Herbert Smith Freehills and Kramer Levin Unveil Transatlantic Merger: A $2 Billion Global Legal Powerhouse
In a significant development in the legal industry, Anglo-Australian law firm Herbert Smith Freehills (HSF) and New York-based Kramer Levin have announced plans to merge, pending partner approval. This landmark merger, described by both firms as a “bold, strategic move,” will create a powerhouse with revenue exceeding $2 billion. With a united global presence and complementary expertise, the new firm—Herbert Smith Freehills Kramer globally and HSF Kramer in the U.S.—is set to make a notable impact on the international legal landscape.
A Strategic Expansion of International Coverage
The merger brings together two firms with strengths in different geographical areas and practice specializations. HSF, with a long-established presence in the UK and Australia, has also developed strong operations across Europe and the Asia-Pacific region, maintaining only a small New York office until now. The firm’s broad international coverage has long positioned it as a leading global law firm, though its U.S. reach has remained limited.
Kramer Levin, in contrast, is smaller in size and ranks just outside the AmLaw 100, yet brings essential U.S. market coverage through offices in New York, Washington, D.C., and Silicon Valley. This strategic merger gives HSF an immediate and substantial boost in U.S. capability and presence, adding around 120 U.S. partners to its ranks. This expansion in the U.S. market is especially advantageous, as it strengthens HSF’s capabilities in areas including disputes, energy, financial services, infrastructure, mining, and technology. The alignment of practice areas and sectors between the two firms suggests a seamless integration that could enhance the firm’s offerings across key industries.
Creating a Fully Integrated Global Profit Pool
One of the standout features of the HSF and Kramer Levin merger is the firms' decision to operate a single global profit pool from the outset. This approach means that partners from both legacy firms will be financially aligned from day one, potentially fostering greater collaboration across different jurisdictions and practice areas. This type of profit-sharing model, increasingly favored among top-tier global law firms, is expected to drive seamless service delivery across continents, aligning interests and ensuring a high level of consistency for clients worldwide.
The move to a single profit pool also signals a commitment to a cohesive operational approach that sets the combined firm apart. By removing separate regional or firm-specific profit centers, the merger avoids some of the common integration issues that arise when merging firms with distinct compensation and financial structures. It also underscores the depth of commitment both firms have made to becoming a truly unified entity.
Elevating to the Global Top 20: A New Force in the Legal Market
With combined revenue projected to surpass $2 billion, the newly formed HSF Kramer will propel legacy HSF into the top 20 global law firms by revenue, elevating it from its previous position at 34 in the AmLaw rankings. The merger’s scale and projected financial success mark a significant reshaping of the global legal market, as the firm joins an elite group of law firms by revenue and scale.
The new entity will boast an impressive roster of 2,700 lawyers, including around 640 partners across 25 offices worldwide. This scale provides the firm with extensive resources and reach, positioning it to compete with some of the largest and most influential firms in the U.S., UK, and Australian markets. By integrating Kramer Levin’s established presence in key U.S. cities with HSF’s broad international footprint, the firm aims to become a go-to legal services provider for clients with multinational needs, particularly those seeking counsel in complex cross-border matters.
The merger not only signifies HSF’s commitment to becoming a prominent player in the U.S. market but also reflects the increasing trend of globalized law firms focusing on the American market to better serve the needs of large, international clients. This growth in the U.S. is likely to have positive ripple effects, strengthening the firm’s ability to secure high-value engagements and fortifying its standing as a preferred choice for global clients.
A New Era for Herbert Smith Freehills Kramer
This merger between HSF and Kramer Levin comes at a time when law firms are increasingly recognizing the importance of a robust global presence, especially in critical markets like the United States. The strategic expansion will allow the newly merged firm to enhance its service offerings across key sectors and meet the demands of a diverse client base spanning the Americas, Europe, Asia-Pacific, and beyond. The decision to operate under the unified branding of Herbert Smith Freehills Kramer globally, with HSF Kramer in the U.S., reflects the firm’s ambitions to solidify its brand across regions while adapting to market nuances.
By combining HSF’s international expertise with Kramer Levin’s U.S. market strength, the new firm is expected to attract major clients in sectors such as energy, financial services, infrastructure, mining, and technology—industries where both firms have already established significant expertise. The firm’s robust disputes practice, which will be further bolstered by Kramer Levin’s capabilities in litigation, will also position it as a major player for clients facing complex legal challenges.
As the merger awaits final partner approval, anticipation is building within the legal industry. If approved, the merger will open a new chapter for both firms and introduce a formidable new entity to the global legal landscape. Herbert Smith Freehills Kramer’s establishment will likely encourage other firms to pursue similar transatlantic mergers, particularly as the legal industry continues to globalize and clients seek law firms that can provide seamless, cross-border service across a range of jurisdictions.
This merger promises not only to elevate the legacy firms but also to set a new benchmark for integration, collaboration, and global reach in the legal sector. As Herbert Smith Freehills Kramer enters the market, clients around the world are sure to take note of this powerful new player poised to reshape the competitive landscape of international law.
