The gap between the US elite and the rest is getting wider

The gap between the top US law firms and the rest of the US legal market is getting wider, with a small group of firms building an advantage that is increasingly difficult for rivals to close.

Gibson Dunn, Kirkland, Latham, Paul Hastings and Sidley Austin have emerged as the five fastest-moving firms among the US legal elite, according to a new analysis of a decade of Chambers rankings.

The five firms have made significant gains both in the number of rankings they hold and in pushing existing practices into higher bands, with their growth concentrated around lucrative areas including private equity, M&A, debt finance, restructuring and private credit.

Chambers found that "Elite" firms hold nearly 12 times as many Band 1 rankings in premium practices as challenger firms, and that gap continues to grow.

The findings form part of Chambers' new Advantage Index, which looks exclusively at the US market, analysing the top 100 US firms using 10 years of rankings alongside financial, client and talent data.

The advantage

The research points to a self-reinforcing cycle that helps explain why the firms at the top are becoming harder to keep pace with.

Premium work attracts stronger talent, which helps firms win and execute more complex mandates. That strengthens client relationships and market reputation, helping attract more premium work and talent.

"This advantage cycle compounds over time: firms with an early advantage build momentum through client relationships, talent pipelines and accumulated matter experience," the report wrote.

The research also points to differences in the client experience between elite and challenger firms.

Based on survey responses from clients, elite firms were more frequently praised for commerciality, industry expertise, team quality, depth of resources and their ability to handle complex or novel matters.

That compares to high-trajectory challenger firms, which were praised for delivering value for money, offering competitive fees, clear communication and interpersonal skills.

But it's not all good news for the elite firms. Chambers found associates at elite firms were less likely to aspire to partnership and had a higher flight risk than those at other firms. Even among elite associates who wanted to make partner, nearly twice as many viewed the goal as unrealistic.

Chambers is due to publish a UK version of the analysis later this year.