Profits per equity partner (PEP) at top US law firms still narrowly exceed key UK rivals – despite the significant increases the magic circle have achieved in turnover and profitability in recent years.

Figures compiled by Legal Week and The American Lawyer show that just three UK firms make it into the global top 10 by PEP – Slaughter and May, Linklaters and Freshfields Bruckhaus Deringer. In contrast, seven US firms make the grade – headed by elite firm Wachtell Lipton Rosen & Katz.

However, the tally marks an increase on last year with Freshfields only joining the group this year thanks to a significant hike in PEP, in part owed to the dramatic restructuring of its partnership.

By revenue the magic circle grab four of the top five spots with Clifford Chance (CC), Linklaters, Freshfields and Allen & Overy (A&O) all featuring in the global top 10. CC tops the global revenue table, posting an 11.3% turnover rise to reach £1.329bn for the 2007-08 financial year, with Linklaters coming in second, leaving the top two places unchanged from last year. Freshfields climbed two places to third.

CC head of corporate Peter Charlton (pictured left) said: "Turnover generally follows headcount in law firms and a number of non-US headquartered international firms have a bigger network than many US-based firms. However, the US legal market is the biggest and deepest in the world and the smaller, more tightly-focused firms operating at the top end of that market will always tend to have high profitability."

The results come after A&O last week unveiled a 15% rise in turnover in the year to April, taking revenues to £1.01bn, with PEP climbing to £1.12m. Linklaters saw revenues rise by 15% to £1.29bn while PEP grew 11% to £1.44m. Ashurst this week announced a 9% rise in PEP, taking it through the £1m barrier for the first time, with average profits hitting £1.04m.