HSF Kramer touts new global reach as merger goes live

The long-planned merger between Herbert Smith Freehills (HSF) and US firm Kramer Levin officially went live on Sunday (1 June).

The new firm, sporting a new logo and updated website goes by Herbert Smith Freehills Kramer, or simply HSF Kramer.

The merged outfit will create a global top 20 firm with revenues above $2 billion, 2,700 lawyers (including 630 partners) and 26 offices worldwide.

Transatlantic expansion

This is HSF’s second major international tie-up in 15 years. In 2012, City heavyweight Herbert Smith merged with Australian ‘Big Six’ firm Freehills.

The combination with Kramer Levin adds significant weight to HSF’s previously lean offering in America. Before the deal, HSF’s US presence was limited to a single loss-making office in New York. The office posted $50 million of revenue last year, but made a loss of $6 million, according to the LLP’s accounts filed at Companies House.

Kramer Levin’s operation will bolster headcount in the New York office as well as adding two new outposts, in Washington, DC and Silicon Valley. In all, HSF Kramer’s partner count in the US will be around 120.

Kramer Levin’s only international office in Paris, absorbed by the firm after being cast-off by Clifford Chance in its own transatlantic merger with Rogers & Wells in 2000, was not included in the deal. Instead, the office was spun-out to Morgan Lewis in late-2024.

Compatibility

Both sides come to the merger with strong corporate and finance capabilities and renowned disputes offerings. Both, also, have specialisms in financial services, energy and infrastructure.

The practice mix is complementary, but the financial integration could be trickier. Kramer Levin’s profit per equity partner (PEP) was around $2.4 million (£1.8 million) in 2024, almost 40% higher than HSF’s £1.3 million.

However, HSF’s decision in April to promote the smallest number of partners in seven years suggests recalibration efforts are underway already. Additionally, the fact that HSF Kramer says it will operate under a single profit pool from day one is a clear sign that both sides are serious about proper integration.

Bigger picture

Echoing the approach taken by A&O Shearman, the deal marks the latest move by a UK-based international player looking to gain scale and credibility in the US by teaming up with a high-PEP American firm. This is in contrast to the organic office-by-office, partner-by-partner route which Clifford Chance and Freshfields have pursued to varying degrees of success.

Combining HSF’s EMEA and APAC strengths with Kramer Levin’s US foothold, the newly minted firm claims a unique position among the global elite. As the firm itself points out on its new website, it is the first to offer a fully-integrated transatlantic and transpacific legal service.