Increase in partnership hires at law firms within the City, fueled by the thriving private equity sector.
The private equity legal market is undergoing a significant transformation, with a growing gravitational pull towards US firms and the emergence of new players in the form of the legal arms of the Big Four accounting and consulting giants.
In 2024, the market witnessed a surge in lateral hires, with a staggering 130% year-over-year increase. This trend continued into the first half of 2025, making it the busiest first half in recent years for partner hiring in London's private equity legal market.
The Big Four, including Deloitte, PwC, EY, and KPMG, are expanding their footprint in private equity by offering integrated, multidisciplinary solutions. These solutions combine legal, tax, and advisory expertise, putting pressure on traditional law firms and intensifying competition.
Key trends shaping this landscape include market consolidation and private equity interest in legal firms, the growth of Big Four legal arms, technological and strategic innovation, and a focus on high-growth sectors.
Private equity firms are actively investing in legal services providers, attracted by their recurring revenue and growth potential. The Big Four are embedding legal services into their offerings, providing a competitive edge by bundling compliance, tax, audit, advisory, and legal capabilities into holistic packages.
AI, data analytics, and advanced due diligence tools are reshaping how legal services are delivered in private equity deals. The Big Four, with their investment in technology and consulting capabilities, are well-positioned to leverage these trends in servicing private equity clients.
Looking ahead, the future of competition in the private equity legal market is expected to see further disruption from the Big Four and other non-traditional legal service providers, increased private equity investment in legal services firms, greater use of AI and automation, and a continued focus on high-value, resilient sectors aligned with ESG and technological innovation.
The demand for private equity expertise in partners is at an all-time high, with every firm's top priority being private equity, driving growth across the firm. However, the market remains male-dominated, with over 84% of all movers in London's private equity legal market since 2020 being men.
Siobhán Lewington, a partner at Macrae, commented that the first half of 2025 was the busiest first half in recent years, with 21 partner moves compared to 13 in H1 2024. Despite this, over 80% of partner arrivals in London's private equity legal market from 2020 to Q1 2025 joined leading US firms.
David Morley, co-founder of Dejonghe & Morley, stated that everyone may soon be competing with a private equity-funded firm. Despite the challenges, London's private equity legal market has shown resilience compared to volatile public markets.
In summary, the private equity legal market is evolving into a more complex, competitive environment where traditional law firms coexist and compete with legal arms of consulting giants and private equity-backed legal consolidators, all leveraging technology and sector specialization to capture growth opportunities.
Financing for the expansion of the Big Four's legal arms in private equity markets is anticipated to grow as they continue to offer integrated, multidisciplinary solutions. Given the high demand for private equity expertise, markets will see increased investment in legal services providers to stay competitive.
