Revenues and hourly rates both up at US law firms
Fresh data from Citi Private Bank has placed revenue growth at US law firms at its strongest level since 2008.
According to Citi’s latest report, law firm revenue grew by 5.8 per cent in the first quarter of this year, driven by growing demand, robust rates and a stronger collections effort. The report found that demand was up 1.8 per cent for the quarter, while rates were up an average of 3.2 per cent and the collection cycle was shortened by an average of 1.5 per cent. The lift has almost doubled on last year’s result, when revenue growth was recorded at 2.3 per cent for Q1 2015. Citi’s results are based on a sample of 176 US law firms, including 79 firms from the Am Law 100, 45 Second Hundred firms and 52 niche or boutique outfits.
Top-tier rates
While Citi’s study recorded modest growth in rates across the board, a separate study released last week by BTI Consulting Group logged the hourly rates paid to the US’ highest-tier law firm partners at dazzling new heights. The top hourly rate paid to law firm partners has risen 25 per cent in the last two years from $1,600 in 2014 to a staggering $2,000 this year. The average highest hourly rate was recorded at $982 after discounts, up 8 per cent from 2013. Meanwhile, 59 per cent of in-house counsel at large companies reported paying $1,000 per hour to at least one firm as their highest paid external advisor, up from 39 per cent last year.
Source: Global Legal Post
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