American law firm K&L Gates spurs client confidence

In a historical move that the Wall Street Journal labelled, “The most complete financial disclosure by any law firm in US history,” K&L Gates, has taken the bold move of placing its full financial hand on the table. The ultimate and open goal is clearly to inspire confidence amongst the greater pool of clients, which has become increasingly cynical if not disenchanted following a series of major law firm – some ‘white shoe’ - failures in the US. “Our financial disclosure - including not only revenues and profits but also our debt position, liquidity, capitalisation, retirement obligations - was intended to establish a new standard of transparency,” says chairman and global managing partner, Peter Kalis, speaking exclusively to SBR from the firm’s CBD headquarters.

Hoping to capitalise on the goodwill gleaned from this unprecedented declaration, K&L Gates, which boasts 46 offices on five continents, is looking to expand its presence in Asia. K&L Gates’ seven Asian offices showed a combined 25% increase in revenues in 2012. Managing partner of the Hong Kong practice, David Tang, states proudly that, “In our 17 years in the Territory we’ve developed depth and breadth, especially in cross-border disputes and debt capital markets.”

The firm, which enjoys a particularly strong reputation in international commercial dispute resolution, IP, regulatory frameworks and M&A, is always on the lookout for good merger opportunities. Notwithstanding the landmark recent merger with national Australian practice Middletons, the firm’s primary growth philosophy is organically oriented. Strategic, organic growth means finding great talent, a battle that Kalis describes as a “knife fight between all good law firms – it is the nature of the business.”

“We feel there is great talent in Singapore and if we don’t attract it, it’s us that’s not doing something right.” Kalis adds that it is vital to project a great and honest employer brand, which can be largely achieved by moves such as full financial disclosure. The firm’s geo-economic, industry and client diversification is in itself another sign of strength, with a spread across traditional and evolving industries in both mature and developing economies. No client represented more 5% of revenue in 2012. “Any lawyer we want to hire is going to do their due diligence on us, they can look at our capitalisation and retirement obligations, etc, and quickly see that we have confidence in who we are, we are ambitious but not pretentious – not to the manor born.” Kalis believes that this factor sits well with, in particular, young, ambitious Asian talent.

K&L Gates’ market diversification has allowed it to comfortably ride the economic uncertainties of the last half-decade. While certain areas of law are well known to be counter-cyclical, Kalis also argues that one of the firm’s specialties – navigating regulatory frameworks – is “cycle oblivious”, and as such business is there in good, bad and neutral economic environments.

But is it perhaps the firm’s non-elitist yet pragmatic and commercially aggressive drive that will hold its future in good stead. “Put simply, we engage in the debates of the day and as such are the law firm of the 21st Century.”