Just over 5,000 partners changed firms in 2024 (5,069 to be precise). While there are myriad ways to analyze this data, there is one key underrated metric that shows both lateral flight patterns as well as a primary growth tactic for the AmLaw 100: upstream vs. downstream.
Simply put, did more lawyers move upstream (to larger firms) or downstream (to smaller ones)?
In 2024, upstream moves comprised roughly 68 percent of total lateral partner moves. Two out of three lateral partners moved to larger firms; in other words, upstream moves occur at more than twice the frequency of downstream moves.
Beyond the sheer volume, however, there are two major reasons why the country’s largest firms recruit outside their peer group.
- Increased Client Portability. The client portability rate shows the percentage of a partner’s clients that they believe will join them at the new firm. For lateral partners moving from firms outside the AmLaw 100, the average is roughly 66 percent. This moderately exceeds the AmLaw 100 average of 58 percent. Upstream partners are more likely to bring business.
- Larger Number of Clients. Lateral partner candidates from outside the AmLaw 100 report an average of 20.9 listed clients and 13.8 portable clients. Their AmLaw 100 counterparts report averages of 18.6 listed clients and 10.8 portable clients. Upstream partners claim approximately two more listed clients and three more portable clients.
While this makes it clear why this trend is likely to continue, it’s worth examining the upstream vs. downstream issue from the candidates’ perspective as well.
In Major, Lindsey & Africa’s Lateral Partner Satisfaction Survey, 43 percent of respondents said they chose to move to a more profitable firm; 25 percent chose a similarly profitable firm. Just 20 percent said they chose a less profitable firm.
“Just as a ballplayer who can hit a curve ball gets to move from Triple A to the major leagues, desirable laterals have an opportunity to upgrade their professional platforms,” the report notes.
These moves are not necessarily motivated by prestige, however — and they are not all about money.
When asked why they chose to leave their former firms, nearly half — 44 percent — of lateral partners cited “lack of confidence in firm management or strategy,” making this the leading reason law firms lose talent. It is followed by:
- Compensation: 39 percent
- Lack of support to build practice: 38 percent
- Firm culture: 29 percent
- Firm’s financial health: 20 percent
- Lack of leadership opportunities: 15 percent
- More/different office locations: 10 percent
A firm’s long-term strategy also influences a lateral’s selection process. In the survey, two primary factors driving firm selection were increased practice support, meaning the lateral wanted a better platform to enhance their practice, and a perception of being “well-managed.”
What does this mean for you?
Law firms would be prudent to continue recruiting outside the AmLaw 100, as upstream laterals offer both more robust client rosters and a higher probability of moving their books.
At the same time, to both retain their top talent and attract new partners, firms must develop, deploy and discuss their growth strategies; partners must understand the firm’s goals and see the growth metrics that show progress toward them.
Decipher Investigative Intelligence can build custom talent playbooks that identify strategic upstream candidates in your priority markets, and provide analytics and benchmarks to both inform your growth strategy and chart its execution. Contact us today to keep moving your firm upstream.
