Kirkland lures Wachtell restructuring star with reported $80m package

Kirkland & Ellis is set to hire Wachtell’s restructuring head Joshua Feltman, in one of the most high-profile lateral plays at the top end of the US legal market.

The Financial Times reported that Kirkland has offered Feltman a guaranteed $80 million pay package over three years to lure him from Wachtell, the famously lateral-resistant New York firm.

Kirkland & Ellis did not immediately respond to a request for comment.

Replacing a star

The move appears aimed at filling the gap left by David Nemecek, Kirkland’s former restructuring star, who joined Simpson Thacher earlier this year in a headline-grabbing exit. Several former colleagues have since followed him to the New York firm.

Feltman, who chairs Wachtell’s corporate restructuring and finance department, is one of the most prominent names in the market and would give Kirkland immediate firepower in a practice area that is seeing strong demand.

Restructuring demand

Restructuring has become one of the hottest areas in the US Big Law market, driven by private capital-backed companies looking to rework debt piled on during the era of cheap money.

With interest rates rising, many are turning to solutions such as liability management exercises (LMEs) - complex transactions designed to reshape capital structures outside of formal insolvency. The strategy, widely associated with Nemecek, has become a core part of the playbook for firms with strong private capital client bases.

Pressure at the top

Feltman’s hire would mark another notable departure from Wachtell, long regarded alongside Cravath as one of the most prestigious firms in the US.

Over the past year, however, that position has come under pressure. Latham & Watkins has poached several partners from the firm, including top dealmaker Zach Podolsky, as rivals with more flexible, performance-driven pay structures look to attract top talent.

The move reflects a broader shift at the top of the market, with firms such as Kirkland and Latham challenging the traditional dominance of Wall Street firms, backed by aggressive compensation and deep ties to private capital clients.