Paul Weiss Launches Houston Office After Stalled Efforts (1)

Paul Weiss is opening a long-wanted office in Houston, hiring Kirkland & Ellis dealmaker Sean Wheeler to lead the effort, the firm said Tuesday.

Wheeler, who joined Kirkland in 2018 from Latham & Watkins, also will serve as co-chair of the Paul Weiss global M&A practice, according to the firm. He will be joined by Kirkland & Ellis partner Debbie Yee.

Wall Street’s Paul Weiss Rifkind Wharton & Garrison previously attempted to open an office in Houston in 2024, approaching partners from Kirkland & Ellis, Latham & Watkins, Sidley Austin, and Baker Botts with guarantees of $10 million to $15 million for multiple years. The latest bid comes weeks after another top New York firm, Sullivan & Cromwell, launched its own Houston office with a junior partner hire from Kirkland.

“I’ve wanted to be in Houston for years, I’ve been trying to do it the right way for three of four years,” said Scott Barshay, the firm’s corporate department chair, in an interview.

Wheeler was one of Paul Weiss’ prime targets two years ago. He handles deals in the energy, infrastructure, healthcare, technology, real estate, and travel industries.

“Building around Sean Wheeler has been my intention right from the very beginning. He just needed to say yes,” Barshay said.

News of the office opening comes amid a flurry of new revelations related to Paul Weiss chair’s Brad Karp relationship with disgraced financier Jeffrey Epstein. Karp, who represented Apollo co-founder Leon Black, asked Epstein for a personal favor and complimented him on his home among things discussed in a batch of emails recently made public by the Justice Department.

“Houston is a booming business epicenter that is home to many of our clients,” Karp said in a statement announcing the office opening. “Houston’s dynamic business environment, world-class energy sector and rapidly diversifying economy make it an ideal market for the next step in our firm’s growth trajectory,” he said.

Barshay declined to comment about Epstein and Karp.

The plan for the Houston office is to provide a full service offering, Barshay said. “I do not believe you can cover Houston adequately from outside Houston,” he said.

Wheeler advised Marathon Oil Corporation in its $22.5 billion all-stock sale to ConocoPhillips and ONEOK, Inc. in its $18.8 billion acquisition of Magellan Midstream Partners, L.P. He also advised Energy Transfer LP in its $7.1 billion acquisition of Crestwood Equity Partners LP.

Yee recently advised DNOW Inc. on its $1.5 billion all stock acquisition of MRC Global Inc. and Blackstone Infrastructure’s $11.5 billion take private of TXNM Energy and $400 million PIPE.