No sooner have we written about the PEP earnings of big law firms when Kirkland & Ellis come out with a report (from Law.com) showing revenues growing to $7.21 billion and their profits per equity partner (PEP) rising to $7.96 million.
Despite the high profile departure of law stars like London-based Neel Sachdev to Paul Weiss’s London office, along with others who moved to the firm, the firm continues to grow its money machine profitability
The 10 percent revenue growth increases the 8 percent rise in 2022 although well below the 2021 growth figure in 2021 when the red-hot deals market fueled their profits and revenues.
We also reported on some issues with the firm last year although top earners at the firm were taking home $20 million a year. The firm however, and unsurprisingly, continues to sit high on the LawFuel ‘Most Prestigious Law Firm List’.
The growth in PEP coincided with an expansion in the firm’s equity ranks, which grew by more than 30 to 539, alongside an overall increase in lawyer headcount by approximately 100 to just over 3,500, according to Law.com.
Lateral hires throughout the year further bolstered Kirkland’s capabilities. These included the additions of leading private equity lawyer Alvaro Membrillera from Paul Weiss’s London office, and prominent banking and private credit partner Adam Shapiro from Simpson Thacher & Bartlett in New York.
The firm also expanded its presence in Riyadh by adding M&A and capital markets partners from Latham & Watkins and White & Case.
However, the firm also experienced departures, with more than a dozen private equity partners leaving for Paul Weiss in the US and UK, including notable figures such as debt finance expert Neel Sachdev in London (left) and capital markets lawyer Eric Wedel in Los Angeles.
Despite these changes, Kirkland remains committed to strengthening its global footprint. Recent hires in London, including finance partners Ian Barratt and Sinead O’Shea from Simpson Thacher & Bartlett, and tax partner James Morgan from Linklaters, underscore the firm’s continued investment in key markets.
Kirkland’s performance in dealmaking, with involvement in 644 deals worth $397 billion, secured its position at the top of the London Stock Exchange Group’s legal advisor rankings by deal value. Standout deals included representing KKR in its $24 billion acquisition of Telecom Italia’s fixed-line network and ONEOK’s $19 billion acquisition of Magellan Midstream Partners.
As the firm continues to navigate evolving market dynamics, it will need to keep adept at adapting and adjusting to the changing legal landscape. Creating lawyers earning $8 million a year and more will help – but the increasingly competitive and volatile legal scene will also keep the millionaire partners on their toes.
