How US law firms are taking over the City: American legal practices beat off London's 'magic circle' and top list of highest earners for UK corporate work

Three of nan 5 highest-earning ineligible practices for UK firm activity are American, caller investigation suggests.

US rule firms Kirkland & Ellis and Lathan & Watkins person coming been named arsenic nan apical earners for UK firm instructions, beating disconnected their English rival Linklaters.

Researchers astatine The Lawyer said that figures suggested further 'evidence of nan Americanisation' of London's ineligible market.

Kirkland, which was founded successful Chicago, took nan apical spot earning much than £422million astatine its UK agency past year. 

Latham, which is primitively from Los Angeles, is said to person earned £341million from its UK team, while Linklaters earned £263million from its UK operations.

The UK's Allen & Overy rule firm, which merged pinch Manhattan's Shearman & Stirling earlier this year, came successful 4th position earning astir £214million. Earnings were assessed anterior to nan merger. 

And New York's Simpson Thatcher & Bartlett — 1 of nan alleged white-shoe rule firms — earned much than £204million successful nan past 12 months from its London office.

White-shoe rule firms person typically been associated pinch nan upper-class elite who graduated from Ivy League colleges specified arsenic Harvard, Princeton and Yale.

While American rule firms dominated nan apical of nan highest-earnings table, nan bottommost half was dominated by home firms. 

Slaughter and May, who are arguably nan richest of London's 'magic circle' of firms, earned conscionable awkward of £200million — importantly little than its US counterparts. 

The 'magic circle' are a class of rule firms which are headquartered successful nan UK and person traditionally been seen arsenic nan top-ranked aliases astir prestigious world rule firms based successful London.

The different firms successful nan 'magic circle' are A&O Shearman, Linklaters, Clifford Chance and Freshfields Bruckhaus Deringer. 

They person been grouped together because of their extraordinarily precocious profitability.  

But The Lawyer's researchers person suggested that nan worth of nan 'magic circle' term, which was coined by nan media institution 30 years ago, has diminished.

However, immoderate elder City lawyers judge that nan starring London rule firms person a amended scope internationally than their US rivals, who targeted London specifically and did not see overseas markets.

Charles Adams, managing partner astatine Clifford Chance, told The Times coming that US rule firms 'are a reality successful London' and that 'all title is good'.  

He said there is 'no doubt' that US firm clients salary much for ineligible services and put this down to American culture, adding 'just look astatine really Americans salary specified ample tips to waiters'.