Partner hiring legal update: What to expect in the 2025/26 financial year

The 2024/25 financial year marked a record period for partner hiring in the legal market, with over 500 partner moves - many driven by increased activity from US law firms. Now that the first quarter of the new financial year has wrapped up and the market has taken a breather, what can we expect for partner recruitment in the coming months?

Disputes

Partner hiring within disputes remains active, with clients across the board seeking individuals with strong books of business. London continues to serve as a global hub for international arbitration, and the disputes market retains its appeal - especially for partners with expertise in class actions, technology disputes, fraud, and white-collar crime. A proven, portable practice or track record is the key differentiator in this space.

Corporate

Corporate partner hiring is expected to maintain momentum, buoyed by increased transactional activity, falling interest rates, and improving inflation metrics. These factors are fostering renewed growth and investment in M&A. Private equity-focused partners with established client relationships and a track record of delivering are particularly in demand, as firms aim to capitalise on the large reserves of unallocated capital in the market.

Finance

After a busy year in fund finance, we anticipate a slowdown in that niche - but a shift in focus toward structured and leveraged finance is already underway. The finance partner market is seeing renewed interest in individuals with connections across private equity sponsors, alternative funders (including real estate funds), hedge funds, and corporate borrowers. Many firms are moving away from panel-driven mandates and capped fee arrangements, prioritising those with more flexible, commercially valuable relationships.

Energy & Projects

The global push toward energy transition and decarbonisation continues to shape hiring trends. Opportunities for partners in this space remain strong, with firms actively seeking to expand their capabilities in energy, infrastructure, and clean technologies. M&A and private equity experience within the energy sector is especially attractive - particularly for internationally focused partners with established client bases. The appetite for lateral partner hires in this sector shows no signs of slowing.

Real Estate

After a challenging period, the real estate partner market is showing encouraging signs of recovery. Improved confidence in corporate activity and a more optimistic investment landscape are fuelling increased deal flow. As a result, we anticipate significant growth in real estate partner recruitment by the end of the financial year.

Employment

Movement in the employment partner space remains steady but measured. Clients continue to show interest in employer-side expertise, especially where partners bring a portable book of business. However, hiring remains selective, and firms are focused on quality over quantity.

Competition

It has been a notable year for competition law partners, with lateral moves reflecting the evolving regulatory landscape. The expanding powers of the Competition and Markets Authority (CMA) - particularly across consumer protection, digital markets, and merger control - are influencing hiring decisions. While we may see slightly fewer moves than in late FY24/25, demand for antitrust and competition law expertise remains strong, and partner hiring in this area is expected to continue steadily.

What should clients keep in mind?

With continued fluidity in the partner market and increased competition for standout talent, law firms must proactively address attrition. This means offering clear progression pathways, prioritising culture and leadership alignment, and embedding those values into daily firm life.

Collaborating closely with trusted recruiters is essential to developing targeted partner-level hiring strategies. A well-defined external message and streamlined interview processes will enhance candidate engagement and hiring outcomes. Investing in retained search models will significantly improve long-term growth success.

What should candidates keep in mind?

Expectations around portable books of business continue to rise. On average, firms have increased their minimum thresholds by approximately 20% - a trend observed from national to US law firms. This reflects a shift toward more robust due diligence and a desire to understand the real portability of a practice.

As for remuneration, the long-standing industry rule of bringing home one-third of your book has now shifted closer to one-quarter. As a result, candidates should carefully assess how their practice will translate in new environments. There’s also an uptick in firms offering commission-based compensation structures - highlighting a trend toward more performance-driven remuneration at the partner level.