Key Takeaways
- • A&O Shearman lost three London finance partners to Latham & Watkins on January 6, 2026: real estate finance partners David Oppenheimer and David Varne, plus structured finance partner Lucy Oddy, signaling continued attrition at the Magic Circle firm post-merger.
- • The departures underscore ongoing talent flight from A&O Shearman to US rivals, with exits extending into 2026 as the merged entity navigates integration challenges and competitive poaching.
- • Latham & Watkins, the Los Angeles-founded firm, continues to expand its London finance capabilities through strategic partner hires from elite UK practices.
Summary
A&O Shearman faced fresh partner departures this week as three London-based finance specialists joined US rival Latham & Watkins, marking another blow to the Magic Circle firm's stability in the new year. Latham announced on January 6 the hires of real estate finance partners David Oppenheimer and David Varne alongside structured finance partner Lucy Oddy, all departing from A&O Shearman's London office.
The moves represent a continuation of exit momentum from A&O Shearman, which has experienced multiple senior departures since its 2022 merger between Allen & Company and Shearman & Sterling. The exits signal broader challenges the merged entity faces in retaining top-tier talent amid competition from larger US firms actively recruiting in London's legal market. Latham & Watkins, leveraging its Los Angeles base and substantial resources, has positioned itself as an active acquirer of specialized finance talent from established UK practices.
These departures carry particular significance for institutional investors and alternative asset managers who rely on Magic Circle firms for complex real estate finance and structured finance advisory. The loss of multiple partners in adjacent practice areas could affect A&O Shearman's ability to service large-scale transactions and may signal deeper organizational challenges within the merged firm's finance platform.
The moves represent a continuation of exit momentum from A&O Shearman, which has experienced multiple senior departures since its 2022 merger between Allen & Company and Shearman & Sterling. The exits signal broader challenges the merged entity faces in retaining top-tier talent amid competition from larger US firms actively recruiting in London's legal market. Latham & Watkins, leveraging its Los Angeles base and substantial resources, has positioned itself as an active acquirer of specialized finance talent from established UK practices.
These departures carry particular significance for institutional investors and alternative asset managers who rely on Magic Circle firms for complex real estate finance and structured finance advisory. The loss of multiple partners in adjacent practice areas could affect A&O Shearman's ability to service large-scale transactions and may signal deeper organizational challenges within the merged firm's finance platform.
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