US law firms call for more capital contributions
The American Lawyer has pointed out that law firms are increasingly relying on capital contributions from partners in an effort to decrease reliance on bank debt.
After surveying financing data from 20 law firms, the magazine confirmed that seven don’t borrow any money at all: Dechert; Weil, Gotshal & Manges; K&L Gates; Day Pitney; Perkins Coie; Morgan, Lewis & Bockius; and Gibson, Dunn & Crutcher.
“Attitudes have shifted remarkably since a decade ago, when borrowing by firms was on the rise, and banks found a willing audience for sales pitches,” the American Lawyer says. “After 2008, in particular, many firm leaders began to question the whole idea of bank debt.”