The world’s highest-grossing law firm, Power Law firm Kirkland & Ellis, is on track to post record annual revenue of ~$5 billion for the 12 months ending in January, according to the Financial Times.
Despite a sagging global economy, Kirkland & Ellis has surged with growth in its three main areas of operation —private equity, restructuring, and litigation.
- Plus, with super efficient Zoom meetings replacing high cost client dinners, costs are way down…which means profits are way up.
- In a Wells Fargo survey of 125 law firms, net income (revenue minus expenses) grew 25.6% annually in the first half of 2020.
The reality is that following the 2008 financial crisis and the hit taken by the legal industry, law firms moved quickly to cut pay and furlough staff. However, that has changed now as we have previously reported, firms are paying large bonuses to junior staff and back to making big money.
So when efficiently run law firms like the high grossing Kirkland & Ellis announce higher earnings, lawyers everywhere are cheering, albeit quietly.
Roll on COVID.