The private credit market, now valued at a staggering $2 trillion, has law firms racing to fortify their finance practices. As non-bank lenders claim an increasingly larger stake in the lending landscape—sidestepping many of the regulatory hurdles that burden traditional banks—law firms are eagerly recruiting specialized attorneys to compete in this booming arena.
Recent moves have amplified the momentum. Mayer Brown and Kirkland & Ellis have aggressively expanded their private credit benches. In a high-profile hire, Sheel Patel left King & Spalding to lead Mayer Brown’s private credit team in New York, while Kirkland added H.T. Flanagan from Freshfields Bruckhaus Deringer, known for representing heavyweights like Hayfin Capital Management and CPPIB Credit Investments.
“The landscape for private credit is immense,” said Jennifer Daly, head of private credit and special situations at Paul Hastings. Her roster of influential clients, including Antares, Apollo, Blackstone Credit, Blue Torch Capital, and KKR, underscores the market’s pull. Daly was one of 11 attorneys to make a major jump from King & Spalding to Paul Hastings earlier this year.
Traditional banks, eager for a slice of this profitable pie, are increasingly partnering with private investment firms. Asset-based financings, like Concord’s $850 million deal secured by a music catalog with Apollo’s involvement, exemplify this diversification. Another standout collaboration is Citigroup and Apollo’s September partnership, a $25 billion direct lending venture.
These alliances are more than headline-grabbers. They create a critical network effect, generating a robust pipeline of transactions for private credit lawyers. “It translates to more deals, which means a surge in legal work and endless opportunities for law firms that specialize in private credit,” said Peter Williams, newly appointed co-head of private credit at Cahill Gordon & Reindel.
Gibson Dunn, Akin Gump, Proskauer Rose, Simpson Thacher, Dechert, and O’Melveny & Myers are just a few of the firms upping their game, hiring top talent to ride the private credit wave. Firms like Kramer Levin and Seward & Kissel have even formalized their private credit practices to meet market demand.
The race to dominate this evolving legal market is accelerating. According to law firm recruiter Jon Truster at Macrae, private credit partner hires in 2024 have already doubled compared to previous years, signaling a seismic shift in the focus of top firms. The financial winds of change are sweeping through the legal corridors—and everyone is scrambling to catch them.
