Brexit puts Pa. firms’ eyes on Germany
Country emerges as financial center
The Legal Intelligencer
In the wake of the recent Brexit vote, and in preparation for the United Kingdom’s exit from the European Union, some large Pennsylvania firms are looking to expand operations in Germany.
Pittsburgh-based K&L Gates announced July 15 that it has opened an office in Munich, making for the firm’s third German office. The firm hired banking and finance partner Hilger von Livonius and two other lawyers from King & Wood Mallesons to start the Munich location, which it expects to grow over the coming months.
Rüdiger von Hülst, administrative partner of K&L Gates’ German offices, said the firm expected and already has seen a sharp increase in legal demand.
“Germany’s and Britain’s economies are both strongly cross-linked and reciprocally dependent in numerous ways,” Mr. von Hülst said in an email. “Disentangling those legal ties and regulations built in 50 years requires analysis in virtually every area of law.”
Like K&L Gates, Reed Smith said it already expects to expand in Germany. This growth is something the firm would have likely pursued regardless of Brexit, as it had already started down that path by opening a Frankfurt office last year. But Roger Parker, managing partner of Reed Smith in Europe, Middle East and Asia, said he would anticipate a greater emphasis on Frankfurt as a major financial market in the EU.
“It would be quite surprising if the bigger law firms, bigger service providers don’t have a greater presence in Frankfurt,” Mr. Parker said.
Reed Smith opened in Munich more than a decade ago. Mr. Parker said that’s a market where the firm is in a good position, and could develop that further.
Edward J. Estrada, Reed Smith’s global head of strategy, said Germany has always been “incredibly relevant” for firms with finance as a key industry group. While the full implications of Brexit remain to be seen, he said, it’s likely that financial centers in continental Europe will become even more important.
“The Brexit conversations, the possibility of them that began about two years ago put more focus from firms like ours on Frankfurt,” Mr. Estrada said. “It’s now, I think, so much more relevant as a global financial center.”
Henry Nassau, CEO of Dechert, said in a statement that the firm has no present plans to increase its presence in Germany as a result of the Brexit vote. However, he said it will monitor the effects of the changes, and remains committed to its Munich and Frankfurt offices.
“At this time, it’s hard to predict how everything will play out in the U.K. in the aftermath of the Brexit vote,” Mr. Nassau said. “We are watching to see how everything unfolds.”
The Munich office is K&L Gates’ eighth in Europe. The firm said the office will help grow its German investment management practice, as well as expand in areas such as corporate, information technology and intellectual property litigation.