The Magic Circle Law Firms: Who They Are, And What They Do
Published:
January 31, 2024
Last updated:
October 11, 2024
We have more than 25 years of experience in corporate law, business and finance.
We’ve worked at leading law firms advising the world’s biggest banks and global corporations on complex legal issues and, in our business lives, we’ve instructed law firms as paying clients.
One of the most important skills for the modern lawyer is commercial awareness.
It’s this skill that separates the good lawyers from the great lawyers.
It’s this skill that will get you promoted at your law firm.
It’s this skill that will mean that the best clients will instruct you on the best matters.
This guide breaks down commercial awareness for lawyers. We’ll look at:
We hope you find it useful.
The Magic Circle is the name given to a group of five of the UK’s leading law firms.
The term came about in the 1990s to describe the most prestigious law firms in the City, best known for their work in corporate law, finance, and international disputes.
Magic Circle firms are renowned for their equally prestigious client list, which includes the world’s biggest banks and financial institutions, global listed corporates and governments.
This, together with their market-leading revenues and superior profitability, puts them in a bracket ahead of other leading City law firms.
They are also significantly bigger in size than other firms - they employ more lawyers and they have a much larger global footprint, operating in dozens of jurisdictions for clients across the world.
On the global stage, Magic Circle firms compete with the leading US law firms for the best work. US rivals include the likes of Kirkland & Ellis, Latham & Watkins, and Skadden.
In the UK, the Magic Circle is considered to sit above the Silver Circle - the second tier of leading traditional City law firms - when it comes to reputation and prestige.
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The group consists of the following firms:
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| Addleshaw Goddard | £52,000 | £56,000 | £100,000 |
| Akin Gump | £57,500 | £62,500 | £169,235 |
| A&O Shearman | £56,000 | £61,000 | £150,000 |
| Ashurst | £52,000 | £57,000 | £125,000 |
| Baker McKenzie | £56,000 | £61,000 | £140,000 |
| Bird & Bird | £47,000 | £52,000 | £98,000 |
| Bristows | £46,000 | £50,000 | £88,000 |
| Bryan Cave Leighton Paisner | £50,000 | £55,000 | £105,000 |
| Burges Salmon | £45,000 | £47,000 | £68,000 |
| Charles Russell Speechlys | £47,000 | £50,000 | £88,000 |
| Cleary Gottlieb Steen & Hamilton | £57,500 | £62,500 | £160,000 |
| Clifford Chance | £56,000 | £61,000 | £150,000 |
| Clyde & Co | £42,000 | £44,500 | £85,000 |
| CMS | £50,000 | £55,000 | £110,000 |
| Cooley | £52,000 | £57,000 | £150,000 |
| Davis Polk & Wardwell | £65,000 | £70,000 | £170,000 |
| Debevoise & Plimpton | £55,000 | £60,000 | £160,500 |
| Dechert | £50,000 | £55,000 | £145,000 |
| Dentons | £50,000 | £54,000 | £95,000 |
| DLA Piper | £50,000 | £55,000 | £110,000 |
| Eversheds Sutherland | £46,000 | £50,000 | £100,000 |
| Farrer & Co | £45,000 | £48,000 | £83,000 |
| Fieldfisher | £46,000 | £49,500 | £95,000 |
| Freshfields Bruckhaus Deringer | £56,000 | £61,000 | £150,000 |
| Fried Frank | £55,000 | £60,000 | £175,000 |
| Gateley | £36,000 | £38,500 | £75,000 |
| Gibson Dunn | £60,000 | £65,000 | £180,000 |
| Goodwin Procter | £55,000 | £60,000 | £175,000 |
| Gowling WLG | £47,000 | £52,000 | £98,000 |
| Herbert Smith Freehills | £56,000 | £61,000 | £135,000 |
| HFW | £46,000 | £50,000 | £100,000 |
| Hill Dickinson | £39,000 | £41,000 | £72,000 |
| Hogan Lovells | £56,000 | £61,000 | £135,000 |
| Irwin Mitchell | £40,000 | £42,000 | £75,000 |
| Jones Day | £54,000 | £63,000 | £145,000 |
| K&L Gates | £50,000 | £55,000 | £110,000 |
| Kennedys | £41,000 | £44,000 | £85,000 |
| King & Spalding | £50,000 | £55,000 | £156,000 |
| Kirkland & Ellis | £60,000 | £65,000 | £169,235 |
| Latham & Watkins | £50,000 | £55,000 | £169,235 |
| Linklaters | £56,000 | £61,000 | £150,000 |
| Macfarlanes | £56,000 | £61,000 | £140,000 |
| Mayer Brown | £50,000 | £55,000 | £120,000 |
| McDermott Will & Emery | £65,000 | £70,000 | £174,418 |
| Milbank | £57,500 | £62,500 | £174,418 |
| Mills & Reeve | £30,000 | £32,000 | £58,000 |
| Mischon de Reya | £47,500 | £52,500 | £95,000 |
| Norton Rose Fulbright | £42,500 | £53,000 | £120,000 |
| Orrick | £55,000 | £60,000 | £140,000 |
| Osborne Clarke | £54,500 | £56,000 | £94,000 |
| Paul Hastings | £55,000 | £60,000 | £173,000 |
| Paul Weiss | n/a | n/a | £180,000 |
| Penningtons Manches Cooper | £45,000 | £47,000 | £75,000 |
| Pinsent Masons | £47,000 | £51,500 | £97,000 |
| Quinn Emanuel | n/a | n/a | £180,000 |
| Reed Smith | £50,000 | £55,000 | £125,000 |
| Ropes & Gray | £60,000 | £65,000 | £165,000 |
| RPC | £44,000 | £48,000 | £85,000 |
| Shearman & Sterling | £55,000 | £60,000 | £145,000 |
| Shoosmiths | £43,000 | £45,000 | £97,000 |
| Sidley Austin | £60,000 | £65,000 | £175,000 |
| Simmons & Simmons | £52,000 | £57,000 | £120,000 |
| Skadden | £58,000 | £63,000 | £173,000 |
| Slaughter and May | £56,000 | £61,000 | £150,000 |
| Squire Patton Boggs | £47,000 | £50,000 | £110,000 |
| Stephenson Harwood | £50,000 | £55,000 | £100,000 |
| Sullivan & Cromwell | £60,000 | £65,000 | £170,000 |
| Taylor Wessing | £50,000 | £55,000 | £115,000 |
| TLT | £42,500 | £45,500 | £75,000 |
| Travers Smith | £54,000 | £59,000 | £120,000 |
| Trowers & Hamlins | £45,000 | £49,000 | £80,000 |
| Vinson & Elkins | £60,000 | £65,000 | £173,822 |
| Watson Farley & Williams | £50,000 | £55,000 | £102,000 |
| Weightmans | £32,000 | £34,000 | £60,000 |
| Weil Gotshal & Manges | £60,000 | £65,000 | £170,000 |
| White & Case | £62,000 | £67,000 | £175,000 |
| Willkie Farr & Gallagher | £55,000 | £60,000 | £150,000 |
| Withers | £45,000 | £49,000 | £90,000 |
| Womble Bond Dickinson | £42,000 | £44,000 | £78,000 |
Rank | Law Firm | Revenue | Profit per Equity Partner (PEP) |
|---|---|---|---|
| 1 | DLA Piper* | £2,833,000,000 | £2,140,000 |
| 2 | Hogan Lovells* | £2,158,000,000 | £2,204,000 |
| 3 | Allen & Overy | £2,100,000,000 | £1,820,000 |
| 4 | Clifford Chance | £2,060,000,000 | £2,000,000 |
| 5 | Linklaters | £1,900,000,000 | £1,779,000 |
| 6 | Freshfields Bruckhaus Deringer | £1,840,000,000 | £2,090,000 |
| 7 | Norton Rose Fulbright* | £1,640,000,000 | £820,000 |
| 8 | CMS** | £1,591,000,000 | Not disclosed |
| 9 | Herbert Smith Freehills | £1,186,000,000 | £1,173,000 |
| 10 | Ashurst | £879,000,000 | £1,170,000 |
| 11 | Clyde & Co | £788,600,000 | £708,000 |
| 12 | Eversheds Sutherland | £730,900,000 | £1,290,000 |
| 13 | Bryan Cave Leighton Paisner* | £664,000,000 | £740,000 |
| 14 | Pinsent Masons | £605,900,000 | £797,000 |
| 15 | Slaughter and May*** | £572,000,000 | Not disclosed |
| 16 | Simmons & Simmons | £521,000,000 | £1,002,000 |
| 17 | Bird & Bird** | £495,000,000 | £669,000 |
| 18 | DWF | £451,600,000 | Not disclosed |
| 19 | Addleshaw Goddard | £443,000,000 | Not disclosed |
| 20 | Taylor Wessing | £439,000,000 | £809,000*** |
| 21 | Womble Bond Dickinson* | £417,000,000 | £550,000 |
| 22 | Osborne Clarke** | £377,000,000 | £687,000 |
| 23 | Fieldfisher | £370,000,000 | £930,000 |
| 24 | Kennedys | £313,000,000 | Not disclosed |
| 25 | Macfarlanes | £296,600,000 | £2,100,000 |
Magic Circle firms are ‘full service’ law firms specialising in corporate law. Their clients include large corporations, financial institutions and governments and they advise on transactions and matters across a wide range of practice areas, including:
While they all offer broadly similar services, there are some differences between them:
A&O Shearman: Formed from the May 2024 merger between Allen & Overy and New York firm Shearman Sterling creating a global legal powerhouse with 4,000 lawyers across 48 offices worldwide, A&O Shearman is particularly known for its expertise in international finance, including banking and capital markets.
A&O Shearman is a leader in legal technology and innovation. The firm has been at the forefront of the legal AI revolution, launching notable partnerships with generative AI solutions like Harvey. The firm also has its own AI contract drafting and negotiation tool known as ‘ContractMatrix’.
Clifford Chance: Established in 1987 through a merger of two London firms, Clifford Chance is renowned for its expertise in banking, capital markets, corporate M&A and litigation. The firm's global reach is extensive, and Clifford Chance positions itself as a go-to firm for multinational corporations facing challenging legal issues across jurisdictions.
Freshfields: With origins tracing back to the 18th century, Freshfields is considered the oldest member of the Magic Circle. The firm is highly regarded for its expertise in corporate law and dispute resolution, including antitrust issues, M&A, and international arbitration. Freshfields boasts a strong global presence, with offices in 17 jurisdictions.
Linklaters: Established in 1838 in London, Linklaters is known for its expertise in banking, capital markets, competition and energy & infrastructure. It has a strong global presence, with offices (or associated firms) in 27 countries. Linklaters has strong relationships with FTSE 100 companies in the UK. In 2022, it had the second-highest number of FTSE 100 clients, behind Slaughter and May.
Slaughter and May: Established in 1889 in London, Slaughter and May is considered the most prestigious of the Magic Circle firms. It’s known for its conservative and more traditional culture (the firm is still a general partnership, rather than an LLP, with all assets and liabilities shared equally among the partners) and its high-profile UK-listed corporate clients. The firm specialises in corporate law, M&A, and financial regulation. It has more FTSE 100 clients than any other firm.
Unlike other Magic Circle firms, Slaughter and May maintains a more selective international presence. The firm has fewer overseas offices, choosing instead to work closely with a network of leading law firms worldwide. It is also smaller, both in terms of headcount and revenue.
Magic Circle firm salaries have risen sharply in the last few years in response to rival US firms in London boosting salaries for lawyers to attract the best talent.
Here’s what Magic Circle firms currently pay their lawyers.
You can see a list of salaries paid by all the top UK law firms here.
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| A&O Shearman | £56,000 | £61,000 | £150,000 |
| Clifford Chance | £56,000 | £61,000 | £150,000 |
| Freshfields Bruckhaus Deringer | £56,000 | £61,000 | £150,000 |
| Linklaters | £56,000 | £61,000 | £150,000 |
| Slaughter and May | £56,000 | £61,000 | £150,000 |
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| A&O Shearman | £56,000 | £61,000 | £150,000 |
| Clifford Chance | £56,000 | £61,000 | £150,000 |
| Freshfields Bruckhaus Deringer | £56,000 | £61,000 | £150,000 |
| Linklaters | £56,000 | £61,000 | £150,000 |
| Slaughter and May | £56,000 | £61,000 | £150,000 |
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| Ashurst | £52,000 | £57,000 | £125,000 |
| Bryan Cave Leighton Paisner | £50,000 | £55,000 | £105,000 |
| Herbert Smith Freehills | £56,000 | £61,000 | £135,000 |
| Macfarlanes | £56,000 | £61,000 | £140,000 |
| Travers Smith | £54,000 | £59,000 | £120,000 |
Magic Circle firms' revenues continue to rise with A&O Shearman (pre-merger) and Clifford Chance now both boasting revenues topping £2 billion.
Magic Circle firms are the most profitable in the UK. Profits per equity partner (PEP) are considerably higher than the second tier firms behind them, including Silver Circle firms. Slaughter and May is thought to have the highest PEP of any UK firm with some estimates putting the figure as high as £3.5 million.
Law Firm | Trainee First Year | Trainee Second Year | Newly Qualified (NQ) |
|---|---|---|---|
| Ashurst | £52,000 | £57,000 | £125,000 |
| Bryan Cave Leighton Paisner | £50,000 | £55,000 | £105,000 |
| Herbert Smith Freehills | £56,000 | £61,000 | £135,000 |
| Macfarlanes | £56,000 | £61,000 | £140,000 |
| Travers Smith | £54,000 | £59,000 | £120,000 |
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