Law Practice Management
No Debt, for Now, for K&L Gates
Posted Jul 1, 2008 10:24 AM CDT
By Martha Neil
One reason why K&L Gates has had no trouble merging with other firms in recent years is its financial situation. The firm has no debt, a situation that makes prospective partners' eyes light up, its chief financial officer says.
The 1,700-lawyer firm, whose name officially changed today from Kirkpatrick & Lockhart Preston Gates Ellis, according to a press release, funds its operations completely through partner capital, reports the Lawyer. It does have a $35 million line of credit, but has never used it, according to Glenn Graner, the firm's chief financial officer.
This situation may change by April 1, 2011, however, when the firm expects to take on a new lease in London. That will require close to $40 million in "fit-out" costs, he says. "To pay for it in U.S. dollars would not be wise because the currency's so weak. So we could borrow in sterling in the U.K. and keep foreign exchange out of the mix."
The full article discusses the firm's finances in considerable detail.