Big Law demand increased in the first half of 2026, driven in large part by the rebound in M&A, with industry revenue rising 11.7%. M&A, finance, and real estate have been among the strongest areas of the lateral market. Private equity transactions continue to generate significant corporate work, while finance hiring has been fueled by private credit, direct lending, and sponsor-side acquisition finance. Real estate practices are seeing demand across acquisitions, development, joint ventures, leasing, and other complex transactions. The expansion of data center and digital infrastructure investment has added another source of work across these practices. For associates and partners considering a lateral move, these areas continue to offer some of the strongest opportunities in the market.
Most Active Practice Areas
M&A and Private Equity: M&A and private equity activity has accelerated significantly in 2026, supported by ample levels of sponsor dry powder, improving financing markets, and a broader rebound in large-cap and middle-market transactions. That resurgence has translated directly into law firm hiring. Associate demand is strongest at the midlevel, particularly for candidates who have drafted and negotiated both primary and ancillary transaction documents and managed deals through the full lifecycle. Private equity continues to account for a significant share of that demand, as firms build out deal teams to support increased sponsor activity across platform acquisitions, add-ons, and exits.
Finance: Finance groups, particularly those focused on leveraged and acquisition finance, private credit, and asset-based lending, are among the strongest areas of the lateral market. The rebound in M&A and sponsor-backed transactions has increased demand for acquisition financing, while the continued expansion of private credit has created opportunities for associates representing direct lenders, private equity sponsors, and borrowers. ABL, refinancing, and recapitalization matters provide an additional source of work beyond new M&A transactions, while fund finance has developed into an increasingly important specialty. Midlevel associates with substantive drafting and negotiating experience are especially sought after, including those who can handle credit agreements and related principal and ancillary financing documents. Exposure to both lender-side and sponsor or borrower-side matters can further broaden an associate’s options, although select junior-level hiring is also occurring.
Real Estate: Real estate has been one of the strongest practices in 2026. Work spans acquisitions, dispositions, joint ventures, financings, development, and leasing, driving hiring for associates with well-rounded transactional experience. Data center development has added another significant source of work, particularly for attorneys experienced in complex leasing and development matters, including build-to-suit and powered-shell leases, co-location arrangements, site acquisitions, and related land use and development issues. The scale and complexity of these projects have made data center experience increasingly valuable within sophisticated real estate practices. Hiring extends from the junior through mid-senior associate levels.
Litigation: Litigation continues to generate consistent lateral demand across complex commercial disputes, securities and financial litigation, white-collar matters and investigations, and other high-stakes cases. Because litigation is less dependent on the deal cycle, it provides firms with a steady source of work as transactional conditions shift. Hiring is particularly focused on associates with substantive deposition, motion practice, case management, and trial preparation experience. Hiring is targeted towards associates with substantive deposition, motion practice, case management, and trial preparation experience. Litigation was also the largest category of lateral partner movement entering 2026, reinforcing the continued strategic importance of the practice to major firms.
Intellectual Property: Intellectual property hiring is strongest in select specialties. Patent litigation continues to generate demand for associates with hard science or technical backgrounds and experience handling complex patent disputes. Life sciences litigation is a particularly active subset, with firms seeking associates who have experience in pharmaceutical patent litigation, including Hatch-Waxman matters. AI has also created a growing source of IP transactional and litigation work, with copyright, licensing, trade secret, and other disputes involving training data and generative AI adding another layer of demand.
Labor & Employment: Labor and employment continues to produce lateral opportunities across both litigation and transactional matters. On the litigation side, firms are seeking associates with experience in wage-and-hour and discrimination claims, restrictive covenant and trade secret disputes, internal investigations, depositions, motions, and agency proceedings. Transactional and counseling demand includes executive employment and separation agreements, reductions in force, workplace policies, and employment issues arising from M&A transactions. The mix of contentious and advisory work gives the practice a relatively steady demand profile across different economic cycles.
Other Areas Seeing Demand
Capital Markets: Capital markets hiring has become more targeted than M&A and finance, but the reopening of the IPO market and continued activity in public and private securities offerings are supporting demand. Midlevel associates with experience drafting and negotiating registration statements, prospectuses and offering memoranda, SEC filings, underwriting agreements, and other principal and ancillary securities documents are particularly well positioned. Candidates who can independently manage significant portions of an offering and advise on ongoing public company reporting and securities law requirements can stand out in a selective market.
Restructuring: Restructuring practices have continued to benefit from liability management transactions, refinancings, distressed M&A, and traditional restructuring and bankruptcy matters. Because restructuring often becomes more active during periods when other transactional practices slow, firms continue to view strong restructuring capabilities as an important part of a balanced transactional platform.
What This Means for the Lateral Market
The 2026 law firm lateral market is active though is highly practice and experience-specific. Corporate, finance, real estate, and litigation continue to offer the most opportunities, while intellectual property, restructuring, labor and employment, and select regulatory and emerging technology practices are also seeing meaningful demand.
Across practices, firms are increasingly focused not simply on years of experience, but on the depth of responsibility attorneys have taken on within their matters. Mid-senior level associates with substantive drafting, negotiating, deal management, or case management experience remain particularly well positioned. Opportunities exist at the junior level as well depending on the practice and firm. We anticipate a continued positive trajectory for law firm hiring through the remainder of the year.
This is the latest installment in a series of posts from Lateral Link’s team of expert contributors. Jesse Hyde is a Principal based in the Chicago office, where he oversees attorney placements and client services in Chicago and throughout the Midwest. He specializes in placing associates, partners, and in-house counsel with leading Am Law 100 and 200 law firms and premier corporations. Jesse received his J.D. from Loyola University Chicago School of Law where he was a Member of the Loyola University Chicago Law Journal. Jesse received his B.A. from the University of Michigan and majored in history. Before recruiting, he practiced as a commercial litigation attorney with a Chicago-based law firm for four years.
