The latest figures from Law.com’s Global 200 reveal that the U.K.’s top 50 law firms have delivered another year of profit growth — but beneath the surface, the gulf between partners is widening at an unprecedented rate.
Profit per equity partner (PEP) rose by 6.2% across the group in the last financial year. This increase is notable given the 9.6% rise in equity partner numbers, which diluted the headline figure. Yet averages only tell part of the story: some firms recorded double-digit gains, while others slipped backwards.
A Market of Contrasts
At the top end, Slaughter and May and Macfarlanes remain dominant, with average PEP of £3.75 million and £3.1 million respectively. Linklaters posted an impressive 16% increase, climbing to £2.2 million, while Freshfields slipped 4% but still outpaces its Magic Circle rival in both revenue and earnings overall.
Outside the elite, Stewarts surged by 33.8%, while Shoosmiths and Stephenson Harwood also posted strong double-digit growth. In contrast, Burness Paull suffered a steep 21.6% decline, and Weightmans fell 15.3%.
Winners and Losers Within Firms
The more striking trend lies in the spread of equity. The top of equity across the U.K.’s biggest firms jumped 18.6% to £1.38 million, while the bottom end dropped nearly 10% to £291,000. The disparity between star rainmakers and junior partners has never been greater.
As one managing partner put it, “junior partners are being squeezed as star performers pull further ahead.” This reflects a wider industry shift: rewarding those with the deepest client relationships, particularly in high-demand practice areas.
The Private Capital Effect
Private capital continues to be one of the most profitable engines for global law firms. As Luke Powell, managing partner of Macfarlanes, explained:
“Private capital firms tend to have strong personal relationships with the people they work with. They do a lot of transactions and spend a lot of time with their lawyers. Those partners are very important, and that’s where you see the term ‘rainmaker’ most often applied.”
In practice, this means firms are increasingly channelling rewards to their most connected partners — a strategy designed to retain rainmakers who anchor critical client relationships.
What This Means for Lawyers
For mid-level associates and junior partners, these figures should be read carefully. Profitability matters — but so does how firms distribute it. As the gap between rainmakers and junior equity partners widens, it’s vital to ask: is my platform equipping me for long-term success?
The right firm should provide not only strong financial performance, but also the infrastructure, mentorship, and client exposure that enable the next generation of partners to thrive. Choosing that platform is one of the most important career decisions a lawyer can make.
Outlook
The U.K. legal market remains resilient, but its profitability story is increasingly uneven. For associates with partnership ambitions, the lesson is clear: the path to equity may be narrower, but for those with the right expertise and networks — particularly in growth areas such as private capital — the rewards have never been greater.
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If you’re a mid-level associate or junior partner, the platform you choose today will shape your future success. At Sonder, we specialise in helping lawyers identify the firms that offer the right mix of profitability, progression, and client exposure.
Get in touch with our London team to discuss which opportunities best align with your career goals.
