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TCLA Vacation Scheme Applications Discussion Thread 2024-25
- Thread starter Jessica Booker
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if Cravath ever started expanding, their first destination wouldn’t 99% be London. And I don’t think they ever will because their entire V1 ranking rests on them being an exclusively NY firm. Although «satellite» is arguably a derogatory term, it is only derogatory from the perspective of a non-US lawyer. You always have to bear in mind that US firms exist in London in the first place because at some point the US headquarters chose to expand into London.
I think a good one would be the change in M&A activity from the start of last year compared to this year.
I saw a post on LinkedIn by Paul, Weiss which was a memo discussing this topic. I have linked it below:
It has a lot of tables, charts and graphs but I think it is a current commercial topic that might come up in AC’s so would be good to look at. 🙂
www.paulweiss.com
I saw a post on LinkedIn by Paul, Weiss which was a memo discussing this topic. I have linked it below:
It has a lot of tables, charts and graphs but I think it is a current commercial topic that might come up in AC’s so would be good to look at. 🙂
M&A at a Glance (February 2025)
Both U.S. strategic and sponsor deal values and counts rose significantly in January compared with December, while global M&A activity declined. » view the report
www.paulweiss.com
So long as you follow the news you'll be fine.
Pick topics that affect the key practice areas of the firm you're applying to
Easy common topics:
- Interest rates and their effect on M&A/ PE i.e. valuations, sales, servicing debt, borrowing costs.
- Competition and the stance in Europe and UK- push on innovation i.e merger remedies review and new CMA head, but crack down in certain sectors i.e tech and new laws, new national control hybrid clause, and the Nippon Steel case in the USA which could influence the stance in the UK
- Political stability- tariffs, uncertainty around trumps policies and how that affects willingness to complete deals cus of effects on inflation/ value of the pound
- For Equity Capital Markets- the July 2024 new listings regime and potential affects on the LSE
- Private credit growth due to high interest rates but how its likely to stay due to flexibility of borrowing terms
Possible.
Would need a sizeable shift in mentality from the senior partners in NY. Thing is their set up works really well for them rn in the US, especially for the top partners. Until their profitability drops, competition racks up and they lose mandates theres no need to risk the investment in another jurisdiction. Freshfields has made some big hires from cravath in NY, and theyve dropped rankings in some M&A league tables, which might trigger a shift. But they're so high end in their own jurisdiction that they probably don't need to in the near future (Slaughter and May?).
But tbh the bigger problem is who do you hire? Paul, Weiss happened pretty much out of the blue, because an internal power struggle at K&E meant top partners with big clients wanted to move (Johnson, Sachdev). Sure, they were offered a lot of money, but they also had an incentive to leave and build up something new. Cravath does mainly public M&A; big corporate clients tend to be tied to a firm (or panel of firms) for the range of legal advice they need, and top dealmakers are usually culturally and financially committed to their firms (Roland Turnill, Claire Wills, Jonny Myers are all execs). That's why Bruce Embley's move to CC was so big. I don't see Cravath making such a breakthrough any time soon in London. But you never know...
I'm not sure. I am still waiting on a response post VI.
Oh wow you must have been in my group - congrats to you!Hii i did Thursdayand same so I was really surprised to get a call so soon!
Hi all! First-time poster here (but long-time reader...)
I have a Farrer & Co virtual assessment centre this week, and a Paul, Weiss interview coming up soon too!
Would anyone have any tips on how to prepare for these? The Farrer & Co assessment centre is a written task and a group negotiation activity - any help would be appreciated!
Also to those waiting to hear back from Paul, Weiss - I scored (I believe) 20 on the amberjack assessment (with high scores in numerical and verbal intellect), so I definitely think that they look at your application holistically as my score is not very high compared to others I have seen!
I have a Farrer & Co virtual assessment centre this week, and a Paul, Weiss interview coming up soon too!
Would anyone have any tips on how to prepare for these? The Farrer & Co assessment centre is a written task and a group negotiation activity - any help would be appreciated!
Also to those waiting to hear back from Paul, Weiss - I scored (I believe) 20 on the amberjack assessment (with high scores in numerical and verbal intellect), so I definitely think that they look at your application holistically as my score is not very high compared to others I have seen!
Hi! I was scrolling through this thread and saw this comment - I go to a non-Russell Group university and got invited to a Paul, Weiss interview last Friday so I don't think it will put you at a disadvantage if you do go to one!
Just adding to this that you won’t be at a disadvantage if you don’t have straight A/A* at A-level or a 1st in your degree. I have neither of these and got invited to a Paul, Weiss interview on Friday. 🙂
Whilst I went to a RG, it wasn’t a university like Oxford/Cambridge/LSE/Imperial so that also isn’t going to put people at a disadvantage (a lot of the associates at Paul, Weiss went to these particular RG unis so it’s understandable why people might think it would because I did at first). 🥲
Whilst I went to a RG, it wasn’t a university like Oxford/Cambridge/LSE/Imperial so that also isn’t going to put people at a disadvantage (a lot of the associates at Paul, Weiss went to these particular RG unis so it’s understandable why people might think it would because I did at first). 🥲
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i'm not OP but just wanted to say this was super helpful! thank you for sharing
this is probably super silly but i was wondering if you had any recommendations for resources for learning about these particular stories/your personal favourite commercial awareness resources. the things you listed are clearly highly important commercial stories - some of which i actually hadn't heard of!
i understand how limited my commercial awareness is when i hear about these things. i knew about the political instability point bc i'm an american politics fiend but most of the other stuff you mentioned (e.g., the ECM point, the private credit point) i didn't know about!
off the top of my head, some random stories i remember recently were the the tariffs + interest rate stuff + potential sale of WHSmiths! i've definitely got some way to go in improving
thank you again for the write-up. it was not only informative, but an important wake-up call!
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Similar question to my most recent one...but i've got to ask, how did you learn about PEP? 😅 i had no clue what that was until i saw this.
and more generally, because you're truly one of the most well-informed people around here on TCLA, may you share what you do to build your knowledge of these things about firms/commercial law + commercial awareness too?
If I even had one percent of your intelligence + commercial/legal acumen, I would feel so proud of myself. You're honestly one of the TCLA GOATs!
Can I ask how on earth you built up so much knowledge /insight into these firms? Are there any particular sources or things you do to help you keep up to date with such developments?
Thank you for your kind words, I really appreciate it. 🙂
PEP = Profit Per Equity Partner.
I actually first came across PEP on Legal Cheek (the firm’s most list), way back in July/August when I was beginning to think about which firms I wanted to possibly apply to in this application cycle. On each firm’s Legal Cheek profile, it shows what their PEP is. To see this, click on ‘select a criteria’ and then click on ‘partners’. There are other sources out there which show this but I think Legal Cheek has the simplest format.
To my understanding, PEP is how a firm’s profitability is calculated. Law firms will have two groups of partners (equity partners and non-equity partners). Equity partners have an ownership stake in the firm, and their earnings are derived from the profits the firm makes after all expenses are deducted (such as overheads and associate salaries).
I will use Paul, Weiss as an example. Paul, Weiss has revenues of around $2,002,027,000. I think Paul, Weiss has around 178 equity partners at present. The firm’s current PEP stands at around $6,500,000. By multiplying these two figures together, you can calculate Paul, Weiss’ profits, which I think works out to be around $1,150,700,000. This shows that Paul, Weiss is a very profitable firm. Generally speaking, the higher the PEP, the more profitable a firm is and these firms are considered to be more prestigious (e.g., Kirkland & Ellis, Davis Polk, Latham & Watkins, Gibson Dunn, Paul Hastings, etc.). All of these firms have PEP of at least $5,000,000.
I think equity partner pay also varies depending on experience and seniority. For example, I saw on LinkedIn that Neel Sachdev and Roger Johnson (Paul, Weiss London Co-chairs) are being paid around $20,000,000 per year! This is of course a lot higher than the PEP average of $6,500,000.
In terms of how I develop my commercial awareness, I mainly use LinkedIn, but I also use other things like law firm websites. The bulk of my commercial awareness at present has come from attending virtual events on AllAboutLaw, Legal Cheek, etc. I also see a lot of posts on this forum (especially from both @Andrei Radu and @Amma Usman) which have definitely improved my understanding of certain things.
This forum has been the most helpful resource for me this application cycle. I am by no means an expert at this stuff at all, I have a long way to go yet. 🙂
PEP = Profit Per Equity Partner.
I actually first came across PEP on Legal Cheek (the firm’s most list), way back in July/August when I was beginning to think about which firms I wanted to possibly apply to in this application cycle. On each firm’s Legal Cheek profile, it shows what their PEP is. To see this, click on ‘select a criteria’ and then click on ‘partners’. There are other sources out there which show this but I think Legal Cheek has the simplest format.
To my understanding, PEP is how a firm’s profitability is calculated. Law firms will have two groups of partners (equity partners and non-equity partners). Equity partners have an ownership stake in the firm, and their earnings are derived from the profits the firm makes after all expenses are deducted (such as overheads and associate salaries).
I will use Paul, Weiss as an example. Paul, Weiss has revenues of around $2,002,027,000. I think Paul, Weiss has around 178 equity partners at present. The firm’s current PEP stands at around $6,500,000. By multiplying these two figures together, you can calculate Paul, Weiss’ profits, which I think works out to be around $1,150,700,000. This shows that Paul, Weiss is a very profitable firm. Generally speaking, the higher the PEP, the more profitable a firm is and these firms are considered to be more prestigious (e.g., Kirkland & Ellis, Davis Polk, Latham & Watkins, Gibson Dunn, Paul Hastings, etc.). All of these firms have PEP of at least $5,000,000.
I think equity partner pay also varies depending on experience and seniority. For example, I saw on LinkedIn that Neel Sachdev and Roger Johnson (Paul, Weiss London Co-chairs) are being paid around $20,000,000 per year! This is of course a lot higher than the PEP average of $6,500,000.
In terms of how I develop my commercial awareness, I mainly use LinkedIn, but I also use other things like law firm websites. The bulk of my commercial awareness at present has come from attending virtual events on AllAboutLaw, Legal Cheek, etc. I also see a lot of posts on this forum (especially from both @Andrei Radu and @Amma Usman) which have definitely improved my understanding of certain things.
This forum has been the most helpful resource for me this application cycle. I am by no means an expert at this stuff at all, I have a long way to go yet. 🙂
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I agree, PEP is probably a reliable way of measuring the prestige - or at least the profitability of a firm. But I think there is a better metric - billable rates.
The main problem with PEP is that it is just shows the overall profits available for distribution to equity partners. This means that the results are skewed depending on how many equity partners a law firm has. Firms that are highly leveraged on associates (e.g. associate/counsel to partner ratio of 5+ to 1) or non-equity partners will have higher PEP, with more junior lawyers churning out the cash for the equity partners. The other problem is that it doesn't account for different profits levels in different geographic regions, where profits are equally distributed between offices which bring in different levels of revenue (assuming no swiss model).
The real thing you want to know is (i) whether the firm can land the top mandates and (ii) whether they can charge more for each hour worked at each level. Firms with high PEP (US firms) tend to fulfil these criteria, but in London elite MC firms with lower PEP do too. A firm like FF or CC would be able to charge out a partner at c£1,300-£1,500+/hr and senior associates / counsel for c£1000/hr in their top practice areas (private equity, corporate). Comparable US firms - Weil, K&E, STB - wouldn't be too far off. So the 'prestige' of those firms' practices are quite similar. And it shows: they land similar mandates and are in tough competition with each other. It would be a different story if we compared these rates to, say, Jones Day or Goodwin's corporate/PE practices (no offence). There is one caveat: you need to adjust for the discounts law firms give their clients (i.e. take the WACC, which represents the real rates charged post-discounts). The fact that these figures are usually confidential means PEP remains the gold standard.
I have no idea what the billable rates are at K&E or Davis Polk, so it's all speculation, but I have a feeling Davis Polk has higher average rates.
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