The major investment banks are affected by the slowdown in corporate financing activities that we have been seeing for a year now. A slowdown that has not affected the law firm McCarthy Tétrault, which benefits from the strong activity generated by the private investment funds that have taken over, explains Karl Tabbakh, managing partner of the firm for Quebec and leader of the international strategy of the Canadian group.
Rising interest rates and almost non-existent activity in terms of new equity issues have considerably slowed down the activities of the corporate finance departments of several large banks, as well as those of law firms specializing in business law.
“The capital market tap has been turned off for a year. There is no longer any public financing, the fashion for SPACs [for Special Purpose Acquisition Company] has faded, but there has been a shift in business towards private investment funds and pension funds, which benefit from very attractive valuations in the market. Our fundraising people are always very busy,” observes Karl Tabbakh.
A specialist in mergers and acquisitions, Karl Tabbakh began his career at McCarthy Tétrault, before completing a four-year internship at the large British firm Clifford Chance and subsequently launching a private investment fund in Dubai.
Karl Tabbakh was notably involved in the acquisition of Alcan by Rio Tinto and the merger of Molson-Coors; this department is still very active despite the difficult economic context, underlines the lawyer.
Since he took office, the McCarthy Tétrault firm has recorded significant growth, like the Quebec economy, which has performed well since 2017. The law firm employs nearly 400 people in its offices in Montreal and about 30 in that of Quebec. McCarthy Tétrault also has offices in Vancouver, Calgary, Toronto, London and New York.
Very active in the energy and mining sectors, McCarthy Tétrault also has a strong presence in the financial services sector with a clientele of large companies such as the National Bank, Desjardins Group, Hydro-Québec, CN, Bell, Innergex, Boralex, Kruger and the Caisse de dépôt et placement.
“We support our major clients in all their needs, whether it be mergers and acquisitions transactions, litigation, labor or real estate law. For certain clients such as the Caisse or Hydro-Québec, we carry out certain mandates like other law firms, “says the managing partner.
As the leader of international strategy, Karl Tabbakh is responsible for McCarthy Tétrault’s offices in London and New York and oversees attracting international clients to Canada.
“We get clients referred by law firms, just like we carry out assignments abroad for large investment funds. We supported Korean companies in the energy sector in Asia who wanted to participate in the energy transition value chain,” he explains.
In recent years, McCarthy Tétrault has set up new services, including one, MTI, which is dedicated to immigration.
“We help our clients in their process of recruiting specialized talent abroad. It is a much more personalized mobility service where we take care of all the formalities to bring workers from abroad to the country,” says Karl Tabbakh.
The group has also integrated artificial intelligence to quickly review legal documents in order to collect electronic evidence.
In early June, McCarthy Tétrault opened its new offices at 1000 De La Gauchetière West, where the law firm undertook extensive renovations that took place during the pandemic.
The firm has recovered the space it occupied in the mezzanine of the building where it carried out all its administrative operations (the back office) to make it its reception.
“We opened the terrace which was difficult to access before. Many of our employees come here for lunch. We created a friendly space,” Karl Tabbakh explains to me, in a room with a superb view of the city center that was once used to store computer equipment.
“We signed our lease in February 2020… with the desire to transform the traditional space into a collaborative place. The pandemic has led us to push the concept further. We wanted our people to come back to the office,” says Karl Tabbakh.
Since April, employees have been going to 1000 De La Gauchetière West three times a week. The firm has decided to maintain a certain flexibility even if its director does not hide the fact that being in the office is part of the experience of a lawyer.
“Especially for young people. Being in the office is a way to develop, our profession is learned by osmosis. Eating with colleagues or a client in a restaurant in the city center is a lot better than eating a sandwich, dressed in soft clothes at home”, image Karl Tabbakh.
