The landscape of Biglaw partners is undergoing significant changes! This is the crucial takeaway conveyed by industry analysts, though it’s important to note that not every partner is part of this trend of lateral moves. Insights from the recruiting firm Macrae reveal that private equity partners in New York have experienced a decline in their lateral transitions. In the first half of 2025, this specific group recorded only nine partner transitions — a staggering drop of over 50% compared to 2024. This trend indicates a cautious and deliberate approach to hiring within the private equity sector.
According to Ryan Belville, a partner at Macrae, the sluggish activity in the private equity market during 2024 has made the business portfolios of these partners less attractive to potential firms. Additionally, the ongoing economic uncertainties, compounded by factors such as geopolitical risks, fluctuating tariffs, and persistent interest rates, have led to more conservative hiring practices. This cautiousness persists despite the total value of private equity deals experiencing a substantial increase of 28.7% this year, with the total number of deals rising at a modest rate of 8.7%.
With partner compensation reaching unprecedented heights, firms must tread carefully when considering new additions to their teams. Belville observes this caution reflected in private equity practices. “Rates are skyrocketing and compensation packages are through the roof,” he remarked. “In the world of private equity, firms are making incredibly large investments while facing uncertainties — not just regarding the portability of relationships but also concerns about whether the sponsors who do transition will be actively generating revenue in their initial years with the firm.”
Michael Parrillo, the founder and principal of the legal recruiting firm Parrillo Search Group based in New York, points out that the aggressive partner recruitment observed over the past four years has led to a shift towards a more “cautious and deliberate” hiring mentality. However, for private equity partners contemplating a lateral move, the demand for a robust business portfolio remains strong despite the absence of a hiring surge.
Kathryn Rubino serves as a Senior Editor at Above the Law, hosts The Jabot podcast, and co-hosts Thinking Like A Lawyer. The insights from AtL tipsters are invaluable, so please reach out. Connect with her via email for any tips, questions, or comments and follow her on Twitter @Kathryn1 or on Mastodon @Kathryn1@mastodon.social.
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