Applying for a Linklaters' Training Contract
https://employeebenefits.co.uk/linklaters-flexible-working-policy/
Andreas Yau
Andreas Yau is an international Durham University graduate who initially familiarised himself with the British culture through his love for football- “Go Gunners” as he would say. After graduating, Andreas decided to study for the New York Bar exam as a way to expand on his legal skill set.
Research, Research, Research
Having not known much about Linklaters besides it being “one of the big names in the UK”, Andreas spent a lot of time researching on their website, Chambers UK and Legal 500. He discovered that Linklaters was incredibly strong in their Corporate and Banking practices and had an exciting international strategy through alliances with local law firms in Asia (predominantly in China), Africa and Australasia. Upon discussing with a Linklaters Vacation Scheme attendee, he also realised that the firm places a large emphasis on teamwork which he really liked. The important message here is to find a law firm that complements your interest. For Andreas, it was Linklaters.
Work Experience
Andreas believed that having an abundance of work experience helped him ‘stand out’; the majority of these work experiences were in fact non-legal work experience. He has worked at a coffee shop, a tech firm shadowing the Chairman, a brokerage, a vacation scheme at Davis Polk, interned at a hygiene company and also attended many different open days. Below are some examples of his experiences and the development of skills:
Intern at a Hygiene Company
At 16 years old, Andreas developed his communication skills by interning for a month at the hygiene company’s customer service department. The constant ringing of phones meant he had to reassure and offer the best course of action and advice for the large volume of clients, each of whom had their own individual situation.
Coffee Shop (to serve coffee, sandwiches and toasties)
At the coffee shop, Andreas recalls it being an extremely busy night as it was holding a formal. He “barely had time to take a breather in between orders”. Thus, under pressure, his organisational skills and team-working skills were put to the test as he and his partner ensured everyone received their correct order as early as possible.
Tech Firm shadowing the Chairman
During this week-long opportunity, Andreas was able to gain a thorough insight of the tech firm; he had access to key IPO documents, shareholder agreements etc. Developing a rapport with the Chairman, Andreas advised the Chairman on multiple issues ranging from how growth equity interconnect with the PE sphere to reconciliation with one of the firm’s PE investors. As a result of this opportunity, Andreas was able to combine and apply his legal and commercial knowledge and interpersonal skills in a work environment.
Clearly, Andreas was a very well-developed candidate who could call upon his numerous experiences to give as examples in his application for the Training Contract.
Applying for the Training Contract
Stage 1- Tests
By applying directly for the Training Contract, Andreas’ behavioural competencies and critical thinking skills were examined by a Situational Judgement test and a Watson Glaser test. His previous applications for Investment Banking (IB) and Consulting jobs meant he had plenty of experience with situational judgement tests. As for the Watson Glaser test, he recommends practising them as early and as consistently as possible. So early in fact that his faintest memory of the test was when he was so incredibly bored by his high school IB Biology class that it convinced him to study some Watson Glaser questions. The element of consistency joined early just a little later in his first year at university, practising weekly, with the help of ‘JobTestPrep’ and ‘Assessment Day’.
Preparation for the Interview Day
As applicants do not know how well they do on the tests, Andreas was pleasantly surprised to have received an interview invitation. This further motivated him to strengthen his knowledge of the firm and the commercial world.
He would memorise Linklaters’ practice area pages of his interest which meant he:
Knew Linklaters’ unique selling points (why clients would pick Linklaters/why they win mandates)
Knew why he wanted to join Linklaters
Additionally, he has been reading the Financial Times every morning for almost two year, solidifying his understanding of commercial awareness.
Stage 2- The Interviews
On the day of the interview, Andreas was put in one of three groups with two other applicants. Even though Andreas was feeling a little tired (after all, he was attending his fourth assessment centre in two weeks), he knew it was important to maintain professionalism and approachability. He formed connections with the two other candidates (one of whom is now a trainee at Freshfields) and “basically just chilled”, staying calm and relaxed. He believed that there was “no point doing any last-minute preparation; it won’t help at all”.
There were two separate interviews: one case study with two partners and one competency interview with HR.
Case Study Interview
For the case study with two partners, Andreas received a mergers and acquisition (M&A) transaction to analyse. He was required to respond to questions by thinking from both the IB advisor’s perspective and from Linklaters’ perspective. This is because, in a M&A deal, law firms are responsible for both the work from the companies and banks although it should be known that there are some differences between bank-side work and company-side work that lawyers have to adapt to.
Andreas’ tips for the Linklaters’ Case Study Interview:
Get a M&A textbook and read it! Know how the Private Equity industry works.
Listen to podcasts (Financial Times)
Do well in your studies! Andreas had useful Employment and Pensions law knowledge which he believed impressed the partners.
Practice saying out loud your answers to general interview questions
Below is a typical commercial awareness question asked by many law firms followed by Andreas’ answer and knowledge of LIBOR of which he based his dissertation on.
Q) What is an interesting or important commercial issue?
A) An important issue of my personal interest is the FCA’s cessation of LIBOR.
Explanation of LIBOR: LIBOR is the “London Interbank Offered Rate”; it was traditionally the benchmark interest rate at which some of the world-leading banks could borrow funds from each other in the interbank market. A panel of “contributor banks” contribute daily LIBOR quotes to the ICE (Intercontinental Exchange) called LIBOR submissions. It is one of the most important numbers in the finance industry, as many financial instruments (loans, bonds, mortgages) are “pegged” to the rate. Currently, LIBOR underpins at least $300trn worth of existing financial contracts. However, it is due to be discontinued after the end of 2021.
Commercial Awareness Knowledge: Part of the reason behind LIBOR’s cessation is the LIBOR scandal that involved benchmark manipulation by some of the world’s biggest banks (UBS, Barclays, etc.). Why is benchmark manipulation significant? Well, very small movements (think 1-5 basis points) can create significant profits for a trader with a large position in LIBOR-indexed financial instruments. (Remember that because there are around $300trn worth of financial contracts pegged to LIBOR, you can manipulate the entire market just by changing your LIBOR submissions.)
Relation to Law Firms: A lot of a law firm’s work in the Banking and Capital Markets departments involve the use of LIBOR rates (syndicated loans, securitisations, floating-rate notes, the interest rate component in derivatives, etc). As a result, they would need to work with most of their clients to alter existing contracts (legacy contracts) and switch to new interest rate benchmarks (SOFR, SONIA, etc.) New replacement rates for LIBOR pose a great deal of uncertainty for law firms and clients.
Key questions to demonstrate your inquisitiveness:
Would clients and firms be able to alter legacy contracts in time for the deadlines?
Would the new rates be as susceptible to manipulation as LIBOR?
Are they as effective as LIBOR, in the sense that there would be any economic value transfer in legacy contracts? (changes in the value of the contracts as the benchmark rate upon which the contracts are based, which goes into calculating price and value etc., are changed).
For readers who are interested in the LIBOR scandal, Andreas highly recommends giving the book “The Spider Network” a read. It is a non-fiction about the LIBOR scandal that revolves around Tom Hayes, one of the main culprits convicted of LIBOR manipulation.
In addition to the case study interview, testing your commercial awareness, Andreas also had to prepare for character development questions with HR. Below is a Linklaters’ interview question and Andreas’ answer:
HR Interview
Q) “Who is your idol/Who do you look up to?”
A) My idol is Roger Federer. This is because he is one of the best tennis players in the history of the game, always showing good sportsmanship, has a foundation in South Africa where he donates money and helps out communities. He is the perfect example of an athlete who does his part for the community. He also maintains calm under pressure, a key skill that is needed not just for tennis players but also lawyers.
Evidently, to answer interview questions, Andreas used his legal knowledge, his dissertation on Libor and his interest in sports. Additionally, he also mentioned his time spent in the Orphanage Club in high school and his vac scheme experience at Davis Polk.
Congratulations, Reflections and Aspirations
Luckily, the wait for the decision wasn’t long at all. Andreas received a phone call the next morning and was informed that he had successfully secured his Training Contract! Relieved that his three years of hard work at university had paid off, Andreas planned a gap year of which he is currently on with the aim to spend more time at home and to focus on achieving a work-life balance.
For readers who are interested in Linklaters, Andreas would advise you to apply. “The firm likes diversity so there is no “certain fit” [attitude, mindset, value, personality…], but there is a definite emphasis on teamwork!”.
by Andreas Yau and Ke Thie Kiew