Finally, Kirkland & Ellis Updated the Game - Now What?
The largest law firm in the world Kirkland & Ellis made headlines when announcing it would no longer disclose financial data. The buzz was that move was generated by increasing client discontent with high legal bills. Smirk. The reality should have always been that it was nutty for a law firm - that is, not a public company primarily accountable to investors - to crow about metrics such as Profits Per Equity Partner. Any business-savvy client would start connecting the dots and maybe begin comparison-shopping. Sure, a law firm should be signaling growth, but not through the PPEP lens. Yes, on the one hand, a firm had to be positioned and packaged as in a high-growth mode. Way back in 2021, Paul, Weiss partner/thought leader Brad Karp hammered in Bloomberg Law that firms not on a growth trajectory could actually go out of business. The categories for that include the number of star partners, international expansion and creation/scaling of practices al...