The moments that defined Big Law this year

As the year draws to a close, it really does feel like Big Law spent much of the past 12 months being pulled in several new, and sometimes uncomfortable, directions at once. Politics, private equity, technology and consolidation all came together in a year which had its fair share of headline-making moments.

Here are some of the trends that defined the industry this year.

When Trump came for Big Law - and Freshfields stood alone

Spring was defined by something few firms had seriously planned for: the president of the United States putting Big Law in his crosshairs.

A March executive order targeted Perkins Coie over its historic links to political opponents of the president. The measures were extreme - banning lawyers from government buildings, revoking security clearances and forcing government contractors to disclose ties to the firm - and the move sent shockwaves through the market.

More threats followed. And then the deals started. One by one, some of the biggest US firms struck agreements with the Trump administration to provide millions of dollars’ worth of pro bono work in exchange for relief.

Paul Weiss chair Brad Karp told partners the firm faced an "existential crisis" and warned that the order "could easily have destroyed our firm", citing clients who said they could no longer stay. By the end of April, the likes of A&O Shearman, Kirkland, Simpson Thacher, Milbank and Latham & Watkins had all cut deals.

A handful of firms chose a different path. Perkins Coie, WilmerHale, Jenner & Block and Susman Godfrey chose to take a stand. Perkins became the standard bearer, and in early April more than 500 firms signed an amicus brief backing its challenge. But among Big Law’s elite, one name stood out - Freshfields.

Freshfields was the only top-tier global firm to put its name to the brief. As you might expect, the decision reportedly fell to senior partner Georgia Dawson and was framed internally as a question of principle.

The Financial Times called it a "risky bet", particularly given the firm’s ambitions in the US. In the end, the gamble paid off. The executive order was blocked in court, and Freshfields’ US momentum actually accelerated, with the firm landing some of its biggest-ever American M&A mandates in the months that followed.

Private equity circles the profession

Investor interest in law firms moved from background noise to a full blown conference keynote topic this year.

Former A&O boss David Morley probably put it best. After launching consultancy Dejonghe & Morley with Wim Dejonghe earlier this year to advise firms and investors, he told us they had received more than 350 meeting requests and spoken to over 80 investment houses. The message was that private equity is now actively shopping in the sector.

So far, much of the action has been in the regional and mid-market space. Blixt-backed Lawfront has continued its roll-up strategy, pushing revenues past £130 million. DWF remains the reference point - if something of an outlier - after its 2023 take-private by Inflexion. But rumours about larger commercial firms edging closer to external capital haven’t gone away.

The gold rush has also spawned an advisory ecosystem. New consultancies launched almost monthly, from Morley and Dejonghe’s own venture, to Taha & Watmough, Oakwood Strategy, and Passmore & Oliver Partners. Burford Capital’s move to buy a stake in Kindleworth, the consultancy behind launches like Pallas Partners, was another indication of the level of investor appetite in the sector.

Across the Atlantic, the US market continued to open up. KPMG secured an ABS licence in Arizona. McDermott confirmed it is exploring private equity investment via a managed services organisation model - a move that could become a template if it proves successful. In the UK, it really does feel less like if a larger firm takes external money, and more like when.

Legal AI goes mainstream

This was the year legal AI started to look much more like infrastructure than a collection of smart point solutions.

Two names dominated: Harvey and Legora. Harvey raised round after round, pushing total funding past $1 billion and valuing the business at $8 billion. Legora followed with two major raises of its own, finishing the year at a $1.8 billion valuation. Both spent 2025 hoovering up Big Law clients left, right and centre.

The most interesting shift is the vision both are now setting out. While the initial emphasis was all about time-saving productivity tools, the future is much broader. Collaborative workspaces, AI-powered client-facing tools, knowledge turned into products. AI doing the first 10 or 20% of a transaction so lawyers can do more deals, faster.

Funding stayed strong beyond the platforms too, with companies like Wordsmith, Definely, Flank and DeepJudge all raising significant rounds. But the shine dulled slightly at the edges. Robin AI, once the poster child of the UK scene, cut staff after failing to raise fresh capital and ultimately sold off its managed services arm.

Next year, buyers are likely to be more sceptical - especially as firms weigh new tech investment against increasingly capable general-purpose tools like Copilot and their own in-house AI assistants.

Private capital still drives the City

Despite a tougher exit environment for PE clients, private capital remained the dominant force shaping senior hiring at the top of the City market.

That dynamic played out in the year’s biggest moves. Sullivan & Cromwell, long conservative on laterals, stunned the market by hiring heavyweight partners from Kirkland and Weil, before following up with more private capital talent in December. The elite New Yorker's London growth strategy is now one of the most closely watched in the City.

Sidley’s finance raid on Latham now appears complete, part of a push to build a sponsor-side powerhouse. And corporate real estate emerged as one of the City’s hottest niches, fuelled by infrastructure and real assets capital - with 14 senior moves this year alone, many tied to private equity real estate.

Transatlantic merger mania

Perhaps the most consequential trend of the year was the transatlantic merger, with four deals completed or announced.

Herbert Smith Freehills completed its merger with Kramer Levin. Ashurst finally pulled the trigger on a US deal with tech-focused Perkins Coie. December then delivered two more: Taylor Wessing with Winston & Strawn, and Hogan Lovells with Cadwalader.

The Hogan Lovells deal looked the smartest on paper. Long a transatlantic heavyweight but lacking true New York depth, Cadwalader gives Hogan Lovells real Wall Street heft. It was also a surprise, given months of speculation linking Cadwalader with Alston & Bird.

Ashurst-Perkins Coie raised more eyebrows initially, but fits Ashurst’s diversification away from traditional City corporate and finance work towards focus sectors like energy and the digital economy. Taylor Wessing-Winston & Strawn prompted more questions, though law firm mergers sometimes come down to timing and leadership chemistry more than theoretical synergies.

One thing does feel more clear: more combinations are coming, and the fear of being left behind is only likely to grow.

And finally… Hill Dickinson joins the big leagues

And a list like this would not be complete without mentioning far and away the standout law firm marketing move of the year - perhaps ever even.

Hill Dickinson's decision to put its name on Everton’s new stadium took everyone by surprise when it was announced in May. Reports that the deal could cost up to £10 million a year raised a few eyebrows for a firm with £170 million of revenue. But as former CEO Peter Jackson told us on the podcast, the exposure is already translating into new work.

And, besides, you know you’ve really broken into the mainstream when you become part of the English football lexicon and start going viral online.

Thanks for reading along with us this year.