Sector Focus: Restructuring & Insolvency market update

The restructuring and insolvency market remains active as economic uncertainty, high interest rates, and sector-specific challenges drive increased demand for specialist legal expertise. 2024 saw a rise in corporate distress across real estate, retail, and energy, with an uptick in formal insolvencies and complex cross-border restructurings. This trend is expected to continue into 2025, particularly as businesses face mounting refinancing pressures.

Key trends shaping the market:

• Increased demand for creditor-led work – Lenders are taking a more proactive approach, leading to a rise in financial restructuring mandates.
• Distressed M&A activity on the rise – Private equity and opportunistic investors are targeting struggling businesses, requiring sophisticated legal support.
• Regulatory scrutiny and ESG considerations – Sustainability-linked finance and governance issues are increasingly influencing restructuring strategies.

Law firms, no matter whether they are large international or mid sized are looking to strengthen their restructuring and insolvency teams to meet growing client needs.

Despite a number of firms having hired over the past year, many are still looking with a focus for most to hire non contentious partners particularly that have practices less related to bank panel work.