Global Law Firms Queue Up for Australian Market Entry
Australia’s legal market continues to attract heavyweight international players despite several high-profile exits, with industry insiders predicting a fresh wave of global firms eyeing the lucrative Asia-Pacific gateway.
The latest arrival, US powerhouse King & Spalding, launched its Sydney office in October with ambitions to capture transactional, regulatory and litigation work from Australian and multinational clients operating across the region. The move signals renewed confidence in a market that has proven both profitable and challenging for offshore entrants.
Market Dynamics Shift
The Australian legal scene has seen sustained international interest over the past 15 years, driven by the country’s strategic position as a launchpad into the rising economic powers of China and India. Australia’s common law system and political stability make it an attractive base for North American and European firms following their clients into Asia-Pacific.
But the market hasn’t been kind to everyone. Hogan Lovells shut down its Australian operation last year, while DWF exited Melbourne, Sydney and Newcastle in 2021. Most recently, King & Wood Mallesons announced its Chinese and Australian partnerships would formally separate by March 2026, reverting to standalone “King & Wood” and “Mallesons” brands.
Why Firms Keep Coming
Sam Braithwaite, CEO of Jim’s Legal, which entered the Australian market in 2023, expects more international players to arrive. “Australia is seen as a safe, stable market with a strong disputes and insolvency pipeline,” he says. “For US and UK firms particularly, Australia fills a strategic gap in Asia-Pacific.”
The pull factors are compelling. Disputes work, restructuring mandates and regulatory matters continue to generate strong demand, while cross-border deals involving Australian businesses and foreign investment are climbing. Large corporates increasingly want seamless cross-jurisdictional advice without constantly briefing local firms.
Market conditions support the optimism. The Australian Financial Review’s latest Law Partnership Survey revealed increased regulatory activity, rising class actions, workplace disputes and an improving M&A landscape in the second half of 2025. Global recruiter Randstad reported surging demand for commercial lawyers in Sydney and specialised compliance roles across all sectors.
Australian law firms recorded 3.6% demand growth in FY25 – a rate unmatched by US firms since the Global Financial Crisis, according to Thomson Reuters analysis.
The APAC Advantage
Deepak Shukla, CEO of UK firm Pearl Lemon, says Australia offers more than geography. “It’s practical work, not hype,” he notes. “Cross-border transactions are picking up, energy and resources remain busy, and tech and data regulation keep getting more complex.”
The real draw? A stable legal system that overseas clients trust. Having boots on the ground in Australia means immediate client support, genuine understanding of local rules, and relationship continuity that long-distance service simply can’t match.
“Instead of flying partners in for one-off matters, a local team can see what’s coming, work naturally with Australian stakeholders, and handle disputes with proper feel for how local courts operate,” Shukla explains.
Competitive Pressures Mount
The influx of global players is reshaping the competitive landscape. Local firms face pressure to specialise more sharply, cut costs and compete on pricing. Talent retention has become particularly challenging as international firms offer higher salaries and global career pathways.
“Clients are far less patient with inefficiency than they were even five years ago,” Braithwaite observes. “Overseas firms tend to be more aggressive around project management and fee structures.”
The numbers back this up. While Australian lawyers average around 1,450 billable hours annually, their counterparts at US firms often clock 1,700 to 2,300 hours.
Braithwaite predicts consolidation among local firms. “Some will merge to gain scale or geographic coverage, others to shore up specialist practice areas. For certain mid-tier firms, consolidation will be about survival.”
Not All Plain Sailing
Success in Australia remains elusive for some international entrants. This year saw several partners reportedly leave Squire Patton Boggs for local firms, while Baker McKenzie lost partners to rivals. White & Case and Clifford Chance have opted for niche positioning against dominant local players.
“Australia is definitely not an easy market to crack,” Braithwaite warns. “We’ve seen overseas firms come in thinking brand alone would carry them, and that hasn’t always worked. Cultural authenticity and immersion is critical. Australians value working with people who understand our culture and operating environment.”
Leadership Gap Emerges
Maike Barton, managing director of Your GM consulting, identifies a “leadership vacuum” at many local firms that international competitors are exploiting. Succession planning is stalling and younger lawyers no longer view partnership as the ultimate career goal.
“They want purpose, flexibility and structure,” Barton says. “The firms that survive will be the larger international firms, those that professionalise leadership, not just pass it down.”
Client expectations are globalising too. Australian firms face pressure to adopt integrated technology, transparent performance metrics and faster service delivery. AI-enabled legal platforms and professional services firms are setting new benchmarks that go beyond traditional law firm comparisons.
“Clients in Melbourne now expect the same level of service quality, clarity and responsiveness they would receive from a top-tier firm in London, New York or Singapore,” Barton notes. “What were once premium offerings are now baseline expectations.”
Strategic Rethink
Richard Smith, director of Sydney-based GSJ Consulting, (pictured)suggests some offshore firms may be reassessing their Asia-Pacific strategies following the KWM demerger. “What is being abandoned is not Asia, but a set of assumptions that never really held true,” he argues.
The shift is toward more commercially disciplined thinking that recognises the value of strategic flexibility over permanent offices and scale at any cost.
For local firms, the message is clear. Those that focus on solving client problems rather than defending territory will be best positioned to compete – regardless of where their global competitors set up shop.
