London enters 2026 with a legal market that is not just active, but structurally evolving.
After a period of uneven global deal flow, momentum returned decisively through the second half of 2025. What we are seeing now is a City market increasingly shaped by three clear forces: the continued rise of US firms, sustained competition for elite partner talent, and a strategic pivot by UK-headquartered firms towards deeper US exposure.
This is not simply a snapshot of activity. It is a reflection of where firms are placing their long-term bets — and, importantly, what that means for lawyers navigating the market this year.
US firms consolidate their lead in M&A and PE
Private equity remains the engine behind London’s most valuable mandates, and once again US firms dominated the M&A rankings in 2025.
At the top of the market, U.S. firms continued to dominate. Kirkland & Ellis recorded a landmark year, surpassing $1 trillion in announced M&A deal value globally, according to LSEG data. Latham & Watkins also led the UK rankings by value, advising on $86.3 billion in deals, just ahead of Kirkland’s $81.7 billion, per Law.com.
From our perspective, this reflects a structural advantage rather than a short-term cycle. Scale, pricing power and deep sponsor relationships continue to funnel London’s highest-value work towards a small group of US firms with the infrastructure to service it.
Partner mobility
Competition for partner talent shows no sign of easing. More than 600 partner moves were recorded across the market last year, reflecting both confidence in future deal flow and a continued recalibration of practice mix at the top end of the market.
Recent weeks alone underline the point. Sidley Austin has resumed its high-profile raid on Latham & Watkins in London with a senior partner hire, while Skadden, Arps, Slate, Meagher & Flom recruited Latham’s former global arbitration co-chair in what it described as a strategically significant addition.
Latham, in turn, has pushed back — adding a trio of real estate finance partners from A&O Shearman in London. It is a clear signal that firms are not only defending market share, but actively doubling down on high-value finance capabilities.
While Kirkland employed the highest number of partners overall last year, it is notable that only around one-third of those were lateral hires. That balance highlights the firm’s continued emphasis on internal promotion alongside selective external growth.
Profitability remains a powerful pull factor. Quinn Emanuel Urquhart & Sullivan reported London profits of £153.9 million in 2025, reinforcing its status as one of the City’s most financially compelling disputes platforms.
UK elite firms push back
Alongside US expansion in London, the UK elite have been steadily repositioning their own global strategies.
Freshfields, Clifford Chance, A&O Shearman and Linklaters all reported year-on-year growth in US revenues, with the US accounting for an increasing share of total firm turnover.
The clearest repositioning is at A&O Shearman. In its first full year post-merger, the firm reported £707 million in US revenues — 25% of total turnover, up from 13% on a pre-merger basis. The figures reflect a deliberate recalibration towards the US and validate the strategic logic behind the combination.
Freshfields continues to demonstrate that US scale can be built organically. US revenues rose to £473 million, lifting the Americas to 21% of global turnover. Recent mandates — including Lowe’s $8.8 billion acquisition and Merck’s $10 billion purchase of Verona Pharma — alongside the opening of a Boston office, suggest the firm is now consistently winning US-led work, rather than simply supporting it.
*If Freshfields' U.S. operation was a standalone firm it would now rank 87th in the Am Law 100.
Clifford Chance posted £385 million in Americas revenues, a 16% increase year on year, reflecting a long-term, incremental approach aligned with its globally balanced model.
Linklaters, while starting from a smaller US base, recorded a near 27% increase in Americas revenues to £189 million. Targeted lateral hiring and renewed leadership focus point to accelerating momentum, even if the US remains a smaller share of overall turnover.
While U.S. firms dominated global M&A rankings by value, UK and European firms including Linklaters and Freshfields continued to play a central role in regional M&A markets. Freshfields’ position at the top of the European tables highlights the depth of expertise and execution capability that remains firmly anchored in London and across Europe.
Independence as a competitive advantage
That said, the London market is not moving in one direction alone.
Against a backdrop of mergers and global consolidation, a cohort of independent UK firms has taken a consciously different path — and done so with confidence.
Remaining tightly structured, with a limited number of offices, has become a strategic choice rather than a constraint. For firms such as Macfarlanes and Slaughter and May, the belief is clear: prioritising specialist expertise, premium work and cultural cohesion can be just as effective — if not more so — than scale.
As Luke Powell, managing partner at Macfarlanes, has put it: “We do not believe in scale for scale’s sake.” The firm does not currently see a merger as advantageous, adding that Macfarlanes feels “in pretty rude health.”
The numbers support that confidence. Macfarlanes recorded a 20.1% revenue increase in 2024/25 — the strongest growth among the UK top 50 — and ranked second by PEP, behind only Slaughter and May.
At Slaughter and May, managing partner David Johnson has similarly pointed to the firm’s full-service model, true lockstep and premium brand positioning as enduring differentiators. “We are very confident in maintaining our independence, given that foundation,” he said.
Year after year, the independent elite continues to show that bigger does not automatically mean more profitable — and that, in some cases, merger mania sharpens rather than dilutes their competitive edge.
A reminder on the strength of the UK market
Alongside the independent elite, a broader group of UK-headquartered firms continues to demonstrate the depth and competitiveness of the City market — particularly across specialist and high-growth sectors.
Across complex commercial work, digital innovation, financial services, energy, life sciences and international disputes, City firms are advising on sophisticated, high-stakes matters for globally significant clients. For elite lawyers, UK firms offer not only technical depth and international exposure, but also compelling long-term career progression within some of the most intellectually demanding practices in the market.
They should not be overlooked.
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The latest revenue figures underline the scale gap within the UK market. DLA Piper, A&O Shearman and Clifford Chance continue to lead by turnover, while firms such as Macfarlanes, Slaughter and May and Simmons & Simmons maintain highly profitable, more focused models.
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Looking ahead: what 2026 is likely to bring
From a recruitment perspective, 2026 is shaping up to be a more active and opportunity-rich year than the last — albeit with a consistently high bar.
We are seeing more roles coming to market across London, particularly at the associate and counsel level, as firms respond to increased deal flow, fuller pipelines and capacity pressure in key practice areas. Hiring is no longer limited to pure replacement; many teams are adding headcount to support growth, especially where client demand has remained resilient.
That said, selectivity remains a defining feature of the market. Firms are clear on what they want, and expectations around technical strength, training pedigree and commercial judgement remain high. The result is a market with genuine opportunity for well-positioned lawyers, rather than broad-based expansion.
Several trends are already emerging:
- Increased volume of live mandates across PE, M&A, finance, disputes and specialist corporate practices
- More willingness to hire at multiple PQE levels, where teams are building depth rather than plugging single gaps
- Faster hiring processes for strong candidates, as firms look to secure talent ahead of competitors
- Continued competition for high-quality associates, particularly those with Magic, Silver Circle or US firm training or strong sponsor exposure
For lawyers, this means the market is opening up — but preparation matters more than ever. Those who understand where demand is, how firms are hiring and how to position themselves effectively are best placed to take advantage of the momentum.
From where we sit, 2026 is not about lowering standards. It is about more opportunity, for the right candidates, in the right teams, at the right time.
