For the law firms that made headlines in 2024 by opening new offices, 2025 brings a new directive: filling these locations with profitable rainmakers.
If you’re among the law firm leaders scouting talent in a new or growing location, there are two major points to mind:
Client Portability Can Vary by Location
To be sure, as firms look to recruit laterals for open offices, one question dominates both risk management and ROI: How portable is a candidate’s book of business?
While every lateral candidate – just like every matter, client and firm – is different, analyzing the portability of clients can provide some predictive insight…and ideally set the stage for smart hires who bring real bodies of work.
On average, lateral partner candidates claim to port about 57 percent of the clients they list on their lateral partner questionnaires. The actual portability rate is well below that percentage; based on cursory verification, the real number is closer to 35 percent.
But that number is an average – and client portability rates can vary by region.
Among major markets, the purported client portability is highest in:
- Boston: 86 percent
- Los Angeles: 81 percent
- San Francisco: 77 percent
Meanwhile, it is below average in:
- New York: 60 percent
- Dallas: 53 percent
- Washington, D.C.: 50 percent
It’s not surprising that claimed client portability would be lowest in our nation’s capital, where so much work relies on political connections, entrenched client relationships, and shifting power dynamics. As administrations change this month, law firm leaders in D.C. should take extra caution to verify portable business in this market.
Rainmaker Demand in Secondary Markets
Another key metric – average claimed book of business – varies depending on location. As Big Law firms have pursued strategic growth opportunities in developing markets, we have seen a higher volume of rainmaker mobility in these secondary markets.
Indeed, in secondary markets, the average claimed book of business in 2024 was $1,086,970. In seven of the nine secondary markets studied by Decipher, the average partner’s claimed book of business exceeded this category average. Moreover, in six of the nine secondary markets, the average partner’s claimed book of business exceeded the category average by more than 10 percent.
The markets with the highest variances included:
- San Diego, where the average book was 109 percent greater than the category average;
- Salt Lake City, 72 percent greater; and
- Minneapolis, 70 percent greater.
Only two secondary markets lagged the category average: Detroit (2 percent under) and San Antonio (24 percent under).
By contrast, in major markets, the average claimed book of business was $2,806,653. Candidates in half – six of 12 – of the major markets reported books of business below this category average.
Of note:
- The major markets with the most robust books of business included Silicon Valley, with an average candidate book 124 percent higher than the sector average; Miami, 34 percent; and San Francisco, 33 percent.
- Five markets had an average reported book that lagged the category average by 25 percent or more:
- Boston, where the average book was 25 percent lower;
- Dallas, 33 percent lower;
- Houston, 37 percent lower;
- Atlanta, 42 percent lower; and
- Philadelphia, 53 percent lower.
What drove the flight patterns in secondary markets?
As The American Lawyer noted, “firm leaders see an advantage to being a big fish in the small pond of an emerging market.” Established legal brands can command attention and market share – and at the same time, add some lower-rate personnel.
New or growing offices need partners with local networks and established clients. But recall the portability data and remember – not every client relationship will automatically transfer.
How to Plan for Smart Growth
As you scout lateral candidates for your network of offices:
- Assess true portability. More than 70 percent of law firms have had at least one lateral partner leave within two years for failing to bring over the promised business. Each one of these departures is a major loss – a financial loss, certainly, but also a loss of time, resources, and sometimes, reputation. In the recruiting stage, it’s imperative to insist on a full and complete Lateral Partner Questionnaire and to follow up with purposeful due diligence.
- Understand the market. Your office locations are far from monolithic. Client portability rates directly affect the overall amount a candidate can bring into the firm. The most successful law firms rely on actionable data to identify right-fit candidates, structure fair and competitive compensation, and grow profitably and purposefully. If your growth strategy includes investment in a specific location, start with meaningful market analysis.
