London law firm partners are swapping companies at unprecedented levels, driven by an inflow of investment from American competitors which has heightened the battle for top legal talent. According to data from Edwards Gibson, the legal recruitment specialist, there was a record total of 546 partner moves throughout 2024.
The figure has seen a rise compared to the 510 transfers recorded in 2023 and represents a substantial 14 percent increase from the 480 partner moves noted in 2022, as reported by .
"The reason... is in large part due to the continued huge investment bets by US law firms," remarked the recruiters in an initial report.
As of August 2023, US firms have been injecting millions of dollars into additional partner compensation, substantially disrupting pay structures among º£½ÇÊÓƵ law practices. This, in turn, has resulted in significant shifts within London's legal circles.
Paul Weiss has been identified as a predominant player according to the insights from Edwards Gibson, referred to as London’s "apex predator" for legal firms. Demonstrating expansive growth, the US-based firm has increased its European presence tenfold over the past year.
"Our private equity and corporate clients are focused on having elite legal advisers across New York and London," said Neel Sachdev, Paul Weiss London office co-head, in a discussion with the Financial Times. "Many firms are seeking to replicate growth in London as it is a key legal market for M&A and capital markets and a gateway to Europe."
Statistically impressive, Paul Weiss secured third place in Mergermarket's ranking of top advisors for buyout deals in Europe in the first half of 2024. The firm witnessed an astonishing 1,115 percent surge in its deal-making value when comparing first-half performances of 2024 and 2023.
While Weiss has only brought on board 14 partners this year, raising its total since last August to 28, these hires have had a "multiplying impact" on the market, according to Gibson. This is because both peer and near-peer competitors have been forced to replenish their ranks by poaching laterals from other firms.
The recruitment consultancy added that these hires often come with inflated compensation packages, driving up average pay and fuelling wage wars. In 2024 alone, the five London-based Magic Circle firms – A&O Shearman, Clifford Chance, Freshfields, Linklaters, and Slaughter and May – lost 28 partners to rivals, the majority of whom moved to more profitable US law firms led by private equity.
The main areas affected by this exodus have been debt finance, particularly leveraged finance, as well as corporate M&A and private funds specialists, Gibson noted. To compensate for these losses, the Magic Circle firms collectively hired only 16 partners in London in 2024.
A&O Shearman took on seven, Clifford Chance three, Freshfields five, and Linklaters just one. Slaughter and May neither gained nor lost any laterals.
However, Gibson suggested that this hiring frenzy may be about to slow down, as the economics of star hires are "difficult to justify". "We are already hearing that there is pushback from some Stateside partners at US firms about the eyewatering costs of recent London recruitment," the firm said.
