Chicago legal market expands as Venable, Dickinson Wright launch Windy City outposts
12/1/20 REUTERS LEGAL 20:23:37
Copyright (c) 2020 Thomson Reuters
David Thomas
REUTERS LEGAL
December 1, 2020
The skyline is seen in Chicago, Illinois, U.S., October 19, 2017. Chicago is one of the U.S. cities competing to house Amazon.com Inc's second headquarters "Amazon HQ2". REUTERS/John Gress
(Reuters) - The legal market in the city of big shoulders got a little bigger on Tuesday, with Venable and Dickinson Wright both announcing they've launched offices in Chicago.
Both firms tapped local talent to open in the Midwest's financial and commercial capital.
Venable has brought on a 12-lawyer construction law team from Schiff Hardin, six of whom are located in Chicago, while Dickinson Wright has acquired Stahl Cowen Crowley Addis, a 12-lawyer firm that specializes in real estate, corporate and litigation work.
The other six construction lawyers who have jumped ship from Schiff Hardin have joined Venable's offices in New York and Washington, D.C.
Chicago marks the 10th and 19th offices Venable and Dickinson Wright have opened, respectively. Leaders at both firms framed their arrival in the city as a natural extension of their growth over the years.
The new firms are setting up shop only a couple blocks away from each other in Chicago's Loop neighborhood. Venable's office will be in the Franklin Center, which is also home to Dinsmore & Shohl.
Although it doesn't command the same rates as New York or San Francisco, Chicago is a big draw for firms that are looking to break into a new major, high-rate market, said Kent Zimmermann, a Chicago-based law firm consultant with the Zeughauser Group.
"If you buy into the thinking that most firms want to grow profitably, that leads to a short list of cities where they can command their rates and where they need to grow," Zimmermann said.
Chicago is also home to a strong client base in financial services, insurance, life sciences and certain technology sectors, all of which have been "quite resilient" in the current market, Zimmermann added.
Willkie Farr & Gallagher and Hilliard Martinez Gonzales opened their own Chicago offices earlier this year. Within the past few years, the city has also seen King & Spalding, Blank Rome and Eversheds Sutherland stake a claim.
The city's private equity scene is a particular draw for some firms. Zimmermann pointed to Kirkland & Ellis, which was founded in Chicago and grew to become the highest-grossing law firm in the United States and the first to reportedly crack the $4 billion revenue threshold.
Zimmermann said he's now working on multiple combinations involving Chicago law firms.
"There will be more," he added.
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