PERTH’S major accounting and legal firms have appointed nearly 50 new partners this year, signalling notable ranking changes within each profession.
In the accounting field, Deloitte has experienced the largest growth, with the appointment of nine new partners over the past six months (see attached table for details).
That lifted its partner total to 43, notably higher than traditional rivals PwC (36 partners) and KPMG (34 partners).
However, Ernst & Young has continued to be the largest player in the Western Australian market, with eight partner appointments taking its total to 55.
In the legal field, Freehills has for many years been the largest firm in Perth, but is now very similar in size to Jackson McDonald Lawyers.
Freehills, which announced last week that its partners had approved a merger with UK-based firm Herbert Smith, has not appointed any new partners this year.
JacMac has added one new partner, following its in-market merger last year with local commercial firm McKenzie Moncrieff.
The net result is that JacMac is larger on partner numbers (30 versus 26) but is smaller based on total legal staff (135 versus 143).
EY managing partner western region Michael Angie said the firm had achieved 12 per cent year-on-year revenue growth in Perth.
He said Perth, along with Brisbane and Canberra, had achieved the strongest growth.
Five of the firm’s new partners are in tax, which Mr Anghie said was the firm’s biggest service line.
He nominated advisory, which has two new partners, as the fastest growing area.
The new partners comprise four internal promotions and four who have been transferred or recruited from elsewhere.
The latter includes the well-travelled Ian Crisp, whose resume includes time spent at EY nearly a decade ago, along with stints at Andersen, his own practice, and in recent years at Deloitte.
Deloitte managing partner WA Keith Jones said that, nationally, the firm’s revenue had pushed through $1 billion with 12 per cent growth for the 2011-12 financial year.
Mr Jones said that rate had been surpassed in WA, which recorded an 18 per cent increase in revenue.
While most of the eight new partners were in traditional accounting areas of audit, tax and advisory, there were two additions to consulting, a field that Deloitte has been relatively strong in compared to its ‘big four’ peers.
“We are the strongest practice in WA,” Mr Jones claimed.
“We see ourselves as quite uniquely placed,” he added, highlighting the firm’s move into the rapidly growing area of data management and analytics.
While this leadership view may be challenged by accounting rivals, notably PwC, which had claimed a market leading position in consulting under former head Robert Radley – who quit last year to head Bain & Co’s Perth start-up – Deloitte has been aggressive in this space for many years under the leadership of Iain Gerrard and Michael McNulty.
PwC WA managing partner Nick Brasington has announced the admission of four new partners, including Ben Gargett, whose past experience in Melbourne includes a role as PwC’s global mining knowledge manager.
Outside the big four firms, Crowe Horwath had the largest growth, adding three partners, most recently the promotion of principal Shane Crommelin in its business advisory practice.
The new financial year has also marked the start of new boutique firms established by individuals who have chosen to leave large practices.
These include former Squire Sanders partner Glen McLeod, who has established a specialist consulting practice with an unusual business model.
Mr McLeod will limit his client base to lawyers and other professionals whose clients need help in environmental, town planning and government law.
“Despite the emergence of large international firms in the Perth market, there is now a real need for the boutique niche operator, who can enhance the capacity of other professionals,” Mr McLeod said.
International law firms have appointed the most new partners in recent months.
King & Wood Mallesons has appointed four new partners in the Perth office this year, while Ashurst Australia and Norton Rose have each added three new partners.
Clayton Utz, which has stood aloof from the overtures of international firms, also added three new partners.
Local firm Lavan Legal bolstered its ranks via a merger with Maxim Litigaton Consultants, with Kevin Stewart now practising as a partner.