Fides have extensive experience in helping clients find the right talent within the highly competitive Private Equity-focused legal market. In this article, we provide insights gained firsthand from our searches, coupled with an analysis of the data we’ve gathered on lateral hires in the year to date. We offer a view on how law firms can best position themselves to secure the right talent and take their practice forward.

As discussed in our previous article, the London Private Equity market is at the forefront of the competition for market share among leading firms, with US firms aggressively expanding their presence. They have consistently recruited top-tier talent from both UK firms and international competitors. The appeal of US firms is most clearly demonstrated by the offer of significantly higher compensation, at times exceeding £2 million per annum, and surpassing the PEP of many UK counterparts.

Firms such as Kirkland & Ellis, Latham & Watkins, Sidley Austin, McDermott Will & Emery, and Gibson Dunn have strategically bolstered their Corporate and Finance teams with key hires, thereby solidifying their market presence. In total, US firms have made 11 Private Equity Partner hires in London this year. Their influence is also evident in revenue generation, with US firms outperforming their UK counterparts in revenue per lawyer. Of these 11 hires, only 3 came from UK firms, and for the most part, we have witnessed experienced partners trading one US firm for another, underscoring the dominant position of these platforms.

In contrast, UK law firms have largely adopted a more selective approach to lateral hiring, prioritising strategic additions over aggressive expansion. Clifford Chance is the exception. Nine lateral partner hires were made by British-headquartered firms in London, with four of these made by Clifford Chance in the first quarter. Five of these nine hires were from US law firms, with three being “first day” Counsel to Partner hires. This demonstrates how UK firms often target emerging talent when hiring from US firms, avoiding the high cost of more established partners.

Both Clifford Chance and A&O Shearman have made significant hires from US firms in the Private Equity space, demonstrating that UK-headquartered platforms can and do compete for more senior hires. The two magic circle firms have both attracted senior Private Equity lawyers from elite US firm Skadden this year, with the firm losing four Private Equity-focused lawyers to British firms without making any lateral Private Equity hires in the last five months.

As discussed in our previous article, Spencer Baylin, Clifford Chance’s head of Private Equity, explains that one of the key elements differentiating Clifford Chance from US firms is its full-service offering across the region. Bruce Embley joined the firm from Skadden, having previously served as co-head of Freshfields’ global M&A practice. George Knighton, whose practice focuses on both private and public M&A as well as Private Equity transactions, became a partner at A&O in 2008 and has returned to the firm after five years with Skadden.

While UK firms maintain strong relationships with domestic and European clients, they face increasing challenges in competing with the financial incentives offered by US firms. UK firms have built a reputation for excellence in specialised sectors that align with their ‘brand’. However, retaining top Private Equity talent has become increasingly difficult as US firms continue to attract high-profile partners who are seeking to ‘trade up’ to a longer equity runway.

It may seem that UK law firms are consistently losing out, but that’s not the entire truth. Maintaining an effective billing rate that attracts a US law firm while remaining profitable is not as straightforward as one might think. Firstly, there is a significant disparity in associate pay standards, which can be around 40%. Another important factor to consider is the substantial difference in rates within the market. The European market, in particular, has struggled to keep pace, with London being one of the few global hubs able to leverage rates nearly equivalent to those in New York. Additionally, competition for instructions among the top firms is fierce and heavily relationship-driven in the private equity sector. A search we recently completed on behalf of a leading US law firm serves as testament to this, with the firm seeking targeted references from work givers to ensure that the hire could effect meaningful changes through portable relationships.

The basis of this search centred on capability and relationships rather than a focus on output, which, in this case, was impressive but less of a driving force behind the hire. Fides is currently running a variety of searches in this area, including in London, Germany, the Netherlands, and elsewhere. One is a leadership position for a top 20 firm in London, while the other represents a jurisdiction opportunity for a top 10 UK firm in Germany. Traditional portability is not the motivation for these searches. The emphasis is more on alignment, existing practice health, and aspirations for growth in the future, particularly in years 2 and 3 of the new hire’s tenure with the firm.

In contrast, Fides is also operating on a Private Capital mandate in London for a rising US law firm that is more focused on transferability, the relativity of rates, and success in years one and two. This client offers generous rewards, with 50% of the compensation linked to performance. The base draw is appealing, but partners receive half their income as a fixed profit award, while the other half depends on year-end performance. This model can lead to significant financial gains but may also cause fluctuations in earnings. These varied approaches to partner recruitment reflect the footprint and strategies of individual firms.

In conversations held with candidates regarding these searches, lawyers have explained that growth in this highly competitive market is hard-earned, and a new platform must provide the right support to enable a successful transition. Additional capabilities in areas such as antitrust, tax support, and leveraged finance have been cited as important factors when it comes to providing a holistic Private Equity service to clients.

It is therefore crucial for firms to consider their current strengths and intended areas for growth when approaching the talent market. A focused approach to selecting candidates with the right experience will create synergies for both the platform they join and the potential for an increase in their billings. This presents both challenges and opportunities when making a partner hire.

Overall, US firms have been more proactive in lateral hiring, particularly regarding senior partners. They can leverage financial incentives and global market positioning to attract top Private Equity talent. UK firms, however, continue to make hires at all levels.  We have learnt that all firms can find the right talent in this space, provided there is a coherent strategy that utilises the strengths of the existing platform, matched with the skills and ambition of the right candidate.

Moves Tracker, compiled by Fides Search:

This article explores the drivers behind recent lateral partner hires in the London legal market with a lens on Private Equity and why the high rate of partner hires in this space seems set to continue. In addition, a case study of one UK firm’s positioning in the market highlights how London-headquartered firms can remain competitive in the face of aggressive US expansion.

In recent years, lateral moves within the private equity space have stimulated partner hires and stoked competition between firms, and we have seen record-breaking numbers of partners transition to a new home. January and February this year were no exception, with this period seeing the greatest number of partner moves in the London legal market since at least 2006. Private Equity continues to act as a catalyst, with 22 of the 155 partners moving within this time frame, counting Private Equity houses among their key clients.

US firms have made significant inroads into the London legal market by leveraging connections with their Private Equity clients. As a result, seventy percent of the Legal 500’s ranked firms for high-value Private Equity deals are now US firms based in London. However, the flow of private capital-focused partners from US to UK firms was reversed in January and February. Besides Fladgate, which hired a nine-partner team from disintegrating firm Memery Crystal, Clifford Chance emerged as the most acquisitive team with six partner hires in the first two months of the year, including significant acquisitions from elite US firms.

Four of these lawyers set to call the Magic Circle law firm home are Private Equity focused. Bruce Embley and Emma Ghaffari joined from Skadden, whilst Patrick Scott and Angharad Lewis left in-house roles at US private equity firms KKR and Blackstone, respectively. This reverse of broader market trends also corresponds with a change in the narrative for Clifford Chance’s fortunes regarding Private Equity lateral hires. The firm lost London Private Equity head Chris Sullivan, a Clifford Chance lifer, to Paul Weiss in December 2023. This announcement was shortly followed by his likely candidate for succession, Oliver Marcuse. In the face of this, Bruce Embley joining along with Emma Ghaffari is a particularly notable victory for Clifford Chance. Bruce was previously co-head of Freshfields’ Global M&A practice before decamping to Skadden in 2020.

According to Spencer Baylin, Clifford Chance’s new head of Private Equity, one of the key elements differentiating Clifford Chance from US firms is its full-service offering throughout the region, alongside a more economical business model. Baylin quoted in June last year: “There is no correlation between how much you pay partners and the service they provide to clients. What’s important to me is providing excellent service to clients, which means full service to clients when they need it, for value for money, at the right quality.” A coherent strategy and a commitment to functional and regional strengths backed up by targeted lateral hires is a formula that has arguably allowed Clifford Chance to prosper in a hotly contested market. Another recent accomplishment was Clifford Chance winning a place on the private capital panel for EQT last year. The firm is the only remaining UK law firm ranked tier 1 by Legal 500 for high-value private equity deals in London for 2025.

The battle for dominance in London is far from decided, as several factors point towards continued competition and shifting partnerships. As Private Equity portfolio companies continue to grow amidst increased scrutiny from regulators and growing deal flow, they are continuing to build out their in-house legal teams, adding more pressure on talent in the sector. At the same time, Hervé Ekué, managing partner of A&O Shearman, opined this month that “we haven’t reached the top” with regards to pay in the London legal market, indicating continued demand for the correct skill set – and high remuneration packages could further entice lawyers into making a move.

The private equity market performed well in 2024, and key actors appear cautiously optimistic about 2025, underpinning demand for relevant legal skills. Amsterdam-headquartered CVC saw €830 million after-tax profits, a 36% rise on last year. CVC predicts exits or realisations through trade sales, flotations, and other transactions will materialise “at or slightly above” the €13.1 billion realised in 2024. More bullish outlooks can be seen elsewhere, as in January, Nordic Capital announced the final close of the Nordic Capital Evolution II fund at €2 billion after an original target of €1.4 billion. Off the back of this success, the firm is now aiming for a flagship fund at €10 billion. Apollo and Advent, Private Equity houses with a significant presence in London, are both aiming to raise $25 billion for their new flagship vehicles.

One alleviating factor in this high-stakes talent contest may be that junior lawyers have paid attention to the continued success of the private equity sector and the high salaries on offer. There has been a notable decline in the interest of equity capital markets pathways at law firms and a corresponding increase in demand for private equity seats. According to the Financial Times, as reported by partners, one of the most sought-after areas of Clifford Chance for young solicitors is now Private Equity. Of course, it will take some time for the pipeline of new talent to impact at the partner level, leaving a finite pool to draw from.

As the latest figures for law firm partner moves demonstrate, demand and competition for the best talent remains high. Factors such as increased demand from in-house private equity teams exacerbate the issue, though the talent pool may adjust in years to come. In the near term, the continued strength of the private equity market and bullish hiring strategies of US law firms look set to drive lateral partner hires. However, the narrative of US dominance within the Private Equity sector has been challenged, and Clifford Chance may provide a model for other firms headquartered in London to gain ground. Considering the recent high turnover, the number of teams that have yet to move has diminished, increasing the challenge for those looking to acquire. The private equity market is undoubtedly one to watch when it comes to understanding the future of the London legal industry.

We look forward to further developments in the next eight months.

As ESG considerations become embedded in corporate strategy and investor priorities, the legal risks associated with greenwashing are escalating. Once an abstract marketing concern for many firms, greenwashing, defined as ‘behaviour or activities that make people believe that a company is doing more to protect the environment than it really is’ [1], has become a primary target not only for marketers but also for regulators and litigators alike. Firms that can translate regulatory scrutiny into proactive, commercially attuned advice are best positioned to gain the confidence of clients navigating heightened ESG expectations and reputational risk.

In recent months, enforcement activity has intensified across major jurisdictions, with regulators asserting unprecedented authority to crack down on misleading sustainability statements. In the UK, the Financial Conduct Authority (FCA) has confirmed its anti-greenwashing guidance, effective from May 2024 [2]. These rules restrict the use of terms such as ‘sustainable’, ‘green’, or ‘ESG’ unless firms can robustly substantiate those claims. The FCA is also implementing a mandatory labelling regime for investment products, aimed at providing clarity in a space long plagued by ambiguous branding.

Australia has taken a notably aggressive stance, with the Australian Securities and Investments Commission (ASIC) levying a record AU$10.5 million fine against superannuation fund Active Super in early 2024 [2]. The fund had been promoting exclusion policies around fossil fuels and gambling that, ASIC later demonstrated, were not actually being implemented. This case, now widely studied in compliance circles, evidenced that superficial green branding without operational reality invites severe consequences.

Meanwhile, the European Union is reinforcing its commitment to regulatory integrity. In June 2024, the three European Supervisory Authorities – EBA, ESMA, and EIOPA – issued a joint statement calling for heightened supervision of sustainability-related claims across financial services [3]. The objective is to harmonise enforcement and increase scrutiny of how ESG commitments are communicated to markets.

France, for its part, offers a compelling model of regulatory assertiveness that other Francophone jurisdictions may soon emulate. The 2021 Loi Climat et Résilience established a robust framework for controlling environmental advertising. Companies in France are now prohibited from making carbon neutrality claims unless they disclose clear methodologies, offsetting strategies, and impact timelines [4]. This was not just regulatory theatre: in mid-2024, the Autorité des Marchés Financiers (AMF) reached a settlement with asset manager Primonial Reim, citing failures to align promotional sustainability narratives with actual investment policy [5].

Meanwhile, environmental NGO Notre Affaire à Tous has targeted corporate behemoths such as TotalEnergies, alleging that their branding misleads the public about their genuine contributions to the energy transition. The lawsuit, filed under France’s 2017 Duty of Vigilance Law, initially faced procedural hurdles but was revived by the Paris Court of Appeal in June 2024. The court ruled that the claimants had satisfied formal requirements, opening the door for what could become a landmark trial on climate-related corporate accountability [6][7].

The rise in greenwashing cases is having a significant impact on law firms, as these matters span advisory, transactional, and dispute resolution practices. Corporate clients are increasingly seeking legal counsel, not only to defend against enforcement actions, but also to audit and refine their internal ESG frameworks proactively [3]. Questions that were once the responsibility of marketing teams, such as ‘can we claim our products are sustainable?’ or ‘is our environmental impact statement substantiated?’ are now being directed to legal departments under mounting pressure.

Furthermore, the international aspect of ESG investments necessitates legal expertise from both local and global perspectives. A company’s environmental claims made in one jurisdiction may soon need to comply with multiple regulatory frameworks, such as the EU SFDR regulations and the UK’s anti-greenwashing rules [4]. In this complex environment, leaders who can position their firms as thought leaders in ESG compliance, transactional, and litigation spaces will be best placed to win institutional mandates.

Greenwashing, once dismissed as a branding faux pas, has now entered the enforcement spotlight. For law firm leaders, this presents both a risk and an opportunity. Those who act now to deepen their ESG regulatory and litigation offerings will not only serve their clients better; they’ll future-proof their practices in a world where sustainability claims must be real, robust, and regulator-ready.

For more information, please contact Megan Sturdy, at megan@fidessearch.com. 

References:

[1] Cambridge Dictionary, Greenwashing Definition. https://dictionary.cambridge.org/dictionary/english/greenwashing

[2] The Australian, ASIC fines Active Super $10.5m for ESG greenwashing, February 2024. https://www.theaustralian.com.au

[3] European Supervisory Authorities (EBA, ESMA, EIOPA), Joint Statement on Sustainability-Related Claims, June 2024. https://www.eiopa.europa.eu

[4] Taylor Wessing, The French Regulatory Arsenal Against Greenwashing, 2023. https://www.taylorwessing.com/en/interface/2023/greenwashing/the-french-regulatory-arsenal-against-greenwashing

[5] Reclaim Finance, A Step Towards Sanctioning Greenwashing in France, July 2024. https://reclaimfinance.org/site/en/2024/07/08/a-step-towards-sanctioning-greenwashing-practices-in-france

[6] Le Monde, La cour d’appel de Paris ouvre la voie à un procès climatique inédit contre TotalEnergies, June 2024. https://www.lemonde.fr

[7] Climate Case Chart, Notre Affaire à Tous and Others v. Total, Updated 2024. https://climatecasechart.com/non-us-case/notre-affaire-a-tous-and-others-v-total/

The Broad-Based Black Economic Empowerment framework is an initiative that falls under the regulations of the 2024 Legal Sector Code which has been promoted by the government to spearhead economic and social transformation to historically disadvantaged individuals in South Africa. This development has become a hot topic with key political figures voicing strong criticisms of the framework and other DEI initiatives. From my perspective the implementations of these new policies within the legal sector code will have a profound impact on how recruitment is conducted within the South African Legal market.

Firstly, there will need to be an added level of consideration relating to the new policies, from partners within firms to hiring managers and recruiters who will be sourcing candidates, in an effort to ensure these processes are conducted in adherence to the new regulations. Like most diversity and inclusion initiatives the results will depend not on the enforcement of policy but on the effort and mindset of parties responsible for enacting this change. Firms will have to check their existing biases and potentially face some uncomfortable truths within their practices in order to take the necessary first steps to onboarding top tier Black talent. Additionally, we are likely to see a shift in the rationale behind the answer to the question “What makes a good candidate”? For so long the answer has been clear cut, but as new policies come into force, firms will need to have serious conversations regarding how they would like to answer this question.

Search firms will have to ensure that they are up to date with the recent developments in legislation and current attitudes regarding their implementation. Firms need to keep these considerations in mind when employing recruitment companies to do their work, and search firms with experience and proven track records of placing candidates from a wide range of backgrounds, including Black South African’s, will be key to helping these policies translate into the creation of a stronger, fairer legal workforce in South Africa. This will apply not just in terms of sourcing these candidates but also in providing expertise and market insight on how to induct black professionals into these existing institutions.

Furthermore, with the Legal Sector Code placing an emphasis on the development of skills for black professionals we are likely to see firms taking a greater in the development of incoming candidates. We are also likely to see firms investing in the retention and development of their existing talent and further investment in their talent retention strategy as a whole. Well-resourced firms are already placing an emphasis on talent pipelines at all levels of seniority in order to create genuine long-term change. We feel this could be a catalyst for increased competition within the talent market specifically pertaining to individuals with a desirable skillset including established Black partners who are likely to be in greater demand. Also, one of the potential outcomes of this legislation is that we may see an improvement in the financial packages offered to desirable talent which will increase emphasis on development and career progression within firms.

Moreover, with the new legislation encouraging the promotion of Business Development, firms are encouraged to provide financial support and coaching to Black-owned legal practices. This could potentially lead to an increase in mergers and strategic alliances and more Black owned law firms in South Africa who will in turn require the use of search firms to help with their strategic hiring and long-term growth.

In conclusion, the introduction of the legal sector codes in South Africa will bring about a significant shift in established recruitment practices. Firms will be required to adapt their previous hiring strategies to fall within the scope of this legislation and recruitment firms will be tasked with the pivotal role of helping both established and emerging firms navigate these developments by sourcing diverse talent and providing expertise which calls for a thorough knowledge of the existing legislation and effort to act in adherence with them.

In recent years, there has been a noticeable shift in corporate leadership as more General Counsels (GCs) are stepping into Chief Operating Officer (COO) roles. This trend reflects the evolving responsibilities of the modern GC, who is no longer confined to legal strategy but now plays a central role in business operations, risk management, and corporate governance.

This rise is not accidental but a reflection of broader changes in the corporate environment, where the skills and knowledge traditionally associated with the GC position have become invaluable to operational leadership. Here’s a closer look at why this shift is happening, in which sectors it is most prevalent, and what it means for both GCs and the organisations they serve.

1. The Expanding Role of the General Counsel

Historically, the role of the General Counsel focused on providing legal advice and ensuring regulatory compliance. Today, however, the responsibilities of a GC have broadened significantly. GCs are increasingly seen as key business partners, advising not only on legal matters but also on strategic decisions that affect the company’s overall direction.

GCs are deeply involved in risk management, governance, and policy development—areas that overlap significantly with the responsibilities of a COO. As organisations face growing regulatory complexities and an ever-evolving risk landscape, GCs are ideally positioned to help navigate these challenges while maintaining operational efficiency.

2. Sectors Where This Shift is Most Prevalent

This trend is particularly evident in industries where regulatory oversight, litigation risks, and existential challenges are more pronounced. Highly regulated sectors such as financial services, healthcare, pharmaceuticals, and technology have seen a significant rise in GCs taking on COO roles. These industries require leaders who can navigate complex legal frameworks while ensuring seamless business operations.

Similarly, companies facing increased scrutiny from government agencies, activist investors, or public opinion, such as energy, telecommunications, and consumer goods, are recognising the value of GCs in operational leadership. Their ability to mitigate risks, manage compliance, and align legal strategies with business objectives makes them well-suited for the COO position.

3. Risk Management and Strategic Decision-Making

Risk management has traditionally been a significant part of the COO’s role, but GCs have extensive experience in managing corporate risks, particularly those related to litigation, compliance, and regulatory oversight. The GC’s ability to assess risk from both a legal and operational perspective makes them natural candidates to oversee broader business functions.

Their experience in making high-stakes decisions that balance risk and reward aligns well with the strategic focus required of a COO. In fact, many organisations recognise that having a leader who can approach risk with a legal lens can enhance the company’s resilience and agility, especially in highly regulated industries.

4. Operationalising Compliance and Corporate Governance

Corporate governance and regulatory compliance are key responsibilities for both GCs and COOs. With more companies placing emphasis on ESG criteria, the demand for leaders who can operationalise compliance and integrate these practices into day-to-day functions has grown. GCs, who are already deeply embedded in governance frameworks, are well-positioned to take on this challenge.

Moreover, GCs often work closely with boards of directors, giving them a comprehensive view of the company’s strategic goals and operational challenges. This board-level insight is invaluable for COOs, who are tasked with translating high-level strategy into efficient and effective business operations.

5. Connecting the Dots Across the Organisation

One of the core strengths of in-house lawyers is their ability to connect the dots across different departments. GCs frequently collaborate with teams across finance, compliance, HR, risk, and business operations to address complex issues. This ability to synthesise information and align cross-functional teams makes the transition to COO a natural evolution.

As companies become more complex and interconnected, the ability to bring together diverse stakeholders and drive consensus is critical. GCs, by virtue of their role, are skilled in facilitating communication across different areas of the business, making them effective operational leaders who can drive change and innovation while ensuring regulatory adherence.

6. A Unique Perspective on Corporate Culture

GCs bring a unique perspective on corporate culture and ethics, areas that are increasingly important in COO roles. As companies face growing scrutiny from both regulators and the public, having a leader who can champion a culture of compliance, transparency, and ethical behaviour is a major asset. GCs, who are often the guardians of these principles within organisations, naturally extend this responsibility when they step into operational leadership roles.

Furthermore, as COOs are often tasked with driving transformation and change management, the GC’s experience in navigating complex legal and regulatory frameworks can be invaluable in implementing strategic initiatives while mitigating risks.

Conclusion: A Natural Evolution

The rise of General Counsels stepping into COO roles reflects the evolving nature of both positions. In today’s complex corporate landscape, the skills that GCs bring, risk management, governance, compliance, strategic oversight, and cross-functional collaboration, are increasingly aligned with the demands of operational leadership. This trend signifies not just a shift in individual career paths but a broader transformation in how companies view legal and operational leadership as interconnected rather than siloed functions.

For organisations, having a COO with a legal background offers a unique blend of operational expertise and risk mitigation, making GCs an ideal fit for this evolving leadership role. As this trend continues, we can expect to see more GCs embracing operational responsibilities and helping to shape the future of business leadership.

If you would like to discuss how Fides could help with any recruitment needs you may have, please get in touch with Sershen Ingram – sershen@fidessearch.com

In recent years, a noticeable trend has emerged in the legal market. The relationships between elite firms and their clients have become increasingly robust, creating a level of resilience that challenger firms previously targeted to gain market share. The buzz in the market indicates the gap between elite firms and challenger firms is increasing. The problem for challenger firms is that they are not able to match the scale, deal sheet, or institutional relationships that elite firms possess to maintain client relationships across their global platforms. The adage “nobody gets fired for instructing [insert elite firm name]” holds true in this context.

Bridging the Gap: What It Takes to Compete

To make a significant impact on this trend and compete effectively with elite firms, challenger firms need to focus on several key areas:

1. Rock-Solid Client Relationships in the Home City:Building and maintaining strong client relationships in their home city is crucial. Firms must ensure that their local presence is strong and that clients have confidence and trust in them to fulfil their legal obligations.
2. Credible Teams in Key Legal Hubs:The scale and credibility of the team in key legal hubs are essential. Challenger firms must invest in building teams that are not only skilled but also capable of handling complex legal matters, hence credible to their clients.
3. Hiring Motivated Lateral Partners/Teams:It is vital to bring on board lateral partners or teams who not only own their deal sheet but are also genuinely motivated to expand it. These individuals should have a proven track record and drive to grow the firm’s business.
4. Sustained Growth Efforts:Growth should never be viewed as a one-time effort. Challenger firms need to stay in the market, continuously seeking opportunities and keeping the door open for new business. Persistent efforts and a long-term growth strategy are key to gaining a foothold in the competitive legal market.

There have been several moves in the past 6 months that showcase this – see some select moves below:

Willkie Farr & Gallagher

• Rüdiger Lahmeand Andreas Ruster joined from Quinn Emanuel Urquhart & Sullivan in Hamburg.
• David Huthmacherjoined from Hogan Lovells to boost their Munich office after having joined Hogan Lovells from Kirkland & Ellis in November.

Kirkland & Ellis

• Tobias Larischjoined from Latham & Watkins to open their Frankfurt office.
• Sebastian Pitzjoined from White & Case, Frankfurt.

Skadden

• Matthias Schudlojoined from Willkie Farr & Gallagher in Frankfurt

Eversheds Sutherland

• David Smith joined from White and Case, Frankfurt
• Matthias Kiesewetter joined from White and Case, Hamburg

In conclusion, for challenger firms to bridge the gap and compete with elite firms, they must focus on strengthening client relationships, building credible teams, hiring motivated partners, and maintaining a sustained growth strategy. Only by addressing these areas can they hope to make a noticeable impact in the ever-evolving legal market.

Hiring and interviewing – an impact sport. Some win, some lose, but the basics can be learnt!

At the core, executive search is a two-way street – especially on the lateral partner front. The candidate and the firm have to go into an interview with intention. Complacency and uncertainty fail every time; time itself is precious and a commodity that shouldn’t be wasted.

There is no perfect recruitment process, but the best firms and the best candidates approach interviews with strategy and intent. Success is based on three key things:

1. Impact,
2. Engagement,
3. Alignment of Ambitions.

Candidates should be aware that an interview is not just about getting an offer; it’s about finding the right fit. Successful careers often include sustained spells of promotion and personal development, therefore you must present in a way that reflects this. To firms, recruitment is more than just analysing a candidate’s credentials, past performance, clients, billables, team size, and so on; all of this is important, but ultimately, you are striving to develop a case that answers the fundamental question: why should they join your firm?

It’s all about impact.

Irrespective of whether you are a candidate or a hiring partner, your aim should be to leave a lasting, positive impression. Candidates should emphasise the most powerful elements of their experience and how those align with what the firm needs. Be genuine; standardised dialogue doesn’t work. Select the details you want the person opposite to really retain. For firms, that means making sure that the messaging about culture, growth trajectory, and strategy comes through loud and clear. Every touch point helps to form the candidate’s impression of the firm, and impressions created in this process tend to stick long after the interview is over.

Engagement is key.

An interview is a conversation, not a monologue. Both parties should listen as much as they can and thoughtfully engage the interviewers with responses that indicate understanding. Equally, firms must understand that a candidate evaluates a firm to a great extent and vice-versa. Remove distractions that interfere with listening, such as an inbox ping or a phone call, as well as those things that are present in the back of your mind. Try to eliminate all distractions and engage. Make eye contact and answer questions honestly; it will all make a difference.

Align your ambitions.

Speak clearly about the mission. Several firms in the legal market have quite ambitious growth strategies, but not every candidate will align with the vision of each. Candidates need to be clear about what motivates and inspires them when it comes to the mission of a firm. Use targeted questions to assess alignment on culture and strategy. Firms likewise need to articulate their ambition and assess where that new hire fits within that. The best firms don’t just talk about strategy; they link it directly to the candidate’s potential role.

The devil is in the details. Firms should consider a candidate’s experience, starting from their arrival. A well-coordinated welcome, appropriate interview setting, and the base ingredients like refreshments indicate professionalism and respect towards them. For the candidates’ part, it should be a given: show up on time, bring your best, and don’t underestimate the power of a summary at the close, highlighting the most topical points and flagging any concerns that need further consideration.

Feedback is paramount. Among the top reasons firms lose good candidates, poor communication plays a major role. Candidates must understand where they are, not only for decision-making considerations but also for personal development. Candidates need to understand where they stand, not only for their decision-making purposes but also for their personal growth. Those firms that give definitive, honest feedback – even when the news isn’t positive – maintain goodwill and their strong reputation in the market.

Thoughtful questioning enhances the process. Interviews should evolve with each stage: candidates should avoid generic questions and instead build from what they’ve already learned, demonstrating genuine curiosity about the strategy and culture of the firm. Firms, in turn, should structure their process in a manner that is respectful to a candidate’s time and recognises previous discussions. Asking the same questions repeatedly raises potential red flags and may lead to things feeling disconnected, whereas targeted follow-up fosters a sense of progress and engagement.

The best recruitment experiences are always those when both parties walk away knowing that they have found the right fit. By focusing on impact, engagement, and alignment, firms will find the best talent, and candidates can make the right career choices. The interview process shouldn’t be a transaction; it should be the beginning of a meaningful professional relationship.

Weekly, End of Year Update, 2024

Moves:

The legal market has been rife with moves all year round, with experts reporting increasingly high numbers of hires this year, both in terms of private practice and in house. Within the in-house market, we saw big brands and leading companies appointing new talent and legal leaders. Examples include government groups, F1, Porsche, Disney, and Sky. These hires highlight the growth of cross industry mobility. Thought leadership has shown that many are viewing the role of the lawyer as an expanding one, and these in house moves corroborate this idea, with lawyers transitioning between different sectors such as technology, finance, automotive, and entertainment.

Furthermore, the UK was deemed to be a competitive growth hub for law firms in critical areas. For example, US firms such as Perkins Coie quickly built up their practices after launching in London this year and A&O Shearman wasted no time investing in their London offering. Additionally, Cooley hired top tier talent to reinforce some of their market leading practices, and White & Case bolstered their real estate, private equity, and antitrust sectors. Overall, UK firms grew through the acquisition of each other’s notable leading lawyers and by taking on new practice heads in established fields such as corporate and private equity.

Furthermore, law firms in the Asia-Pacific area have bolstered their energy, finance, and dispute resolution offerings. Strategic moves such as that of Skadden’s Asia disputes head and a K&L Gates’ energy partner in Singapore have shown that even as UK based firms abandon their offices in China, other parts of Asia have benefited from lateral partner hiring. Firms like Kirkland and Jones Day have also expanded their specialised offerings in parts of Asia through key areas like structured finance and corporate tax.

Within the Middle East and Europe, the story is not dissimilar. There has been an increased level of hiring activity within TMT and corporate practices. This has been corroborated by high-profile moves, such as Bird & Bird’s tech hire and CMS’ Saudi corporate head. Additionally, firms such as Al Tamimi have strategically invested in that market by onboarding experienced partners, emphasizing their commitment to dominating the market.

In Europe, we have witnessed various duo and team moves in locations such as Paris, Frankfurt, Dublin and Amsterdam over the last few months at firms such as Eversheds and HSF in their technology and banking & finance teams. Speaking of teams, we have borne witness to some fantastic team moves, both in terms of quality and the sheer number of lawyers involved, with reports showing moves with up to 47 and 51 key lawyers involved. These occurred throughout the world in locations such as Singapore, India, Paris, and parts of the USA. Such moves signal firms’ desire to scale quickly in competitive markets by acquiring established teams with specialized expertise.

Overall, it is clear that there has been a dynamic legal market with corporations and firms taking strategic measures to attain top quality talent, expand geographically strengthen capabilities, and capitalise on emerging sectors. We look forward to seeing what the new year brings by way of moves.

The Americas

White & Case Lures DLA Piper’s Vice Chair for FDA Regulation

Peter Carney, chairman of White & Case’s life sciences and health care sector group, stated that Bethany Hills’ FDA regulatory skills “are a crucial component to maintaining a top global life sciences offering.”

Clifford Chance Steps Up US Expansion with O’Melveny Duo

The UK-founded firm added private equity partner David Schultz and restructuring partner Matthew Hinker. They arrive as the U.K.-founded firm continue in their efforts to break the U.S. market.

Paul Weiss M&A Co-Chair Heads to White & Case

Taurie Zeitzer has joined White & Case’s Private Equity group in New York from Paul Weiss where she was co-head of the M&A group.

Greenberg Traurig Hires 2 GCs to Boost Corporate, PE and Compliance Practices

To bolster the company’s competencies in these domains, Patrick Kassen, formerly of Link Logistics, and Matthew Bromberg, formerly of Exchange Traded Managers Group, were added as additional shareholders.

Freshfields Hires Skadden’s New York Head of Tax

Freshfields Bruckhaus & Deringer added Steven Matays, the head of the New York tax practice at Skadden, Arps, Meagher, Slate & Flom.

Paul Hastings Hires White & Case Partner as Co-Chair of International Arbitration Practice

Jonathan Hamilton oversaw White & Case’s arbitration practice in Latin America before he joined Paul Hastings.

UK & Ireland

Pinsent Masons Hits K&L Gates for Double Partner Hire

To expand its London real estate portfolio, Pinsent Mason brought on two new partners. Partners Tim Webb and Emma Maher left K&L Gates to join the firm’s real estate practice. The two are experts in providing corporate real estate advice, especially in the residential build-to-rent market.

White & Case Builds London Funds Practice with Ropes & Gray Partner

According to a firm release, secondaries partner Alexandra Chauvin, who worked at Rope for three years, joined as a partner in White & Case’s global private equity industry group and investment funds practice.

US law firm Perkins Coie hires Ian Bagshaw for London launch

Perkins Coie, a US law firm, were establishing its presence in London with the hiring of heavyweight private equity lawyer Ian Bagshaw.

Cooley Taps Norton Rose’s London Antitrust Head

Mark Simpson, the head of antitrust and competition at Norton Rose, joined the Palo Alto-based company after more than 15 years there, ten of those as a partner.

EMEA

Bird & Bird swoops on Al Tamimi for tech partner

As a partner at Al Tamimi & Company, Nick O’Connell oversaw the company’s technology, media, and telecommunications (TMT) practice in Saudi Arabia. He joined Bird & Bird in Dubai, where he will assist the company’s technology clients with their Middle Eastern business requirements.

Herbert Smith Freehills Hires Pair of Paris TMT Leaders from Eversheds

Emmanuel Ronco and Vincent Denoyelle, partners at HSF, have moved in efforts to guide clients through an increasingly digital environment.

CMS taps Clyde & Co for Saudi corporate head

Rizwan Osman joined the firm’s Riyadh office from Clyde & Co, where he spent over 17 years.

Al Tamimi adds two UAE partners, including ex-Eversheds Dubai MP

Henry Storrar has joined the firm’s Abu Dhabi office as a corporate partner, and Paul Taylor has joined the Dubai office as a partner and regional head of arbitration.

APAC

K&L Gates Hires Energy Partner from Gibson Dunn in Singapore

Brad Roach, a partner at Gibson Dunn & Crutcher, joined K&L Gates in Singapore as an energy, infrastructure, and resources partner. Alexandra Jones, an associate who has been with Gibson Dunn for seven years, went with him.

Skadden adds Asia disputes head from Sidley

Prior to joining, Friven Yeoh co-led Sidley’s worldwide advocacy, trade, and arbitration group. He is leading Skadden’s Asian international litigation and arbitration group. Yeoh has been dividing his time between the Hong Kong & Singapore offices.

Long-time HFW partner joins Addleshaw Goddard as SG head

Energy specialist Chanaka Kumarasinghe, who has spent his whole 22-year career with HFW, has been appointed as the head of Addleshaw Goddard’s Singapore office.

Team Moves

Eversheds Adds Three Finance Lawyers in Amsterdam

With the addition of three attorneys from independent firm Rutgers Posch, Eversheds Sutherland has strengthened its finance practice. The UK firm’s Amsterdam branch is now home to senior associate Maarten Ahsmann, partner Vasco Hoving, and senior partner Kees Westermann.

14 A&O Shearman Lawyers in South Africa to Join Bowmans

According to Ezra Davids, senior partner and chair of Bowmans, the partner changes were in line with the firm’s strategic goal of becoming the “go to” African law practice for clients seeking advice on complicated legal matters.

Hogan Lovells Hires 23 M&A Lawyers from Orrick in Italy

According to Orrick, the departures, which also included another exit to BonelliErede, were a strategy of the firm’s ambition to offer sector-specific counsel.

Orrick Faces Second Major Blow as 15-Strong Team Joins BonelliErede in Italy

With a 15-person Milan team leaving the company for Italian giant BonelliErede, Orrick Herrington & Sutcliffe’s Italian division experienced two raids in two weeks.

In-House

Porsche’s Venture Capital Arm Adds General Counsel from Clifford Chance

Early-career attorney Lynn Nussbaum took the legal reins of Porsche Ventures as it presses forward on its next phase of growth.

Former HSBC Litigation lawyer is taking the legal reigns of Post Office Ltd

Daniel Chumbley left HSBC where he was Managing Associate General Counsel, to take on the position of Head of Legal at Post Office Ltd, prior to this he has also held positions at DLA Piper and DAC Beachcroft.

Sony Pictures Entertainment Hires Disney Lawyer as General Counsel

CEO Tony Vinciquerra asserted that Jill Ratner will “help us meet the challenges of a rapidly evolving industry landscape and to capitalize on opportunities for growth.”

Tesla Rival Taps Mercedes-Benz GC for Top Lawyer Job

Matt Everitt the new legal chief was reported as saying “Lucid’s products set an incredibly high bar for automotive companies, and I’m energized to join at a time when the company is poised to expand further”.

Promotions and Appointments

Through our analysis of promotions and appointments week on week, we have observed various trends across the legal market. For example, we saw firms focussing on continuity, maintaining experienced individuals in leadership roles, such as Michael Heller at Cozen O’Connor, who was re-elected as CEO for a 5th term, whereas Kennedys is transitioning leadership after Nick Thomas’s long tenure.

Many of these leadership shifts also involve regional or geographic emphasis, such as DLA Piper’s growing presence in Oman, or Herbert Smith Freehills’ strengthening of its Africa operations. Dentons is similarly focusing on regional leadership by appointing a new head for its Ottawa office, while Baker McKenzie appointed a new practice head in India. Global law firms are heavily investing in expanding into regions of high economic growth, such as Asia and Africa, which is evident from leadership appointments like Denise Jong succeeding a 30-year veteran at Reed Smith in Asia.

A noticeable trend is the integration of technology and innovation into leadership roles, as shown by McDermott Will & Emery’s hiring of its first Director of AI Innovation. As law firms continue to adapt to the evolutions in technology, there is a growing trend of appointing individuals focused on AI, data analytics, and other tech-focussed practices. Litera’s return of Avaneesh Marwaha as CEO, right before a major launch of AI products, exemplifies how leadership is closely tied to strategic growth in the legal tech space.

Several firms are prioritising diversity in their leadership structures. For example, Kilpatrick appointed ten new partners for 2025, with a strong emphasis on female representation in fields like commercial litigation and intellectual property. The trend towards diversifying leadership is consistent with the growing recognition of gender and ethnic diversity’s role in firm success.

Firms like Reed Smith, Kirkland, and Latham & Watkins are all seeing reduced partner promotion classes, suggesting a more conservative approach to growth amid economic uncertainty or business strategy shifts. This trend is notable as it contrasts with the prior years’ emphasis on rapid expansion and shows a more cautious, deliberate approach to growth.

DLA Piper unveils 63-strong partner promotion round

CMS makes up 54 in latest partner promotions round

Linklaters promotes 27 to partner as gender diversity target on track for fourth year

Freshfields Promotes 23 to Global Partnership

Sidley Austin Elects Biggest Class of Partners in Firm History

A&O Shearman Names UK and US Managing Partners

Fifty-six partners appointed in Norton Rose Fulbright’s class of 2025

Financials

The legal sector faces a dynamic financial landscape, enabled by inflationary pressures, rising operational costs, and ongoing competition for talent. Clifford Chance’s investment in an increase in personnel at all levels has resulted in lower partner payouts, a reflection of how difficult it is to maintain profitability with increased resources. On the other hand, Eversheds Sutherland’s £3 million partner payout has shown strategic sense in ensuring competitive rewards. These contrasting approaches highlight the industry’s need to strike a balance between cost savings and talent retention in an increasingly competitive market.

Growth in revenues among the largest firms continues to be very strong, with the top 50 firms posting a 14% gain in 2024. This growth, driven by a 3.6% demand surge and productivity gains of 2.9%, has enabled firms to implement the most significant increases in hourly rates in the last decade. This has tipped the balance in pricing power back to firms, and corporate law departments are seeking creative cost-control strategies. These include alternative fee arrangements, partnerships with alternative legal service providers, and the strategic use of staffing ratios to reduce reliance on higher-cost senior lawyers.

Meanwhile, the dynamics of talent are rebalancing compensation trends: Magic Circle firms like Clifford Chance and Linklaters have increased their NQ solicitor salaries to £150,000, while Goodwin Procter has gone even higher with £175,000. Such pay rises reflect the ferocity of the competition for legal talent, but raises concerns about the sustainability of such an investment in lawyers over the longer term. The more the costs rise, the more businesses look to technology, operational efficiencies, and flexible workforce models to balance profitability with customer satisfaction.

This is a continuously changing environment that requires ongoing innovation and strategic foresight. Firms need to handle not only the immediate pressures of finances but also position themselves for long-term growth through retaining trust with clients and adapting to the changing market demands. The future of the legal profession will be shaped by how well it navigates these challenges with resilience and forward-looking perspectives.

Clifford Chance Top Earner Pockets Less as Staff Numbers, Costs Swell

Eversheds Top Earner Pay Surpasses £3 Million, LLPs Show

As Billing Rates Soar, Law Firm Clients Move to Spread Work Around

Should US Law Firms Offer 20% Less Pay for 20% Less Work?

GC Pay Is Improving, But It’s Still Mission Impossible

A Steady Litigation Year Helped Drive Big Law Revenue Gains

The Future of Partner Compensation: How Profit-Sharing Systems Shape the Firm’s Culture and Success

An Early Look: The 2024 Am Law 200 Financials

‘Slightly alarming’ – Clifford Chance, Linklaters, A&O Shearman match Freshfields’ NQ £150k pay hike

Goodwin Latest Firm to Raise NQ Salaries to £170k as Pay War Looms

Paul Weiss Matches Market Leading London NQ Pay, Launches Training Contract

‘Strength of the Market’: Big Law Revenue, Demand Continue to Climb

Office Openings and Closings

The London legal market in 2023 was the result of two strategies. Firms headquartered in the United States demonstrated aggressive growth, with investments in high-end, modern office space reflecting a long-term commitment to the city as a strategic hub. Pillsbury Winthrop Shaw Pittman’s move to 100 Bishopsgate, as well as Debevoise & Plimpton’s new 70,000-square-foot premises, point to increased capacity and technological sophistication for top-tier talent. In contrast, UK-based firms have been more restrained, reducing office space to contain rising operation costs. This pullback reflects caution as local firms become more focused on cost efficiency due to economic pressures. The divergence emphasises London’s role in the legal market as not just a battleground for legal dominance but also as a site of recalibration for firms looking to assess their 2025 strategies.

Globally, U.S. law firms have continued to expand in 2024, leveraging strong financial performance to expand both geographically and operationally. Firms in the Am Law 200 took advantage of rising demand and productivity gains, investing heavily in talent acquisition and office infrastructure. The trend of US firms expanding their London footprint reflects their strategic vision of London as a gateway to Europe and a critical platform for cross-border business. Domestically, the closure of midsize and boutique firms reflected the growing dominance of larger firms with more diverse service offerings and financial stability. These dynamics demonstrate the growing concentration of legal power in the hands of a few large players, raising the stakes for smaller businesses attempting to compete in a changing market.

Looking to EMEA, exits from Asia by several international firms have changed the landscape of that market. Asia, while rich with opportunities, presents unique regulatory and competitive challenges that have proven difficult for many global firms to navigate effectively in a slower legal market. Firms like Vinson & Elkins and Baker Botts have already exited the Greater China region completely. Last year, Herbert Smith Freehills closed in Seoul, while Mayer Brown and Kennedys closed in Thailand.

Nonetheless, the market remains an interesting site of activity, as amid closures, Watson Farley & Williams launched an office in Seoul and Clyde & Co opened an office in Thailand. On the client side, companies such as Bain Capital have announced plans to double investment in Japan. Though, at the moment, it seems the legal market here is in a state of exodus, this signals that for firms committed to the region, the exits of competitors may present opportunities to capture market share, provided they are willing to navigate its complexities. There is also a prediction that, as the market eventually begins to pick up again, we may see firms replenishing their headcounts and re-entering the market, as many still remain in the region though with a smaller footprint.

Speaking of closures, the shuttering of several midsize and boutique firms in 2023 marked a significant shift in the legal landscape. Firms such as Schnader Harrison Segal & Lewis and Ward Greenberg failed due to a combination of financial pressures, leadership vacancies, and an inability to compete with larger players. Leadership transitions proved particularly difficult, with firms such as Dolchin Slotkin & Todd and Ganfer Shore Leeds & Zauderer failing after senior leaders retired without successors in place. Meanwhile, others suffered financial difficulties, including Phoenix-based Jennings, Strouss & Salmon, which defaulted on large credit lines. These closures highlight the vulnerability of midsized and boutique businesses to economic pressures, talent poaching, and operational inefficiencies. They also emphasise the importance of strong leadership pipelines and financial discipline in navigating an increasingly competitive landscape.

Overall, ahead of 2025, we have seen global activity that will be instrumental in shaping firm strategies and revenues for the year ahead.

Looking Back at the Law Firms That Didn’t Survive 2023

From Stroock to Schnader, firms that failed struggled with common issues of recruitment, retention and financial obligations.

More Law Firms in New York Opt for Larger Spaces

Paul Weiss and King & Spalding are among the latest firms to secure new, larger spaces in New York.

Weil, Pillsbury Eye London Office Moves Amid US Firm Upsizing Trend

A contrast in opinions toward hybrid working have seen several U.K-led firms downsizing while their U.S.-founded counterparts take up larger spaces.

Will Allen & Overy, Freshfields, Clifford Chance and Linklaters Find America’s Streets Paved With Gold?

International law firms have been launching offices in the U.S. and paying top dollar for talent in the world’s largest and most lucrative legal market. But growth potential exists elsewhere, and firms shouldn’t give the rest of the world short shrift, writes The Global Lawyer.

Clyde & Co Moves Middle East Regional HQ to Saudi Arabia

International law firms have long regarded Dubai as their de facto Middle East headquarters, however two of the region’s four largest law firms are now headquartered in Riyadh.

Chinese Law Firms Announced 40 New Offices in 12 Months. Will the Investment Pay Off?

Chinese law firms are expanding rapidly within China, however top-tier Chinese firms have focused outward, to international markets. With the Chinese cross-border deal market growing increasingly quiet, questions arise as to whether these firms pivot toward mainland expansion?

Clyde & Co Expands Saudi Presence With Jeddah Launch

The new office will be led by corporate and advisory partner Mohammed Almarzouki, who is a certified lawyer in Saudi Arabia, a trained solicitor in England and Wales, and an attorney in New York. He joined Clyde & Co in 2023 and has over a decade of experience assisting Saudi and multinational firms, as well as family businesses in Jeddah.

Bird & Bird’s former London arbitration head launches own practice

Nick Peacock, the former head of Bird & Bird’s international arbitration business in London, has established Peacock Arbitration, a solo firm.

Kirkland Opens New Office with Latham M&A Partner Hire

Kirkland & Ellis has expanded its transactional business in Germany by hiring M&A partner Tobias Larisch from Latham & Watkins and opening a new office in Frankfurt.

Wave of Office Closures Highlights the Weighty Stakes Surrounding Law Firm Growth

Major Lindsey & Africa consultant Jennifer Moss said, “Just because a certain legal market is hot does not mean that you should be there.”

Mergers and Alliances

Mergers and alliances have hit the global legal market like a wave in 2024, with scale, geographic reach, and integrated service offerings becoming increasingly important. The highly publicized merger of Allen & Overy and Shearman & Sterling, which went live on May 1, marked an important turning point in the industry. The merger created A&O Shearman, a $3.5 billion law firm with close to 4,000 lawyers and 47 offices worldwide, second in size only to rivals Kirkland & Ellis and Latham & Watkins.

The secrecy surrounding the A&O Shearman merger surprised many, especially in light of Shearman’s earlier, highly publicized but ultimately unsuccessful talks with Hogan Lovells. Yet, the inevitability of the combination reflected the firms’ complementary strengths and a shared vision of providing seamless transatlantic services in critical practice areas. The successful execution of this merger not only positions A&O Shearman as a global powerhouse but also sets a benchmark for future alliances in the legal sector.

This landmark deal is part of a larger increase in law firm mergers in 2024. In the first half of the year, 29 mergers were completed, a slight increase over previous years and testament to firms’ determination to strengthen their market positions. While no other merger had the scale of A&O Shearman, regional consolidations demonstrated a similar drive for growth and resilience. Examples are of Midwest firms Ulmer & Berne and Greensfelder, Hemker & Gale combined to create UB Greensfelder, a 275-lawyer firm aimed at bolstering their presence in the region

Troutman Pepper and Locke Lord will merge in January 2025, forming Troutman Pepper Locke, a 1,600-attorney firm with a strong presence in the ten largest legal markets in the United States. The transatlantic allure remains strong, with Herbert Smith Freehills and Kramer Levin Naftalis & Frankel announcing plans to merge, resulting in a $2 billion revenue firm with over 2,700 lawyers in 25 offices, reinforcing the need for global scale and integrated services in an increasingly interconnected legal market.

While the pace of mergers has remained steady, the nature of these deals highlights the strategic priorities of the industry. Firms are not only seeking growth but are also aligning their mergers with broader goals, including geographic expansion, talent acquisition, and client-focused innovations. The industry-wide trend is toward larger, integrated, entities that reflect increasing complexity both in client needs and from competitive pressures driving firms towards creativity.

The mergers in 2024 demonstrate an unmistakable trajectory for the profession: those that embrace collaboration, scale, and strategic vision will be best prepared to navigate the challenges of an ever-changing market.

Law Firm Mergers Began With a Boutique Bash. Will the Party Continue in 2024?

Consolidation and Competition: The Law Firm Merger Market and What It Means for Midsize Law Firms

With High Interest in Law Firm Acquisitions, ‘A Likely Uptick’ in Mergers Underway

After Law Firm Merger Activity Rose Again, Combinations Expected to Increase Into 2025

Smaller firms falling out of love with merger, research finds – Legal Futures

Partner Cuts: The Grim Reality of Post-Merger Integration

When It Comes to Law Firm Mergers, Are Firm Leaders Getting FOMO?

Herbert Smith Freehills to Merge with Kramer Levin

Tech and Innovation

This year, discussions surrounding technology, in particular AI, have remained pervasive. With firms and external companies investing time and resources to develop AI tools for legal drafting and due diligence. Many of these companies have invested millions of dollars into the production of tools and startups which provide advanced services.

Additionally, throughout the year there have been discussions regarding the efficacy of investment into AI. Some argue that there is an unknown element regarding the long-term effects of AI technology of AI in law firms as well as a lack of enforcement of legislation. This combined with AI’s widespread use within the global market has deemed as risky by many experts if AI’s implementation remains unchecked. They also point out the risk of becoming reliant on these forms of innovations for companies.

On the other hand, others are excited about how AI can make the lives of lawyers easier. The light has been shone on the wider impact it can have within firms with younger, incoming lawyers being trained at firms such as Latham and Watkins and Travers Smith to use AI effectively in order to ensure they can keep up with the rapidly changing technology. Moreover, reports have surfaced about smaller regional firms in the USA and firms within Asia slightly lagging behind causing many to wonder how they plan to close the gap in this regard.

Additionally, over the last year we have borne witness to the effects technology can have on social dynamics within law firms as discussions have shown that the recent technological revolution has created an environment where lawyers towards the more senior end of their career feeling slightly alienated.

Overall, it is clear that this year, within the legal industry, the use of AI has been established, has been heavily invested in by firms and external companies, and that it is not likely to decline within the coming year.

How Latham & Watkins Is Using Online Training to Expand the Legal Pipeline

Linklaters launches AI sandbox to drive innovation

New Research Study Predicts Continued Growth for Generative AI in Legal

UK Startup Wexler AI Announces $1.4M Preseed Funding

As Gen AI Acceptance Grows, Lawyers Race to Mitigate Risks

Agency Leaders Accept They Must Use Existing Law to Regulate Artificial Intelligence

Global Firms’ Asia Offices Lag Behind US and Europe in AI Uptake

Market Commentary

Firstly, the ‘magic circle’ law firms have faced pressure to adapt to a changing legal landscape, and although these firms continue to lead UK revenues the increasing mergers of firms such as A&O and heightened competition from US firms. Also, there have been reports surrounding growth markets with specific locations and practice areas being targeted as areas to invest in by global law firms and other locations showing signs of decline as firms exit them. Examples of this include London, which was deemed to be a competitive growth hub for wall street firms, Greece, which passed legislation that reopened pathways for UK lawyers to practice law following Brexit, and Spain, which experienced growth in their litigation finance market due to favourable legislation and quick trial durations. Conversely, South Africa and China experienced shifts as US firms scaled back operations due to increasing risks.

Additionally, over the last year we have seen much discussion in growth strategy amongst firms with firms like DLA, Kirkland & Ellis and Willkie publishing fantastic deal volume results, impressive revenue figures and staggering growth metrics causing experts to debate how other firms can achieve similar results with law firms increasingly relying on KPI’s to track performance and profitability and other firms such as Clifford Chance restructuring their partner compensation models to balance seniority and productivity through creating a merit based system to retain their top billers and boost profitability in that regard and Dentons.

Furthermore, ESG related scrutiny has intensified as firms like A&O Shearman and Akin have faced backlash from climate activists over fossil fuel related work leading to investors and policymakers prioritising sustainability and governance.

Finally, throughout this year a particularly important topic throughout the legal sector has been mental health as a new generation of lawyers enter the workforce with heightened mental health awareness, which has forced firms to address evolving workplace expectations.

Overall, it has been an eventful year with the legal market continuing to evolve as priorities shift in terms of talent retention, strategic growth and individual wellbeing.

New Battleground: Wall Street Law Firms Eye London Growth

More Young Lawyers Are Entering Big Law with Mental Health Issues. Are Firms Ready to Accommodate Them?

Greece Opens the Door to U.K. Lawyers Under New Law

Leveraging Law Firm KPIs for Business Success

Is the ‘Magic Circle’ Dead, Or Just Different?

Letter From Asia: The Americans Are Leaving China in Droves, but Will It Level the Playing Field?

How to Grow Fast Like Kirkland

Are You ESG-Prepared? Statistically Speaking, Probably Not!

Law Firms Seek Flexibility in Revised Partner Comp Systems, Balancing Seniority with Productivity

DE&I

From our D&I news that we share as part of the Fides legal weekly update, we have observed that there appears to be growing gender parity in the legal field, with women now comprising the majority of associates in some cities and continuing to gain ground in senior roles, signalling positive progress towards gender equity.

We have also noted increasing diversity in leadership roles, particularly with Black individuals taking on prominent positions in academia, reflects a broader effort to ensure diverse voices shape decisions within legal institutions and firms.

Another significant development is that more women are enrolling in top law schools, suggesting that future legal professionals will reflect more gender diversity. This demographic shift is expected to have a long-term impact on the composition of the legal profession.

Women Make Up the Majority of Associates for the First Time

Gibson Dunn Partner Named First Black Dean of Drake Law

17 of the Top 20 Law Schools Have More Women Enrolled

Simpson Thacher Appoints First Female London Head

Freshfields Beats Gender Target for Fourth Year in a Row in Latest Partner Promotion Round

Introduction

Diversity, Equity, and Inclusion (DE&I) are no longer mere buzzwords but essential to organisational success, especially in the legal sector. Paul Philip, Chief Executive of the Solicitors Regulation Authority (SRA), recently observed that a diverse legal profession benefits not only the public but legal businesses as well, ensuring talent from all backgrounds has the opportunity to thrive. DE&I is important in recruitment because it fosters fairness and has great potential to boost the public’s trust, given the need to represent our dynamic nation and reflect society fairly. This is important as bringing diverse perspectives can enhance innovation, productivity, and ultimately the bottom line for businesses. These are core elements that enable the legal profession to stand out in this competitive and increasingly global landscape. The hunt for talent is on and employees are now insisting that corporates better reflect and practice these core values.

In today’s globalised world, diversity also offers competitive advantages by providing firms with crucial cultural and linguistic skills, better equipping them to handle international challenges. According to 2023 data from the SRA, women now represent 63% of qualified solicitors in England & Wales (up from 48% in 2015), and lawyers from Black, Asian, and other minority ethnic backgrounds make up 19%, compared to 14% in 2015. The socio-economic diversity of the profession is also shifting, with the proportion of lawyers from a professional socio-economic background dropping from 60% in 2019 to 57% in 2023.

However, challenges remain – only 32% of full equity partners are women, despite women making up over half of solicitors in England & Wales. Furthermore, the InterLaw Diversity Forum reported that intersectional identities face even greater disparities, with women of colour making up even fewer equity partners than their non-ethnic female counterparts. Progress has been slow for the LGBTQ+ community as well, with only a 0.7% increase in representation within the legal profession over the past two years. These figures show that progress is starting to take place, but they also highlight the ongoing need to address the deeper inequalities that persist in the legal sector. The question now is: what can be done to further accelerate change?

1. Beyond Checking Boxes: A Holistic Approach to DE&I

Too often, companies approach DE&I as a tick box and compliance exercise, focusing on hiring diverse candidates to meet targets rather than embedding these principles into their long-term strategies to ensure retention. Search firms are in a unique position to shift this mindset by emphasising a holistic approach to DE&I that focuses on equity and inclusion, not just diversity.

We can do this by advising our clients on the importance of inclusive hiring practices, from crafting unbiased role profiles to creating equitable assessment processes. Implementing these practices will allow potential biases to be challenged whilst also providing top talent. In addition, it’s crucial to measure success, not just by the diversity of new hires, but also by how well these hires integrate into the organisation. As a result, companies are encouraged to implement diversity and inclusion training on an ongoing basis to help foster an inclusive culture within the organisation. Furthermore, encouraging the adoption of consistent learning and development functions to periodically review company attitudes to diversity and inclusion is another way the executive search industry can contribute. Hiring managers often cite the need for a candidate to be a ‘good fit for the company’ but by creating atmospheres which are welcoming for diverse candidates’ firms will allow for a more diverse range of candidates to come through the door and thrive within their organisation. Moreover, businesses should embrace new ways of thinking to challenge the status quo and be mindful of unconscious bias, especially given the rapidly changing landscape that commercial businesses operate in.

2. Proactively Expanding Talent Pools

One of the most tangible ways search firms can impact DE&I is by expanding talent pools beyond traditional networks. Often, the lack of diversity in hiring is the result of narrow candidate pipelines. Laura Long, VP of National, Equity, Inclusion and Diversity at Kaiser Permanente says, “It’s a fallacy to say, ‘There aren’t enough diverse candidates out there.’ Yes, there are. You just need to look in the right places.” By broadening our search methods, tapping into historically under-represented groups, partnering with diverse professional organisations, and leveraging technology to mitigate bias, we can introduce clients to a wider array of talented individuals. Whether this be through partnerships with agencies which have proven track records when it comes to finding diverse candidates or by accessing more niche registries and search engines, broadening search methods is a clear way to venture out from the status quo and pinpoint talented individuals who might not be as well represented via traditional means.

Moreover, firms need to fill talent gaps, and finding creative ways to reach new audiences is essential. One seemingly simple way to do this is to source candidates from a variety of different platforms as opposed to relying on the websites and platforms we have grown accustomed to using. Practical examples of this include hiring from a wider range of universities as opposed to simply admitting Russell Group graduates and headhunting from firms outside the Magic Circle and elite US firms when hiring lateral partners. Additionally, various firms are now using The Rare Contextual Recruitment System (CRS) which enables them to identify high-potential candidates by assessing their achievements in the context of their educational background and social mobility factors. Another option for firms to reach an array of students is by partnering with diversity organisations such as Aspiring Solicitors, upReach, The Interlaw Diversity Forum and The Law Collective. Partnering with these organisations can be beneficial during search processes as they provide exposure to a greater range of high-quality candidates from diverse backgrounds and ensure that a more thorough and representative search is taking place. This can be corroborated by data from lawcareers.net which determined that “Firms adopting Rare’s CRS hire 61% more people from disadvantaged backgrounds”. These examples clearly show how we can expand talent pools throughout the search process.

3. Embedding Bias Awareness in the Recruitment Process

Bias, both conscious and unconscious, remains a significant barrier to true inclusivity in hiring. The recruitment industry can move the needle by embedding bias-awareness training throughout the hiring process. This includes training hiring managers and clients on recognising and addressing their own biases at all stages, from CV reviews to interviews. Research that was carried out by the CIPD has found that only 28% of UK employers train interviewers on legal obligations and objective interview practices. Additionally, less than a fifth make efforts to remove bias through testing the words of job adverts or checking that tests are valid, reliable and objective. By implementing a mindful advisory process when we present candidates, we can encourage clients to be more proactive in terms of ensuring that their selection processes are in line with DE&I policies. This training will allow a hiring manager’s definition of a ‘good fit for the company’ to evolve into a more equitable and mindful form of thinking.

We have discussed how using a range of platforms to find high-quality candidates can be beneficial to the recruitment sector as we try to be more mindful of diversity during searches, and we can enlist the help of technology to take this further. Using data-driven tools to reduce bias in candidate selection, such as blind recruitment software or structured interviews, can ensure that hiring decisions are based on merit rather than stereotypes. This has been corroborated by data collated by LinkedIn, which determined that hirers who are sourcing talent using skills as the key metric and anonymising other areas are 60% more likely to find a successful hire. As talent partners, we can play an essential role in promoting these technologies and methodologies to our clients.

4. Partnering for Long-Term Success

True DE&I progress requires long-term commitment, and search firms should partner with clients for sustained success, rather than focusing solely on short-term placements. By offering ongoing support through talent development programs, retention strategies, and advising on inclusive company culture, we can help organisations retain and nurture diverse talent.

Offering DE&I metrics and post-hire evaluations can also be invaluable. Search firms can provide data on diversity within the talent pipeline, as well as feedback loops on the success and challenges of new hires, helping companies make informed decisions on how to further improve their internal practices. Patti Kachidza, Co-Chair of the Interlaw Diversity forum has corroborated this belief. She states that “a simple data collection exercise about the make-up of their employee population, and monitoring recruitment, progression and salaries would reveal whether or not there is a fair representation of diverse employees at all levels.” Many are currently unaware and apathetic about diversity within their institutions, but when faced with cold hard facts and figures, it’s hard to ignore the problem. Patti also argues that “where disparities are found, constructive discussions can be initiated to implement inclusive recruitment and a promotion toolkit which will improve the landscape. The benefits of this exercise will far outweigh the time cost of collecting the data and will be a powerful demonstration of companies’ commitment to DE&I.” Highlighting the cost is crucial as companies might not see the benefit of these processes, both in terms of time and money, regarding their long-term growth. However, we can see that the benefits would be apparent for the legal profession as a whole and individual firms, as they would lead to the creation of improved search processes, which will be useful in the long term and lead to the retention of diverse talent.

5. Driving Leadership Accountability

One of the most critical components of DE&I’s success is accountability at the leadership level. Search firms can serve as consultants, helping organisations create leadership buy-in for DE&I initiatives. This could involve educating leadership teams on the business case for diversity; numerous studies show that diverse teams outperform homogenous ones in terms of innovation and financial performance. We can also advise on setting measurable DE&I goals and holding leaders accountable through regular reviews and transparent reporting. In-house lawyer Roshni Thakrar has set up her own consultancy practice called Inclusiviteam, to support organisations in furthering their DE&I commitments and strategies to ensure that all workers are given the opportunity to thrive, regardless of their intersectional social identities. She believes that “leaders must be accountable for implementing diversity and inclusion across all business areas, with financial incentives tied to their KPIs. They should actively engage with colleagues from diverse backgrounds and extend this understanding throughout the supply chain. Increased accountability is crucial for genuine change.” This can be observed because technically strong leaders may be adept at navigating corporate politics, but they may also be more likely to hire from inside their network or look for allies in the boardroom. This reinforces prejudices and ignores the difficulties marginalised groups encounter in the workplace. Roshni argues that “to drive real change, leaders must engage with and understand diverse perspectives and that means having a high EQ.”

We have talked about how we can reduce bias using skills-based hiring driven by data. However, this needs to be implemented in conjunction with the efforts of leaders who are keen to build a truly inclusive environment. The alternative might create a more diverse hiring pool – however, if the environment within the firm is not one where diverse candidates feel comfortable, then they are unlikely to thrive.

Actively encouraging leaders to break down the broken systems or hold others to account will help address existing issues when welcoming diverse hires into senior positions. Roshni maintains that “this is key, as often, you can’t be what you can’t see, hence marginalised groups need to be able to see others that look and sound like them. At the heart of every conversation, leaders must be able to create and foster psychological safety.” This change can take various forms, such as navigating corporate jargon or being sensitive to cultural topics relevant to different individuals — but the overarching reality is that this change can only be enacted if leaders are made aware of their power to create these positive atmospheres and take the necessary steps to bring them to fruition.

Conclusion

As a search firm, we are in a powerful position to be agents of change when it comes to advancing DE&I in the workplace. Moving the needle requires more than just placing diverse candidates; it involves working with clients to build equitable hiring practices, proactively expanding talent pools, eliminating bias, and ensuring leadership accountability. By embracing our role as strategic partners, we can assist organisations in not only meeting their DE&I objectives, but also thriving through the innovation and creativity that comes from true inclusivity.

If you would like to discuss how Fides can assist your business in enhancing the recruitment of diverse, high-calibre talent, please feel free to contact Sershen Ingram – sershen@fidessearch.com.

Fides Search is excited to announce that William Carbutt-Todd is joining us as a Researcher at Fides Search.

He has a background in public relations and has advised investors, publicly traded, and privately held companies on material issues, including transactions. He spent over three years with a boutique public relations firm advising clients at the c-suite level in banking, technology, mining, and metal firms throughout Europe, Africa, and the Americas.

Outside of work William is a keen real tennis player, continues to indulge an interest in history developed during his History degree at University of Bristol, and enjoys cooking for family and friends.

See what our Managing Director, Edward Parker, and our Associate Director, Inka Fukalova, have to say:

Ed: “We are delighted to have Will join the Fides Search team. He joins our research and delivery function and will add critical strength to our offering at a time where we are experiencing a high level of demand across consultancy work, due diligence, and search. We are committed to growing in London and servicing our international clients. Will is well travelled and will undoubtedly be involved in domestic and international assignments.”

Inka: “Will is a fantastic addition to our very busy R&D team. Great to have him on board!”

Please join us in giving him a warm welcome to the Fides team!! 😊