Edwards Gibson Director and research reports cited in Financial Times article 'How US law firms shook up the UK's 'magic circle'

Financial Times journalist Suzi’s Ring’s article analysed the impact of the increasing expansion of US law firms in London on the “magic circle” and other levels of the London legal market.Director Scott Gibson explained how the continual expansion of American firms in London has kept the partner hiring scene “red hot despite a relatively soft market for legal services”.

He added that the surge in private equity and its “bankrolling of litigation funding” has facilitated hiring moves for both transactional and contentious lawyers. UK law firms have been placed under pressure by the competitive payment structures, recruitment options and culture offered by the American firms – seeing “magic circle” firms increase NQ rates by 50% over a 5-year period. Payments have proven to be one of the most divisive areas separating British and American firms in London where US partner pay can reach US$20 million per annum, an unprecedented level in the London legal market.

Edwards Gibson’s research on firm-by-firm partner recruitment statistics was also cited – Kirkland & Ellis dominated the market in 2023 with 18 partner hires, with Paull Weiss following with 14. However, US firms did not take all five top spots; UK firms ranked to hold third, fourth and fifth place. Whilst the hiring pressure offers confidence in the London market, Edward’s Gibson’s data on lateral moves has shown that poaching is a “growing trend”. Putting further pressure on firms to compete in areas such as pay. The first six months of 2024 have seen the greatest number of such moves in the past four years, indicating the significant change to the legal landscape brought by the substantial growth of US firms.

Read the full Financial Times (paywall) article here.