Written by Robert on 23 August 2010.
♦ Associates' Corner ♦ Capital Markets, China, Hong Kong, M&A
Robert here. Senior cap markets associates at top US firms who are native Chinese have never been as marketable in HK / China as they are today. While such persons have over the past five years always had attractive HK /China options at US and UK firms, as well as in-house, in ’10 we have seen these opportunities expand and improve (more clear shot to partner opportunities than usual) significantly. Further, this may be a relatively small window of time, one to two years perhaps, where these clear shot to partner positions are available in such relative abundance (a handful available at one time, versus zero to one usually at any given time). 
To clarify, a clear shot to partner opportunity is one where a business case already exists at a new hire’s new firm for that person to make equity partner. In other words, there is already an equity partner slot open and pegged for such new hire. Of course the senior associate / counsel / salary partner will have to perform, but there is already plenty of deals for that person to execute and the only variable (baring a catastrophe in the market) to making equity partner is that person’s performance, rather than the many variables outside of one’s control that almost always come into play for equity partner promotion (even in the most realistic and strong partnership tracks, there is most usually not already a business case for a new hire to make partner before he / she joins the firm and the business case can be in part made by the new hire’s performance, but also even more usually relies on supervising partners’ and / or new hire’s ability to expand the current practice). There are a growing number of US cap markets practices in HK / China that have very strong deal flow (emanating from the IPO boom over the past year in HK / China), but are missing a senior native Chinese associate / counsel / junior partner to both execute deals and maintain existing client relations. In many cases in HK / China, top US cap markets groups do not have Chinese partners and although such groups’ partners are market leaders and deal makers, they could use a rising senior associate / counsel to lean on who happens to be native Chinese. The candidates that fill such roles today are being handed one of the leading keys to their new firm’s China practice, in that they are being given both the deals to execute and a leading role in the existing client relations. The former is of course a pre-requisite to having partnership and top in-house senior roles, but the latter is a rare special opportunity that gives a rising attorney a lot of leverage both in the market at large and at his / her current firm. As top US firms are building HK practices and top UK firms are expanding US practices, having a stellar native Chinese senior US associate / counsel on board is more important today than ever before. As these rare roles fill up, it is of course unlikely that one of these US practices will need to make a similar hire in the next few years. Sure, such groups will over the next few years hire a similarly qualified senior associate / counsel, but such person will not have the same clear shot to partnership opportunity given to the hire being made today (sure, such future hires can make partner, but will not join new firm with clear shot). Typically, in HK / China there are between zero and one such clear shot to partnership opportunities, but today there are five+ and we expect there to continue to be a handful of such opportunities going forward for the next year. Some of the clear shot to partnership opportunities are geared more for senior associates / counsels who have been at top Wall St. firms in China for the past few years, whereas others are open to senior associates / counsels who have spent their entire career at a top firm in NYC or other major Western market. Some of these roles can be had by persons with a mix of M&A and cap markets, as well. As for native Chinese senior M&A associates, there are similar M&A clear shot to partnership roles available, but in smaller number. That may change as the M&A market improves and firms look to expand in that area in HK / China. We have recently made four senior US cap markets clear shot to partner placements in HK / China and are working on a handful of others at present. It is through these efforts this year and in previous years that we have become uniquely familiar with this type of job search and very selective and strategic recruiting. Of course, there is much more very specific information and advice that we simply can’t give in a public forum, such as our Asia Chronicles. I am happy to discuss these opportunities, and the market in general, with qualified persons by phone in great detail.
Written by Alexis on 27 July 2010.
♦ Associates' Corner ♦ Capital Markets, New York
One question I often get from candidates is how easy it will be to return back to the States after spending a few years in Asia. It’s a valid question – while an Asia-based practice and a US-based practice share many similarities, it’s not a completely overlapping skill set. Many hiring partners express a strong preference for candidates with Asia experience not simply because of the “regional ties” factor, but because an M&A/FDI deal run out of China has its own unique issues. There is a learning curve, and a US-based M&A associate unfamiliar with Asia deals will be at the bottom of that curve. I occasionally encounter a law firm which will take a class year off of an impressive candidate with top credentials because such candidate lacks Asia-specific experience. The skill set overlap is an issue for capital markets practices as well, although it’s not typically an issue in hiring. Many law firms in Asia focus exclusively on unregistered (Regulation S/144A) offerings, whereas capital markets practices in the US focus mainly on registered offerings. There’s a large chunk of that securities redbook that you’re leaving unthumbed if all of your deals are unregistered offerings! There are certain kinds of capital markets transactions that you just won’t get much of in the US. A typical domestic capital markets practice won’t see many Islamic bond offerings or sovereign debt offerings, but these types of transactions could be very common in a Singapore capital markets practice. After spending a few years in Asia doing Asia transactions it’s natural to think that your US-specific skill set would fall into disrepair, but US firms don’t see things that way. In a warm economy it is easy to move from Asia back to the States, especially if the move is from Asia Biglaw back to US Biglaw. In 2007 and 2008, we helped a number of US associates in Asia move back to their desired markets in the US. Today we are working with some associates who are seeking to do the same, and while these candidates are considered competitive by their target firms, the lack of hiring in the US makes a lateral US move difficult, whether the candidate comes from Asia or from down the street. The US economy has lagged far behind the Asian economies in terms of recovery. There are much less M&A and capital markets openings in the major US markets than there are in Asia in proportion to the number of competitive candidates on the market. Economists are still pessimistic on the prospects for recovery in the near term, with some even predicting a double-dip or a long, drawn out “lost decade” of little economic growth. From our vantage point, the NY markets are at the moment where the Asia markets were at the midpoint of 2009 – some firms are beginning to interview and express an interest in hiring, but it is very difficult for even the top candidates to land a spot. There is a steadily growing number of openings in NYC, but the number of open spots, while increasing by the month, is far less than before the downturn. Optimistically, there are many more openings in NYC now than there were a few months ago. However, finding a Biglaw position in NYC is very difficult for all but the most highly qualified of candidates in either Asia or NYC. Laid off candidates have had some success in lateraling to government positions or smaller law firms in New York or New Jersey, but there is virtually no chance for a Biglaw layoff to make his or her way back into a Biglaw firm. For attorneys seeking to move to the West Coast, hiring in California for corporate associates is lagging far behind hiring in New York. Trends in more regional markets (such as Texas) are as follows: while needs have increased in major non-NY markets in 2010 - especially over 2009 - firms can still afford to be very picky. Candidates are often asked to meet over multiple interviews and firms are meeting with numerous candidates over the course of several months before making a hiring decision. Corporate hiring is lagging well behind other practice groups, but mid-level associates who have run deals and have hard capital markets experience are the most attractive. The most marketable associates are those with national and international experience, i.e., those from top law schools who are lateraling from elite firms without an office in the candidate’s desired region. For example, an associate lateraling to Houston might be more competitive coming from a firm not often seen on a Texas resume - such as Cleary, Covington or Kirkland - and are moving to such region because of a compelling personal reason, such as family. Please don’t hesitate to contact Robert, Robert or Alexis at asia@kinneyrecruiting.com for any questions about moving to, within, or back home from Asia.
Written by Robert on 22 March 2010.
♦ Interviewing ♦ Capital Markets, China, Hong Kong, M&A, Singapore
Robert Kinney here, writing from my hometown, Austin, Texas. We’re enjoying fine weather for our music conference, South by Southwest (SXSW) this this week, and I’m having a slow week (on purpose) at work.
Slow, for me, is about 9 calls a day with candidates and clients, instead of 20 or 30. One of the strange paradoxes about going from law practice to a recruiting practice is that you wind up working like a lawyer all the same, provided you want to really excel at the work. You have the same requirements from clients that come up at all hours, you deal with smart people and sometimes have difficult situations to navigate, and you have to travel to do it right. As a matter of fact, for the first time in what seems like several months I’m not currently feeling any jetlag. I had hoped to return to Hong Kong for Rugby 7’s at the end of next week, for my third trip to Asia this year, but I’m taking a few weeks off of travel. 200,000 miles last year made for a sore backside, and I’m on pace for another year like that. So is Robert Kinney; as he described in his article last week, he’s been tearing up runways around the world as well. Thankfully, doing so is paying off for our clients and candidates. We won’t stop because it is a major key to our success. We received a complimentary note last weekend from a senior partner at a client law firm in Asia. I think it sums up why it’s a good idea to work with us if you’re looking to hire or move overseas (or within any of our domestic markets):
“We work with you guys for four reasons: (i) quality of candidates; (ii) detailed involvement in the interview/decision process; (iii) valuable market information; and (iv) we prefer to work with dudes we like — life’s too short.”
Of course, our detractors out there may assume one of us drafted the above quote. We could not have come up with a better testimonial if we had. But we don’t solicit testimonials, let alone make them up, and most clients probably assume that, having sent us a check, we’ve been complimented enough. When something like this comes in, it means something to us. Because we are known to send excellent candidates for the open positions we represent, you can be assured that if you are one of our candidates and we have said that we can represent you, your candidacy will be seriously considered by clients in our markets, whether in Asia, the Middle East, Texas, or New York. I would like to thank the people who get in touch with us every day to ask for our advice and assistance with their job searches. We do our best to shoot straight with people and provide everyone with what market knowledge we can so that they get the full benefit of our experience. But, ultimately, it is those people who place their trust in us who provide us with the ability to provide quality candidates in the first place. Any lucky recruiter could come up with a good candidate now and again. It takes a special situation to be able to do so repeatedly to the point where you have a reputation for always doing so. In many of the cases of our recent placements we were representing each of the four or five finalists for the positions that were filled. In several of the cases of our recent Asia placements, the candidates are people with whom we had worked for over a year prior to placing them. Some of them contacted us in the doldrums of Winter 2009, when very little placement activity (or even legal activity) was afoot in Asia. We knew we would eventually be successful and spent the year keeping the candidates informed about the market. When the market began to come back to life we, and our candidates, were ready. We have a ready backlog of people we are working with now, and we are very thankful to those people for their patience. We are confident that the market will continue to improve in Asia and that we will be able to help all of our candidates eventually. Many of them are interviewing. Before getting to a list of current openings, one thing is worth noting about our current approach to the market in Asia: the value of the candidate-financed trip has gone up recently to the point where we now again recommend this method of attacking the market. As was the case in 2006-2008, in several recent cases we have selectively recommended that the candidate plan a trip to Asia and allow us to work scheduling interviews into the available time in the market. This really can be an effective way to break the ice. Of course it’s still the case that firms will fly out candidates they are interested in seeing, but such a trip on the nickel of a firm can be limiting. Ironically, if a firm buys your business class ticket, as some still do, this sometimes creates an expectation on the part of the firm that you will only see them, or if you see other firms that the other firms will pitch in. This can be awkward with both the third party law firm and the firm that flew you out; we have seen what appeared to be a generous offer to fly a candidate out in business class turn into a situation where the momentum was lost with the firm that made the offer to cover travel and no other firms stepped up to the plate to see the candidate. Conversely, we have seen an investment of as little as $800 for a plane ticket and less than $100/night for a hotel room materialize into multiple offers after we go to work setting up interviews. So, with that extended introduction, here’s a random walk among needs and openings we’re working on in Asia: * One of our US based clients is looking for ‘08 native Korean US associate in HK – mix of cap markets and m&a work; * A UK firm client is looking for a junior to mid-level US cap markets associate in HK and BJ; * An international firm is looking for US cap markets associates in HK; * A US middle bracket firm says they will soon hire a mid level US cap markets associate in HK (but we are not sure when they will actually start interviewing); * A high quality NY firm is looking for junior to mid-level US corporate associate in BJ; * A big US firm’s office in Singapore is interviewing (since they are interviewing one of our candidates – but they also say they are not hiring, so the situation is not totally clear); * The same firm’s BJ office is interviewing US M&A associates; * Another Amlaw 20 firm’s HK office needs a mid-level project finance US associate; * A new entrant to the market with three China offices needs a 2 to 4 year US cap markets associate in HK, SHG or BJ * (new hire’s choice); * An established player with US roots needs HK qualified associates in HK; * A big player from the US needs 3 HK qualified associates in HK; * The same player is interviewing US corporate associates in SHG; * An international firm needs mid-level M&A US associate in SHG; * The same firm needs a mid-level to senior M&A US associate in BJ; * Another firm needs mid-level to senior associates with a mix of M&A and cap markets experience in HK; * The same firm also needs a senior cap markets associate in HK with US experience; * Another UK firm is starting to interview mid-level US corporate associates in HK; * Yet another Amlaw 20 firm is starting to interview M&A US associates in HK; * Another established US firm is interviewing senior M&A associates in HK; * The same firm is interviewing mix M&A / cap markets senior US associates in HK; * They are also interviewing mid-level cap markets US associates in HK; * Another top US firm still needs junior Korean associate in HK (but the partners are not sure when they will get clearance to make such a hire); * The same firm still needs a junior US associate in HK (again, not sure when they will get clearance to make such a hire); * A major US-based firm needs a fund formation mid-level to senior associate in both BJ and Singapore; * Another firm from the US still needs a junior to mid-level US cap markets associate in HK We look forward to hearing from you. Contact our Asia team at asia@kinneyrecruiting.com.
To clarify, a clear shot to partner opportunity is one where a business case already exists at a new hire’s new firm for that person to make equity partner. In other words, there is already an equity partner slot open and pegged for such new hire. Of course the senior associate / counsel / salary partner will have to perform, but there is already plenty of deals for that person to execute and the only variable (baring a catastrophe in the market) to making equity partner is that person’s performance, rather than the many variables outside of one’s control that almost always come into play for equity partner promotion (even in the most realistic and strong partnership tracks, there is most usually not already a business case for a new hire to make partner before he / she joins the firm and the business case can be in part made by the new hire’s performance, but also even more usually relies on supervising partners’ and / or new hire’s ability to expand the current practice). There are a growing number of US cap markets practices in HK / China that have very strong deal flow (emanating from the IPO boom over the past year in HK / China), but are missing a senior native Chinese associate / counsel / junior partner to both execute deals and maintain existing client relations. In many cases in HK / China, top US cap markets groups do not have Chinese partners and although such groups’ partners are market leaders and deal makers, they could use a rising senior associate / counsel to lean on who happens to be native Chinese. The candidates that fill such roles today are being handed one of the leading keys to their new firm’s China practice, in that they are being given both the deals to execute and a leading role in the existing client relations. The former is of course a pre-requisite to having partnership and top in-house senior roles, but the latter is a rare special opportunity that gives a rising attorney a lot of leverage both in the market at large and at his / her current firm. As top US firms are building HK practices and top UK firms are expanding US practices, having a stellar native Chinese senior US associate / counsel on board is more important today than ever before. As these rare roles fill up, it is of course unlikely that one of these US practices will need to make a similar hire in the next few years. Sure, such groups will over the next few years hire a similarly qualified senior associate / counsel, but such person will not have the same clear shot to partnership opportunity given to the hire being made today (sure, such future hires can make partner, but will not join new firm with clear shot). Typically, in HK / China there are between zero and one such clear shot to partnership opportunities, but today there are five+ and we expect there to continue to be a handful of such opportunities going forward for the next year. Some of the clear shot to partnership opportunities are geared more for senior associates / counsels who have been at top Wall St. firms in China for the past few years, whereas others are open to senior associates / counsels who have spent their entire career at a top firm in NYC or other major Western market. Some of these roles can be had by persons with a mix of M&A and cap markets, as well. As for native Chinese senior M&A associates, there are similar M&A clear shot to partnership roles available, but in smaller number. That may change as the M&A market improves and firms look to expand in that area in HK / China. We have recently made four senior US cap markets clear shot to partner placements in HK / China and are working on a handful of others at present. It is through these efforts this year and in previous years that we have become uniquely familiar with this type of job search and very selective and strategic recruiting. Of course, there is much more very specific information and advice that we simply can’t give in a public forum, such as our Asia Chronicles. I am happy to discuss these opportunities, and the market in general, with qualified persons by phone in great detail.