Bloomberg Law’s Post

New: Kirkland & Ellis is offering junior lawyers $50,000 referral bonuses. The firm first doubled the bonuses from $25,000 in the fall and recently extended them through January 2025. “This suggests that corporate transactional work is increasing, which is a welcomed sign that the tides may be turning,” said Summer Eberhard, a California-based legal recruiter at Lateral Link. Meghan Tribe and Roy Strom have the story for Bloomberg Law.

The legal industry is witnessing a remarkable growth race, and Kirkland & Ellis is leading the charge. Back in 2012, DLA Piper reigned as the largest firm by revenue at $2.4 billion. Kirkland was trailing in fifth place, half a billion dollars behind the leader. Fast forward to the (almost) present day, and Kirkland stands unrivaled at the top, boasting over $6.5 billion in gross revenue in 2022. The next closest firm—Latham & Watkins—generates around 80% of that figure. Only two others—DLA Piper and Baker McKenzie—get to half the size of Kirkland when it comes to revenue. (Kirkland’s 2023 figure is $7.2 billion, but the analysis is based on 2022, the last year for which there is data on all firms.) This exponential growth has propelled Kirkland into what industry experts are calling "The Great Growth Race." Now jump ahead to 2032. Imagine the top 50 law firms have grown at the same individual compound annual growth rates as during the previous decade (2012-2022). Kirkland is once again at the top of the revenue rankings in this scenario, pulling in an astonishing $22 billion. The next closest firm generated a mere 58% of that—a not-too-shabby $12.7 billion. Only three firms in total generated even 30% of Kirkland’s revenue haul. But what does this mean for partner profits? By 2032, the average Kirkland partner will have accumulated $122 million over the previous decade—assuming its profits per partner figure replicates the 8.7% compound annual growth rate it measured from 2012 to 2022. The next wealthiest firm’s average partner will have pulled in $32 million less. The consequences of Kirkland’s drastic growth for its competitors have been chronicled in real time. The hires from elite rivals. The destabilization of the time-tested tradition of paying partners based on seniority. The professional athlete-sized compensation for the upper echelon of the profession. As an industry giant, Kirkland can leverage its resources to attract and retain top talent, further widening the gap. How will competitors adapt to this new reality? The analysis serves as a stark reminder that complacency is not an option. The Great Growth Race is in full swing, and Kirkland & Ellis is leading the charge. Check out Roy Strom's insightful analysis in the full article below. https://lnkd.in/eYk6qTFv And for more on law firm growth over the past two decades, don't miss the Fairfax Associates report. https://lnkd.in/emF-SwSY #biglaw #kirklandellis #lathamwatkins #dlapiper #bakermckenzie

The legal industry is witnessing a remarkable growth race, and Kirkland & Ellis is leading the charge. Back in 2012, DLA Piper reigned as the largest firm by revenue at $2.4 billion. Kirkland was trailing in fifth place, half a billion dollars behind the leader. Fast forward to the (almost) present day, and Kirkland stands unrivaled at the top, boasting over $6.5 billion in gross revenue in 2022. The next closest firm—Latham & Watkins—generates around 80% of that figure. Only two others—DLA Piper and Baker McKenzie—get to half the size of Kirkland when it comes to revenue. (Kirkland’s 2023 figure is $7.2 billion, but the analysis is based on 2022, the last year for which there is data on all firms.) This exponential growth has propelled Kirkland into what industry experts are calling "The Great Growth Race." Now jump ahead to 2032. Imagine the top 50 law firms have grown at the same individual compound annual growth rates as during the previous decade (2012-2022). Kirkland is once again at the top of the revenue rankings in this scenario, pulling in an astonishing $22 billion. The next closest firm generated a mere 58% of that—a not-too-shabby $12.7 billion. Only three firms in total generated even 30% of Kirkland’s revenue haul. But what does this mean for partner profits? By 2032, the average Kirkland partner will have accumulated $122 million over the previous decade—assuming its profits per partner figure replicates the 8.7% compound annual growth rate it measured from 2012 to 2022. The next wealthiest firm’s average partner will have pulled in $32 million less. The consequences of Kirkland’s drastic growth for its competitors have been chronicled in real time. The hires from elite rivals. The destabilization of the time-tested tradition of paying partners based on seniority. The professional athlete-sized compensation for the upper echelon of the profession. As an industry giant, Kirkland can leverage its resources to attract and retain top talent, further widening the gap. How will competitors adapt to this new reality? The analysis serves as a stark reminder that complacency is not an option. The Great Growth Race is in full swing, and Kirkland & Ellis is leading the charge. Check out Roy Strom's insightful analysis in the full article below. https://lnkd.in/eYk6qTFv And for more on law firm growth over the past two decades, don't miss the Fairfax Associates report. https://lnkd.in/emF-SwSY #biglaw #kirklandellis #lathamwatkins #dlapiper #bakermckenzie