This year has seen several notable moves within the legal industry that have captured significant attention, even as the lateral partner hiring market appears slow at the outset of 2025. Despite high-profile transitions, such as Cravath, Swaine & Moore’s recruitment of former Paul Weiss partner Andrew Finch and Kirkland & Ellis’s hiring of a five-partner group from Skadden, the market’s overall pace has been modest.
Legal recruiters are attributing this anomaly to the strong performance of large law firms in the previous financial year, which has left many partners inclined to wait and see how much their equity shares will appreciate before making a move. Kay Hoppe, a seasoned recruiter in Chicago, suggests that this scenario might represent “the lull before the storm” as firms begin revealing the increased value of partner shares. Jon Truster of Macrae highlights the impact of this dynamic, where incremental increases in share values could make external offers seem less enticing.
Data from Firm Prospects indicates a notable decrease in partner hires during the latter part of 2024, with only 441 partners recruited in the fourth quarter compared to the earlier quarters of the year. However, the slow start reported for January 2025 could potentially change as it aligns with a similar seasonal trend observed in previous years.
The legal landscape, particularly in New York, has evolved in recent years with more firms embracing a proactive approach to lateral hiring. This shift, as noted by Mark Jungers of CenterPeak, increases competition for top talent and simultaneously induces some degree of instability within firms as they navigate this new strategic approach. Consequently, the landscape remains dynamic with the potential for heightened activity in the coming months.
Such developments indicate a competitive atmosphere among elite firms seeking to bolster their ranks while dealing with attrition to other top-tier rivals. Indeed, the current ebbs in the hiring wave could merely foreshadow a more vigorous period of recruitment activity later in 2025. For further insights, click here to read more about the ongoing developments in the lateral market.