Profits have flatlined at the UK’s elite corporate law firms as they reach a crucial stage in their battle to grow in the US, with higher costs and a deals slowdown hitting bottom lines.
Clifford Chance, Allen & Overy and Linklaters, three of London’s “magic circle” law firms, all increased revenue in their most recent financial years but saw partner profits stall amid higher staff costs and lower demand.
The slowdown comes as two of the “magic circle” reach a pivotal moment in a bid to secure a foothold in the US market, with Allen & Overy planning a $3.4bn merger with Shearman & Sterling, and rival Freshfields Bruckhaus Deringer having invested in new offices, including in Silicon Valley.
Read the full story on the Financial Times here.