THE CHEETAH BRIEF – 18th Edition
The rise of the non-equity (or salaried) partner tier—spearheaded by firms like Kirkland & Ellis—has fundamentally reshaped the legal market, turning what was once seen as a “gaming the system” tactic into the dominant partnership model. Once criticized, the non-equity structure is now embraced by most of the Am Law 100 and top U.K. firms for its flexibility, profitability, and recruiting power. It allows firms to expand their partner ranks without diluting profits, raise charge-out rates, and retain a attract top talent. While traditionalists argue that equity fosters a deeper, almost intrinsic connection to the firm, the market has largely moved on. With only a handful of all-equity firms remaining, it’s clear that the non-equity tier isn’t just normalized—it’s the new standard.
MARKET MOVEMENTS
Perkins Coie nabs K&L Gates tax practice head, Sarah Bowman, on the West Coast
Weil hires Akin tax partner, Menachem Danishefsky, in New York
Vinson & Elkins has hired Kirkland investment management partners Sam Francis and Reed Schuster, and Baker Botts finance partner Caitlin Lawrence
Skadden picks up two White & Case energy and infrastructure partners, Mingda Zhao and Emery Choi, in Houston
FIRM SPOTLIGHT - MANATT, PHELPS & PHILLIPS, LLP
Manatt, Phelps & Phillips, LLP is a national law and consulting firm with 10 offices across the U.S., including key locations like Los Angeles, New York, and Washington, D.C. Founded in 1965, the firm has grown to include 450 attorneys and consultants offering integrated legal, consulting, and tech-driven services across industries such as health care, entertainment, financial services, real estate, and technology. Manatt is especially prominent on the West Coast, with a strong presence in Los Angeles and deep roots in the entertainment industry. The firm handles a wide array of transactional and litigation matters, represents major clients like Sony, Toyota, and Aetna, and boasts significant regulatory expertise. Manatt also operates an affiliated venture capital fund with investments in over 120 companies, including Etsy, Beyond Meat, and Pinterest.
INDUSTRY INSIGHTS
In 2025, more lawyers are projected to join the $3,000-an-hour club. Quinn Emanuel has already crossed the threshold, while firms like Latham, Kirkland, Wilson Sonsini and Sidley are closing in.
Top 10 law firms in the world by headcount: 1) Dentons, 2) Baker McKenzie, 3)DLA Piper, 4) Norton Rose Fulbright, 5) Clifford Chance, 6) Jones Day, 7) A&O Shearman, 8) Hogan Lovells, 9) Latham & Watkins and 10) Kirkland & Ellis
Perkins lays off 5% of professional staff, citing “scheduled changes” to workforce. This is all despite yielding a 4% annual growth in gross revenue and a 16% uptick in profits per equity partner, according to American Lawyer data.
INDUSTRY NEWS
Frankfurt’s Legal Market Faces Decline Amid U.S. Firm Retreat
The closure of Frankfurt offices by top U.S. firms like Goodwin Procter and Cleary Gottlieb has sparked questions about the decline of Germany’s once-thriving legal market. Once seen as a hub for international investment, Frankfurt is now seen as oversaturated and unprofitable, particularly for American firms seeking to charge New York rates. Despite a strong corporate presence, structural challenges, limited talent pools, and high operating costs have made the market increasingly unattractive. Firms struggle with recruiting, retention, and succession planning, while competition intensifies in a relatively small city. As firms downsize or shift focus to cities like Munich, Frankfurt’s appeal continues to fade.
Casey Ryan Re-Elected to Lead Reed Smith Through Growth and Innovation
Casey Ryan has been elected to a four-year term as global managing partner of Reed Smith, effective January 2026, after serving in the role since 2023. Under her leadership, the firm has experienced unprecedented growth, surpassing $1.5 billion in revenue and expanding with new offices and over 100 new lawyers in 2025. Ryan emphasizes viewing challenges as opportunities, focusing on innovation, talent development, and retaining people as the firm’s core strength. She plans to continue executing the firm’s 2024 strategic plan, prioritizing private equity, technology, and a distinctive culture that fosters long-term loyalty among its lawyers.
