UK Legal Hiring and the IPO Rebound

Legal hiring in the UK is entering a pivotal moment as capital markets activity shows signs of revival. After years of muted activity, the anticipated rebound in initial public offerings (IPOs) and equity capital markets (ECM) work is reshaping demand across the legal progression.  

Corporate and capital markets lawyers, from mid-level associates to senior partners with transactional expertise, are once again at the centre of hiring strategies. Both law firms and in-house teams are under pressure to secure talent that can respond immediately to renewed corporate activity, with transactional practices regaining priority. 

For firms, the ability to move quickly on recruitment is no longer optional; it is becoming a critical factor in staying competitive as IPO pipelines reopen and client demand accelerates. 

The market backdrop 

From 2022 to 2024, UK IPO activity slowed. Rising interest rates, investor caution and global uncertainty weighed on the London Stock Exchange, while some growth companies chose US markets instead, citing stronger valuations and deeper pools of capital.By early 2025, conditions began to shift. Inflation stabilised, rates peaked, and investor confidence improved. Analysts now expect a healthier pipeline of listings, particularly in technology, healthcare and energy transition. 

At Larson Maddox, we are already seeing law firms adjust hiring strategies to reflect this renewed optimism. Teams that scaled back during the downturn are now working to rebuild, and there is a clear sense that capital markets practices must be staffed more robustly to capture new mandates. 

Why IPO recovery shapes hiring 

Capital markets hiring is shaped by sharp cycles. In quieter periods, capacity sits idle, but when the market opens, the surge in activity creates immediate resourcing gaps. Firms that fail to respond quickly are at a disadvantage, losing mandates to competitors that can rapidly mobilise full teams.  

Securing talent has become a defining feature of the rebound. Securing experienced associates or partners is not just about filling roles, it is about signalling capability to clients. A well-timed lateral hire can reassure banks and issuers that a firm has the depth to deliver, which in turn wins further work. 

Competition is particularly fierce because the pool of ECM specialists is limited. Years of weak IPO activity mean fewer mid-level lawyers have hands-on experience. Those with recent deal exposure are in high demand, and they know it. Many are moving for stronger pipelines, faster progression, or international opportunities, while firms with thinner benches struggle to hold on to them. Retention is now as important as recruitment, as firms recognise that losing one associate or partner to a rival can mean losing future mandates as well. 

Skills in demand 

The profiles most in demand are mid-level associates with hands-on ECM experience.  They may be in short supply but they are essential for managing disclosure obligations, listing rules, and the accelerated timetables of IPOs. 

Demand is also growing for lawyers with cross-border expertise. Many London listings now include a US element, and familiarity with US securities regulations has become a key differentiator. At the partner level, firms are competing for individuals with proven IPO pipelines and established bank or issuer relationships. 

This is where working with a specialist talent partner adds real value. At Larson Maddox, our strong ties to the US market give us access to lawyers who can bridge UK and US regulatory frameworks, helping firms secure the cross-border expertise they need. By connecting clients with lawyers who bring both local and international experience, we help firms build the capacity and credibility required to win mandates in a highly competitive market. 

Lateral hiring and market competition 

London’s lateral hiring market is showing no signs of slowing. Magic Circle firms are rebuilding capacity in capital markets teams after two quieter years, and Silver Circle and leading UK independents are also increasing recruitment to maintain market share. The most intense competition remains in the mid-level associate bracket, where lawyers with recent ECM experience are scarce and demand far outstrips supply. 

UK firms are competing not just on pay but on culture, progression opportunities and the chance to work on landmark London listings. For many associates, the opportunity to work on high-profile mandates and a clear career path outweighs headline salary numbers. Still, the presence of US firms in London has  set higher benchmarks, pushing up compensation and creating additional retention pressure across the City. 

At Larson Maddox, we are seeing UK firms take a more strategic approach to lateral hiring, focusing on targeted moves that strengthen ECM benches while also putting greater emphasis on retention. The competition for experienced talent in London is as fierce as it has been in years, and firms are increasingly aware that keeping their best people is just as important as recruiting new ones. 

In-house demand 

The rebound in capital markets is extending well beyond private practice. Public companies, along with businesses preparing to float, are expanding their in-house legal teams to manage disclosure obligations, corporate governance requirements and direct engagement with the FCA. For these organisations, strengthening internal capability reduces risk and supports smoother interactions with regulators and shareholders. 

Investment banks are also expanding their in-house benches. By recruiting ECM lawyers directly, they can manage a greater share of deal flow internally and reduce reliance on external advisers. This shift has driven significant competition for lawyers with capital markets expertise, particularly those who combine technical knowledge with hands-on experience of London listings. As a result, demand for in-house counsel with strong ECM backgrounds is growing at pace, especially in London and other financial hubs. 

Candidate expectations 

While deal activity is reviving, lawyers’ expectations have evolved. Many associates weigh the prestige of IPO work against work-life balance and flexibility. Culture, leadership, progression and international exposure now carry significant weight in career decisions. 

At Larson Maddox, candidates consistently tell us that they want more than pay rises alone. They want assurance of high-quality work alongside realistic workloads and supportive team structures. Firms that cannot adapt to these expectations risk losing out in a competitive hiring market. 

How firms are responding 

To address these pressures, firms are taking a range of approaches. Some are making targeted lateral partner hires to secure immediate capability, while others are retaining more newly qualified lawyers from ECM seats to build longer-term depth. We are also seeing firms adopt flexible resourcing models, bringing in contract lawyers and secondees to handle deal peaks without committing to permanent headcount. Training has become another priority, with cross-disciplinary development allowing lawyers to pivot between ECM, M&A and restructuring as market conditions change. 

At Larson Maddox, we are speaking daily with clients who want to understand not only where the talent is moving but also what it costs to compete. Many firms are seeking salary guides and benchmarking data, and they want visibility on what our candidate database currently looks like for ECM associates and partners in London. This reflects a wider recognition that decisions about hiring strategy, retention packages and lateral moves increasingly rely on up-to-date market intelligence. 

If you are considering how to strengthen your capital markets team, we can provide a detailed view of salary ranges, availability of talent, and where your competitors are focusing their recruitment. Request a call back today to discuss your needs and gain access to the insights and candidate network shaping London’s legal hiring market. 

What’s next 

The recovery of IPO and ECM activity is already reshaping legal hiring in the UK. At Larson Maddox, we are seeing firms compete hard for associates with regulatory expertise and partners with established client relationships, while corporates and banks expand their in-house legal teams. The challenge is to weigh up immediate demand with sustainable talent strategies, all while meeting the expectations of a new generation of lawyers. 

Firms that strike this balance right will thrive as London’s capital markets regain momentum. 

Looking to hire? 

If your business is preparing to expand legal teams or strengthen capital markets capability, contact us today. Our consultants connect firms and in-house teams with the lawyers they need to succeed in a competitive market. 

Request a call back today to discuss your hiring needs and learn how we can support your recruitment strategy.