THE CHEETAH BRIEF – 31st EDITION
Sixteen months after Allen & Overy and Shearman & Sterling finalized their landmark merger, A&O Shearman has made progress toward its vision of combining top-tier work, global reach, and dual U.S./U.K. capabilities, reporting $3.7 billion in revenue and a $2.7 million PEP in fiscal year 2025. Leaders remain optimistic about surpassing $4 million PEP over time,” but the firm continues to face cultural adjustments, heavy U.S. partner departures—about 50 since the merger—and skepticism over its U.S. growth strategy, particularly in corporate and private equity. While the merger has already produced high-profile cross-border mandates, lingering cultural changes and a perceived imbalance in leadership influence have fueled concerns. Ultimately, A&O Shearman’s long-term success may hinge on whether clients—and partners—view its global scale as a true value-add rather than an overextended promise.
MARKET MOVEMENTS
Akin lures energy and infrastructure duo, Ron Erlichman and Nicholas Atwood, from Linklaters.
Simpson lures Macfarlane’s London funds partner, Sam Brooks.
Paul Hastings swoops for Kirkland’s London partner, Sally Evans.
Reed Smith lures Norton Rose FinTech head, Etelka Bogardi, in Asia.
FIRM SPOTLIGHT - DLA PIPER
DLA Piper, one of the world’s largest law firms with more than 4,300 lawyers across 90-plus offices, has grown into a global powerhouse through a series of mergers and acquisitions since 2005. The firm’s rapid expansion was fueled by strong practices in real estate, litigation, corporate law, and private equity, along with strategic mergers that extended its reach into Australia, Canada, Latin America, and beyond. Today, DLA Piper serves clients in over a dozen industries with expertise in ten major practice areas, including cutting-edge fields like artificial intelligence, fintech, proptech, and blockchain, while also ranking among the top firms for privacy and data security. Its 400-plus-lawyer real estate group is a major player in global property matters, supported by its Real Estate Gazette publication, and its employment practice provides comprehensive cross-border counsel on issues ranging from compliance and governance to litigation and workforce restructuring.
INDUSTRY INSIGHTS
More than 65% of the 45 top-ranked Chinese law firms by earnings saw a drop in gross revenue in 2024. Of those, 21 firms suffered double-digit percentage declines
Big Law firms are drawing on more credit lately for backup funding, with revolving lines of credit for Am Law 100 law firms growing an average of 40% in the last five years, according to bank data and industry sources, with Kirkland leading the way in excess of $1 billion
The world’s largest 200 law firms enjoyed spectacular growth in the last financial year with revenues rising an average of 10.9% and the top 100 firms managing an average profit per equity partner (PEP) rise of 17.9%
Lateral activity in 2025 is broadly ahead of where it was at this time in 2024. SurePoint Legal Insights tallied the total number of lateral moves at Am Law 200 firms across all positions — partners, associates and counsel — at 9,142 through August 2025. It was at 8,038 through the same time last year.INDUSTRY NEWS
Kirkland Faces Partner Exodus and Strategic Strain in Asia
Kirkland & Ellis has seen departures of 21 partners from its Hong Kong office since 2024, raising concerns about its Asia strategy and stability. The exits, sparked by leadership gaps, veteran exits, and cultural discontent, have left its regional platform weakened, with more than half of partners promoted since 2019 already gone. Lawyers and clients point to a lack of marquee talent, rigid high billing rates unsuited for Asia, and missed opportunities in markets like Japan and Singapore, where rivals are thriving. While Kirkland remains a financial powerhouse globally—posting $8.8 billion in revenue and over $9.2 million PEP—its Greater China business has shrunk nearly 30% in two years, and insiders worry the firm is treating Asia as an afterthought despite maintaining three offices in the region.
Sheppard Mullin Gains 21-Lawyer IP Team From Ropes & Gray
Ropes & Gray saw 21 of its IP litigators, including practice chair Steven Pepe, depart for Sheppard Mullin in New York, Silicon Valley, and Washington, D.C., marking one of the year’s largest group moves in the practice. The shift underscores a broader trend of Big Law firms reevaluating IP litigation amid billing pressure, conflicts, and profitability concerns, while firms like Sheppard Mullin seize opportunities to expand and diversify their client base. Observers say the move significantly strengthens Sheppard Mullin’s platform and reflects growing demand for firms with robust, tech-focused litigation practices, even as some Am Law 25 firms scale back in this area.
