Michael Aiello, a highly influential corporate department chairman at Weil Gotshal & Manges, has made a significant move to Cravath, Swaine & Moore, a decision largely influenced by Cravath's commitment to public company M&A as the pinnacle of Big Law work. This aligns with Aiello's long-held view that public company M&A is the preeminent New York law practice, a perspective that sometimes hindered Weil's growth in other areas like private equity, despite its early start in the buyout business. Cravath's presiding partner, Faiza Saeed, has publicly emphasized the firm's choice to maintain its focus as a top-flight M&A firm with strong litigation, likening it to a designer brand in contrast to the "fast fashion" of larger, more diversified firms.
Aiello's departure has left Weil with significant gaps, as he is considered one of the top business generators in the country for large deals, having advised on Fox Corp.'s $22 billion acquisition of Roku Inc. in June and MarketAxess Holdings Inc.'s $6 billion deal to be acquired by Intercontinental Exchange Inc. in July. He also took a group of partners with him to Cravath, including Matt Gilroy, Eoghan Keenan, Amanda Fenster, Michelle Sargent, and Megan Pendleton, further impacting Weil's M&A practice. Weil has also recently seen other departures, including Chris Machera, a co-head of its private equity group, to Paul Weiss, and a team including Brian Parness and Stephanie Srulowitz to Simpson Thacher.
While Aiello's move is seen by some at Weil as a relief, potentially allowing new leadership under incoming executive chair Ramona Nee to focus on building the private equity practice and recruiting new talent, the firm faces challenges. Aiello was described as a divisive figure whose influence often exceeded his formal role, at times stalling the firm's progress in new directions and even hindering recruiting efforts. His skeptical view of growth and territorial behavior led to the departure of important partners, such as Sachin Kohli, who wanted to establish a West Coast public company M&A practice but was rebuffed by Aiello. Some partners at Weil hope his departure will empower younger partners and potentially open the door for merger discussions.
For Cravath, Aiello's arrival strengthens its position as a leading public M&A law firm, adding his immense deal-making prowess to an already formidable practice that includes loyal clients like Aon Plc, which utilized Cravath for its planned $17 billion acquisition of USI Insurance Services. However, Cravath itself has experienced partner departures this year, and Aiello's hire doesn't address the firm's relative lack of depth in other corporate areas like private equity. While Cravath excels in big-ticket public M&A, particularly with Aiello on board, some sources suggest it needs a larger, more diversified platform with revenue streams from other practices to remain competitive long-term, given its tradition of keeping a smaller partner roster compared to other Big Law firms.
