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Just curious. Not that I really think I could or would do it.

Anonymous User wrote:Just curious. Not that I really think I could or would do it.

Someone posted a link here from a bit ago that the buy in was ~33%* first year partner salary. I'll try to find it.

Edit - Here: http://top-law-schools.com/forums/viewt ... 5#p8195353 (had link to article cited). ~33% I mentioned is 35%*

toothbrush wrote:

Anonymous User wrote:Just curious. Not that I really think I could or would do it.

Someone posted a link here from a bit ago that the buy in was ~33%* first year partner salary. I'll try to find it.

Edit - Here: http://top-law-schools.com/forums/viewt ... 5#p8195353 (had link to article cited). ~33% I mentioned is 35%*

So 35-60% of your first year salary plus 20% interest (dear god) and you may not be able to get that money back from the firm for up to five years if you leave. Sounds FANTASTIC. The shadiest part is the loan from the "relationship" bank - I wonder if they force you to borrow the money from that bank or if you can borrow from a better source like a HELOC.

Making partnership is like getting more pie for winning a pie eating contest. Importantly, the pie is shit flavored. But someone with more money and power than you is throwing you money to keep on going.

Anonymous User wrote: So 35-60% of your first year salary plus 20% interest (dear god) and you may not be able to get that money back from the firm for up to five years if you leave. Sounds FANTASTIC. The shadiest part is the loan from the "relationship" bank - I wonder if they force you to borrow the money from that bank or if you can borrow from a better source like a HELOC.

It's saying you pay it over a 5 year term (20% a year) not 20% interest rate. That would be insane. You might be better off doing it on a credit card at that rate (if you could find somewhere that would do it). I'd imagine the rates are pretty preferential considering the existing relationship allows the bank to evaluate the risk of the firm imploding which seems like the biggest credit risk for the bank in lending to buy an equity-partner interest.

Maybe it's just me, but I don't really see that cost as being all that bad. I would have guessed something around 100%+ of first year partner salary based on the basic knowledge I assume I have.

Anonymous User wrote:

toothbrush wrote:

Anonymous User wrote:Just curious. Not that I really think I could or would do it.

Someone posted a link here from a bit ago that the buy in was ~33%* first year partner salary. I'll try to find it.

Edit - Here: http://top-law-schools.com/forums/viewt ... 5#p8195353 (had link to article cited). ~33% I mentioned is 35%*

So 35-60% of your first year salary plus 20% interest (dear god) and you may not be able to get that money back from the firm for up to five years if you leave. Sounds FANTASTIC. The shadiest part is the loan from the "relationship" bank - I wonder if they force you to borrow the money from that bank or if you can borrow from a better source like a HELOC.

A heloc sounds like a great way to lose your house. Awesome plan, bud.

partnership loans are usually interest free.

solid use of anon, wouldn't want to out yourself on tls as someone who is interested in big law.

Pikappraider wrote:solid use of anon, wouldn't want to out yourself on tls as someone who is interested in big law.

Don't you know anon use is OK for embarrassing innocent questions too?

Pikappraider wrote:solid use of anon, wouldn't want to out yourself on tls as someone who is interested in big law.

My favorite part is how it's labeled "V20." Nobody except rising 2L's doing OCI even know what the Vault rankings are. Partnerships at a V20 don't cost more than partnerships at a V50, necessarily. There are some firms in the V100 that are way more lucrative for the partners than some firms in the V20. And some partnerships at a particular V20 cost and make more than other parnterships at that very same firm depending on the contract they're willing to cut with you.