As a sponsor of this year's JUVE Award for Banking and Finance Law, our Frankfurt Director Nicolai von Steinaecker had the opportunity to talk to Dr. Walter Uebelhoer about the recent merger of the firm, the nomination, and the market in general.
Nicolai von Steinaecker (NvS): Dr. Uebelhoer, we would like to take this opportunity to congratulate you once again on your nomination. How do you see your chances that I will be able to present you with the award on the 24th of October.
Walter Uebelhoer (WU): I think each of the nominated units deserved to win. The fact that we have been nominated for the third time in the last 5 years may increase the chances a bit – in any case, we are excited. Especially since A&O Shearman is also nominated in other categories, so hopefully we shouldn't go away empty-handed that evening!
NvS: It has been a very exciting time for the law firm recently. Since May 1st, you have been operating under the name A&O Shearman. Can you already say something about possible changes, culturally as well as business-wise?
WU: In Germany, the merger has only a minor immediate impact, as the local Shearman team had already shrunk significantly before the merger. Internationally, however, it has given us an enormous boost, especially in the USA, and the first partner meeting of the integrated law firm in Copenhagen was also very positive from my point of view – there is a kind of spirit of optimism and it certainly feels very good.
NvS: In fact, a lot has been written about the so-called Magic Circle law firms in the trade press this year, especially with regard to international growth, taking into account the respective culture and grown structures, the topic of lockstep. A&O decided to merge a competitor that is very well positioned in the M&A sector, especially in the USA.
WU: Yes, we have been able to strengthen ourselves globally with excellent colleagues and especially the USA team, led by Shearman Manager Adam Hakki, who is now also part of the international management of A&O Shearman, is a huge asset to our business; our US sales have effectively tripled. In the USA, we have now made a conscious decision to merge with an established entity like Shearman; specifically persuading partners with high guaranteed withdrawals to switch can work, but it doesn't have to. Ultimately, a lawyer can only earn in the medium and long term what he or she earns for the partnership. We will certainly take a healthy and sustainable direction here in the coming years.
NvS: Just a few days ago, a 10% reduction in the partnership was announced by the end of the current financial year, with the Johannesburg office being closed. You now want to invest in the appointment of emerging partners, especially in growth areas. Where do you see them?
WU: In Germany, we have been on a clear growth path for years. On May 1 of this year, Rauni Ahammer was appointed partner from my team. With it and other candidates we have in mind, we are strengthening the topic of private capital, e.g. the financing of classic buy-outs through private equity, private debt, or infrastructure financing. For example, global corporations in the fossil fuel sector are using their currently still bubbling profits to invest in renewables. We continue to see growth in the area of restructuring and reorganisation. Industrial sectors such as automotive, energy, chemicals or steel are facing a variety of challenges, especially in Germany. After all, real estate finance is one of our strengths that we want to develop further.
NvS: As a law firm, you have always been very open to "tech topics" and have also been actively involved in the change.
WU: Yes, "tech" was the focus of A&O very early on. In addition to our legal tech division aosphere, where we have recently opened up to external investors for further growth, we are also trying to focus more and more on intelligent solutions internally. For example, we are already working with a self-developed AI application "Contract Matrix", which is now integrated into Word. If, for example, we are drafting a contract and you want to integrate terms that are as borrower friendly as possible, then this tool can offer us wording suggestions from very comparable contracts. A lot is already possible and at our partner meeting in June we were able to marvel at other innovations that will be available soon. Personally, I find AI as helpful as it is fundamental: Just think of translations, AI is a game changer, for example, a local savings bank can have a German translation of a syndicated loan agreement prepared in a matter of seconds and participate in financing, even if the people involved do not feel comfortable in English. However, you have to ask yourself how we want to train the future partner generation in 10 years. Unfortunately, the tools of the trade are not learned at the "push of a button" and one or the other "all-nighter" in a complicated contract is part of the (partner) training, if you will.
NvS: Good keyword: partners. I've noticed that you've caught up in terms of D&I. Globally, the partner quota of female colleagues is 25%, in Germany it is slightly lower at just under 20%. Are there any concrete approaches here to improve this as a law firm?
WU: As a law firm, we take the topic of D&I very seriously, and with our buddy and mentoring program, we try to sensitize young colleagues in particular to the topic of partnership as early as possible and to support them along the way with flexible working time models. However, the decision for the partnership is then made quite objectively, as was recently the case with our colleague Dr. Rauni Ahammer, but also, for example, our new partner in data protection Catharina Glugla.
NvS: Finally, allow me to ask a personal question. What do you do in your personal time, what drives you?
WU: On an extended ski tour, I can ideally combine sport and the mountain experience. If my son accompanies me and the weather is right, then there is hardly anything better to switch off completely and recharge the batteries.
NvS: Dr. Uebelhoer, thank you very much for the interview. We are looking forward to the ‘Class Reunion’ and the evening together!