Simpson Thacher’s New Leaders Power String of Tech Deals (1)

Simpson Thacher & Bartlett’s capital markets practice has hit a hot streak of tech deals work, spotlighting how its investment banking practice adjusted after its top partner stepped back from leadership.

The firm since May advised major banks on deals by Rivian Automotive Inc., Voyager Technologies Inc., Warner Bros. Discovery Inc., Sandisk Corp. and DoorDash Inc. The transactions included high-yield debt, an initial public offering, a debt-for-equity exchange, convertible senior debt and liability management during a business separation.

“We’re not a one-trick pony where we’re just doing IPOs,” said Dave Azarkh, co-chair of Simpson’s investment banking practice. “We cover the spectrum of capital markets transactions.”

The work shows how Simpson Thacher succeeded at a process that often goes awry for Big Law firms—transitioning a critical practice from longtime leadership to the next generation of partners. Art Robinson led the global capital markets group for nearly a decade before stepping down from the role in 2021 and moving into an of counsel position earlier this year.

The firm named Azarkh and Alexandra Kaplan as co-chairs of its global investment banking practice when it was formalized in October. Both were schooled under Robinson, with Azarkh working at the firm since 2011 and Kaplan since 2002.

“We learned from Art,” said John O’Connell, a partner in the practice whose tenure at the firm dates back to 2012. “We have an understanding of how investment banks work from the top down.”

The knowledge has helped the firms make inroads with major investment banks. JPMorgan Chase & Co. led the deals Simpson Thacher advised on since May on the banking side. Morgan Stanley played a leading role in the Voyager agreement, and Bank of America Corp. also led in the Sandisk transaction.

The firm led all rivals this year through June 20 on the value of deals advising underwriters on US high-yield bonds, according to Bloomberg data, as it worked on more than $20 billion in lending. It ranked third among law firms advising underwriters on US investment grade bonds, Bloomberg data show, advising on 96 deals worth nearly $80 billion. The firm ranked third in both categories through a full year last year.

Simpson Thacher was one of nine firms that reached an agreement with President Donald Trump to provide free legal services to avoid punitive executive orders. While some of the firms have seen litigation partners depart, corporate practices haven’t faced similar challenges.

Individual Practice

While Simpson Thacher also has a well-known private equity practice advising sponsors on deals, IPOs, and other transactions, Azarkh said the capital markets practice operates as an “independent, revenue-generating” group. Many of the partners are focused on building relationships with top banks across Wall Street.

Those clients have long been a backbone of New York deals firms, but banking relationships have been somewhat overshadowed in recent years as law firms scramble to market their private credit capabilities. Private credit firms have come to rival Wall Street banks for some corners of financing.

O’Connell said the firm’s relationships with both banks and private equity firms “allows us to be creative” and help clients access “the best possible financing solution,” even as market conditions change.

Still, Azarkh said lawyers in the firm’s capital markets practice are “pounding the pavement” to get deals from banking clients.

“It is all about hustle and being in front of people,” Azarkh said. “We have to be out there in front of the bankers, pitching for new deals, enhancing our product offering, and continuing to build relationships to get deal flow. And that’s what we’ve been doing for our tech capabilities over the past three years.”

The firm’s string of tech deals also shows how high-quality companies can continue to get financing deals done despite uncertainty in financial markets, Azarkh said.

“You have a flight to quality,” he said. “If you are a quality company and you can back up your performance over the past months or years, there is typically a financing that can be done for you.”