Private Equity Zeros In on BigLaw’s Second-Tier Firms
Private equity firms are ramping up efforts to invest in mid-tier BigLaw firms, especially those in the Second Hundred.
Why it matters: This move could shake up law firm ownership models and partnership economics, potentially altering competitive dynamics across the U.S. legal market. Leaders at mid-tier firms should prepare for possible structural shifts and heightened acquisition interest in the next two years.
- Private equity is targeting firms ranked in the Am Law Second Hundred for investment and possible acquisition.
- Second Hundred firms saw an 11.1% increase in gross revenue in 2024, totaling about $27.84 billion.
- Profits per equity partner at these firms averaged $1,095,465 in 2024, up 12.8% from the previous year.
- McDermott Will & Schulte confirmed preliminary talks in November 2025 for potential outside investment.
Private equity firms are intensifying their focus on the Am Law Second Hundred—the next tier of major law firms ranked just below the top 100. Strong financial performance is fueling investor interest, as these firms posted an 11.1% jump in gross revenue in 2024, reaching approximately $27.84 billion, and saw average profits per equity partner climb 12.8% to $1,095,465.
M&A adviser Bob Maiden of Focus Investment Banking told Above the Law, "We think the first [Biglaw] deal will come from the Second Hundred, and we do think it's going to come in calendar year 2026." (details)
Interest is already translating to preliminary action: In November 2025, McDermott Will & Schulte acknowledged early conversations about selling a portion of the firm to outside investors. The proposed structure would separate a lawyer-owned advisory arm from an entity catering to third-party investors, hinting at a possible template for future private equity involvement in U.S. law firms.
No deals have closed yet, but industry observers expect 2026 to bring the first landmark transaction. A wave of investment could reshape law firm partnership models and intensify competition up and down the Am Law 200.
By the numbers:
- 11.1% — Revenue growth for Second Hundred firms in 2024
- $27.84B — Total gross revenue for Second Hundred firms in 2024
- $1,095,465 — Average profits per equity partner for Second Hundred firms in 2024
Yes, but: No private equity deals involving Second Hundred law firms have closed yet, and regulatory hurdles remain unaddressed.
What's next: Observers predict the first private equity acquisition or investment in a Second Hundred law firm by 2026.