Lowenstein Revenue Growth Fueled By Spike in Transactional Practice
Lowenstein Sandler, one of New Jersey's highest-grossing home-grown firms, enjoyed strong revenue growth last year thanks largely to a marked rise in transactional work.
The Roseland firm's $222.5 million in gross revenue for fiscal year 2013 is a 3.5 percent climb from the prior year's total, $215 million, according to a survey by The American Lawyer.
That growth rate beats recently reported averages of 2.5 percent, in a survey of national firms by Citi Law Firm Group, and 2.2 percent, in a survey of national and global firms by Wells Fargo Legal Specialty Group.
The increase puts Lowenstein on track to once again top the New Jersey Law Journal's annual list of highest-earning firms and branches in the state.
Managing partner Gary Wingens says the growth was driven largely by a 19 percent revenue spike in transactional practice.
That includes the burgeoning life sciences industry. Wingens says part of the firm's five-year strategy has been to add lawyers to service that sector, in which Lowenstein counseled six initial public offerings in 2013.
"Because we had invested there, we were able to take advantage of that growth," Wingens says. "We were able to participate in a market pickup…and to increase our market share."
He adds that increased M&A activity, especially among private equity clients, also fueled the growth: 2013 saw more deals, particularly middle-market transactions valued less than $1 billion.
Lowenstein's bankruptcy practice—which hedged drop-offs in other areas during the recession's bleakest years— also fared well, with 6 percent revenue growth.
Wingens claims the year-to-year revenue jump is much higher (9.4 percent) in "core" revenue, which excludes receipts from contingency matters. Last year was anomalous in that not a single contingency matter was resolved, which affected the total gross, he says.