Thursday, May 19 2022

NEW YORK – (BUSINESS WIRE) – December 9, 2021–

Citi Private Bank Law Firm Group and Hildebrandt Consulting today released their Citi Hildebrandt 2022 Client Advice, which sets out the broad landscape of the law firm industry, how firms are responding to challenges in industry, economy and market, including progress in the fight against the Covid-19 pandemic and their best growth opportunities over the coming year.

After a better-than-expected year 2020, the Client Council notes that law firms in all segments of the industry have experienced strong growth this year. Average revenue growth is expected to be 14.7% over the same period of 2020, easily absorbing spending increases heavily driven by compensation pressure from an acute war for talent. However, a late return to the office kept anticipated levels of operating expense growth down. Looking to 2022, high demand levels are expected to continue, but with some moderation in growth levels compared to this year. The practice areas where we anticipate the most growth opportunities are Corporate / Mergers & Acquisitions, Litigation & Regulations / Investigations / Compliance, Finance & Capital Markets, and Fund / Investment Management.

To date, the pressure on compensation spending caused by the talent war has resulted in a 14% increase in compensation spending and is the main driver of the 8% total spending growth seen since the start of the year. . This pressure was caused by the demand for law firm services outstripping the supply of lawyers, creating an acute war for talent. At the same time, the delay in returning to the office led to more moderate growth in operating expenses than anticipated, up just 3% over the first nine months. In 2022, accelerated spending growth is predicted as businesses return to the office in one form or another and there is a gradual return to travel and business development spending, as well as an increase in infrastructure spending.

“We are optimistic about 2022, but there are challenges ahead, including how to successfully implement a hybrid model and win the war for talent. In addition, as we return to a more normal environment, we will likely see a moderation in earnings growth compared to 2021. We also expect dispersion to return, which will likely fuel further consolidation ”, said Gretta Rusanow, Head of Advisory Services for the Citi Private Bank Group of Law Firms. “We also expect increased spending pressure in 2022, with increased operating expenses returning as businesses adapt to new work environments. This will make the continued focus on operational efficiency a key priority. “

With the increased distribution of vaccines against the backdrop of the spread of the Delta variant and other mutations, the most immediate challenge or opportunity is the gradual return to power and the need to get it right. Most companies have plans in place for at least a partial return in the fourth quarter, with three days being the most common hybrid approach. The challenge for management is to focus on building a strong culture, regardless of the hybrid model chosen, while taking into account the effects of burnout, the increased desire for work / work balance. healthy life and professional aspirations.

“Ever since we started publishing the Citi Hildebrandt Client Advisory 15 years ago, we have always taken the position that the law firm industry is a very prosperous and stable industry” said Brad Hildebrandt, president of Hildebrandt Consulting. “We have seen this continue to happen over the past two years, with law firms demonstrating their ability to adapt to the global pandemic at almost lightning speed, while also delivering such a strong record performance.”

This year’s Client Council also shines a light on Diversity, Equity and Inclusion (DCI) efforts among a group of leading law firms. The Law Firm Group has asked firms to report on levels of gender, race and ethnicity in 2017 and 2020 to identify any changes that have occurred since DCI reports became more prevalent in the industry. law firms. Although the study found an increase in racial and gender diversity in large companies, they also noted that the main challenge they face is minority retention.

Our analyzes and projections are based on data collected from a sample of predominantly US-based law firms by Citi Private Bank, as well as conversations with law firm executives. For third-party legal service providers, most of our information is anecdotal. Sources include “Citi Annual Survey Database” of 213 US and UK based companies, including 43 Am Law 1-50 companies, 40 Am Law companies 51-100, 52 Am Law Second Hundred and 78 additional companies; 173 Citi Flash Survey firms, including 41 Am Law 1-50 firms, 34 Am Law 51-100 firms, 46 Am Law Second Hundred firms and 52 additional firms; the Citi Law Firm Leaders Survey of 56 large law firms headquartered in the United States, United Kingdom, China and India; and the Law Firm Leaders Confidence Index, which reports the forward-looking opinions of law firm executives from 129 firms.

The full report can be accessed on the Citi Private Bank website here.

About Citi Private Bank:

Citi Private Bank is dedicated to serving wealthy and socialite individuals and families, providing personalized private banking services across borders. With total revenues of over $ 600 billion, the franchise serves clients domiciled in more than 100 countries through a network of 50 offices in 18 countries. Citi Private Bank helps clients grow and preserve their wealth, fund their assets, make their cash work harder, protect their assets, preserve their legacy and meet the needs of family and family businesses. The company offers its clients products and services spanning capital markets, managed investments, portfolio management, trust and estate planning, investment finance, banking and aviation finance, artistic consulting and finance, and sports financing.

About Citi:

Citi, the world’s largest bank, has approximately 200 million accounts receivable and operates in more than 160 countries and jurisdictions. Citi provides consumers, businesses, governments and institutions with a wide range of financial products and services, including consumer banking and credit, business and investment banking, securities brokerage, wealth management and transaction services.

Additional information can be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

About Hildebrandt Consulting:

Hildebrandt Consulting continues its long and distinguished history as a preeminent global consulting firm in the legal profession. With clients in over 15 countries, Hildebrandt has accumulated unparalleled expertise in all aspects of professional business management. Our reputation for helping companies find strategic solutions comes from our knowledge of the interrelated elements that contribute to the overall performance of the company.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20211209005167/en/

CONTACT: Media:

Gabriel Morales

[email protected]

KEYWORD: NEW YORK UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: PROFESSIONAL LEGAL SERVICES

SOURCE: Citi

Copyright Business Wire 2021.

PUB: 12/09/2021 07: 00 / DISC: 12/09/2021 07:02

http://www.businesswire.com/news/home/20211209005167/en

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