Three high-profile New York bond lawyers have jumped from Willkie, Farr & Gallagher to Orrick, Herrington & Sutcliffe, in a move Orrick officials say will help the firm, already the largest bond counsel shop in the nation, expand deeper into the Empire State.
The group is led by Alexander "Tom" Galloway. Galloway was a partner at Willkie and will join Orrick's partner ranks. It also includes Douglas Goodfriend and Thomas Meyers, who were associates at Willkie and will be of counsel to Orrick. They joined their new firm Wednesday.
Galloway, Goodfriend, and Meyers are known for their strong practice among local New York issuers, including cities, counties, and local districts. Roger L. Davis, who heads Orrick's public finance department, said their addition would help diversify the firm's business.
"They will retain a substantial portion of their practice, which is very deep and broad in New York," Davis said. "They will complement our presence with the state."
Market participants at other firms said the additions could help lift Orrick into the relatively thin top tier of firms in New York. However, they also predicted that the moves would set off a transition period, as Willkie, lead by public finance chief Thomas Rothman, fights to retain its business, and local firms upstate look to exploit Orrick's relatively low name recognition among local issuers.
Over the last 18 months, Willkie Farr was the fourth-busiest bond counsel firm in the state in terms of volume, working on 183 deals worth $1.34 billion, according to Thomson Financial Securities Data.
Reflecting its success in attracting smaller, local-level issuers, however, the firm ranked second only to overall volume leader Hawkins Delafield & Wood in the number of deals it handled. Hawkins was bond counsel for 185 issues worth $3.64 billion over the same period.
Although Orrick was just two slots behind Willkie Farr in the volume league table, its presence was significantly smaller. The firm was bond counsel on just five deals worth $271.8 million in New York over the last 18 months, according to Securities Data.
Although some observers noted that public finance is dwarfed within Willkie Farr by the firm's corporate law practice in areas like mergers and acquisitions, John D'Alimonte, a partner and a member of the executive committee at Willkie Farr said the firm intends to remain a strong competitor in the sector, and the departures do not represent any lessening of the firm's commitment to public finance.
"We still have a vibrant, active bond practice, and we have total confidence that it will not be hurt in the least by the departures of our former colleagues," D'Alimonte said. Rothman was travelling yesterday and could not be reached for comment.
Competitors agreed that the prospect of attracting more business from local New York issuers is attractive.
"I think everyone in this business is looking for ways to serve public clients," said Kenneth Bond, who works with similar clients for Squire Sanders & Dempsey. "This supports doing more work for public-sector clients."
