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Market Intel

Where Are California Law Firms Investing in 2026, and What Does It Mean for Associates?

Lauren Adams
October 19, 2026

California remains one of the most strategically important legal markets in the United States. From Los Angeles and San Francisco to Silicon Valley and San Diego, leading law firms are continuing to invest in their presence across the state, expanding offices, recruiting partners and strengthening practices aligned with their clients' evolving needs.

Recent developments suggest that this investment is becoming increasingly targeted. Rather than simply increasing headcount, firms are building teams around particular industries, client relationships and practice areas where they see opportunities for long-term growth.

For associates, these decisions matter. A new office, a high-profile partner appointment or an expanding practice can influence the type of work available, the clients lawyers are exposed to and their opportunities for career progression.

So where are California law firms directing their investment in 2026, and what should associates take from these developments?

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Los Angeles: Competition for Corporate and Transactional Talent

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Los Angeles continues to attract investment from leading national and international law firms, particularly those seeking to strengthen their relationships with corporate clients, private equity sponsors and businesses operating across the entertainment, media and technology sectors.

One notable example is Davis Polk & Wardwell, which opened its Los Angeles office in May 2026.

The firm has since continued building its presence, including the October appointment of Glen Mastroberte, formerly head of Skadden's global media and entertainment group, as a partner in its M&A practice.

The appointment illustrates how firms can use established partner relationships and sector expertise to accelerate their growth in a new market.

For associates, this type of expansion can be significant. An incoming partner may bring an established client base, new transactions and opportunities for lawyers to develop experience in areas that complement the firm's existing strengths.

However, not every office opening or partner hire translates immediately into associate vacancies. Much depends on the volume of work, the composition of the existing team and the firm's wider recruitment strategy.

Associates considering a move into a growing Los Angeles practice should therefore look beyond the headline announcement and understand the commercial rationale behind the expansion.

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San Francisco and Silicon Valley: Private Equity and Technology Remain Priorities

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Northern California continues to offer law firms access to an important concentration of technology companies, venture-backed businesses, private equity investors and established corporate clients.

Although San Francisco and Silicon Valley are closely connected, firms' strategies across the two markets are not necessarily identical.

Silicon Valley has traditionally been associated with emerging companies, venture capital and technology transactions. San Francisco also supports a substantial market for private equity, M&A, finance and complex litigation.

Recent partner appointments demonstrate how firms are positioning themselves to serve these clients.

In August 2026, Weil, Gotshal & Manges announced the addition of private equity partners Jonathan Stott and Michael Hanna in San Francisco.

The appointments followed the firm's 2024 openings in San Francisco and Los Angeles, which extended its longstanding Silicon Valley presence into two additional California markets.

Weil reported that it now had 20 California-based partners focused on advising its private equity clients.

This is an example of investment extending beyond an initial office launch. Firms may continue developing their California platforms over several years, recruiting senior lawyers with complementary expertise and strengthening their ability to serve clients across different offices.

For associates, the relevant question is not simply whether a firm is expanding, but how that expansion could affect their experience.

Joining an established practice and joining a team in an earlier stage of development can offer different opportunities. A growing team may provide exposure to new client relationships and the development of a practice, while a more established group may offer a different balance of training, supervision and institutional support.

Neither is automatically the better option. The right choice depends on the individual lawyer's experience, ambitions and preferred working environment.

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San Diego: A Growing Focus on Life Sciences and Healthcare

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Investment in California is not confined to Los Angeles and the Bay Area.

San Diego's established biotechnology and life sciences ecosystem makes it an attractive location for firms seeking closer relationships with companies operating in healthcare, pharmaceuticals, medical technology and related industries.

In October 2026, Haynes Boone opened a new San Diego office, its fourth in California, alongside Orange County, San Francisco and Palo Alto.

The office is led by Jeffrey Morton, who also co-chairs the firm's Biotechnology Practice Group, and is intended to strengthen the firm's service to life sciences, healthcare and technology-driven clients.

The expansion reflects the breadth of legal services required by businesses in these sectors, from intellectual property protection and regulatory advice to financing, corporate transactions and disputes.

For associates, this highlights the importance of industry knowledge alongside technical legal expertise.

A corporate lawyer advising biotechnology companies, for example, may develop a different set of commercial insights from someone working primarily with financial sponsors or established technology businesses.

As firms continue to develop sector-focused practices, associates who understand the industries their clients operate in may be better positioned to contribute commercially and build lasting client relationships.

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What Does the Lateral Hiring Data Tell Us?

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Individual firm announcements offer useful insight into strategic priorities, but broader lateral hiring figures provide additional context.

According to a September 2026 California Lateral Attorney Market Report, using data from SurePoint Legal Insights, approximately 4,100 experienced attorneys joined California law firms as laterals during the 12 months ending June 2026.

That represented approximately 16% of lateral attorney arrivals across the United States.

The distribution of those moves is particularly revealing:

  • Litigation accounted for 51% of California lateral arrivals.
  • Labour and employment represented 14%, compared with 7% nationally.
  • Los Angeles recorded approximately 1,300 lateral arrivals.
  • San Francisco recorded approximately 720.
  • San Diego recorded approximately 380.

These figures demonstrate that lateral movement extends well beyond the corporate and private equity practices that frequently attract attention through high-profile partner appointments.

Litigation and employment practices represent a substantial proportion of the state's lateral market.

It is important, however, to distinguish between completed lateral moves and current hiring demand. These figures include attorneys across seniority levels and do not necessarily indicate where the greatest number of associate vacancies exists today.

For lawyers evaluating their options, the most useful assessment combines broader market trends with a detailed understanding of hiring activity within their specific practice area and experience level.

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How Does Partner Investment Create Opportunities for Associates?

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When a law firm recruits a partner or launches a new practice, associate hiring is not always the immediate priority.

The firm may initially focus on integrating the partner's existing clients, establishing internal relationships and determining how much support is required.

As a practice develops, however, the need for additional associates may become clearer.

This can create opportunities for lawyers with relevant technical experience, sector knowledge or the ability to work across complementary practice areas.

The nature of those opportunities will vary.

Some firms may need associates capable of supporting an established book of business from the outset. Others may be looking for lawyers who can help build a practice over time, work across offices or contribute to the development of new client relationships.

For associates, understanding these distinctions is important.

A growing team may offer valuable experience, but the size of the opportunity should be assessed alongside the quality of work, available supervision, realistic progression prospects and the firm's long-term commitment to the practice.

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What Should California Associates Consider Before Making a Move?

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For associates considering a lateral move, firm expansion can be a useful starting point for identifying potential opportunities. It should not, however, be the only factor influencing a career decision.

There are several questions worth considering.

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What is driving the firm's investment?

An expansion supported by established client demand may present a different opportunity from one intended to develop a new market or practice.

What type of work will the team offer?

Associates should understand the transactions, disputes or advisory matters they are likely to work on, rather than relying solely on the firm's reputation.

How is the team structured?

The balance of partners, counsel and associates can affect responsibility, supervision and progression.

Will the move strengthen long-term career prospects?

A higher-profile firm or growing office is not necessarily the best move if the role does not support the lawyer's professional development.

How does the opportunity compare with the wider market?

Understanding which firms are hiring, the experience they value and the opportunities available at a particular seniority level can help associates make a more informed decision.

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These considerations are particularly relevant in California, where the legal market encompasses several distinct commercial centres, each with its own industries, practice strengths and recruitment dynamics.

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Looking Ahead: A Market Defined by Strategic Investment

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California's legal market continues to attract investment, but the nature of that investment is as important as its scale.

Recent developments in Los Angeles, San Francisco and San Diego suggest that firms are making deliberate decisions about where they want to compete, which industries they want to serve and the expertise they need to support those ambitions.

For associates, this creates a market worth watching closely.

A firm's decision to open an office, recruit a partner or expand a particular practice may signal future opportunities, although the implications for associate hiring are not always immediate.

The challenge is identifying which developments are genuinely relevant to an individual lawyer's experience and long-term career objectives.

In a market as diverse as California, understanding the strategy behind a firm's growth can be just as important as recognising that growth is taking place.

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Sonder California
Considering Your Next Move in California?
Whether you're exploring opportunities in Los Angeles, San Francisco, Silicon Valley or elsewhere in California, Sonder Consultants can help you understand the market and assess which firms and teams align with your experience and career ambitions.
Our consultants work with associates across leading US and international law firms, offering confidential insight into hiring activity, practice development and lateral opportunities.
Get in touch with our team for a confidential discussion.
Get in Touch with Our California Team
Lauren Adams
Strategic Partnership & Content Lead
Michael McGinnis
Los Angeles Director
Cole Evarts
Senior Consultant