In a major blow to Chicago law firm Kirkland & Ellis, one of its top attorneys, James Sprayregen, said Tuesday that he is leaving to become an investment banker at Goldman Sachs Group Inc.
Sprayregen, 46, head of the firm’s lucrative bankruptcy practice, will become a managing director in Goldman Sachs’ investment banking division in early July.
Sprayregen has become one of the nation’s preeminent bankruptcy attorneys since joining Kirkland in 1990. At the time, bankruptcy was a small part of the practice, but it has grown to more than 100 attorneys and is a major revenue generator for the firm. Sprayregen alone charged $850 an hour.
The firm billed United Airlines $100 million for handling its bankruptcy case. Kirkland also handled the bankruptcies for insurance giant Conseco Inc., chemical company W.R. Grace Inc., power-plant developer Babcock & Wilcox Co. and auto-parts manufacturer Tower Automotive Inc.
His departure leaves a big hole at Kirkland, where the bankruptcy practice provides a steady stream of work throughout the firm. Because a complex corporate restructuring involves all aspects of a company’s operations, attorneys in real estate, litigation and corporate law often are called upon for their expertise.
“No mistake about it, it’s a big blow to Kirkland,” said Keith Shapiro, a Chicago bankruptcy attorney at Greenberg Traurig LLP. “He was one of its top three or four rainmakers.”
His departure could lead to more attorneys leaving Kirkland as headhunters look to pick off members of Sprayregen’s team.
Sprayregen said he has no plans to take any attorneys with him when he exits.
“This is a chance to use the different skills I’ve developed in a different way,” he said in an interview Tuesday night. “It’s an opportunity to climb a new mountain.”
Sprayregen, called Jamie by friends, is a marathon runner and former high school wrestler known for his dogged determination and intellect. Courtroom opponents have described him as brilliant and a street fighter.
The move to Goldman Sachs will play to Sprayregen’s strengths, Shapiro said.
“He will fit right in with the investment bank,” he said. “His biggest strength is his dealmaking.”
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At Goldman Sachs, Sprayregen will work for another former attorney. Lloyd Blankfein, recently named chairman and chief executive, is a Harvard law graduate who began his career as a tax lawyer.
Thomas Yannucci, chairman of Kirkland’s management committee, called Goldman Sachs’ hiring of Sprayregen “a testament to Jamie’s and Kirkland’s status in the restructuring world.”
Kirkland has another partner considered a major player in bankruptcy litigation nationally. Richard Cieri, who is based in the firm’s New York office, has represented power-producer Calpine Corp. and worked for Collins & Aikman Corp., an auto supplier.
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