Sidley’s London Recruits From Latham See Private Credit Opening

The latest Sidley Austin recruits in London from rival Latham & Watkins said their new firm is responding to private equity clients that increasingly demand broader financing options and want a one-stop shop from their law firms.

Sidley on Monday announced the hires of capital markets partners Scott Colwell and Patrick Kwak, who joined from Latham. The moves followed the hire of five former Latham London finance partners by Sidley last month, including the new co-heads of Sidley’s leveraged finance practice, Jay Sadanandan and Sam Hamilton.

Colwell and Kwak are building Sidley’s sponsor finance practice alongside their colleagues in a city that’s seen a raft of partner moves among high-profit firms, including Latham, Kirkland & Ellis, Paul Weiss, and others.

Those partner moves are in part a response to clients who are increasingly seeking a single law firm to provide advice on buyout deals, financings, regulatory issues, and other matters, Colwell and Kwak said in an interview.

Scott Colwell, Sidley Austin

“It’s primarily driven by client demands,” Colwell said. “Because they’re looking to narrow down the panel firms or the main relationship firms that they have.”

That makes it imperative to be at a “top practice” that can deliver a wide range of services, Colwell said. Private equity clients expect law firms to seamlessly cover a “broad menu of capital options,” including private capital, syndicated loans, high-yield bonds, and initial public offerings, he said.

“They want us to be able to provide the same level of service across each of those and in whatever industry they are in,” he said.

Those clients also want to work with fewer law firms. They want advisors who have a longer-term view of their documents and understand their approach to the market, Kwak said.

Patrick Kwak, Sidley Austin

“That’s very difficult when you have a fragmented group of advisors that don’t see a significant enough vertical of your deal flow to get a good sense of what your institutional character is,” Kwak said. “And that’s something we’re focused on delivering.”

Sadanandan’s hire brought over a partner who’s worked for large private equity sponsors, including CVC, Blackstone, Permira, and others. Last year, Sadanandan co-led Latham’s team advising Permira and Blackstone on a private credit loan financing the €14 billion acquisition of Adevinta ASA. Kwak also worked on that deal.

Sidley has been investing in its London private equity practice over the past two years, said Tom Thesing, managing partner of Sidley’s office in London. Last year, the firm focused on its private equity M&A practice, including through a series of hires from Paul Weiss.

This year, the firm has focused on developing its sponsor-side finance practice, Thesing said. He noted the firm has plans for continued hiring in London with a focus on growth among private equity sponsors.

“This is another step along that journey, and very much pivotal to the transformation story,” Thesing said. “We’ll continue to grow the private equity side of the business with additional hires and more growth in the business.”

The hires of Colwell and Kwak were previously reported.