ew York's Shearman & Sterling is making a push to assert itself as a Silicon Valley player, leasing new digs in Menlo Park, shifting partners from back East and appointing a new managing partner for its Bay Area offices.
After months of focusing on expansion in Europe and Asia, Shearman has shifted its attention to the Bay Area. The firm announced Tuesday that it will add four partners and two associates to its sizable new digs in Menlo Park, with more to follow in the near future.
The announcement comes on the heels of the departures of two partners from the Menlo Park office.
Shearman has convinced at least three partners from New York to move to Menlo Park. Mergers and acquisitions partner Peter Lyons and corporate finance partner Danielle Carbone have already jumped to the office, while corporate finance partner Marc Rossell will soon follow. Firm leaders said more attorneys, including another partner, will follow.
The firm has appointed Lyons to head up its San Francisco and Menlo Park offices. He takes the reins from William Hinman, who will now head the firm's global technology group.
"We've been here for a long time, but as we took a look at areas of growth worldwide we concluded that we needed to expand," said Lyons, who practiced in the San Francisco office from 1983-1985.
"We probably should have done this sooner," said Lyons.
In addition to managing the two offices, Lyons will remain worldwide co-head of the firm's 130-attorney mergers and acquisitions group.
Lyons said the Menlo Park office will continue to focus on M&A and capital markets as well as complementary practices like compensation and benefits and tax. He says its litigation practice is also targeted for growth.
The 850-attorney firm's newly leased space in Menlo Park has the capacity to house 60 lawyers -- four times its current tally.
Recruiter Avis Caravello called the firm's plans significant.
"In the last four to five years the firm has had some pretty big defections, coupled with the fact that they never really put themselves out there," she said. "To secure that kind of lease and make that commitment means they're really serious."
And though she said it will be tough for Shearman to lure clients away from firms that already have a stronghold in the Valley, there is plenty of M&A work to go around.
"I don't think their challenge will be to find clients -- I think their challenge will be to find attorneys."
Shearman has maintained a San Francisco office, which currently houses roughly 24 attorneys, since 1979. The firm's 15-attorney Menlo Park office opened its doors in 1998.
Lyon acknowledges the defections -- most recently of partners Christopher Dillon and Alan Denenberg of the Menlo Park office -- don't help an office that is trying to grow, but he said he is optimistic.
"It would be better if we had more people, but we're committed," he said. "Realistically, I know this will take some time. I expect that over the next year or so we will make a substantial run toward that number."
Lyons says the spots will be filled by familiar faces from New York as well as lateral hires.
But finding able bodies may be even tougher than expected -- after all, Shearman is not the only out-of-town firm to make a push for expansion.
Richard Capelouto, managing partner of the Palo Alto office of New York's Simpson Thacher & Bartlett, says the 22-attorney office is set to sign a lease on a space that will accommodate 45 attorneys.
"Everyone perceives a lot of opportunities out here," he said. "What Shearman is doing is an indication of that."
