The legal market is picking up, people are returning to offices and the sanctions which we’ve been under for many months have finally relinquished. This article is dedicated to examining the toll that the national crisis has had on law firms.
The true effect of the last 3 months is becoming visible and like other industries, the legal sector has also seen high-achievers and strugglers. Of the firms that have thrived, some have been niche firms, which provide legal services within targeted areas of law. If like me, you assumed that the magic circle firms would be inherently more successful in chaos, it would come as a surprise to learn that niche boutique firms have triumphed. Whether that’s due to a demand in a particular area of law, or premium prices from magic circle firms, the pandemic has certainly tipped the scales in favor of niche law firms who have reported record levels of business.
The CEO of Litigation Funder Manolete Partners, Steven Cooklin, stated, ’We are currently running a record 201 live cases and foresee no requirement for any further material increase in overhead costs, so the outlook for cash generation is very positive’. The figures from Manolete show they are running at double the rate in comparison to last year, and this is a clear indication that specialist law firms that are smaller don’t not only survive, but out perform themselves, and a proportion of big city law firms in a tough climate like now.
Smaller High Street law firms are more open to hiring, as they are experiencing an increase in their activity. Boutique West End firms should not be forgotten about, and their legal teams are only getting stronger as a result of potential redundancies, as there is more talent available on the market.