McDermott and Schulte approve merger to create $2.8bn powerhouse

McDermott and Schulte Roth & Zabel have agreed to merge, in a deal set to create a 1,700-lawyer firm with combined revenues of more than $2.8 billion. In a statement yesterday, the US firms said partners had voted in favour of the tie-up which will go live on 1 August, according to Reuters.

McDermott is best known for its dominant US healthcare practice, while Schulte is one of the country’s top private capital specialists, advising many of the market’s biggest alternative asset managers, including the likes of Cerberus.

Chicago-headquartered McDermott brought in more than $2.2 billion in revenue in 2024, while smaller Schulte, based in New York, posted $620 million in revenue in 2024, according to The American Lawyer. Both firms’ PEP stands at over $4 million.

The merged firm - known as McDermott Will & Schulte - will sit just outside the top 10 largest US law firms by revenue.

What it means in London

The deal will also reshape the firms’ London presence. Together, the firms will have more than 100 lawyers in the City, with notable strength in funds, private equity and tax. Earlier this month, McDermott announced plans to relocate its London headquarters to Mayfair - right in the heart of the capital’s private equity district - from 2028.

McDermott has been doubling down on its push to attract junior talent in London. In November, it matched Davis Polk’s £70,000 second-year trainee salary, becoming the joint top-paying firm in the City.

Big Law consolidation

The merger continues a wave of headline combinations across Big Law.

In the last 15 months, Allen & Overy combined with Shearman & Sterling to create A&O Shearman, a transatlantic 4,000-lawyer giant with revenues topping $3.5 billion, while Herbert Smith Freehills completed its tie-up with Kramer Levin in June to form a 2,700-lawyer firm generating over $2 billion.