McDermott eyes $2.8bn merger to create private capital powerhouse

McDermott and Schulte Roth & Zabel are in advanced talks to merge, in a move that would create one of the biggest US firms by revenue.

The deal - which the firms say is "actively being finalised" - would bring together more than 1,700 lawyers and generate upwards of $2.8 billion in revenue, placing the merged entity just outside the top 10 US firms.

"We are operating from a position of shared strength", the firms said in a joint statement. "Our vision is to deepen our ability to serve clients at the highest levels."

What it means

Chicago-headquartered McDermott brought in more than $2.2 billion in revenue in 2024 and is known for its market-leading healthcare practice, as well as key strengths in M&A and tax. It has around 1,400 lawyers, with offices across the US and eight in Europe.

Smaller Schulte, based in New York, posted $620 million in revenue in 2024, according to The American Lawyer, and is known as a leader in private capital work - so much so it describes itself as "the nation’s preeminent private capital law firm".

It has around 360 lawyers, mainly in New York, with smaller offices in London and Washington DC.

Both firms’ PEP stands at over $4 million, making the deal firmly about scale and strategic positioning - and presenting a much more straightforward proposition when it comes to integration.

Strategic logic

The deal would strengthen McDermott’s reach in private capital, a priority growth area across Big Law. For Schulte, it offers greater geographic reach and deeper bench strength across core practices.

City impact

Both firms have a London presence. The merger would create a 100+ lawyer UK office with notable strengths in funds, private equity and tax.

McDermott made headlines in November when it matched Davis Polk’s £70,000 second-year trainee salary, becoming the joint top-paying firm in the City. It has more than 80 lawyers in London, while Schulte’s office, with around 25 lawyers, is known for advising alternative investment funds and asset managers.

Bigger picture

The planned tie-up follows a growing wave of consolidation in Big Law as firms chase scale, talent retention and deeper relationships with key clients across borders. In the last year alone:

• Allen & Overy merged with Shearman & Sterling to form A&O Shearman, a 4,000-lawyer transatlantic giant with revenues north of $3.5 billion.
• Herbert Smith Freehills is set to combine with Kramer Levin in June after partners signed off on the deal in April. The merger will create a 2,700-lawyer firm with over $2 billion in revenue.