The art of attracting and retaining top legal talent in UK private equity and portfolio companies

Private equity firms and their portfolio companies (portcos) in the UK are increasingly recognising the strategic importance of legal professionals. No longer confined to compliance and risk mitigation, legal talent is now central to deal execution, governance, and long-term value creation. When hiring legal teams for private equity and portcos, a comprehensive attraction and retention strategy is essential for competitive advantage.

Legal as a strategic partner

Early integration is particularly powerful. Many PE firms now embed legal professionals into portcos within the first 100 days post-acquisition. This isn’t just about ticking compliance boxes—it’s about setting the business up for success. Legal leaders help build governance frameworks, navigate regulatory hurdles, and protect intellectual property from the outset. Their involvement ensures decisions are made quickly, confidently, and with reduced risk.

This kind of integration sets the tone for how legal will contribute throughout the investment lifecycle. It also signals to legal professionals that their expertise is valued—not just needed.

Creating conditions for legal talent to thrive

Retention starts with respect. Legal professionals stay when they feel heard, empowered, and supported. They want to be part of the conversation, not just called in after decisions are made. When legal is involved early and consistently, professionals feel their role is strategic—not reactive.

Clear expectations are also critical. Misalignment between what’s promised and what’s delivered—whether in terms of influence, resources, or team structure—can quickly lead to disengagement. Legal professionals are typically high performers with a strong sense of purpose. If their remit is unclear or underwhelming, they’ll look elsewhere.

Career progression is another key factor. Many legal leaders are ambitious and want to grow—whether that’s gaining broader commercial exposure or moving towards board-level influence. If those opportunities aren’t visible or achievable, retention becomes a challenge.

Culture plays a vital role too. Even with generous incentives, a non-inclusive or siloed environment can erode engagement. Legal professionals want to be respected, involved, and part of a collaborative culture. When the working environment supports that, retention improves significantly.

And finally, there’s the issue of burnout. PE environments are fast-paced and demanding. Without the right support, recognition, or balance, legal leaders can quickly feel overwhelmed. Ongoing development, strategic involvement, and a clear voice at the table go a long way in keeping legal talent engaged and energised.

Structuring legal functions for impact

There’s no one-size-fits-all approach to legal team structure. Some firms benefit from centralised legal functions that offer consistency and control across the portfolio. Others prefer decentralised models that provide flexibility and responsiveness at the portco level.

The key is clarity. Legal professionals need to understand their remit, their influence, and how their role fits into the broader business strategy. When structure supports strategy, legal teams are empowered to deliver real impact.

Incentivising strategic contribution

Compensation strategies are evolving to reflect the strategic value legal professionals bring. It’s no longer just about salary and annual bonuses—long-term, performance-linked incentives are becoming standard.

In PE funds

Carry participation: Senior legal professionals—particularly those integral to deal execution—are being included in carry schemes. This aligns their incentives with fund performance and offers meaningful long-term upside.

Deal-linked bonuses: Bonuses tied to successful transactions are becoming more common, recognising the critical role legal teams play in structuring and closing deals.

In portfolio companies

Equity stakes: Legal executives are increasingly offered equity, especially in growth-stage businesses.

LTIPs (long-term incentive plans): These plans reward sustained performance and align legal leadership with exit strategies and shareholder value.

Getting the incentive structure right is essential—not just for attracting top talent, but for ensuring long-term alignment and retention.

See also: compensation for GCs in private equity.

What legal talent really wants

In our recent survey of over 300 in-house legal professionals for our global in-house legal market report and salary guide, the top three factors impacting their enjoyment of their role were unclear career progression, feelings of being undervalued and unstimulating work.

• Clear career progression: Legal professionals want clear development pathways within portcos and across PE portfolios
• Cultural alignment: A collaborative, inclusive environment where legal input is valued
• Interesting work: Keeps legal professionals intellectually engaged, sharpens expertise and fosters long-term career satisfaction

Understanding how to describe and deliver your company culture in a way that resonates with legal professionals can make a significant difference in both hiring and retention outcomes.

A shared vision for legal leadership

Attracting and retaining top legal talent in private equity isn’t just about filling roles—it’s about building partnerships. When PE firms and portcos work together to define legal roles, structure teams effectively and offer meaningful incentives, they create an environment where legal professionals can thrive.

Legal leaders want to contribute, grow, and be part of something impactful. By embedding legal into strategy, culture, and execution, firms can unlock the full potential of their legal teams—and drive long-term value across the portfolio.