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.
