Clash of the Titans: Linklaters’ US Growth meets a $3bn Merger
Things are heating up for British firms on the other side of the pond as Linklaters has reported record revenues and profits, breaking the £1bn profit mark for the first time. According to the firm, this was driven by a strong performance across all core markets, particularly in the US, where profits jumped by 57%. Since 1st of May 2024, the firm has elected 34 new partners, with 13 of these being lateral hires in the US. It would seem that the Magic Circle’s long term investment in the US is beginning to pay off.
Meanwhile, US firms McDermott Will & Emery and Schulte Roth & Zabel have completed their merger. The former brings deep expertise in healthcare and private equity, while the latter in investment funds and financial services. This merger creates a firm with revenues over $3bn and over 1,750 lawyers, and positions it to expand aggressively outside the US.
So what does this mean?
These moves are part of the same trend of transatlantic consolidation and concentration. UK firms are successfully chasing US market share, while US firms are scaling up to capture more work in London and Europe.
These shifts are likely to intensify competition in the most lucrative sectors (private equity, capital markets) as firms on both sides of the Atlantic fight for the same work. This competition will be reflected in the talent war currently raging in London, with Magic Circle players under pressure to boost salaries to match their American counterparts.
For aspiring lawyers, this is a case study in how market structure shapes careers, training and client expectations. The next few years will reveal whether patient international growth or record-breaking mergers will be the winning play.
Quickreads ⌚️
EU AI Act – First Binding Framework for General-Purpose AI
The EU’s AI Act has entered into force for general-purpose AI systems, imposing new transparency, documentation and risk-management requirements. UK firms with EU-facing clients will need to review supplier contracts and internal AI policies to ensure compliance.
Arbitration Act 2025 – Modernising UK Arbitration Law
The Arbitration Act 2025 has replaced key provisions of the 1996 framework, streamlining proceedings and updating the law for modern commercial disputes. Arbitration clauses will need to be revisited to align with the new regime.
Read More (this is actually a podcast by Freshfields)
Anexo Group to Go Private in £12m Deal
Listed legal services provider Anexo Group will be taken private by its majority owners in a £12m buyout ahead of a planned delisting. This move raises questions about the long-term viability of listed law firm models.
Milbank Summer Bonuses Signal Pressure on London Pay
Milbank has reinstated special summer bonuses for its US associates, a move that’s likely to ripple across the Atlantic. Firms in London may face fresh pressure to raise pay to keep pace in the ongoing talent war.
What to Watch 👀
- Expect further pay moves in London as US and Magic Circle firms compete for talent.
- McDermott-Schulte’s merger could spark more large-scale combinations aimed at capturing greater market share
- UK firms with EU clients will have to re-examine AI tools and supplier contracts
- Signals of higher investor appetite for AI tools targeting mid-market firms. Automation will reshape junior work.
Data in the Deal – The LegalTech digest 💡
August Fundraising
August, a legal-AI startup founded by Columbia University alumni, secured $7 million in a seed funding round led by venture capital firms NEA and Pear VC. August’s modular AI agents aim to help midsize law firms automate document-heavy tasks like contract review and due diligence, freeing up lawyers to focus on higher-value, client-facing work.
Ministry of Justice launch AI chatbot
The Ministry of Justice is piloting an AI chatbot as part of its Digital Justice Systemprogramme, designed to help users resolve child arrangement disputes without going to court. Trained on gov.uk content, the tool aims to improve access to justice, reduce court load, and guide citizens toward alternative resolution methods
The Docket & Deal 
Leave a comment