The Two BigLaw $7 Billion Club Members
Latham & Watkins is having a moment. The firm reported a whopping $7 billion in gross revenue for 2024, marking a 23 percent increase from the previous year and entering the $7 billion club with Kirkland & Ellis entering that magic rhealm in 2023 (coming in at $7.21 billion).
The revenue surge wasn’t just a fluke, but was driven by double-digit growth in key areas like M&A, private equity, and complex commercial litigation.
Latham has become only the second law firm to surpass the $7 billion revenue mark, although Kirkland’s revenues are now expected to close in on the $9 billion mark when 2024 revenues are announced.
If that is correct, then Kirkland & Ellis truly put themselves in what appears to be an unassailable front-row seat in terms of colossal law firm revenues.
Last year, the Kirkland’s profit per equity partner (PEP) stood at $7.96 million and could exceed $10 million in the latest round.
Latham PEP Moves
Latham’s have been looking great too, with average profits per equity partner (PEP) shooting up nearly 30 percent to over $7 million, while net income jumped 31.7 percent to nearly $4 billion.
The firm advised on some of the biggest transactions of the year, including Skydance Media’s pending merger with Paramount and Endeavor’s $13 billion take-private acquisition by Silver Lake. In the IPO space, Latham dominated, advising on 31 U.S. IPOs—more than double the next closest firm.
The firm said it now actively advises more than 1,100 public companies and serves as primary counsel on corporate governance and securities matters for more than 400 public companies.
“We’ve built something truly unique at Latham: a vast practice that serves more public company clients than any other firm and offers unmatched experience representing capital providers worldwide,” firm chair and managing partner Rich Trobman said in a statement.
On the disputes side, Latham also secured some significant wins, including a U.S. Supreme Court decision that overturned the Chevron deference doctrine and a ruling that knocked out most claims against software company SolarWinds in a landmark SEC lawsuit.
Latham’s “AI Acadamy’
The firm is also investing in the future. Latham launched an “AI Academy” to train associates in AI, and it’s been aggressive in the talent market, luring top lawyers from other firms.
Compensation changes have helped Latham compete better for partner talent, with new tiers allowing top performers to earn more.
The firm’s financial results were first reported by The American Lawyer, which said the firm’s equity partner numbers were around 553 and its nonequity partner ranks stood at 404.
Despite some notable departures, Latham’s equity and non-equity partner ranks grew, and the firm remains a powerhouse in both New York and Washington, D.C..
The AI Academy concept at Latham sounds super interesting. How exactly does it prep associates for using AI in legal processes? Are we talking about basic training or something more advanced?
It’s inspirational to see firms like Latham not only achieving tremendous financial success but also investing in the future through education like their AI Academy. It’s a great blend of growth and responsibility.
7 billion is a lot of dough, but at what cost? The legal industry’s obsession with numbers sometimes overlooks the real human element involved. Not everything that counts can be counted.
I understand the concern, RJ_89, but achieving high profits allows firms to provide better services and invest in technology for the future. It’s not just about the numbers but what they enable the firm to do for their clients and society.
Seeing Latham & Watkins hitting 7 billion is wild. Just curious, how does this financial growth translate to their day-to-day legal practices? Are clients really seeing the benefits or is it more about the firm’s global standing?
Totally see where you’re coming from, Alex. From what I’ve seen, firms like Latham reinvest a lot into their legal tech and talent. This definitely amps up their service quality, not just their rep.
Thank you, AlexThinks and JT_Law, for your insights. It’s indeed our finding that Latham’s growth reflects not just in numbers but in qualitative improvements and investments that benefit their clients directly.