Very (very!) strong financials

Latham & Watkins has joined Kirkland & Ellis in the $7 billion revenue club after posting a record-breaking financial performance for 2024.

The Los Angeles-headquartered firm saw its revenue surge 23% to $7 billion (£5.4 billion), while profit per equity partner (PEP) jumped 29% to an eye-watering $7.1 million (£5.4 million). That leap — representing a $1.3 billion year-on-year increase in revenue — was driven not by a significant increase in lawyer headcount, which rose just 4% to just under 4,000, but by a sharp 18% rise in revenue per lawyer to just under $2 million.

Latham has become only the second law firm to surpass the $7 billion revenue mark, following closely behind its major US rival, Kirkland & Ellis, which reached $7.21 billion in 2023. Kirkland, the world’s largest law firm by revenue, is now expected to approach $9 billion when it reports its 2024 figures — a staggering sum that would further cement its dominance. Last year, the firm’s profit per equity partner (PEP) stood at $7.96 million (£6.15 million) and could exceed $10 million in the latest round.

The contrast between US firms and the UK’s Magic Circle continues to widen. While full-year results for 2024 have yet to be released, the top UK firms remain well behind their US counterparts.

The Legal Cheek Firms Most List shows Freshfields was the highest-grossing Magic Circle firm in 2023-24, posting revenue of £1.84 billion and PEP of £2.09 million. Clifford Chance followed with revenue of £1.97 billion and PEP of £2 million, while A&O Shearman recorded £1.94 billion in revenue and PEP of £1.82 million. Though Slaughter and May are infamously shy when it comes to their financials, PEP is rumoured to top the MC charts at between £2-3.5 million. Though impressive, these figures are less than half — and in some cases, less than a third — of those achieved by Latham and Kirkland.

Latham’s London office, its largest outside the US, played a significant role in the firm’s growth. Turnover in the City rose 25% to $850 million (£657 million), outpacing the growth seen across the wider firm. Latham has expanded its London partner count by 50% over the past five years to 140, although it did lose 13 partners in 2024.