On Thursday, the London-based advisory firm Global Counsel informed its employees that the company will enter administration. This decision follows a rapid series of events where high-profile clients ended their contracts. The firm, which once advised global brands like Shell, TikTok, and Barclays, found its position difficult to maintain after details regarding co-founder Peter Mandelson’s past associations became public. While the firm attempted to distance itself from its founders in early February, the financial impact of departing clients—including the investment giant KKR—made continued operations impossible.
"The decision to effectively shut the company down was made by a new leadership team after a wave of client departures." — Staff briefing summary, February 2025.
The Timeline of a Corporate Shutdown
The decline of the firm happened over a very short period, driven by legal and political developments in both the United Kingdom and the United States.
Early February 2024: Peter Mandelson resigned from the board of Global Counsel, though he kept his shares until recently.
February 6, 2025: Chief Executive Benjamin Wegg-Prosser stepped down from his role.
Mid-February 2025: Peter Mandelson was removed from his position as the British Ambassador to the United States and expelled from the Labour Party.
February 20, 2025: Staff were told that administrators would be appointed to handle the firm's closure.
The core issue identified is a "mass exodus" of clients that left the firm without enough revenue to continue.
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Documented Evidence and Business Links
Investigators and journalists have pointed to specific documents that changed how the public and clients viewed the firm. Department of Justice (DOJ) emails revealed that Jeffrey Epstein had a role in the firm’s early days.
| Entity | Reported Involvement |
|---|---|
| Jeffrey Epstein | Sourced business leads and advised on corporate strategy during the firm's start. |
| Benjamin Wegg-Prosser | Met with Epstein in New York while Epstein was under house arrest. |
| Peter Mandelson | Maintained long-term correspondence with Epstein; recently resigned from the House of Lords. |
| KKR | Ended its business relationship with the firm last week. |
The Nature of the Epstein Correspondence
Evidence from US legal filings suggests a dual narrative. On one hand, many messages between Mandelson and Epstein were personal or unrelated to Global Counsel. On the other hand, records show Epstein provided advice on how to sell the company when it was new. This has led to questions regarding how much the firm’s early growth depended on these connections.
The Role of New Leadership
After the founders left, a new team including Archie Norman (Chairman of M&S) took control. Their goal was to assess if the business could survive. The fact that they chose administration suggests that the damage to the firm's reputation was too great to fix.
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Different Views on the Firm's Failure
There are different ways to look at why Global Counsel could not be saved.
The "Toxic Association" View: Some analysts argue that in the lobbying world, reputation is the only product. Once the founders were linked to a criminal scandal, no major company could afford to be seen working with them.
The "Structural Dependency" View: Others suggest the firm was too reliant on the personal influence of Mandelson and Wegg-Prosser. When they left, the firm lost its primary reason for existence in the eyes of its clients.
The "Client Safety" View: Large firms like KKR often have "morality clauses" or internal rules. The departure of these clients may have been a standard legal reaction to protect their own brands rather than a specific judgment on the firm’s current staff.
Professional Observations
Industry experts note that this collapse is unusual because of its speed. City AM reports that while some clients were willing to stay, the loss of "anchor" clients created a hole in the budget that could not be filled.
Lobbying Standards: The event has caused people to look more closely at how political advisory firms operate in the UK.
Employment Impact: Recruiters are now working with the firm to help the remaining staff find new jobs.
"The firm’s rapid fall has triggered wider scrutiny over lobbying standards in the UK’s political advisory industry." — City AM Analysis.
Summary of Findings
The investigation into the closure of Global Counsel reveals a business that could not separate itself from the history of its founders. Even though the firm changed its leadership and the founders gave up their stakes, the timing of the Epstein revelations and Mandelson’s political fall created a situation where clients felt unsafe.
Next Steps:
The official appointment of administrators is expected on Friday.
A full audit of the firm’s assets will be conducted to pay back any remaining debts.
Peter Mandelson faces further scrutiny regarding his peerage in the House of Lords.
Sources Used
Sky News: Peter Mandelson-founded lobbying firm Global Counsel on brink of closure (Reports on client exits and new leadership decisions).
The Independent: Mandelson’s lobbying firm collapses after Epstein links exposed (Details on the arrest of Andrew Mountbatten-Windsor and the timing of the collapse).
BBC News: Mandelson co-founded lobbying firm Global Counsel faces collapse (Lists high-profile clients like Shell and Barclays).
Politico Europe: Advisory firm co-founded by Peter Mandelson to close (Confirms the London office was the main hub of the loss).
City AM: Global Counsel to be placed into administration (Discusses the DOJ emails and Epstein's role in the firm's strategy).
