London law firm market update Q3

Law firm hiring gained renewed momentum in Q3, reflecting a broader shift in market confidence across transactional practices. While activity hasn’t returned to pre-slowdown levels, firms are clearly repositioning for growth – particularly in corporate, finance and specialist funds teams. With mid-level talent in high demand and sector-specific trends shaping recruitment strategies, the legal hiring landscape is evolving in step with deal flow and client priorities.

Corporate

Q3 was a clear reactivation point for the corporate legal market in London. This rebound is closely tied to improving deal activity and a more optimistic outlook for private equity-sponsored transactions moving into Q4.

Most hiring freezes were lifted across US firms, leading to a noticeable uptick in junior to mid-level (1–4 PQE) roles. While private equity remains a consistently popular area for both law firms and candidates, this quarter saw a resurgence in M&A hiring. This included both exclusively private M&A roles at mid-market and transatlantic practices, and public M&A/ECM roles at elite US firms, which are primarily targeting mid-level candidates. Other US teams have put in watching briefs not tied to a specific practice or split of work, as the focus is on quality and drafting skillsets.

Sector-wise, firms are focusing on energy & infrastructure, tech-heavy deals, and building out life sciences/VC and corporate energy M&A teams.

Finance

The finance market has seen a similar uptick, with sponsor-side leveraged finance remaining a key area of focus. With the NQ season completed and most junior roles (0–1 PQE) filled, demand has shifted toward mid-senior level lawyers (4–5 PQE and 7+ PQE); lender-side skillset and bank client exposure, and fund finance and private credit have emerged as high-demand areas.

After a downturn, real estate finance is also making a return across all levels. Meanwhile, financial restructuring has seen a notable rise in hiring, driven by both creditor- and debtor-side practices and special situations teams. A number of soft-cultured US firms are actively seeking 0–3 PQE Associates, and due to the limited pool of candidates, we’ve seen increased traction from NZ/Aus lawyers.

The quarter was also marked by notable partner and team moves in transactional finance, prompting many associates to adopt a “wait-and-see” approach. Despite this, the challenge in meeting the 2000 target hours suggests we may see more lateral movement or increased interest in work-life balance moves from Associates.

Funds

The funds market has been relatively quiet, with most opportunities coming from international firms offering broad exposure across asset classes, such as private equity, credit, and infrastructure funds, alongside lower target hours than US firms.

However, demand for secondaries expertise continues to be a consistent theme among US firms, especially at the mid-senior level. We’re also seeing a gradual increase in hiring activity from teams looking to build out specialisms in credit and real estate funds, suggesting a more targeted growth strategy heading into Q4.

Disputes

Disputes hiring remained slow in H1, with limited junior-level movement. Most activity came from boutique firms handling increased workloads and US firms making strategic corporate-support hires, mainly due to attrition.

We’re now seeing more roles open up, particularly in construction and energy/infrastructure disputes, reflecting continued global investment and project-related claims. Arbitration remains the top area of interest for candidates, especially where firms offer exclusive arbitration mandates or split roles.

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