Herbert Smith Freehills (HSF) has reported record revenue, profit and profit per equity partner (PEP) for the year ended 30 April 2023, with turnover rising 10.1% to hit £1.3bn. 

Profit per equity partner (PEP) jumped 12.1% to £1.3m, having remained virtually flat the year before amid challenging market conditions, while profit growth rose from 2% in FY23 to 14.5%, hitting £444.5m. 

The results continue the trend of revenue and profit growth seen at many of HSF's UK rivals as financial reporting season gets underway, including Ashurst, which grew revenue 9% to £961m against a 14% rise in PEP to £1.3m. 

Justin D’Agostino, who began a second term as HSF's CEO in May, said the firm's “twin engines” of transactions and contentious work had driven the business forward. 

"Our well-hedged international business across a broad mix of geographies, sectors and practices makes the firm resilient," he said. "This financial strength allows us to invest in our people, in our client relationships and in our infrastructure. We remain committed to our international network, investing strategically in areas such as private capital, energy transition, ESG and digital across all of our practice groups, sectors and regions."

D'Agostino highlighted the 800-lawyer UK practice, which he said had a “very strong” year, adding that the firm had seen growth across all its regions and practice areas. 

HSF advised on 202 M&A transactions worth $58.4bn globally in 2023, reaching the top ranking in LSEG's M&A league tables in Australia and Asia-Pacific while placing 24th in the UK. 

Highlight transactional work in FY24 included advising AustralianSuper on its €1.5bn investment in Vantage Data Centers Europe, Middle East and Africa and Hotel Chocolat on its £534m acquisition by Mars.

Meantime standout work for the disputes team included acting for R2 Semiconductor, a US-based computer chip design company, in UK High Court proceedings against global chipmaker Intel relating to semiconductor patents. The firm also successfully represented the UK's High Speed 2 in a legal challenge brought by Siemens Mobility relating to HS2's decision to award a contract originally valued at £2bn to build and maintain a fleet of new high-speed trains to a joint venture between Bombardier Transportation and Hitachi Rail.

The firm also promoted 27 lawyers to its global partnership and made 14 lateral partner hires, including Eleanor Shanks, who joined in London in the new role of head of international private equity from Sidley Austin. The firm also boosted its private capital offering in London with the hire of venture and growth capital specialist Dylan Doran Kennett from DLA Piper. 

HSF said that women make up 33% of its partnership, a proportion that sees it fall short of the target it set in 2019 to reach 35% by 2023 but a step up from the 18% the firm recorded when it first set gender targets in 2014. Meantime for key partner leadership roles, women now hold 31% of the positions compared to 16% in 2014. 

FY24 also marked the closure of the firm's 15-lawyer Kuala Lumpur office, a move it chalked up to changing client needs. The decision followed the firm closing its South Korea office early in 2023 and left it with nine offices across the region. 

D'Agostino added: "Our strategy has strong momentum, delivering continuous and sustainable growth across all practice areas and regions.

"I am proud of our achievements in the face of significant change and challenge in many of our markets. We continue to work closely with our clients to navigate this new world, by getting ahead of their opportunities, needs and concerns."