Elite law firms aiming to break ties with the lofty moniker 'Magic Circle'
Elite London-based law firms, known as the 'Magic Circle', are experiencing a shift in perception regarding this prestigious title. A senior partner of one such firm has deemed the term a sign of "lazy journalism," indicating a changing landscape within the City's legal sector.
The term 'Magic Circle' arose in the 1990s, initially replacing the 'Club of Nine' to describe the five most prestigious English law firms: Allen & Overy (now A&O Shearman), Clifford Chance, Freshfields, Linklaters, and Slaughter and May. As the 'Club of Nine' disbanded in 2000, the 'Magic Circle' emerged. Today, this label leads many news story headlines and captions, even on TikTok videos related to legal professions.
However, some firms have shifted their focus over the years to expanding their presence in the U.S. legal market, setting their sights on becoming the "Global Elite." Partners from Freshfields, Linklaters, Clifford Chance, and A&O Shearman, with the exception of Slaughter & May, are actively pursuing this title. US Big Law firms already dominate the US market and have made significant gains worldwide, particularly in the UK, posing a strong competition.
US law firm Kirkland & Ellis, for instance, is considered the highest-grossing and most profitable law firm globally, generating nearly $9bn over 2024, with partners earning over $9m on average. To establish a foothold in the US market, Magic Circle firms are employing various strategies; A&O Shearman opted for a merger with US law firm Shearman & Sterling, while others have opened new offices and filled them with experienced personnel.
To appeal to a US audience and potentially shed the 'Magic Circle' label's English upper-class connotation, these firms are also rebranding. Freshfields, for example, recently dropped its German name, Bruckhaus Deringer. The ultimate goal is to modernize their image and adapt to the evolving global legal landscape.
In the transition of the Magic Circle firms to embrace a global presence, their focus has expanded beyond the English legal market towards the United States, aiming to secure the title of "Global Elite" that is currently dominated by US Big Law firms. To establish a significant foothold in the US market, these firms are implementing numerous strategies, including acquisitions, office openings, and rebranding efforts to appeal to the US audience and distance themselves from the perceived English upper-class connotation attached to the Magic Circle label in finance, business, and industry sectors.
