The change illustrates the performance of City firms such as SJ Berwin and Berwin Leighton Paisner (BLP), which now have a higher turnover than Denton Wilde Sapte. Many of the traditionally UK-focused mid-tier firms are also averaging significantly higher partner profits figures than their ‘chasing pack’ rivals.
The profitability of City-focused firms has been steadily catching up with the tier just below the magic circle over the last few years but now turnover is also starting to converge. Significantly, they are growing faster than both the top 50 average and all of their bigger rivals — with the exception of Ashurst — with turnover growth well into double digits.
In contrast, chasing pack firms CMS Cameron McKenna, Lovells and Dentons all saw single-digit growth. For that reason the £100m club comprises SJ Berwin, BLP, Nabarro, Bird & Bird and Macfarlanes in addition to former chasing pack members Lovells, Herbert Smith, Ashurst, Simmons & Simmons, Norton Rose, Camerons and Dentons.
Four of the former mid-tier members, BLP, SJ Berwin, Macfarlanes and Nabarro, have PEPs higher than the majority of the chasing pack firms. The group’s PEP averages £718,000, compared with £619,000 for the old chasing pack grouping.
BLP or Lovells? Who is best placed to succeed - magic circle wannabes or mid-tier upstarts? Join the debate with the Legal Week Top 50 Talkback special.
