[Exclusive] Capital Markets Shake up: IndusLaw Partner Manan Lahoty and team of 50+ lawyers to join Cyril Amarchand Mangaldas | https://www.barandbench.com/news/corporate/induslaw-partner-manan-lahoty-and-team-to-join-cyril-amarchand-mangaldas

Indus had a such a great work culture. CAM will definitely ruin this for them plus CAM with their low salaries to associates esp A0s (since CAM believes in concentrating their profits at the top) is bound to spark some ire. Manan should have joined a better firm not a firm still running a so called name. Trilegal would have been a great choice. Khaitan and AZB SAM are self sufficient on their own.

You can't run a firm with this being the sole reason for someone to stay. To retain the remaining folks, Indus doesn't have much choice than making few EPs. They have to announce it during the retreat. Although, if MC is leaving along with other EPs, I think offering equity will become a joke.

It will be interesting to learn when this discussion started. Was it after the recent exit of cap marks partners from CAM (if so, then this move by ML's team is really fast) or was it because ML was joining with his team and existing CAM cap marks partners felt that they will have limited space in CAM.

if rumours have to be considered, there was a tussle between CSS - AK - YA for equity and senior partnership. And something about loss of autonomy for AK, considering the centralised HR system at CAM operated by CSS directly. So he moved to T, completely obliterating CAM ECM. The only reasonable thing to do to continue the practice at CAM profitability was buying up ML. Ofcourse ML will be given special partnership privileges and maybe the pay of the associates will be different (not too much ironically considering CAM payed lesser lol at higher levels especially bonus payouts in ECM teams). ML will operate a firm within CAM, micromanagement, own rules and regulations. Considering he has the clients. This will lead to tussles between CSS and ML again, but ML being in a deadweight tight margin practice can only negotiate so much in a T1 GC/ Finance profiting firm. Considering his past practices, ML doesnt settle simply. Same with Rajiv, then the others.

Secondly CSS will quickly realise that they have too many people already under YA and ML has taken his whole team with so many freshers and A1/ A2s, something not required in the least at CAM. There could be firing? but that is usual in ECM. Not able to keep up margins, the recently promoted partners may be asked to leave slowly, till momentum is reached. ECM was never an efficient practice anyway though, but having ML is different. Coupled with a high profit per partner firm like CAM, this is a win for CSS. But surely CSS will have to concede equity to ML and other probably, will have to assess dynamics.

Undoubtedly now, this leaves CAM to be a Tier 1 (unfortunately) practice in ECM, they were already doing very well in PF, B&F and GC with heavyweights like LV and the others. ML will now truly be a tier 1 firm heavyweight, and not just a star practice in a tier 2 firm. Firms like S&R have died down in ECM , doing just a few mandates, deteriorating numbers considerably, this can be due to their extremely bureaucratic structure and hard to gel with people. CAM already has billion dollar IPO mandates for next year for Uber Level companies, ML addition will only add several more. CAM can now negotiate better costs with clients, have more bargaining power in the listed market. Possibly internally, atleast the ECM practice would be one with good culture considering ML will run a tight knit team as he ran at Indus, and micromanage affairs. CAM would undoubtedly attract more talent now considering the good culture and already decent tier 1 pay. I just hope CSS doesnt crush this down as he likes to do.

Vahura was on a CAM mandate to find a large sized ECM team in the aftermath of the exodus. What’s unclear is whether this happened organically or through Vahura! Someone here made a good point: CAM may as well have spent a tad more money to retain homegrown talent rather than (over)spend to acquihire. A bit penny wise pound foolish, no?

Ashwath doesnt bill 60 cr (most profitable and money making team in India GC, with highest paying huge clients with no costs cut FYI). ECM is an extremely low margin practice. ML is great but not with fixed mandates work. Billing 7-8 crores annually would be a good number with good IPOs that year.

Bro at this point its is not even breaking anymore. All law firms are running a factory of underpaid and overworked poor fellows with the top names paying no need to the well being of their Associated. SAM AZB Trilegal Khaitan CAM JSA (forgive me if I left out a firm) are equal in terms of brand name and over exploitation. You might switch firms easily but will always be confined by this small profession of 1000s of lawyers

He has not hated on past employers at all. You're allowed to criticise the state of things while appreciating they gave you a good landing and incubation. But point taken - at the end of the day if the culture withstood work crunch and bad economy and having to compete with T1s, I think it won't buckle down. We wish our agency remains as is which is supported by the fact that he'll be leading.

It's not a T2 practice - enough and more lead managers are testament to it. Nobody comes close to the culture of the team despite the workloads and the fact that that they've managed great increments and aggressively pursue clients.

This comment is pretty telling - we'll see how places with huge resources and longer relationship cope. No smoke without fire.

One more team

https://india.legalbusinessonline.com/appointments/induslaw-continues-see-exits-real-estate-team-jumps-sr

P.S., not sure if all the downvotes are because they think the number it's inflated (can't be, considering all the upvotes on the 60 crore number from the comment above), or because they think the number is too low. To which it's worth pointing out that 36 cr is very respectable number. That's 3 cr per partner and pretty close to a 2x cost multiple (again impressive considering it's a large team)

This one too

https://india.legalbusinessonline.com/appointments/induslaw-continues-see-exits-real-estate-team-jumps-sr

1. Who will be head of CAM ECM -

Yash Ashar doesn't stand a chance in front of Manan Lahoty. I don't think Manan will agree to be a Co head of any ECM team.

2. How different is the pay structure? How much would have Manan Lahoty made by this jump?

3. How will CAM benefit from this deal as ECM is a low margin practice area?

Well the reality seems to be that Manan and his team gave up on the "hustle" and decided that going to a brand was a better deal for them. The whole premise of moving to Indus was clearly that his team and him would "build" their practice and compete with the Big Boy cap markets teams across CAM, SAM, KCO, AZB (otherwise they should have gone to the brands from Luthra)+ he got say in management (which he clearly didn't have at Luthra).

He definitely got the say in management (pretty much everything that he wanted and wanted Indus to do was done I hear). But, the "build" part was not happening since the Practice was slanted towards the underwriters based on the deal reporting. Clearly, going back to a big Brand, cuts out the hassle of the "hustle" and things will come much easier. Does that make this an execution role more than a "builder" role? Only time will tell- with the markets being on the roll that they are (and seem to be), the Cap Markets teams are losing their "cyclical" stigma. Cyril also does to kill competition by taking out a competitor in a pretty much monopolistic game. Win-Win immediate term. But, then lateral integration is a huge problem across all firms, leave alone Big Law. and bigger the team, bigger the problem.

Building a Tier 1 practice (this is not about quality, but about a niche practice area)+ jacking up the profile of a Tier 2 Firm, while coming from a Tier 1 Firm is hard. Tier 1 spoils you and kills your hunger for a hustle in niche practices after you have established yourself. The Brand itself draws a lot of the work. And yeah, I do know about this having been there and done that.

So, eventually that's what it is, isn't it? Giving up on "building" and ruling the roost to boost profile/make more money. Who are we to judge? But, sure as hell, we can comment and have opinion, no?

The firm has nine partners listed on their website when you filter for Capital Markets. Each of these nine has now migrated to CAM, as have nearly all of the associates mentioned who are working under them. The firm literally has no partner left in Cap Markets practice as per website.

The question now is: who will hire people wishing to work at Indus' Capital Markets?
Anjali Menon, Mansi Jhaveri, and Neha Balodhi are the three Principal Associates listed on their website. Have these PAs also departed with the large group, or are they staying with Indus to potentially become partners?

Please share any information you may have about this. It is important for me to know as soon as possible.

Beta Principals are merely execution task masters, clients don't know jack about them. Its always the practice head or the most senior doing the front facing and mandate pulling work (here: Lahoty). So forget his PAs staying back at Indus in hopes of partnerships since they fail to have a book of their own. Everybody's packing their bags for CAM, see you at Peninsula Corporate Park.

Basically the trouble makers are now in trouble. You can only go so far with your blackmail and threats of leaving before you are trumped by an ace card which has been pulled out by the big man. Basically everyone is replaceable. There is always someone bigger and better than you. People need to remember that.

And mandate rates being different is basic economics - you charge more as a full service law firm which is the oldest. Bringing the same quality of service without leveraging as many other practices - all while being able to not have upper layer concentration of reward is your answer.