Are Lateral Partners Losing More Clients During Moves?
By Legal Affairs Correspondent
July 29, 2025
In the fast-paced world of Big Law, lateral partner moves have long been a strategy for law firms to bolster expertise, expand market share, and drive revenue. However, a growing concern is emerging: are lateral partners losing more clients during these transitions than in years past? Recent trends and industry insights suggest that client retention during partner moves is becoming a significant challenge, with implications for both firms and attorneys.
The Shifting Landscape of Lateral Moves
Lateral partner hiring has surged in recent years, with 2024 seeing a record number of partner transitions across major law firms, according to data from legal recruitment firm Major, Lindsey & Africa. The appeal is clear: partners bring specialized expertise, established client relationships, and often, significant billable hours. Yet, the assumption that clients will seamlessly follow their attorneys to new firms is increasingly being tested.
Industry experts point to several factors contributing to this shift. Clients today are more sophisticated and less loyal to individual attorneys, often prioritizing firm reputation, resources, and cost-effectiveness over personal relationships. Additionally, the rise of in-house legal teams and alternative legal service providers has given clients more options, making them less dependent on specific partners.
Why Clients May Not Follow
One key factor is the growing complexity of client relationships. “Clients are no longer tethered to a single partner,” says Sarah Thompson, a legal industry consultant based in New York. “Large corporate clients often work with multiple attorneys across a firm, and their loyalty is to the institution, not just one individual.” When a partner moves, clients may hesitate to disrupt established workflows or risk the uncertainty of a new firm’s capabilities.
Economic pressures also play a role. With legal budgets under scrutiny, general counsel are more likely to re-evaluate relationships during a partner’s transition. A 2025 survey by Thomson Reuters found that 68% of corporate legal departments have increased their use of alternative fee arrangements, which may not align with the billing structures of a partner’s new firm. This mismatch can prompt clients to stay put or explore other providers.
Conflicts of interest are another hurdle. As firms grow through mergers and lateral hires, conflicts can arise that prevent clients from following a partner. “We’ve seen cases where a client wants to stay with their trusted attorney but can’t due to conflicts at the new firm,” notes James Carter, a legal recruiter in Chicago. “This is particularly true in industries like finance and technology, where firms often represent competing interests.”
The Impact of Technology and Transparency
Technology has also changed the equation. Clients now have access to vast amounts of data on law firm performance, attorney track records, and billing rates through platforms like Bloomberg Law and LexisNexis. This transparency empowers clients to make informed decisions about whether to follow a partner or seek alternatives. Social media and professional networks like LinkedIn further amplify this trend, allowing clients to quickly identify and connect with other attorneys who may better suit their needs.
Moreover, the rise of remote work and virtual collaboration has weakened the geographic ties that once bound clients to specific firms or partners. “Clients no longer feel compelled to stick with a local attorney when they can work with someone across the country or even globally,” says Thompson. This flexibility can make it harder for partners to retain clients during a move.
What Firms and Partners Are Doing
To mitigate client loss, firms and lateral partners are adopting new strategies. Some firms offer transition support, such as dedicated teams to manage client onboarding or temporary billing concessions to ease the shift. Partners, meanwhile, are focusing on strengthening client relationships well before a move. “The most successful laterals start laying the groundwork months in advance, ensuring clients feel confident in the new firm’s ability to deliver,” says Carter.
Firms are also investing in client retention programs, such as enhanced client service training and data-driven relationship management tools. These efforts aim to build loyalty not just to individual attorneys but to the firm as a whole, reducing the risk of client attrition during lateral moves.
The Road Ahead
As lateral hiring continues to shape the legal industry, the question of client retention will remain critical. For partners considering a move, the challenge is clear: building and maintaining client trust is more complex than ever. Firms, too, must adapt by offering robust support systems and demonstrating value beyond the individual attorney.
While lateral moves will always carry some risk of client loss, those who navigate the process strategically—leveraging relationships, technology, and firm resources—stand the best chance of success. As the legal landscape evolves, the ability to retain clients during transitions may well become a defining factor in the competitive world of Big Law.
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