Mapping Momentum: Elite Firms Drive Expansion Across California

Elite firms continue to expand across California - but with greater selectivity and strategy.

In her latest article for the Daily Journal, Sarah Morris, a Partner based in our West Coast US team, explores why top-tier law firms continue to open new offices across California, even as the intensity of lateral hiring has moderated since its 2021 peak.

Drawing on proprietary data from Macrae+, Sarah highlights that nearly half of AmLaw50 firms and 40% of Magic Circle firms have opened a California office since 2015 - with most new launches concentrated in San Francisco and Los Angeles. While some firms are entering the market for the first time, others are expanding into second or even third locations within the state.

The article delves into the strategies behind these moves, including:

• The importance of anchoring new offices with established lateral partners who have deep client relationships and strong local reputations;

• How firms often adjust their practice focus based on where they can land the right talent;

• And the hybrid approach firms are taking to scale - combining new lateral hires with strategic internal relocations.

Sarah also examines the regional nuances between US and UK firms operating in California, and how compensation models and cultural integration continue to shape expansion efforts.

Ultimately, while firms are approaching growth with more caution, the long-term business case for a California presence remains strong.

Read the full article by Sarah Morris for the Daily Journal here.

Please note: A subscription may be required to access the full article.

For more insights, connect with Sarah Morris or reach out to our team at Macrae.