UK firm Linklaters has reported its highest ever revenue and pre-tax profits, marking a significant achievement as the deals market has managed to counter inflation, high interest rates, and tight credit. The firm’s revenue reached £2.1 billion ($2.69 billion) for the financial year ended April 30, which is a 10% increase compared to the previous year. Pre-tax profits also increased by 10%, hitting approximately £942 million ($1.2 billion).
“Since Christmas, when the public markets opened up in a lot of places, we’ve been on a really good run of clients trusting us with the biggest, most complex mandates, and the ones that hit the headlines,” said Linklaters’ firm-wide managing partner Paul Lewis.
This accomplishment comes despite a slow deals market and an active lateral hiring landscape. Linklaters saw several departures, including four partners who joined Paul Weiss, Rifkind, Wharton & Garrison over recent months. Simultaneously, the firm has made strategic hires, such as the recruitment of George Casey and a team of five M&A lawyers from Shearman & Sterling.
Linklaters’ growth was also supported by its performance in the US market, where it achieved a 24% increase in revenue. The firm was ranked 8th in Bloomberg Law’s M&A league tables, placing it among top US Big Law firms and surpassing Davis Polk & Wardwell and Sullivan & Cromwell with $83.2 billion in deal volume for the first half of 2024.
The firm is committed to continuing its growth trajectory in the US by expanding its M&A, restructuring, insolvency, finance, capital markets, and litigation practices. “It’s a highly competitive market, in particular in New York, trying to attract the right people is not an easy process,” said Lewis.
Linklaters also plans to maintain its investment in the Chinese market, despite political tensions and heightened regulation, which have prompted several Big Law firms to scale back in the region. The firm has seen particular success in Asia energy transition projects, like advising developers on the Hai Long offshore wind farm in Taiwan last year.
Linklaters’ remarkable financial performance underscores its strategic adaptability and ability to thrive amidst challenging market conditions. Further details are available in the original report by Bloomberg Law.