K&L Gates Revenue Up 9.3 Percent, RPL Down 5 Percent
Mary K. Young, a legal consultant with the Zeughauser Group in Maryland, said foreign exchange rates can have a significant impact on a global firm's financials in a given year, depending on the extent to which the firm derives its revenues from overseas work.
K&L Gates' Europe and Middle East offices saw a revenue boost from about $93.9 million in 2012 to $109.5 million in 2013, on the strength of increased productivity and a 6.2 percent spike in headcount in the region, the firm said.
The firm's revenue in the Americas, meanwhile, fell from about $924.9 million in 2012 to about $901.6 million in 2013, which the firm said was the result of an average headcount decrease of about 3.5 percent in its offices in the Americas.
The firm did, however, see its overall average headcount increase by about 15 percent, from about 1,720 attorneys in 2012 to 1,975 attorneys in 2013, as a result of the Middletons merger, the new U.S. office openings and the commencement of operations in Seoul.
The firm's headcount growth outpaced its revenue gains and, as a result, its revenue per lawyer (RPL) dipped by about 5 percent in 2013, from about $615,000 to about $585,000.
The firm blamed the RPL drop on the influx of new attorneys brought on by the Middletons merger and the revenue drop in Asia.
K&L Gates offered data for its average profits per all equity partners as well as more specific data for profits per "fully participating equity partners."
The average number of equity partners grew in 2013 from about 503 to 538, an increase of about 7 percent. The average number of fully participating equity partners increased by about 4.3 percent, from about 253 in 2012 to about 264 in 2013.
The firm's average profits per all equity partners dropped by about 6.7 percent in 2013, from about $637,000 to $594,000. Meanwhile, its profits per fully participating equity partners dropped by about 7.7 percent in 2013, from about $900,000 to about $830,000.
By comparison, similarly-sized Pittsburgh firm Reed Smith, which came in one spot below K&L Gates on last year's Am Law 100 list after bringing in $1.01 billion in revenue, posted a PPP figure of $1.08 million per each of its 300 equity partners in 2012.