Freshfields Bruckhaus Deringer released a formal apology on Monday after internal emails containing remarks about Middle Eastern sovereign wealth investors were exposed, leading the firm to reaffirm its dedication to clients across the region. The disclosure came from an email chain between global managing partner Alan Mason and Ethan Klingsberg, co-head of the U.S. corporate practice, which discussed plans to establish Freshfields Lab as a separate entity capable of pursuing external investment or an initial public offering.
During the conversation, Klingsberg proposed targeting investors recognized for their expertise and influence, stating that such a strategy would likely exclude funding from Middle Eastern sovereign wealth funds, as reported by the Financial Times. Mason accidentally sent the exchange to a wide internal mailing list. Despite an attempted recall, screenshots of the messages were preserved and later published by the newspaper.
The law firm issued a statement expressing “unreserved regret” and clarifying that the comment did not represent the firm’s stance or the views of those involved in the email. It emphasized its high regard for Middle Eastern clients and its long-term partnerships with them. Karim Youssef, founder and managing partner of Youssef + Partners, stated he took personal offense at the remark and believed many colleagues in the region shared his sentiment, though he acknowledged that most Freshfields attorneys likely did not endorse the sentiment expressed.
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Sovereign wealth funds are critical clients for major law firms, handling high-stakes transactions. Freshfields operates offices in Abu Dhabi, Dubai, Riyadh, and Manama, where it has advised key funds such as the Abu Dhabi Investment Authority, the Qatar Investment Authority, and Bahrain’s Mumtalakat Holding Company.
The firm showed its ongoing commitment to the Middle East, stating it would continue serving its clients without disruption.