In Euros2, these figures are equivalent to revenues of EUR 2,391 million, profit EUR 906 million, PEP EUR 2.3 million
Charles Adams, Global Managing Partner at Clifford Chance comments:
"Our team has delivered another strong set of results amid continued significant geopolitical and economic headwinds. These results reflect the strength and resilience of the firm's global capabilities and diversified client base. We continue to meet our clients' most critical needs as they navigate increasingly complex regulatory and business landscapes."
"Despite a year of subdued M&A activity across the industry, our transactional teams maintained positive momentum buoyed in part by an active tech sector and private capital fund raising. Demand for our global advisory expertise was robust. We experienced significant growth in our global litigation and disputes resolution practice as well as our regulatory investigations business. Our overall strong performance is testament to the dedication and expertise of our talented global team and their commitment to deliver excellence for our clients."
Diverse and balanced global platform
The firm's well-balanced, diversified client base reflects its strategy of focused growth with financial investors and corporate enterprises while maintaining its long-standing strength in the banking sector. Today, the firm's financial investors and corporate enterprise client groups together account for over 70% of its total global revenues.
The strength of the firm's global platform and ability to deliver for clients across multiple jurisdictions and regions, enabled it to consolidate relationships with key clients and secure multiple mandates with market-leading organisations who it can best support with the firm's breadth and depth of offering.
The biggest contributor of revenue growth was the firm's leading global litigation and dispute resolutions practice which saw increased activity levels across all areas. This was driven by client focus on value protection and recovery, geopolitical disruption and a post-covid revival in enforcement activity by regulators and criminal prosecution agencies. Other notable areas of strong revenue growth included the firm's tax, pensions and employment offering.
The firm continued to strengthen its leading global offerings in core growth areas including private capital, energy transition, infrastructure and technology transformation including Artificial Intelligence (AI).
Strategic, client-led growth in the US remains a priority for the firm as evidenced by the recent opening of a new office in Houston, Texas. This move marked the expansion of its global energy and infrastructure practice in the region with the hiring of an initial cohort of seven new partners.
Continued investment in our People and Talent Strategy
Clifford Chance's People and Talent Strategy remains focused on hiring and retaining top talent across the globe. This includes supporting career progression, advancing learning and leadership development opportunities, progressing towards the firm's diversity, equity and inclusion goals and ensuring competitive reward programmes.
In FY 23, the firm hired 24 new partners across all practice areas, 42% of which were in the US (New York and Washington). In addition, a total of 32 lawyers were promoted to the partnership effective 1st May, 2023.
The firm continues to make progress in meeting its global inclusion goals. A total of 39% of newly promoted partners identified as under-represented minority ethnic partners* in the UK and US in FY23, exceeding targets for the third consecutive year. A total of 38% of newly promoted partners were female. The firm is committed to working towards its goal of achieving 40% female partners by 2030, led by the Executive Leadership Group which is now 46% female.
As part of its commitment to its people, the firm is implementing its first global wellbeing strategy, focused on enabling people to thrive at each step of the employee journey. This includes rolling out of mental health and wellbeing training, and investment in a broad range of resources such as Mental Health Champions and an enhanced Employee Assistance Programme.
FY 24 Outlook
Charles Adams concluded:
"We are starting the new financial year with maintained growth momentum and a strategy focused on growth in geographies and sectors that matter most to our clients. Against the current backdrop of persisting challenges and uncertainties in the global economy, we will continue the implementation of this strategy, to ensure we deliver outstanding service for our clients globally."
Notes to Editors:
1. Partnership profit is calculated after remuneration of non-equity partners and excludes the cost of profit-related annuities payable to partners
2. The exchange rates used to determine the US Dollar and Euro equivalent figures are USD 1.21 /GBP 1 and EUR 1.16 /GBP 1, which are the average annual exchange rates for the year ended 30 April 2023
3. Clifford Chance's vision is to be the global law firm of choice for the world's leading businesses of today and tomorrow
4. Financial investors include asset management companies, alternative investment funds, private equity funds, insurance companies and SWFs (Sovereign Wealth Funds).
5. Clifford Chance's Executive Leadership Group is the firm's top strategic decision-making body. More information on our governance is here
6. Not all partners disclosed ethnicity. Note that Clifford Chance can only collect ethnicity data in this way legally in the UK and US. Full regional diversity data against all criteria we measure will be published in the firm's Responsible Business Report.
7. Under-represented minority ethnic partners exclude white minorities.
8. Total new Partner hires excludes seven partners hired in new Houston office since close of FY23.
