Cadwalader Revenue Jumps 15% as Banks, Private Credit Align

Cadwalader, Wickersham & Taft collected a record $638 million in revenue last year, a 15% increase, as the law firm known for its deep relationships with Wall Street banks benefited from the growth of private credit markets.

The 233-year-old law firm has been thrust into an evolving market as traditional banks increasingly compete with private capital to provide corporate financing. The law firm’s 80 equity partners last year earned $3.7 million on average—up by a third from the prior year.

Cadwalader’s strategy is to stick close with its traditional banking clients while expanding its advice to private capital providers, and advising as the two groups increasingly work together—such as when traditional banks are tapped to provide “back leverage” for non-bank lenders.

“We will absolutely continue to stay very close with our large financial institution clients,” Managing Partner Pat Quinn said in an interview. “It’s a big part of what Cadwalader is about. But we are certainly representing newer entrants into the finance markets. We’re representing private capital players who are doing some of the things the banks used to do. So, we don’t have to choose.”

In one example of the cross-over, Cadwalader represented BNP Paribas when it pitched $5 billion into a strategic financing and capital markets collaboration with Apollo-backed warehouse finance and securitized products business ATLAS SP Partners. The firm’s London office also advised BNP Paribas in its work helping to arrange one of the first European middle-market private credit collateralized loan obligations.

Demand, or hours billed, rose roughly 5% at the firm last year, Quinn said. That outpaces the 3.2% growth seen by law firms its size (the 51st through 100th largest by revenue) through nine months last year, according to data from Citi’s law firm banking group.

With about 430 lawyers, Cadwalader is one of the smaller old-line Wall Street firms, competing with behemoths like Simpson Thacher or Skadden that have grown three to five times its headcount. The largest, most profitable firms have also ushered in an era of skyrocketing partner pay, which can stretch as high as $20 million a year for stars.

Pat Quinn

Cadwalader

“We need to pay people fairly,” Quinn said. “And fairly is somewhat defined by what the market is paying for similar talent and performance. It cannot be about the last dollar of compensation.”

Quinn views Cadwalader’s size as a differentiated offering for its lawyers and clients alike. The 80 partners work in only five cities. They know each other closely, bringing colleagues into new matters easily and collaborating on the firm’s latest technology initiatives, he said.

Cadwalader in September opened a café in its Financial District office overlooking the Hudson River, hoping the outdoor terraces and conference rooms would entice commuters. Partners are in the office four days a week while associates are asked to be in Tuesday through Thursday, Quinn said. More are coming in on Mondays, which he encouraged, but it is voluntary for young lawyers.

‘Strong January’

The firm said its performance in 2024 included strong activity in the capital markets, fund finance and real estate practices.

In capital markets, Cadwalader was again among top Wall Street firms for securitization work. Its fund finance practice over the past two years advised 40-plus banks as lead or syndicate lender in transactions worth more than $200 billion.

Its investigations practice has expanded beyond traditional Foreign Corrupt Practices Act work to pursue remits based around corporate conduct. The firm advised spirits brand Diageo in multiple matters related to rapper Sean Combs, including a court case that was settled in which Combs accused Diageo of underinvesting in his liquor brands because of his race.

The firm’s London office also generated record revenue, Quinn said, reflecting practices in leveraged finance and fund finance.

As financial markets continue to evolve and become more complex, Quinn said lawyers’ experience becomes more important.

“They’ve gotten extremely sophisticated,” Quinn said. “The transactions we were working on years ago seemed at the time to be incredibly complex. But when we look back now, they seem relatively straightforward.”

January has been a busy month setting up what Quinn expects will be a year that could surpass last year’s performance.

“It’s a particularly strong January,” he said. “The firm is extremely busy really across all our practice areas, and we’re anticipating another really strong year for the firm.”