Capital markets lawyers advise companies and financial institutions on capital raising transactions on the public markets - primarily debt (bonds) issuances and equity (shares) offerings. These sectors are known as debt capital markets (DCM) and equity capital markets (ECM), respectively.
They work at the intersection of corporate law, finance and regulation.
DCM work includes conventional corporate bond issuances, high-yield bond issuances (often used in leveraged buyouts (LBOs) on private equity deals) and convertible bond issuances.
ECM work includes initial public offerings (IPOs), secondary offerings like rights issues and placings, and private placements of shares to institutional investors.
Very much transactional in nature, typical work for capital markets lawyers includes preparing the prospectus and other offering materials for a debt or equity raise, conducting detailed due diligence on the issuing entity, and ensuring compliance with relevant regulatory requirements (e.g. listing and disclosure rules).
The capital markets department in most large law firms will also include lawyers specialised in more exotic transactions, such as securitisations (e.g. residential mortgage-backed securities (RMBS)), structured finance (e.g. collateralised loan obligations (CLOs) and repackagings) and derivatives.
Capital markets lawyers at the leading London law firms can expect to earn between £120,000 - £150,000 at the junior end of the associate scale (up to 2/3 years’ PQE).
Mid and senior-level associates can expect to earn north of £200,000.
We have a list of salaries paid by all of the UK’s top law firms here.
Capital markets covers a range of activities, from bond and equity issues to securitisation and structured finance.
Debt and equity capital markets: Dominated by Magic Circle giants A&O Shearman, Linklaters and Clifford Chance, with the likes of White & Case, Herbert Smith Freehills and Ashurst also highly-regarded.
Securitisation: A&O Shearman, Linklaters and Clifford Chance are again considered the leaders. Hogan Lovells, Simmons & Simmons and US firm Cadwalader are also known for their expertise.
Collateralised Loan Obligations (CLOs): A niche area that is dominated by A&O Shearman, Cadwalader and Milbank.
Coming soon...
