The American Lawyer has released the latter part of its annual Biglaw ranking, shedding light on the financial realities of the top 200 Biglaw firms. While last month’s release focused on the top 100 firms, this announcement delves into the financial details of firms ranking 101-200, often referred to as the ‘Second Hundred’.
Encouragingly, in 2023, revenue for these firms ascended by $1.4 billion, marking a 5.9% increase from the previous year. However, when compared to a 6.8% increase in revenue for the top 100 firms in the Am Law 100, a dichotomy begins to appear. As reported by Law.com, there appears to be a widening gap in financial performance between the top tier of Biglaw firms and the rest.
Several key performance indicators reveal this disparity. For instance, the Second Hundred’s average revenue per lawyer rose by a mere 0.5%, while the Am Law 100 realized a growth of 4.9%. Likewise, average profits per equity partner (PEP) across the Second Hundred firms grew by only 0.9% compared to the 9.3% growth rate in the Am Law 100. Other metrics including average compensation for all partners (CAP), value per lawyer (VPL), and profits per lawyer (PPL), all showed a negative growth for the Second Hundred.
Yet, not all firms of the Second Hundred suffered. The leading five firms in terms of gross revenue were Baker, Donelson; Shook, Hardy & Bacon; Wilson Elser Moskowitz; Kramer Levin Naftalis & Frankel; and Bradley Arant Boult Cummings. In contrast, for the Profits per Equity Partner category, Cahill Gordon & Reindel, Irell, Cole, Scott Kissane, Choate Hall, and Lowenstein emerged at the top. Further, four firms of the Second Hundred: Irell & Manella, Munger, Tolles & Olson, Choate Hall & Stewart, and Kobre Kim, demonstrated such a strong performance in terms of revenue per lawyer that they made it to the overall top 20 based on that measure.
However, certain firms, like Shook Hardy and Lowenstein Sandler, dropped in the rankings despite seeing an increase in revenue. Also, a few firms made their maiden appearance on the Am Law ranking, including Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, Freeman Mathis & Gary, Bilzin Sumberg, Rutan & Tucker, and Chamberlain, Hrdicka, White, Williams & Aughtry.
Overall, these results paint a clear picture of the growing stratification within the Biglaw realm.
For a comprehensive understanding, refer to the full coverage.