Sunny Everton shares insights on the private practice market—particularly how private equity is reshaping compensation, partnership structures, talent movement and what lawyers should consider when assessing opportunities at PE-backed firms. For advice on hiring or career planning, please contact Sunny.
What's your view of the current state of the private practice market?
Cautious optimism defines the landscape. IRN Legal’s 2025 report shows the market grew 10% to £52bn in 2024, with a further 8% forecast for 2025, while solicitor headcount rose 14% (21,000 lawyers. PwC estimates current value closer to £40bn with c.5% annual growth to 2029.
The biggest shift is private equity. PE now accounts for roughly 25% of legal-sector M&A, accelerating consolidation and fundamentally changing partnership structures and competition.
How is PE capital changing compensation and partnership expectations?
Private equity is turning parts of the sector from “partner clubs funded by drawings” into “professional services businesses run like portfolio companies.” Associates often see higher cash, more structured bonuses and occasional equity-style upside.
But partnership becomes tighter, more performance-driven and more commercial. The old ‘buy-in and coast forever’ model is giving way to EBITDA-linked incentives and an expectation that partners operate like business owners, not just top technical lawyers.
Are lawyers viewing PE-backed firms as career accelerators, or do concerns about stability and culture still pull them toward traditional partnerships?
Both—just different groups.
Commercial mid-level and senior associates often view PE-backed platforms as accelerators: better tech, stronger BD support, clearer strategy and faster pathways to partnership or P&L ownership.
Others, typically early-career lawyers or those in traditional practice areas, prefer established partnerships for brand security, cultural familiarity and less aggressive performance management.
In short: the more a lawyer sees themselves as a future business builder, the more PE appeals; those valuing stability and collegiality lean traditional.
Could PE-backed firms’ tech investment force traditional firms to seek capital or risk losing talent?
This is already happening. PE-backed firms use capital to industrialise operations—automated review, pricing analytics, BD infrastructure, data tools—giving lawyers better platforms to perform.
If that gap widens, traditional firms face pressure to invest heavily (reducing drawings), merge, or seek external capital simply to remain competitive. Tech isn’t just efficiency—it signals which firms are serious about the future.
What PE investment trends should law firms anticipate in 2026, and how can traditional partnerships prepare?
Expect PE investment in 2026 to become far more targeted, with capital flowing into high-margin, scalable niches such as employment, regulatory, disputes, insurance and tech-enabled practices, alongside intensified investment in legal operations, data and AI. Traditional firms should respond by investing with intent—modernising technology, pricing and talent without waiting for external capital—while competing differently by doubling down on premium, judgement-heavy areas like complex M&A, sponsor finance, major disputes and regulatory work. They must also be honest about vulnerabilities, ensuring process-heavy, margin-light teams receive proper funding, specialist support or, where necessary, external investment. Ultimately, the firms that thrive won’t be the richest, but the quickest and most decisive.
What due diligence should lawyers do when evaluating PE-backed vs traditional firms?
Treat the process like a deal. At a PE-backed firm, understand the investment thesis and timeline, the metrics that define success—whether EBITDA, utilisation or cross-sell KPIs—the true value and conditions attached to equity or LTIPs, and how decisions are made in practice, including partner churn, leverage and governance. At traditional firms, focus on the quality of their tech investment and support, the strength of succession planning, and whether partnership prospects and compensation structures genuinely align with the firm’s client base. In both cases, discreetly triangulate the picture with recent leavers and ask yourself the simplest question: if the market turned tough for 18 months, would I still want to be here?
How are salaries faring across the sector?
Across the sector, 2025 continues to show steady upward salary pressure, with national and international firms anchoring pay, but the sharpest inflation remains in London. At top US firms in the capital, newly qualified (NQ) solicitors now earn around £170,000–£180,000, with outfits such as Quinn Emanuel, Gibson Dunn, Davis Polk, Goodwin, Kirkland & Ellis and White & Case all operating in that bracket, driven largely by alignment with the US Cravath scale. Magic Circle firms have also pushed upwards, with NQ salaries now around £150,000, following increases such as Clifford Chance’s move to £150,000 in 2024. Trainee salaries reflect the same divide: Magic Circle firms typically pay £50,000–£60,000, while US firms in London are offering £65,000–£75,000 for first years. Outside the London US/MC sphere, larger UK firms generally sit at £60,000–£82,000 for NQs, £64,000–£88,000 for associates and £67,000–£95,000 for senior associates, with legal directors and salaried partners often surpassing £150,000 in high-performing teams.
Regional and boutique firms continue to run at a discount but have nudged upward, with NQs at £47,000–£58,000, associates in the low £50,000s–£60,000s, senior associates in the low £60,000s–£70,000s and salaried partners typically above £88,000 with greater upside in specialist niches. The trade-off remains familiar: slightly lower headline pay but better lifestyle, clearer partnership routes and earlier client exposure. Overall, candidates—particularly those with portable clients, regulatory expertise, specialist disputes experience or complex real estate capability—remain in an exceptionally strong position across the UK market.
What do employers need to implement in 2026 to be successful?
AI and machine learning adoption is now essential, with nearly half of firms hitting only 50% or less of their billable targets according to Thomson Reuters—an enormous revenue leak that modern systems can meaningfully address. At the same time, recruitment and retention pressures remain intense. Salary still plays a major role, but firms that win in 2026 will also offer genuine flexible working, strong wellbeing and burnout prevention initiatives, clear career pathways and real development opportunities. Standing still on any of these fronts is a fast way to fall behind.