Spanish firms are maintaining their strong commitment to Latin America in 2024, despite the macroeconomic situation in many Latin American countries. To learn how they have strategically developed their expansion plan in Latin America and what their presence represents in terms of performance and business opportunities, we spoke with Mario Alonso, president of Auren, and Rafael Jiménez, partner at Uría Menéndez.
For Mario Alonso, Auren’s most outstanding differentiating value is physical proximity, which leads them to have offices in the main cities of the countries in which they are present; and relational proximity, with the involvement of their partners and managers in attending to the needs of their clients.
We invite you to read: The Spanish legal profession faces 2024 with a focus on inflation, competitiveness and talent acquisitiony II parte
Auren has developed its expansion plan in Latin America with a solid strategy focused on integrating local firms with extensive experience and in-depth knowledge of the markets in which they operate, and who share this vision that in today’s complex world it is advisable to join forces to improve efficiency.
“Since our beginnings in Argentina in 2001, our presence in the region has strengthened over the years, and we currently have nine offices in Mexico; six in Argentina; three in Chile; three in Colombia; and one in Uruguay. We have a team of nearly 1,000 highly qualified local professionals, specifically trained to address the needs of both local and international markets with our shared, efficient, and demanding methodology,” Alonso explained.
In contrast, Uría Menéndez is strategically developing its Latin American expansion plan in partnership with Philippi, Prietocarrizosa, Ferrero DU & Uría (PPU). “It’s an incredible project that allows us to be much better. The project hasn’t been without its difficulties and challenges, but it’s an exciting adventure that, ultimately—and this is the most important thing—allows us to better serve our clients,” stated Rafael Jiménez.
Investing in Latin America is a viable long-term strategy.
Economic uncertainty, marked by inflation, will undoubtedly impact the demand for legal services, as usual; however, despite these challenges, Auren continues to believe that investing in Latin America is a viable strategy. “The region presents significant opportunities in sectors such as renewable energy, infrastructure, and technology. Our presence in the region has allowed us to maintain a close perspective on local markets and adapt to changing conditions,” emphasized Mario Alonso.
Rafael Jiménez also agreed and affirmed that their commitment to Latin America is long-term. “In 2024, PPU will celebrate its tenth anniversary, and we are convinced that investing in Latin America is a good idea. Furthermore, we are certain that if our clients are in Latin America (and they are not just Spanish or Portuguese), we will be there for them.”
In terms of overall performance and significant business opportunities, Mario Alonso revealed that Auren’s presence in Latin America is fundamental. “The region makes a key contribution to our results, allowing us to offer multidisciplinary services to companies operating in the region.”
Rafael Jiménez, for his part, commented that the opportunities for Uría Menéndez are already a reality and the potential for future growth is spectacular; currently, the Latin American market represents 7% of the firm’s global revenue.
“Let me give you an example from my own professional practice today. In 2015, when PPU was founded, Luis de Carlos, then managing partner of Uría Menéndez, invited me to join the firm as a partner in PPU’s Chile office. I was there until early 2019 and, since then, I have remained very connected not only with PPU but also with the region. Now, back in Madrid, more than 50% of my professional practice has a distinctly international character, mostly linked to Latin America. There are many of us at Uría Menéndez with a similar profile who enjoy these close ties with Latin America.”
Having said that, and despite an inflationary context, exchange rate volatility, and social and political uncertainty, how do you foresee the outlook in Latin America for 2024 in areas such as renewable energy, infrastructure, technology, compliance, tax, commercial and labor law?
Mario Alonso and Rafael Jiménez anticipate a positive outlook for Latin America in 2024.To the above, Alonso added that “the region remains attractive for investment and business development, and we are committed to offering specialized services to support our clients in this dynamic environment.”
His counterpart, Rafael Jiménez, said that when PPU was founded ten years ago, there was an expectation of stability in the Pacific Alliance countries, and we could not have remotely imagined the number of threats, challenges, and obstacles that would have to be overcome (pandemic, economic and political crises, social unrest, etc.). “Now, the challenge is the inflationary context and high interest rates, which—although they affect Latin America more—are global phenomena that we are prepared to face in the different areas of practice.”
Opportunities and optimism for growth
Mario Alonso projected continued growth in both volume and revenue for 2024, both in Latin America and globally. “Our expansion strategy, along with the diversification of services and the consolidation of new alliances in the region, will support this sustained growth.”
At the same time, he announced plans to consolidate their presence in Latin America in 2024 by integrating firms in Peru and Brazil, two key countries for completing their regional coverage. They will also continue expanding their various practice areas to adapt to growing market demands.
Meanwhile, Rafael Jiménez of Uría Menéndez confirmed that they will continue working to help maintain and consolidate the significant achievements of PPU while simultaneously continuing to grow and capitalize on the many opportunities presented by Latin America, not only in terms of revenue, which is a significant metric, but not necessarily the only or most important one. “Our goal is for our growth in the region to remain organic and sustainable, always preserving the strength of the firm’s values and culture at both PPU and Uría Menéndez.”
In addition to the above, the Uría partner anticipated that, for the time being, they have not considered mergers or opening new offices, nor have they pursued an aggressive recruitment policy. They have not considered doing anything different in Latin America than what they do in Spain, Portugal, or anywhere else in the world. “In terms of expansion in Latin America, we are committed to steady and sustainable growth, and therefore, without prejudice to some lateral hires to strengthen certain practice areas, our strategy and commitment remain focused on our own career development plan, relying on the strong pool of associates we have at PPU and Uría.”
Globalization attracts talent
Undoubtedly, Spanish firms that already have a presence in Latin America are very attractive for attracting the best legal prospects, Alonso and Jiménez agreed.
“Our unique combination of Spanish origin and international reach offers professionals a unique opportunity for growth in a multicultural and globalized environment,” Mario said.
Rafael added that the firm’s presence in Latin America is one of the most frequently asked questions by candidates and what attracts them most. “It’s also one of the aspects most valued by associates. The PPU associate secondments plan at Uría Menéndez is a success. In terms of international experience, it’s currently one of the most highly regarded options.”
The new times after the arrival of Latin American firms in Spain
In 2023, Spain became a valuable destination for law firms from Latin America. Regarding these new business opportunities, Mario Alonso, president of Auren, and Rafael Jiménez, partner at Uría Menéndez, stated that they are closely following this new trend.
“The arrival of Latin American companies in Spain is a phenomenon we are closely monitoring. This year we expect continued growth in this area, opening up new opportunities for collaboration and joint ventures. The initiative taken within Auren is particularly noteworthy, where several international Desks have been established. Specifically, the Spain-LATAM Desk has emerged as a key component of this strategy, which will undoubtedly facilitate business development between both markets, fostering synergies and centralizing commercial opportunities to provide a consistent service,” Mario Alonso pointed out.
Rafael Jiménez continued, noting that they welcome the arrival of Latin American firms in Spain. “We have close friends in many of these firms, and we believe it enriches us to have them nearby. Furthermore, their arrival is a clear sign of the strength and globalization of their clients and companies in their respective countries. These are companies that have traditionally focused their international operations in other Latin American countries or the United States, and now they are venturing into Europe, which opens up a world of opportunities for us.”
