Herbert Smith Freehills and Kramer Levin Announce $2B Merger

Herbert Smith Freehills and Kramer Levin Naftalis & Franke plan to merge to create one of the largest law firms in the world with more than $2 billion in revenue, 2,700 lawyers and 640 partners across 25 offices.

The combination will have 2,700 lawyers and 640 partners across 25 offices worldwide.
The new firm, named Herbert Smith Freehills Kramer (HSF Kramer in the U.S.), will strengthen its U.S. presence in energy, finance, and tech.
The deal reflects a broader trend of British firms expanding into the U.S. via mergers or high-profile team hires.

Herbert Smith Freehills (HSF) and New York-based Kramer Levin Naftalis & Frankel are moving forward with a trans-Atlantic merger that will establish a $2 billion revenue powerhouse, according to a joint statement by the firms, quoted by Bloomberg Law.

The newly combined entity, Herbert Smith Freehills Kramer—HSF Kramer in the United States—will rank among the world’s leading law firms by revenue and geographic reach, boasting over 2,700 lawyers, including 640 partners, across 25 offices globally. Roughly 120 of these partners will be based in the U.S.

The partner vote is expected to come by February 2025, according to sources cited by Law.com.

Strengthening the U.S. Market Presence

This merger will give HSF an expanded footprint in the U.S., addressing a long-standing challenge for international law firms aiming to penetrate the lucrative American market.

Kramer Levin, headquartered in New York with additional offices in Washington, D.C., Silicon Valley, and Paris, brings a U.S.-centered client base and deep expertise in sectors that align well with HSF’s global strengths.
These sectors include energy, financial services, infrastructure, mining, and technology.
HSF, known for its extensive Anglo-Australian network across 16 countries, will see limited overlap with Kramer Levin's offices, making the merger a complementary fit. “

This combination will allow the firms to accelerate growth in key sectors and surpass many of their international peers in the U.S., the firms noted in their statement.

Disparate Profitability and Revenue Metrics

The merger brings together two firms with distinct profitability and revenue structures.

HSF reported gross revenue of $1.6 billion in 2023, with profits per equity partner (PEP) at $1.6 million.
Kramer Levin generated $435 million with a higher PEP of $2.4 million, positioning it as a smaller but more profitable firm.
Kramer Levin’s revenue per lawyer (RPL) stands at $1.28 million, nearly double HSF’s RPL of just under $700,000.

These disparities underscore the complementary nature of the merger, with Kramer Levin adding profitability and depth in the U.S. market while HSF contributes scale and an established presence in Europe, Asia, and Australia.

A Broader Trend of U.S. Expansion for British Firms

The HSF-Kramer merger follows a recent wave of similar cross-border deals as British firms continue to seek footholds in the competitive U.S. market. Clifford Chance, Freshfields Bruckhaus Deringer, and Linklaters have all bolstered their American presence through high-profile team hires in recent years.

Earlier this year, Allen & Overy merged with Shearman & Sterling, forming the $3.4 billion revenue firm A&O Shearman, another example of British firms pushing for U.S. market penetration via strategic combinations.