Legal News: Key Updates You Can't Miss! ⚖️

Norton Rose Fulbright ups NQ pay in London to £135k

Norton Rose Fulbright (NRF) has announced a 12.5% salary increase for newly qualified (NQ) lawyers in London, raising base pay from £120k to £135k. This move aligns NRF with firms such as Herbert Smith Freehills and Hogan Lovells while surpassing Simmons & Simmons and Travers Smith, which continue to pay £120k.

The pay increase will take effect on 1 April 2025, following NRF’s annual benchmarking review. NQs who meet billable hour targets could earn between £143.1k and £189k, including performance bonuses. Salaries across the London associate pay scale have also been adjusted to maintain competitiveness.

This latest increase comes amid an ongoing salary war among top firms. In 2024, Magic Circle firms raised NQ salaries to £150k, while Macfarlanes set its rate at £140k. However, US law firms in London continue to lead the pay scale, with Quinn Emanuel and Gibson Dunn offering £180k and several others, including Sullivan & Cromwell and White & Case, paying upwards of £175k.

King & Spalding builds out global energy practice with double partner raid on Akin in London

King & Spalding has expanded its global energy and project finance practice with the addition of two partners and a counsel from Akin in London. Dan Giemajner and Matt Hardwick join the firm’s corporate practice group and energy industry team, having previously been partners at Norton Rose Fulbright before their tenure at Akin.

Giemajner specializes in project finance, advising on multi-billion-dollar international energy and infrastructure projects, including Canada’s Turquoise Hill Resources' $6bn Oyu Tolgoi mine development and the European Investment Bank’s financing of Europe's largest gas-to-grid biogas facility in Denmark. Hardwick focuses on structuring and operating complex energy and infrastructure projects, with experience in EPC and EPCM arrangements across Europe, Africa, and South America. Counsel Nadia Cinti, who also moves from Akin, advises on global energy and infrastructure projects.

The hires align with King & Spalding’s ongoing growth strategy in London, where it has recruited eight partners since early 2024, including finance specialists from Cadwalader Wickersham & Taft and M&A/private equity partner James Connor from Orrick. With these additions, the firm’s London partner count now stands at 46.

King & Spalding’s 180-lawyer energy team is recognised for its work on LNG production, offshore exploration, and large-scale energy transition projects. It has advised on major mandates, including Dow Chemical’s $20bn Sadara petrochemicals JV with Saudi Aramco and Petronas' $28bn RAPID project in Malaysia.

Hill Dickinson restricts access to Gen AI tools following a “significant increase in usage”

Hill Dickinson has restricted staff access to generative AI tools like ChatGPT, requiring approval before use, following a significant rise in usage. The firm detected 32,000 hits to ChatGPT in a single week, alongside high usage of other AI tools like DeepSeek and Grammarly. An internal email stated that much of this activity was not in line with the firm’s AI policy, which was introduced in September 2024. The policy does not ban AI but ensures its responsible use, prohibiting the upload of client data and requiring human oversight to verify AI-generated content. A spokesperson for Hill Dickinson emphasised that the firm aims to embrace AI’s benefits while mitigating risks. The legal industry continues to grapple with AI’s potential to enhance efficiency versus concerns over data security and misinformation, with experts stressing the importance of proper training and policy enforcement.

Commercial News: The Latest Insights You Need to Know! 📈

Fast-Fashion Giant Shein Faces IPO Delays Amid Tariff Crackdown

Shein's highly anticipated UK IPO is expected to be delayed due to Donald Trump’s decision to tighten import rules on low-cost Chinese goods. The fast-fashion giant had planned a London listing in early 2025, but new trade policies—including the removal of tariff exemptions on goods under $800—are impacting its timeline.

The crackdown affects Shein and its rival, Temu, both of which have benefited significantly from the de minimis rule. With over 30% of such shipments to the U.S. linked to these platforms, the new tariffs could disrupt their business models and increase prices.

Despite regulatory hurdles, Shein remains committed to its UK listing, awaiting approvals from British and Chinese regulators. The company had initially pursued a New York IPO but shifted to London after facing resistance from U.S. authorities.

Analysts warn that these trade changes pose significant challenges for Shein’s supply chain and overall market strategy.

Barclays Faces FCA Money-Laundering Probe and Tax Dispute

Barclays has disclosed a new FCA investigation into alleged weak anti-money laundering controls, focusing on its historical oversight of high-risk customers. This follows a £40mn fine last year for payments to Qatari investors and a £72mn fine in 2015 for financial crime lapses.

The bank is also in a tax dispute with UK authorities over its interpretation of the bank levy. Additionally, Barclays has set aside £90mn for potential car finance mis-selling claims, part of a broader industry issue.

Despite these legal challenges, Barclays reported a £1bn net profit in Q4, a strong rebound from a £111mn loss the previous year. Investment banking performed well, with 40% growth in equities trading and 22% higher investment banking fees. However, investors remained cautious, with Barclays’ stock dropping 5% as concerns over future performance persisted.

CEO C.S. Venkatakrishnan reaffirmed the bank's strategy, denying interest in acquiring Santander’s UK business. Meanwhile, Chair Nigel Higgins received a three-year extension and an 8% pay rise.

Potential 2025 IPOs

In 2024, London's IPO market experienced a significant downturn, with new listings raising only £737 million—the lowest on record. However, several companies across various sectors are considering public offerings in London in 2025, potentially revitalizing the market.

Fintech

• Ebury: A payments start-up owned by Santander, Ebury is preparing for a London IPO that could value the company at approximately £2 billion.

• Zopa: Originally a peer-to-peer lender, Zopa has transitioned into digital banking, offering products like savings accounts and personal loans. The company achieved profitability last year and is contemplating a London listing, though no specific timeline has been set.

• ClearScore: Founded in 2015, this credit-checking platform is considering an IPO and views London as its natural home, given its strong UK presence and profitability.

Financial Services

• Parameta: TP ICAP is exploring options for its data unit, Parameta, which could include a public offering in London or possibly New York, with an estimated valuation of up to £1.5 billion.

• Shawbrook: Owned by BC Partners and Pollen Street Capital, UK small business lender Shawbrook is considering a London listing, aiming for a £2 billion valuation.

Industrials

• Metlen Energy & Metals: This Greece-based conglomerate has filed for a primary listing on the London Stock Exchange, citing its longstanding presence in UK and international markets.

• AirBaltic: The Latvian national airline is contemplating a dual listing, with London as a serious contender alongside other European bourses, as it plans its much-delayed IPO.

Consumer

• Shein: The fast-fashion giant, valued at around £50 billion, has filed confidential papers for a proposed IPO. Initially targeting New York, Shein is now considering London for its listing, pending regulatory approvals.

• Unilever's Ice Cream Division: Unilever plans to list its €15 billion ice cream segment but has not yet confirmed the listing venue. The company will announce its plans in the first half of this year.

These potential listings span fintech, financial services, industrials, and consumer sectors, offering a diverse range of opportunities that could invigorate London's IPO market in 2025.

Legal Lingo Unpacked: Your Quick Terminology Breakdown! ⚖️

What is Private Equity

A “private equity fund” is an investment fund, often in the form of a limited partnership, that uses money invested by private investors to acquire shares in private companies, either directly or by delisting public securities (hence “Private Equity” or “PE”). There are also funds that lend debt but these are usually referred to as “credit funds”. Investors in the PE fund, for example, sovereign wealth funds or pension funds, become limited partners (or “LPs”) in the PE fund. Via the PE fund, these investors deploy considerable capital in moderate-term investments (often referred to as “portfolio companies”) in expectation of significant returns from the pre-agreed fund investment strategy. 

The investments for the PE fund are sourced, implemented and managed by the general partner, or manager, of the fund. In practice, this is a group of individuals otherwise known as the “private equity deal executives” who are rewarded through a combination of bonuses, co-investment and carried interest for executing investments and, in particular, making successful returns. 

The investments are then sold for a capital gain with the profits divided between the LPs and the fund managers.