A ten-year analysis of Legal 500 data highlights the ever-growing status of top Global London firms in London, as Georgina Stanley and Ben Wheway explain
The ten largest Global London firms have almost tripled their top-tier rankings in the UK Legal 500 over the last ten years, according to data analysis which highlights their increasing penetration at the top end of the City legal market.
The group (full list below*) have increased their combined number of tier one rankings by 186% from 21 to 60 over the last decade. This compares with a 32% increase in top-tier rankings for the ten largest UK firms by revenue, from 158 to 208.
The increase for both sets of firms can be partially accounted for by the London guide expanding its practice coverage over the years; however, the more complete explanation for the international firms is that their work – and profile – has grown on this side of the Atlantic after years of expensive lateral hiring from Magic Circle and City firms. This position is supported by the fact that the same ten firms only increased their overall London rankings by 2% over the same period.
A detailed look at The Legal 500’s historical data suggests the international group’s hiring across finance, projects and investigations has paid off particularly well. Over the ten-year period, three of the Global London top ten have gained tier one rankings for acquisition finance and emerging markets, which has a heavy finance focus, while two have joined the top tier in the restructuring; oil and gas; investigations and ECM tables.
Looking at the increase in tier one rankings by firm, the biggest climbers include Latham & Watkins, which ten years ago had just one top-tier ranking and now has eight. Other strong performers over the decade include Baker McKenzie – which already counts London as one of its largest offices and has stated its commitment to further growth in the City – Dentons, which has a strong showing in some of the new sector-focused rankings, and White & Case, which has added six tier one rankings in ten years.
Latham and Kirkland & Ellis, arguably the leaders of the pack when it comes to eye-catching lateral hiring, have both secured coveted top-tier rankings for acquisition finance. With Weil, Gotshal & Manges also gaining a tier one spot in this table, it highlights the impact Global London firms have already made in a practice in which transatlantic capabilities and high-yield capabilities play an increasingly important role.
The overall rankings growth for Global London firms compares strongly against the overall picture for the UK top ten. While there are standout performers, such as CMS – which added a raft of tier one rankings as a result of its 2017 combination of Nabarro and Olswang – the majority of the largest UK firms have seen their total rankings decrease over ten years, with the combined number falling by 6% since 2012.
*Baker McKenzie, Dechert, Dentons, Jones Day, Kirkland & Ellis, Latham & Watkins, Mayer Brown, Reed Smith, Weil, Gotshal & Manges, White & Case (this group excludes Bryan Cave Leighton Paisner as it also appears in the UK LB100 table)