Kirkland in spotlight over claims of 'uncooperative' negotiation style

Kirkland has found itself at the centre of claims that its lawyers have a reputation for "uncooperative behaviour" when acting for private equity clients.

According to the Financial Times, the US powerhouse - known for its top-tier PE practice - has given its lawyers communication training after limited partners (investors in private equity funds) expressed frustration with the firm’s uncompromising negotiation style at an industry event last year.

'Fire K&E'

When investors were asked to "name one thing they would like private equity groups to do if they could wave a magic wand," the FT said "Fire K&E" featured prominently in a word cloud of responses.

One phrase in particular - "We respectfully decline" - was said to have become a flashpoint between Kirkland and investors, and has since been "banned" internally following the new training.

Some investors, however, told the FT that Kirkland’s approach is no harsher than that of its competitors, and that its prominence in private capital funds work makes it an easy target for criticism.

Firm response

A spokesperson for Kirkland & Ellis told Non-Billable:

"Our firm values the relationships we have built within the funds industry, and we are proud of the trusted counsel and advocacy our lawyers provide to clients as they build partnerships with their investors.

"We continue to evolve our business, collaborate with our counterparts, and provide strong support for our clients, including in the relationships with their investors, as market dynamics shift in the fund formation process."