Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
A record number of senior lawyers have moved jobs in London so far this year as deep-pocketed US law firms continue to disrupt the market, in a sign that partner hires could hit new heights in 2025.
Law firms announced 155 London partner moves in January and February, a 49 per cent increase on the same period last year, which was a record year for hiring, according to data from legal recruiter Edwards Gibson and shared with the Financial Times.
The first two months of the year are traditionally the busiest recruitment period in the legal sector, as senior lawyers at US law firms wait to collect bonus payouts after year-end before changing jobs and hiring firms look to start the new year with splashy new hires.
The large number of moves so far in 2025 suggests it could be another frenzied 12 months for law firm hiring, as highly profitable US law firms have continued to expand in London, poaching partners from City firms, and UK firms have attempted to fight back. There were 548 partner moves announced last year, the highest number in a single year since at least 2007.
Those most aggressively hiring so far this year include US-founded law firms Kirkland & Ellis and White & Case, as well as London-based “magic circle” firm Clifford Chance. The collapse of UK law firm Memery Crystal this year also saw a group of nine partners move to Fladgate.
The London legal market has seen a flurry of activity over the past two years as US-headquartered law firms have moved to increase their UK footprint in an effort to increase workflows for US clients in Europe. Largely driven by private equity, American law firms have attempted to capitalise on the expansion of their clients’ portfolios in the region.
The dynamic has spurred a pay war as US firms have used their deep pockets to hire aggressively from UK rivals and peers in London, with compensation packages in the double-digit millions of dollars on offer from some.
“Scores of millions of dollars in additional partner compensation has been pumped into the system, which has caused lateral pay at elite firms to spike — facilitating movement on a scale never before seen in London,” said Scott Gibson, founder of Edwards Gibson.
“Early reporting indicates that 2024 was another record year for US law firm profitability. Flush with brimming war chests, we would ordinarily expect to see additional investment hiring,” Gibson added.
“The record hiring activity reported throughout [the first quarter] is clearly the end result of 2024’s recruitment efforts, perhaps a hangover from a bumper year, but it doesn’t feel like it,” said Jonny Fort, founder of Fort Stratford Partners.
However, Gibson said the recent spate of hiring meant that the pool of top partners to poach had probably shrunk, meaning US partners may not be willing to see much more money flowing to London.
“There are only so many “star” private equity, debt finance and private funds teams left who have not moved,” Gibson said.
He added: “Beyond a small cadre of super-elite law firms, the economics of star hires is difficult to justify, and we are already hearing that there is pushback from some stateside partners at US firms about the eye-watering costs of recent London recruitment.”
