Latham & Watkins, long heralded as one of the premier US law firms operating in the UK, is facing significant challenges amid a wave of partner departures. This year alone, the firm has seen 11 of its UK partners defect to rival firms, a considerable increase from previous years. According to data compiled by legal recruiter Edwards Gibson, these exits come as part of a broader trend in London where partner mobility has surged.
Latham’s losses include high-profile figures who previously led the London office and managed key groups like intellectual property and litigation. These departures have predominantly benefited other US law firms such as Sidley Austin, Skadden, Paul Hastings, and Milbank LLP, positioning them to bolster their London practices. Scott Gibson, a director at Edwards Gibson, commented on Latham’s previous allure, describing it as having almost a “cult-like” status among its lawyers (link).
The timing of these exits aligns with a revamp in Latham’s compensation system and a surge in partner moves in London. The city’s legal market has seen about 5% more lateral movements this year compared to 2023, as other firms also experience departures and new hires. The sector’s dynamism has been particularly evident in practices like private equity and debt finance where US firms are increasingly focusing their efforts.
Notably, Sidley has been a significant beneficiary, attracting seven departing Latham partners this year. Tom Thesing, Sidley’s London managing partner, anticipates further hires to strengthen their private equity offerings. The strategic movements in London suggest an evolving landscape where US law firms are intensifying their investment, driven by client demand for comprehensive service portfolios.
The shift underscores challenges for established firms like Latham as they strive to navigate the complexities of market pressures and evolving compensation structures, while remaining competitive in attracting and retaining top legal talent.