WINNING STRATEGIES: HOW TOP FIRMS ARE BETTING ON GROWTH

Big Law firms saw strong growth in 2025 not just from rising demand, but increasingly from alternative and contingency fee arrangements, where firms “bet on themselves” and share in successful outcomes. While these performance-based models can be unpredictable and carry some inherent risk, they’ve proven highly profitable—especially as mass torts, class actions, and complex litigation continue to expand—driving major revenue and profit gains at several firms. With more sophisticated pricing strategies, growing client openness to nontraditional billing, and continued investment in technology and legal project management, firms are leaning further into flexible, outcome-driven fee models, with many expecting alternative fee arrangements to make up a significantly larger share of revenue in the years ahead.

MARKET MOVEMENTS

Skadden hired partners Archis Parasharami, Daniel Jones and Kevin Ranlett from Mayer Brown in D.C.

HSF Kramer hires Paul Hastings M&A partner trio, Robert Leung, Mike Huang and Daniel Grossman, in New York

Simpson takes Latin America arbitration head, Christian Albanesi, from Linklaters in Washington, D.C.

Akin hires Munger labor litigation partner, Margaret Maraschino, in Los Angeles

FIRM SPOTLIGHT - BAKER MCKENZIE

Founded in 1949 with a vision of building a truly international law firm, Baker McKenzie has grown into a global powerhouse with 74 offices across 45 locations, advising more than half of the world’s largest public companies. Its expansive geographic reach, deep practice area diversity, and strong focus on cross-border work—particularly in M&A and tax—have helped it remain resilient and consistently outperform competitors in the evolving BigLaw landscape. With over 5,800 lawyers and tax professionals speaking 90+ languages, the firm combines technical expertise with a commitment to innovation, diversity, and sustainability. Its global platform not only drives high-profile international deals but also offers associates valuable opportunities to gain hands-on international experience through overseas placements and secondments.

INDUSTRY INSIGHTS

• Kirkland reaches $10.5 B in revenue, as PEP up by 20%. The firm increased its partner headcount by about 9% to 1,823, while revenue per lawyer soared nearly 11%, to $2.55 million.

• ArentFox Schiff revenue up nearly 6% to $666 million as PEP sours 19%. The firm’s profits per equity partner were up over 19% to $1.69 million last year, as the number of equity partners dipped over 2%.

• O’Melveny revenue shot up 9% to $1.2 Billion in record-setting year of diversified growth. O'Melveny & Myers' gross revenue and net income rose by more than 8% in 2025.

• Dechert grew revenue 6.6% in its 150th anniversary year, hitting $1.61 Billion. An 11.9% dip in the size of the firm’s equity partnership helped trigger a 27.3% increase in profits per equity partner, which approached $6.2 million.

Quality Over Quantity Hiring

Law firms continued to grow in 2025, but with far more discipline and strategic precision than the post-pandemic hiring surge, shifting away from broad expansion toward targeted, high-impact investments. Firms slowed lateral partner hiring while increasing associate and nonequity partner roles, focusing on building deeper support structures and executing complex client work. Rather than opening many small offices or pursuing large mergers, firms favored larger team-based office launches, “liftout” group hires, and acquisitions to quickly gain capabilities and market share. At the same time, rising hiring risks—like inflated books of business and weaker client portability—have pushed firms to be more selective, ensuring every hire aligns with clear growth goals and delivers measurable value.

Blank Rome Expands to West Palm Beach

Blank Rome LLP has expanded its footprint with a new office in West Palm Beach, strengthening its long-standing presence in South Florida and positioning the firm within one of the nation’s fastest-growing business hubs. The office, launched with the addition of partners Mark D. Passler and Ryan L. Harding, reflects growing client demand in the region across areas like finance, real estate, litigation, and M&A. As business activity and client needs continue to rise in Palm Beach County, the firm plans to further build out its local team while supporting increasingly complex, high-level matters in the market.