The predictable response of one magic circle partner to Simmons & Simmons' lead role on Telefonica's £17.7bn bid for O2 was that the firm only received the nod because every major firm was conflicted.

There is an element of truth here. Linklaters is too tied-in with Vodafone to act, Slaughter and May had already advised KPN on a similar bid, while Freshfields Bruckhaus Deringer, which had previously done some work with Telefonica, was advising the target. Clifford Chance (CC), which has advised Telefonica on its UK acquisition strategy in the past, was perhaps unlucky and certainly disappointed to only land a secondary role.

But just maybe – here is a radical thought – Telefonica instructed Simmons because the firm is entirely capable. This is still a practice with a decent plc pedigree and a sizeable European network. The firm has handled deals such as Walmart's £6.7bn takeover of Asda and Cable & Wireless HKT's £22bn tie-up with PCCW without the sky falling in.

Sure, Simmons may not have quite the specialist skills or resources of a Linklaters. But with the flood of mandates currently being concentrated in a very small band of advisers who could credibly argue that the client will not get as good a service from a firm that can really get 100% behind the deal?

It would be an entirely positive development for Europe's legal market for Simmons to not only acquit itself well, but to be seen to do so.

Prided equity

A fresh reminder, if needed, of the importance of private equity, comes from research from Freeman & Co and Thomson Financial, which estimates that this year, major investment banks have already reaped more than £1bn in fees for European buy-outs.

While comparisons with legal fees are tricky, a conservative estimate is that these deals have generated more than £250m for lawyers – a figure equivalent to the entire annual corporate turnover of a magic circle law firm. Banks cited in the research, such as Goldman Sachs and JPMorgan, also indicated that 20%-30% of their M&A fees now come from sponsors.

Much of this (49%) is coming through the top 10 clients, with the research underlining the extent to which Freshfields is currently cleaning up. The firm has established itself as a main adviser to three of the top five – CVC, Apax and Cinven – which were all historically more reliant on Ashurst. Also worrying for Ashurst will be the top ranking of French giant PAI, a key client of the now-departed Thomas Forschbach.

Conversely, key Simpson Thacher & Bartlett client Kohlberg Kravis Roberts & Co has had a quiet 2005 after three years of sustained European activity.

So, how much longer can the rise and rise of private equity continue? As one partner puts it: "Private equity is now so ingrained, that it will be around for a very, very long time… I hope so anyway."