Trends, Transactional Demand, Market Swings & Salary Wars
Welcome to our June newsletter!
May 2024 provided a clear glimpse into what to expect from the legal market in the coming year. Confidence in the transactional areas of top-tier law firms is on the rise. We're seeing a steady flow of corporate associates interviewing at major US, International, and UK firms. Corporate lawyers, particularly in M&A, private equity, and debt finance, are at the heart of a fierce bidding war as firms compete for top talent in London. Freshfields Bruckhaus Deringer was the first Magic Circle firm to announce a 20% salary increase for newly qualified lawyers, sparking a quick follow-up from others, with only Slaughter & May still holding out as we head into June.
The London private practice market is busy with opportunities across practice areas, PE, M&A and leveraged finance as firms anticipate an improvement in deal activity. There are more roles at the junior levels when compared to this time last year. The standard of candidate remains extremely high and firms are taking their time with interview processes in order to make the very best informed decision about a hire. Jonathan Taylor, London Director
There's also some optimism from the rising IPO activity in London. City leaders are predicting a potential rebound for the beleaguered London Stock Exchange this year, with fast fashion giant Shein and computer firm Raspberry Pi planning listings in the capital.
With a general election set for July 4th, there's an expectation that interest rates will further decrease after the summer. Overall, the London market is showing positive signs, a contrast to the data in the U.S. Yet, despite stubborn inflation and high interest rates, the US economy has shown resilience so far in 2024.
Read any labor and employment report right now and you'll read of a slowdown in the market and unemployment not improving, yet across the globe biglaw stands there, with a positive outlook (and the numbers to back it up). Job boards are full, placement statistics are high and profits and salaries continue to increase. - Stefano Barbagallo, New York Associate Director
Biglaw firms are shifting gears in the lateral market, creating a buzz with high demand for talent in funds, finance, private equity and M&A and leveraged finance. As transactional (aka money-making) practices ramp up, expect to see enticing sign-on bonuses and more competitive comp structures come into play in New York and L.A. Across the Bay Area there is also a strong demand for those who specialise in tech transactions as well as IP litigation.
We are starting to see some exciting shifts in the market. Of note, firms have an openness to junior candidates when just 6 weeks ago this was not the case. Things in the legal recruitment world can and do change fast. - Michael McGinnis, L.A Principal Director
Over in Texas there is continued and growing demand for legal talent. As the energy sector continues to be a cornerstone of the state's economy, transactional lawyers skilled in handling large-scale, complex deals are playing a pivotal role in its evolution. Additionally, there is a sustained need for lawyers specialising in energy, projects and infrastructure, as well as regulatory and disputes. Explore further insights in our Texas salary guide.
While there remains a strong preference for locally trained talent, law firms are increasingly welcoming foreign-qualified associates to interview. If you are a lawyer qualified in Australian, New Zealand or Canada and are curious about your options as a lawyer overseas, this article "London Vs New York: Which is Better?" will provide food for thought. We have also helped three Australian lawyers this month to land roles at top-tier firms in Dublin.
Down under, top-tier clients in Sydney and Melbourne are eager to expand their high-performing tax teams, seeking associates and senior associates. Plus, there's a high demand for legal professionals in projects, energy & infrastructure, and banking & finance. You can also learn more about the recent salary increase in our Australia salary guide.
Last but not least, we've also been busy with our own recruitment efforts and are thrilled to welcome Jessica Chang to the team in New York. Jessica joins us as a Legal Search Consultant, and brings with her expertise and market knowledge from another legal recruitment agency and from her time spent as a litigator in the City. Welcome Jessica Chang ??
Latest Articles
Guide for Canadian Finance & Corporate Lawyers Eyeing New York or London
The Unique "Value Arc" of BigLaw Associates and the Importance of Timing a Move
New Texas Legal Market & Salary Guide
Across AM Law 100 firms M&A partner headcount growth has increased by 91% between 2019-2024 in Dallas, Texas. Tax has seen a partner headcount growth rate of 56%, while over in Houston, Litigation (+41%) and Banking and Finance (+38%).
According to data collected on Pirical, Dallas is the U.S. city with the most substantial growth, with overall partner headcount increasing by an average of +48% between 2018 and 2024.
Discover more on the evolving market conditions and recruitment trends in our Texas legal market snapshot.
The Sonder Podcast ??
Gabriella O’Grady represented Australia in the 400 meters at multiple international competitions, including the World Championship Games. While competing, she also pursued a legal career, and went on to excel as a banking & finance lawyer at a top-tier firm in Sydney. Gabriella attributes her achievements to the power of self-reflection and goal setting. Tune in to discover how discipline, consistent habits and mentorship helped to shape Gabriella's success.
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Don't see a role that suits your skillset? We provide tailored search services, so don't hesitate to reach with your details, requirements and ambitions for the future, and one of our team will be in touch.
Have a great month everyone! ??