Good afternoon,
A&O Shearman posted double-digit profit growth in its second year as a combined firm, even as revenue slipped slightly in sterling, with its highest-paid partners now reaching about $2.9 million. The associate pay war widened as litigation boutique Pallas Partners pushed first-year salaries to $235,000. On the lateral front, Sidley, Goodwin Procter, DLA Piper, Baker Botts, Steptoe, and Squire Patton Boggs all added partners across finance, funds, antitrust, energy, and public policy.
On the client side, as issuers rush to raise equity Hyundai moved to buy out SoftBank’s remaining stake in Boston Dynamics, Eli Lilly opened talks for a psychedelics biotech, and Berkshire Hathaway disclosed a $10 billion bet on Google. TSMC pledged another $100 billion for US chip plants, JPMorgan neared a $1 trillion market value, and Washington imposed a 25% tariff on Brazil as Iran drew a “red line” over the Strait of Hormuz.
Now, on to what matters for your practice today.
Today’s Talking Points
-A&O Shearman posts double-digit profit growth despite a slight GBP revenue dip in year two
-Pallas Partners lifts first-year pay to $235,000 as the associate pay war spreads
-Sidley, Goodwin, DLA Piper, Baker Botts, Steptoe, and Squire Patton Boggs add partners
-Blockbuster stock issuances are threatening to overwhelm the market as issuers rush to raise capital
-Hyundai to buy SoftBank's 9.65% Boston Dynamics stake for $325M; Eli Lilly chases AtaiBeckley
-Berkshire reveals a $10B Google stake as JPMorgan nears a $1 trillion valuation
-TSMC commits another $100B to US chip production, lifting its total to $265B
-Law firms that settled with the White House face counterparty-risk scrutiny; WilmerHale sued over a data breach
-US hits Brazil with 25% tariffs as Iran warns of a Hormuz "red line"
Talent Strategy
Latest Moves
Marissa Gluck joined Sidley as a partner in its global finance practice in New York.
Margaret Webb joined Goodwin Procter as a partner in its antitrust and competition practice, within the complex litigation and dispute resolution group, in San Francisco.
Mitchell Weiss joined DLA Piper as a partner in its investment funds practice in Chicago.
Andrea Stover joined Baker Botts as a partner in its energy regulatory practice in Austin.
Katherine Petti, Christopher Berg, and Noah Helpern joined Steptoe as partners in Los Angeles.
Trevor Kellogg joined Squire Patton Boggs as a principal in its global public policy practice in Washington, DC.
What today's moves tell us: firms are adding in finance, funds, antitrust, energy, and public policy, and spreading partner hires across New York, Chicago, Austin, San Francisco, Los Angeles, and Washington.
Operations and Strategy
Elite firms are trading top-line growth for profitability and paying up to keep talent.
A&O Shearman reported double-digit profit growth in its second year as a merged firm, even as revenue dipped slightly in sterling terms. Management framed the year as a “deliberate reshaping” that honed profitability over headline revenue, with the highest-paid partners now reaching about $2.9 million.
The pay pressure is moving down the ranks. Pallas Partners, a litigation boutique, pushed first-year associate salaries to $235,000, joining a broader associate pay war that keeps compensation a central battleground. US bank trading desks added to the backdrop with a $54 billion haul, a reminder of the fee pools firms are chasing on the advisory side.
Not all the attention is welcome. Firms that settled with the White House are drawing fresh criticism for failing to account for counterparty risk, and WilmerHale was hit with a putative class action over a client personal-data breach, a sign that liability and reputational exposure are rising alongside profits.
Practices
Private Equity and M&A
Dealmakers and sponsors are working control stakes, minority sales, and carve-outs rather than headline megadeals, and the mix points to steady demand for corporate, cross-border, and financing counsel. Executives and fund managers are moving on targeted positions, giving M&A, finance, and regulatory teams parallel mandates on diligence, structuring, and approvals.
Selected Press:
Hyundai will acquire SoftBank's remaining 9.65% stake in robotics firm Boston Dynamics for $325 million.
Eli Lilly is in talks to acquire AtaiBeckley, a $2 billion-listed psychedelics biotech, at a potential 60% premium.
First Quantum Minerals is weighing a sale of a minority stake in its Taca Taca copper project in Argentina to buyers including Rio Tinto, Mitsubishi, and Mitsui & Co.
Capital Markets and Governance
Boards and general counsel are watching a heavy equity-issuance calendar and marquee investments that raise disclosure and governance questions. A rush of stock sales and a $10 billion Berkshire position in Google give capital markets and governance teams work on offerings, large-holder disclosures, and board-level review.
Selected Press:
Blockbuster stock sales are threatening to overwhelm the bull market as issuers rush to raise equity.
Warren Buffett initiated Berkshire Hathaway's $10 billion investment in Google.
JPMorgan is nearing a $1 trillion market value, a milestone for the largest US bank.
Data Privacy, Cybersecurity, and International Trade
Decision-makers building AI infrastructure are absorbing a mix of investment commitments, trade actions, and data-security litigation. A larger US chip buildout, new Brazil tariffs, and a law-firm breach suit generate regulatory, trade, IP, and privacy mandates for the companies scaling AI and the advisers exposed to them.
Selected Press:
WilmerHale was sued in a putative class action over a client personal-information data breach.
TSMC will invest another $100 billion in US chip production, lifting its total US commitment to $265 billion.
The Trump administration will impose a 25% tariff on many Brazilian imports under Section 301, exempting oil, beef, coffee, and aircraft parts; Brazil plans to retaliate.
Where the Work Sits
***
The day's deals point to cross-border M&A and structuring work rather than straight auctions. Hyundai's buyout of SoftBank in Boston Dynamics, Eli Lilly's move for AtaiBeckley, and First Quantum's copper-stake sale in Argentina feed minority-stake structuring, consortium and joint-venture terms, foreign-investment review, and financing negotiations. When activity clusters around control positions and carve-outs, the high-end matters flow to a small set of corporate and finance teams that can price complexity.
The capital-markets docket is filling. A heavy equity-issuance calendar, Berkshire's $10 billion Google stake, and JPMorgan's march toward $1 trillion generate offerings, large-holder and 13D disclosure, and board-level advisory as issuers and strategic investors move at scale.
Trade and technology are the widening front. TSMC's $265 billion US commitment pulls in project, construction, incentives, and CFIUS-adjacent work, while the 25% Section 301 tariff on Brazil creates trade, supply-chain, and contract mandates for exporters and their counterparties.
Regulatory and white-collar benches stay busy on the law-firm stories themselves. The WilmerHale data-breach class action and the counterparty-risk criticism aimed at firms that settled with the White House point to data-privacy litigation, professional-liability defense, and internal reviews across the upper echelons of Big Law.
Global Markets
Trade tension and Middle East risk sit against a market still pushing higher on Big Tech.
Clients are watching Washington's 25% tariff on Brazil and Brazil's promised response as a fresh source of supply-chain and contract risk, while executives weigh renewed Middle East escalation after Iran called US interference in the Strait of Hormuz an “unbreakable red line.” Decision-makers are also tracking how central banks read AI's push-pull effect on inflation, a debate now shaping rate expectations on both sides of the Pacific.
Selected Press:
Brazil tariffs: the US will impose a 25% tariff on many Brazilian imports under Section 301, with Brazil planning to reciprocate.
Iran and Hormuz: Iran warned it would retaliate against regional infrastructure and called US action in the Strait of Hormuz an “unbreakable red line” as US forces launched further strikes.
AI inflation puzzle: US and South Korean policymakers are assessing whether AI is inflationary or disinflationary, complicating the rate outlook.
Korea market strain: South Korea's president called the country's stock market “unstable” after wild swings.
Stories to Watch
Todd Blanche confirmation hearing — the attorney general nominee faces bipartisan scrutiny that could shape DOJ posture toward Big Law.
TSMC's $265B US commitment — watch for state incentives and construction mandates.
Brazil tariff retaliation — reciprocal measures would disrupt trade and contracts for exporters.
Iran and the Strait of Hormuz — escalation would swing oil prices and inflation risk.
FDA's new cholesterol-drug approval — a signal for pharma launch, marketing, and IP activity.
That’s the rundown. See you next where law meets the markets.
-The BigLaw Markets Team
*DISCLAIMER: BigLaw Markets analyzes publicly available information, filings, press releases, and news stories published by reputable media sources to deliver newsletters that highlight the drivers of demand for legal services.
Thanks for reading!
We’d like your feedback. Please email thoughts and suggestions to [email protected].
