UK Law Firms in London
Even in these uncertain times, most UK law firms will be looking to hire partners into the firm either to replace departing partners opportunistically or to strategically grow specific sectors.
Demand for UK Partners within UK Firms in London
While there will be opportunistic roles available to any partner with a sizable following, the majority of the demand strategically is in the following areas:
- Insolvency/restructuring
- Corporate
- IP/IT
- Insurance/reinsurance
- Funds
- International Arbitration
- EU/Competition
- Commercial Litigation
Small to medium-sized firms are more opportunistic. Many firms of this size (5-30 partners) are interested in 'business case' as against specific area of law. By this we mean as long as the individual brings in sufficient following compared to expected earnings, then that is acceptable.
Followings Required to be Considered For UK Firms in London
In today's market, followings are almost essential to make a move.
For Magic Circle practices, being known and being a recognised serious player is just as important as being well connected with serious clients. Quality and track record are of most importance.
The medium to large practices will almost always expect a following as a sign of the individual's ability to generate and develop relationships with clients. The value of the followings sought will vary depending on the specific firm, but will normally be in the range of £750,000 - £1 million to achieve immediate equity.
The small to medium-sized practices are very opportunistic and will always expect individuals to bring decent followings. That value required will differ enormously, but will typically be in the range of £250,000 to £400,000 plus.
In general, many practices work on the basis that equity partners should generate three times whatever they wish to earn. Whilst this is not an exact arithmetic calculation for many medium-sized firms, for the smaller firm it can be as precise as this. So if an individual wished to earn c.£250,000 they would be expected to generate c.£750,000 in fees. With very small practices, some pay up to 50% of what individuals generate.
Capital Contributions
These vary enormously from firm to firm. The most common level for plateau equity partner is between £150,000 - £200,000. In practical terms this figure can be as low as £100,000 and as high as £500,000.
Notice Period
The vast majority of equity partners in the largest firms are on 12 months notice. This is often 6 months within the smaller London firms.