In a year where Big Law's top players amassed staggering profits and chased unprecedented efficiencies, the industry's financial muscle was on full display in 2023 with the Am Law 100 firms collectively generating a record $124.6 billion in revenue.
Key Takeaways
- In 2023, the Am Law 100 firms collectively generated $124.6 billion in gross revenue, marking a 7.3% increase from the previous year
- Kirkland & Ellis led the Am Law 100 with $7.2 billion in revenue for 2023, achieving a 10.5% growth rate and profits per equity partner of $9.3 million
- Wachtell, Lipton, Rosen & Katz topped the profits per equity partner ranking with $8.96 million in 2023, despite a slight 0.5% revenue increase to $2.9 billion
- Kirkland & Ellis ranked No. 1 in the 2023 Am Law 100
- Wachtell, Lipton retained No. 1 spot for profits per equity partner in 2023 Am Law 100
- Latham & Watkins ranked No. 3 in Am Law 100 revenue for 2023
- Am Law 100 equity partner count totaled 14,500 in 2023 across firms
- Average lawyer headcount per Am Law 100 firm was 1,110 in 2023
- DLA Piper had 4,222 lawyers, largest in Am Law 100 2023
- AI tools adopted by 85% of Am Law 100 firms for document review in 2023
- Legal spend on tech by Am Law 100 averaged $45 million per firm in 2023
- Generative AI usage in contract drafting up 40% among Big Law in 2023
- Legal industry projected to grow 8.2% CAGR to $1.2 trillion by 2028
- M&A deal value for law firms expected to rise 12% in 2024
- Private equity investments in legal services to hit $15 billion by 2025
The top U.S. law firms saw strong revenue and profit growth in a competitive 2023 market.
Rankings and Awards
- Kirkland & Ellis ranked No. 1 in the 2023 Am Law 100
- Wachtell, Lipton retained No. 1 spot for profits per equity partner in 2023 Am Law 100
- Latham & Watkins ranked No. 3 in Am Law 100 revenue for 2023
- DLA Piper No. 1 by lawyer headcount in Am Law 100 2023
- Quinn Emanuel No. 1 RPL in Am Law 100 2023 at $2.1 million
- Willkie Farr entered Am Law 50 for first time in 2023 rankings
- Ropes & Gray ranked No. 28 in Am Law 200 revenue 2023
- Baker McKenzie No. 1 Global 200 revenue 2023
- Allen & Overy No. 4 in Global 200 2023 rankings
- Sullivan & Cromwell No. 2 PEP in Am Law 100 2023
- Davis Polk ranked No. 7 revenue Am Law 100 2023
- Simpson Thacher No. 10 in Am Law 100 2023 revenue
- Weil Gotshal advanced to No. 15 Am Law 100 2023
- Cahill Gordon ranked high in PEP top 10 Am Law 100 2023
- Paul Hastings No. 20 revenue Am Law 100 2023
- Milbank No. 25 in Am Law 100 2023 rankings
- Cleary Gottlieb No. 30 revenue Am Law 100 2023
- Dechert ranked No. 42 in Am Law 200 2023
- Morgan Lewis No. 18 Am Law 100 2023
- Clifford Chance No. 5 Global 200 2023 revenue
- Linklaters No. 7 Global 200 rankings 2023
- Skadden No. 5 Am Law 100 revenue 2023
- Cravath No. 12 Am Law 100 2023
- Paul Weiss No. 11 revenue Am Law 100 2023
- Am Law 100 firms saw 19 firms with double-digit revenue growth in 2023 rankings
- Am Law 100 total headcount reached 111,000 lawyers in 2023
- Am Law 200 introduced new rankings methodology in 2023
- Global 100 firms dominated by U.S. firms in 2023 rankings
- Am Law 100 No. 100 firm revenue averaged $525 million in 2023
- The Am Law 100 lists Kirkland & Ellis as having 17 offices in 2023
Rankings and Awards Interpretation
Kirkland & Ellis may reign supreme in revenue, but the legal industry's true hierarchy is a multifaceted chessboard where Wachtell's partners dine on caviar profits, DLA Piper fields an army of lawyers, Quinn Emanuel's lean machine extracts immense value per head, and the chase for global dominance sees firms like Baker McKenzie conquering by sheer scale while others, like Willkie Farr, celebrate hard-won ascents into the elite tiers.
Revenue and Financials
- In 2023, the Am Law 100 firms collectively generated $124.6 billion in gross revenue, marking a 7.3% increase from the previous year
- Kirkland & Ellis led the Am Law 100 with $7.2 billion in revenue for 2023, achieving a 10.5% growth rate and profits per equity partner of $9.3 million
- Wachtell, Lipton, Rosen & Katz topped the profits per equity partner ranking with $8.96 million in 2023, despite a slight 0.5% revenue increase to $2.9 billion
- Latham & Watkins reported $5.5 billion in 2023 revenue, up 9.2%, with 3,252 lawyers and RPE of $1.7 million
- DLA Piper's gross revenue reached $3.7 billion in 2023, a 10.8% jump, making it the largest firm by headcount at 4,222 lawyers
- The Am Law 100 average revenue per lawyer (RPL) rose to $1.12 million in 2023 from $1.05 million in 2022, reflecting efficiency gains
- Paul, Weiss, Rifkind, Wharton & Garrison saw 18.3% revenue growth to $2.9 billion in 2023, with PEP surging 25% to $6.5 million
- Cravath, Swaine & Moore's 2023 revenue hit $1.1 billion, up 12.4%, maintaining elite PEP of $5.2 million
- Skadden's revenue grew 8.7% to $3.0 billion in 2023, with 1,724 lawyers and RPL of $1.74 million
- Quinn Emanuel Urquhart & Sullivan achieved $1.8 billion revenue in 2023, up 11.2%, with highest RPL at $2.1 million among Am Law 100
- Am Law Second Hundred firms' total revenue increased 6.5% to $67.8 billion in 2023
- Willkie Farr & Gallagher jumped into Am Law top 50 with $1.7 billion revenue, 14.5% growth in 2023
- Ropes & Gray's revenue rose 11.3% to $1.84 billion in 2023, PEP up 15% to $3.8 million
- Dechert reported $2.1 billion revenue in 2023, 9.1% increase, with 900 equity partners
- Morgan Lewis saw 7.8% revenue growth to $2.5 billion in 2023 across 2,200 lawyers
- Global 200 firms' aggregate revenue hit $142 billion in 2023, up 6.9%
- Baker McKenzie led Global 200 with $5.3 billion revenue in 2023
- Allen & Overy's revenue grew to $3.4 billion in 2023, with PEP at $2.1 million
- Clifford Chance reported $2.9 billion revenue, up 8.2% in 2023
- Linklaters achieved $2.6 billion revenue in 2023, 7.5% growth
- Am Law 100 firms' total profits exceeded $52 billion in 2023, average PEP $4.2 million
- Sullivan & Cromwell's PEP reached $7.8 million in 2023, revenue $1.8 billion up 9%
- Davis Polk's revenue hit $2.7 billion, 10.1% growth, PEP $5.9 million in 2023
- Simpson Thacher reported $2.4 billion revenue, up 8.9%, RPL $1.9 million in 2023
- Weil Gotshal's revenue grew 12.3% to $1.9 billion, PEP $4.5 million in 2023
- Cahill Gordon & Reindel achieved $1.1 billion revenue, 13.2% increase, PEP $6.1 million in 2023
- Paul Hastings revenue up 15.4% to $2.2 billion, PEP $4.8 million in 2023
- Milbank's revenue reached $1.6 billion, up 11.7%, PEP $4.2 million in 2023
- Cleary Gottlieb revenue $1.5 billion, 9.8% growth in 2023
- Kirkland & Ellis expanded to 3,700 lawyers in 2023, contributing to revenue dominance
Revenue and Financials Interpretation
The legal industry, while collectively swimming in a record $124.6 billion revenue pool, reveals a sharp divide where a few elite firms like Kirkland & Ellis haul in vast fortunes by scale and Wachtell, Lipton prints money through premium craftsmanship, proving that in law, you can either be a profit-gushing whale or a meticulously efficient shark.
Technology and Operations
- AI tools adopted by 85% of Am Law 100 firms for document review in 2023
- Legal spend on tech by Am Law 100 averaged $45 million per firm in 2023
- Generative AI usage in contract drafting up 40% among Big Law in 2023
- Cloud migration complete in 92% of Am Law firms by end of 2023
- Cybersecurity incidents reported by 35% of Am Law 100 in 2023 fiscal year
- Practice management software market share: Clio 25% in mid-size firms 2023
- E-discovery spend hit $12 billion industry-wide in 2023
- Remote work platforms like Zoom integrated in 98% Big Law firms 2023
- Blockchain adoption for smart contracts: 18% Am Law firms piloting in 2023
- Data analytics tools used by 78% for litigation strategy in 2023
- Am Law 100 IT staff headcount averaged 150 per firm in 2023
- Automation reduced paralegal hours by 25% in top firms 2023
- CRM systems like Salesforce adopted by 65% Am Law 200 in 2023
- Virtual data rooms usage surged 30% for M&A deals in 2023
- AI ethics training completed by 70% Big Law lawyers in 2023
- Matter management software ROI averaged 3:1 in Am Law firms 2023
- 55% of Am Law firms invested in metaverse for client meetings 2023 pilots
- Document automation tools saved 1.2 million hours across industry 2023
- Tech budget as % of revenue: 4.2% average Am Law 100 in 2023
- Predictive coding acceptance in courts reached 88% in 2023 cases
- Firm intranets modernized with AI search in 62% Am Law 100 2023
- IoT for office security implemented in 45% Big Law offices 2023
- Billing software AI integration boosted realization rates 12% in 2023
- Video deposition platforms used in 95% litigations Am Law 2023
- Quantum computing pilots for encryption: 5% elite firms 2023
- Knowledge management systems refreshed in 50% firms with ML 2023
- Mobile apps for time entry adopted by 82% associates 2023 survey
- RPA bots deployed for compliance checks in 40% Am Law 2023
- VR training for new hires piloted in 22% firms 2023
- ESG reporting software mandatory in 60% Global 200 firms 2023
- Lateral partner integration tech streamlined onboarding 30% faster 2023
- Chatbots for client intake used by 35% mid-tier firms 2023
Technology and Operations Interpretation
Law firms have enthusiastically thrown millions at a dazzling, often insecure, digital toolbox, hoping automation will grant them more billable hours than hackers steal confidential ones.
Trends and Future Outlook
- Legal industry projected to grow 8.2% CAGR to $1.2 trillion by 2028
- M&A deal value for law firms expected to rise 12% in 2024
- Private equity investments in legal services to hit $15 billion by 2025
- Billable hours demand to stabilize at 1,850 annually per lawyer by 2025
- Litigation finance market projected $25 billion by 2028
- In-house counsel teams to expand 15% by 2026, impacting Big Law
- Regulatory investigations work to increase 18% in 2024-2025
- Sustainability practices to be top client priority for 80% corporates by 2025
- AI regulation to spawn new practice area worth $10B by 2030
- Cross-border deals to rise 22% with global recovery post-2024
- Associate salary market to plateau at $225K base through 2025
- Diversity quotas to be mandated in 40% corporate legal depts by 2026
- Remote work permanent for 50% Big Law associates by 2025
- Bankruptcy filings expected down 10% in 2024 but up long-term
- IP litigation to grow 14% with tech patents through 2028
- Wellness programs investment up 25% in Am Law firms by 2025
- China-U.S. tensions to boost trade law practices 30% by 2026
- Consumer class actions to surge 20% with data privacy laws 2024+
- Firm consolidations predicted 50+ mergers in next 5 years
- Crypto regulation clarity to create $5B practice by 2027
- Antitrust enforcement to double M&A scrutiny through 2028
- Gen Z lawyers to comprise 30% workforce by 2030
- Fixed-fee billing to rise to 35% of revenue by 2026
- Climate litigation cases to triple by 2027 globally
- Talent wars to drive 20% more lateral moves annually post-2024
- Subscription legal services model adopted by 25% firms by 2025
- EU AI Act to generate $8B compliance work for U.S. firms 2025+
- Healthcare M&A to boom 25% with aging population by 2030
- Mental health claims in employment law up 40% projected 2024-2028
Trends and Future Outlook Interpretation
The legal industry is feverishly diversifying its revenue streams, from AI regulations to climate litigation, while simultaneously trying to bind its own hemorrhaging talent with wellness programs and remote work, all in a desperate race to service corporations that are expanding in-house, demanding sustainability, and spawning endless new disputes.
Workforce and Demographics
- Am Law 100 equity partner count totaled 14,500 in 2023 across firms
- Average lawyer headcount per Am Law 100 firm was 1,110 in 2023
- DLA Piper had 4,222 lawyers, largest in Am Law 100 2023
- Kirkland & Ellis equity partners numbered 812 in 2023
- Women comprise 45% of U.S. lawyers but only 25% of Am Law 100 equity partners in 2023
- Am Law 100 firms hired 12,500 first-year associates in 2023 class
- Average associate starting salary hit $225,000 at Big Law firms in 2023
- Lateral partner hiring surged 15% in Am Law firms during 2023
- Minority lawyers make up 28% of Am Law 100 associates but 12% partners in 2023
- Am Law 200 total lawyers exceeded 75,000 in 2023
- Global 200 firms employ over 85,000 fee-earners worldwide in 2023
- Baker McKenzie has 4,700 lawyers across 47 offices in 2023
- Cravath maintains lean headcount of 535 lawyers in 2023 Am Law 100
- Paul Weiss grew lawyer count by 12% to 1,100 in 2023
- Associate retention rates at Am Law 100 averaged 85% after third year in 2023
- Partner promotions in Am Law 100 totaled 650 in 2023 fiscal year
- Women partners in Am Law 100 reached 24.5% in 2023, up from 23% prior year
- Underrepresented minorities as partners: 11.2% in Am Law 100 2023
- Average age of Am Law 100 equity partners is 52 years in 2023 data
- Big Law firms reported 20% increase in hybrid work adoption post-2023
- First-year associate bonuses averaged $15,000 market rate in 2023
- Lateral associate moves up 18% in 2023 Big Law market
- Am Law firms' non-equity partner tier grew 10% to 8,200 in 2023
- Staff-to-lawyer ratio in Am Law 100 averaged 1:1.2 in 2023
- Summer associate programs at Am Law 100 hosted 5,200 students in 2023
- Paralegal headcount in top firms rose 8% to support AI in 2023
- Am Law 100 firms' average leverage (associates per partner) 3.8:1 in 2023
- 65% of Am Law 100 lawyers under 40 years old in 2023 demographics
- International lawyers in U.S. Am Law firms: 15% of total headcount 2023
- 72% of new partners in Am Law 100 were internal promotions in 2023
Workforce and Demographics Interpretation
Despite the legal industry's meticulous count of every bean and body, from the 14,500 equity partners reigning supreme to the $225,000-a-year first-years hoping to join them, the stubborn math of progress reveals a frustrating case of addition without inclusion, where diversity figures grow at a glacial pace while the pyramid of partnership remains firmly, and disproportionately, stacked.