Kirkland & Ellis: is it party over for the world’s most profitable law firm?

… Partners at Kirkland & Ellis have invested hundreds of millions of their own dollars in deals done by the private equity groups they advise, say people with knowledge of the firm.

Kirkland’s lawyers have put so much money into their clients’ funds that they have an internal market which enables them, on occasions, to trade their holdings, according to those people. It has been a lucrative sideline for many Kirkland partners, supplementing profit-based remuneration that for top earners routinely exceeds $20mn.

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But as rising interest rates curtail buyout dealmaking and fundraising, the law firm that built its fortune on servicing private equity faces a reckoning. The co-investing perk, which has drawn criticism for the potential conflicts it creates, has become less attractive for partners. Some of them have been left out of pocket after buyout groups struggled to sell assets this year, some of the people said.

Source: Kirkland & Ellis: is it party over for the world’s most profitable law firm?