Fund finance emerges as one of London's hottest lateral markets

London's partner hiring market remained close to record highs in the first half of the year, with fund finance and international arbitration emerging as two of the hottest practice areas.

According to data from Edwards Gibson, 319 partner-level moves were recorded between January and June, down 10% on last year's record-breaking 353 but still the second-highest first-half total since the legal recruitment consultancy began tracking the market in 2007.

Activity accelerated further during May and June, when 113 partner moves were announced - up 6% on the same period last year and comfortably ahead of both the five-year and ten-year averages.

Private capital drives fund finance boom

One of the clearest trends has been the surge in demand for fund finance specialists.

Seven firms hired fund finance partners during May and June alone. Edwards Gibson said the practice had evolved from a relatively niche area into a specialist lateral market as private capital managers increasingly seek new ways to manage cashflow, support portfolio companies and bridge delays in returning capital to investors.

Among the biggest moves, Paul Hastings hired Reed Smith's global head of fund finance Leon Stephenson, while Weil recruited A&O Shearman co-head of fund finance Fiona Cumming.

Reed Smith was particularly hard hit in the first half of the year, losing three fund finance partners. Alongside Stephenson's departure, Chu Ting Ng joined Simmons & Simmons, while Linn Mayhew moved to Eversheds Sutherland.

Arbitration also in demand

International arbitration was another standout practice area, accounting for more than one in ten lateral hires during the two-month period.

The headline move was King & Spalding's recruitment of a six-partner arbitration team from WilmerHale led by market heavyweight Gary Born, one of the largest team hires of the year.

Edwards Gibson said that international arbitration stands apart as one of the few disputes disciplines in which top partners can carry significant books of business between firms - a key driver behind almost all lateral moves.

Most active firms

Paul Hastings and Shoosmiths were the most active recruiters over the first six months of the year, each hiring 10 partners. Eversheds Sutherland followed with nine, while King & Spalding added eight laterals. Latham & Watkins and Winckworth Sherwood each hired seven partners.

On the other side of the ledger, DLA Piper recorded the highest attrition, losing 11 partners to rivals. Clyde & Co lost eight, while Kirkland & Ellis saw seven departures. A&O Shearman, CMS, Goodwin, Weil and WilmerHale each lost six partners.