Overview
Hogan Lovells achieved extraordinary success in 2023, reporting unprecedented global revenue and equity partner profits. The firm's gross revenue surged to $2.68 billion, representing a remarkable 10.3% increase. Profits per equity partner experienced a substantial 20% boost, reaching an impressive $2.7 million. Additionally, the revenue-per-lawyer metric hit an all-time high, exceeding $1 million, with nearly 2,500 lawyers spread across 48 offices worldwide.
Background
The firm's triumph in 2023 is particularly significant considering the challenges faced in the preceding year. Like many others in the Big Law market, Hogan Lovells encountered unexpected declines in key performance indicators. However, stemming from the 2010 merger between U.S.-based Hogan & Hartson and European-based Lovells, the firm showcased resilience in bouncing back from setbacks.
Factors Driving Growth
CEO Miguel Zaldivar attributed the remarkable upswing to a record-breaking year in mergers and acquisitions and related practices. Notable achievements include facilitating the $12.7 billion merger between self-storage giants Extra Space Storage Inc. and Life Storage Inc. Additionally, the firm played a pivotal role in Mercedes Benz Group AG's joint venture for electric vehicle charger construction.
Strategic Vision
Zaldivar expressed pride in the firm's growth trajectory, inching closer to his ambition of positioning Hogan Lovells among the elite group of $3 billion-per-year law firms. Recognizing that only a handful of firms had achieved this milestone, he emphasized the effectiveness of their strategy in establishing the firm as a top-tier, "global elite" entity, renowned for handling complex matters in highly regulated sectors and markets across the globe.
Geographic Distribution
Highlighting the firm's global reach, Hogan Lovells disclosed that nearly half of its work (48%) was billed in the Americas, while Europe, the Middle East, and Africa accounted for 47%. The remaining portion originated from the Asia-Pacific region, showcasing the firm's extensive international presence.
Recruitment and Expansion
In 2023, the firm bolstered its ranks by adding over 50 partners globally. Notable hires included Jeff Keitelman and Joshua Sohn, who joined from Stroock & Stroock & Lavan, strengthening Hogan's real estate and litigation practices, respectively. Additionally, the recruitment of former DC attorney general Karl Racine and others reinforced the firm's capabilities, particularly in the state attorney general practice.
Future Outlook
Looking ahead, Hogan Lovells remains committed to strategic expansion, evident in its recent lateral hiring spree, including a team of finance and M&A lawyers from Orrick Herrington & Sutcliffe. Zaldivar emphasized plans for continued growth, particularly in key markets such as New York, Europe, Washington, London, California, and Texas.
Industry Trends
Hogan Lovells' impressive performance aligns with broader trends among top-25 firms by revenue, with Paul Hastings reporting significant revenue growth of approximately 9% to over $1.8 billion. This underscores the resilience and adaptability of leading firms in navigating challenging market conditions.
By capitalizing on strategic initiatives, bolstering key practice areas, and expanding its global footprint, Hogan Lovells positions itself for continued success in the dynamic legal landscape of the future.
