Kirkland & Ellis LLP, one of the world’s most profitable and influential law firms, is seeing major returns on a strategic bet that few competitors have matched so successfully—doubling down on litigation. Once known primarily as a corporate powerhouse serving private equity and transactional clients, Kirkland has significantly expanded its litigation practice in both scale and profitability, transforming a historically secondary business line into one of its biggest revenue engines.
A Historic Shift Toward Litigation
Over the past two years, Kirkland has undertaken an aggressive expansion of its litigation department, adding nearly 300 lawyers since early 2024—a growth rate of roughly one-third. That surge outpaces every other top 50 U.S. firm, signaling a deliberate rebalancing of the firm’s practice portfolio. Insiders say the firm’s litigation practice has grown into a $3 billion business, marking one of the most significant practice-line expansions in Big Law history.
This move reflects a calculated effort to stabilize Kirkland’s revenue mix. The firm, long dominant in deal-making, realized that an overreliance on transactional work left it exposed to market volatility. When the corporate deal market cools—as it did amid economic uncertainty in 2023 and 2024—firms built heavily around M&A can see sharp declines in billable work. Litigation, by contrast, offers more steady demand and consistent margins.
Firm Leadership Repositions for the Long Game
Firm Chair Jon A. Ballis acknowledged that litigation had always been a profitable business, but one that historically lagged behind Kirkland’s ultra-high-margin transactional matters. That dynamic is changing.
The new strategy emphasizes high-value, complex litigation—mass torts, product liability, regulatory investigations, and major commercial disputes—where hourly rates often exceed $1,000 to $2,400 per hour. These are not volume-based cases but selective, resource-intensive matters with substantial upside. By prioritizing quality over quantity, the firm has positioned its litigators to compete for the nation’s largest and most lucrative cases.
Smart Growth Through Strategic Hiring
Kirkland’s litigation boom has been driven by aggressive recruitment. The firm has opened a new Philadelphia office specifically to house a large group of trial lawyers recruited from another leading firm. It has also hired seasoned litigators and teams from firms such as Latham & Watkins, King & Spalding, and Skadden, Arps, Slate, Meagher & Flom. These lateral additions have strengthened Kirkland’s footprint in critical litigation hubs, including New York, Washington, D.C., Chicago, and Los Angeles.
This approach aligns with Kirkland’s broader philosophy: when the firm identifies an area with strong growth potential, it doesn’t expand cautiously—it moves decisively. By bringing in high-performing trial lawyers and giving them autonomy, Kirkland has created one of the most robust litigation benches in the world.
Redefining Profitability in Litigation
Beyond sheer size, what makes Kirkland’s strategy notable is its financial precision. The firm has turned what used to be seen as a lower-margin practice into a top-tier profit generator. Part of this success comes from selective case acceptance—partners are encouraged to turn down lower-margin work and focus on cases where Kirkland can command premium rates or alternative fee arrangements that reward successful outcomes.
The firm has also expanded its use of flat-fee and success-based billing structures, particularly in mass-tort and multidistrict litigation. These models give clients cost predictability while allowing Kirkland to earn outsized returns when it achieves favorable results efficiently.
By blending traditional hourly billing with creative fee models, Kirkland has found a way to marry the predictability clients want with the profit potential the firm seeks. It’s a model that other firms are now studying closely.
A Counterbalance to Cyclical Markets
Legal industry consultants point out that Kirkland’s strategic diversification provides an important hedge against market downturns. When M&A and private equity deal flow slows, disputes and investigations often increase. By investing heavily in both sides of the market cycle, Kirkland ensures steady performance regardless of economic fluctuations.
One consultant described the move as “a hedge against cyclicality,” noting that other elite firms are starting to take similar steps—but few have executed at Kirkland’s scale or speed.
Litigation as a Core Business Engine
Kirkland’s expansion isn’t just about volume; it’s about prestige and positioning. The firm’s trial lawyers are now front and center in some of the most high-profile disputes in corporate America. These include mass-tort defense for major manufacturers, regulatory actions involving financial institutions, and complex commercial litigation spanning multiple jurisdictions.
The success of this strategy is evident in the firm’s bottom line. Litigation now represents a central pillar of Kirkland’s revenue base, complementing its dominant private equity and restructuring practices. With more balance between transactional and contentious work, the firm has strengthened its resilience and enhanced its competitive edge.
The Broader Implications for Big Law
Kirkland’s results are likely to influence broader industry trends. Many large firms are reevaluating their own practice portfolios in light of recent economic uncertainty. The lesson from Kirkland’s experience is clear: sustained profitability depends not only on market leadership but also on adaptability.
By reinvesting in litigation—a field that offers both stability and long-term revenue potential—Kirkland has set a new benchmark for strategic diversification in Big Law. Its rapid growth, strong lateral hiring, and innovative billing models are reshaping what success looks like for large, full-service law firms in 2025 and beyond.
Conclusion
Kirkland & Ellis’s pivot toward litigation represents a masterclass in strategic foresight. What began as a rebalancing effort has evolved into a transformation of the firm’s identity. Today, litigation stands shoulder to shoulder with corporate work as a core driver of growth, profitability, and prestige.
As market cycles continue to shift, Kirkland’s model—anchored in adaptability, selective hiring, and financial discipline—may become the blueprint other top firms seek to emulate.
Call to Action:
For more insights on law firm strategies, market trends, and career opportunities in litigation, visit LawCrossing.com — your source for the latest legal jobs and industry updates.