Murkier is how much the British firms are earning for US work. Kirkland & Ellis, the world’s largest firm by gross revenue, reported average equity partner profits nearing $7.4 million per equity partner. Still, 23 firms with significant operations in the US crossed the $4 million mark in profits per equity partner last year.Įlite Manhattan firm Wachtell, Lipton, Rosen & Katz reported $8.4 million in average partner profits last year, according to data compiled by the American Lawyer. Slaughter & May did not publicly report its profits and revenue.ĭirect comparisons to US firms are difficult because fiscal years and exchange rates vary. Clifford Chance partner profits rose to 2.04 million pounds ($2.49 million), a 10% increase.Īllen & Overy and Linklaters each saw single-digit profit gains over the year. The firm reported profits per partner of 2.07 million pounds ($2.54 million) last year, a 14% gain from a year earlier. Profit Positionsįreshfields led the Magic Circle in average partner profits last year, according to data self-reported by four of the five firms.
The profit differentials limit what they can do to consistently and successfully compete for talent with the country’s leading firms. Others, like Allen & Overy, have explored mergers with US firms and brought over experienced lawyers from Europe. “By most measures, they are not as profitable by a significant margin.”įour of the UK’s five “Magic Circle” firms-a nod to their elite pedigrees and top-shelf clients-have already updated their pay structures to attract rainmakers as they look to expand stateside and fight off growing competition from US firms on their home turf.įreshfields, Bruckhaus Deringer has been the most aggressive of the group, landing heavyweight lawyers from top-flight US firms and launching a bustling office in Silicon Valley. “It’s been a challenge,” said Brian Davis, a legal recruiter for Major, Lindsey & Africa, referring to efforts by UK firms to compete in the US. That’s still well behind the most profitable US firms, whose profits per partner ranged from $4 million to more than $8 million last year. London’s largest global firms saw average equity partner profits increase last year, reaching as high as $2.5 million apiece.
Major UK law firms taking the competition against US rivals stateside are falling short in one important category: profits.
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