Key Takeaways
- • London law firms recorded 50 private equity partner moves in 2025, nearly doubling the 28 moves in 2024, marking the highest activity level since tracking began, according to data from legal search boutique Macrae.
- • UK law firms outpaced US rivals in net growth for the first time in the tracking period, with both Magic Circle and Silver Circle firms achieving net positive growth simultaneously—a meaningful shift in competitive dynamics between London and US legal markets.
- • External promotions and in-house lateral transitions accounted for approximately one-third of all 2025 partner moves (up from 11% in 2024), signaling a shift away from traditional lateral hiring toward internal advancement and cross-firm promotions as firms build out private equity practices.
- • Leading firms acquiring PE partners included Goodwin and White & Case (four additions each), followed by Addleshaw Goddard, Akin, Clifford Chance, and Dechert (three each), demonstrating that PE growth in London is "no longer the exclusive domain of US platform firms."
- • Private equity investment into UK law firms and related businesses reached an estimated £534 million in 2024, with nearly 70% of mid-sized law firms (8–50 partners) approached by PE-backed entities or investors, driven by economic uncertainty, AI adoption, and demand for specialized practices in property and infrastructure.
Summary
Private equity has emerged as the preferred growth mechanism for UK law firms, displacing traditional merger-and-acquisition routes, according to new market research from Macrae. The shift is evidenced most starkly in London's partner hiring dynamics: the legal sector recorded 50 private equity partner movements in 2025, nearly doubling the 28 recorded in 2024. This represents the highest annual activity level since Macrae began tracking the market, underscoring not merely increased volume but a structural recalibration in how law firms are building out sponsor-side practices and competing for PE-focused talent.
The competitive landscape between UK and US firms has undergone a meaningful realignment. For the first time in Macrae's tracking period, London firms outpaced their US rivals in net growth, while US top-50 firms registered zero net growth as lateral gains and losses cancelled each other out. Notably, both the largest UK law firms and Silver Circle firms achieved net positive growth simultaneously for the first time in the dataset—a development that signals a fundamental shift in how institutional capital is being deployed across transatlantic legal markets. This rebalancing reflects growing confidence in the UK legal sector's ability to serve PE sponsors and their portfolio companies.
The composition of partner hiring has also shifted meaningfully. External promotions and in-house lateral transitions together accounted for roughly one-third of all 2025 moves, up substantially from 11% in 2024, while the share of traditional lateral hires fell from 89% to 66%. This pattern suggests firms are increasingly building practices through internal advancement and cross-firm promotions rather than relying exclusively on external lateral acquisition of established partners. Individual firm performance underscores the broadening competitive base: Goodwin and White & Case led with four additions each, while Addleshaw Goddard, Akin, Clifford Chance, and Dechert each added three partners, demonstrating that PE legal growth has moved beyond the exclusive domain of US platform firms.
The broader institutional context reflects sustained investor appetite for law firm participation in the PE ecosystem. Private equity investment into UK law firms and related professional services businesses reached approximately £534 million in 2024. MHA data conducted in conjunction with the Law Society revealed that 70% of mid-sized law firms (those with 8–50 partners) have been approached by private equity-backed entities or investors. Nearly 24% of surveyed firms indicated they are actively attracted to PE investment to fund growth and operational transformation, while 20% are simultaneously exploring litigation funding alternatives. Drivers cited include economic uncertainty, rising AI adoption, geopolitical tensions, and increased demand for specialized practices, particularly in property and infrastructure sectors where established partner teams and client bases command premium acquisition premiums.
The competitive landscape between UK and US firms has undergone a meaningful realignment. For the first time in Macrae's tracking period, London firms outpaced their US rivals in net growth, while US top-50 firms registered zero net growth as lateral gains and losses cancelled each other out. Notably, both the largest UK law firms and Silver Circle firms achieved net positive growth simultaneously for the first time in the dataset—a development that signals a fundamental shift in how institutional capital is being deployed across transatlantic legal markets. This rebalancing reflects growing confidence in the UK legal sector's ability to serve PE sponsors and their portfolio companies.
The composition of partner hiring has also shifted meaningfully. External promotions and in-house lateral transitions together accounted for roughly one-third of all 2025 moves, up substantially from 11% in 2024, while the share of traditional lateral hires fell from 89% to 66%. This pattern suggests firms are increasingly building practices through internal advancement and cross-firm promotions rather than relying exclusively on external lateral acquisition of established partners. Individual firm performance underscores the broadening competitive base: Goodwin and White & Case led with four additions each, while Addleshaw Goddard, Akin, Clifford Chance, and Dechert each added three partners, demonstrating that PE legal growth has moved beyond the exclusive domain of US platform firms.
The broader institutional context reflects sustained investor appetite for law firm participation in the PE ecosystem. Private equity investment into UK law firms and related professional services businesses reached approximately £534 million in 2024. MHA data conducted in conjunction with the Law Society revealed that 70% of mid-sized law firms (those with 8–50 partners) have been approached by private equity-backed entities or investors. Nearly 24% of surveyed firms indicated they are actively attracted to PE investment to fund growth and operational transformation, while 20% are simultaneously exploring litigation funding alternatives. Drivers cited include economic uncertainty, rising AI adoption, geopolitical tensions, and increased demand for specialized practices, particularly in property and infrastructure sectors where established partner teams and client bases command premium acquisition premiums.
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