Buyers decide to be a bit less beware as renewed recruitment follows restructuring

With the first half of 2009 defined by widescale redundancies and partnership restructurings at some of the City's top names, the fallout has meant the trend post-summer is equally clear: lateral hiring – and lots of it. Barely a day goes by without claim or confirmation of another partner move; generally someone heading out of a top 10 City firm for somewhere smaller, although not exclusively – as Linklaters' hire of Herbert Smith litigation partner Christa Band demonstrates.

Even the August lull did little to slow the trend and since early July there have been approaching 50 partner hires by major UK or US firms in London alone, and there is no sign of this abating.

The last few weeks have seen the likes of Mayer Brown, Norton Rose, Simmons & Simmons and Reed Smith bolster their partner ranks with hires from firms including Ashurst, Allen & Overy and Addleshaw Goddard.

Of course, the volume of partners exiting as a result of a restructuring, combined with those unhappy with the direction their firm is taking, means there are currently rich pickings for those with the courage for longer-term investment plans.

The current flood is also evidence of loosening restrictions on hiring. Some of these partners have been aiming to move for over a year but have only now secured new homes as ultra-cautious firms start signing off senior appointments again as fears of economic collapse wane.

So far, new London entrant Greenberg Traurig Maher, which has picked up three partners from White & Case in London in addition to several from Mayer Brown, is at the forefront of recruitment efforts, though few of the hires – other than Paul Maher himself – are likely to turn heads.

Berwin Leighton Paisner has also been making the most of the opportunities on offer, with a tally that includes no fewer than three magic circle partners – including former Allen & Overy leveraged finance partner Andrew Bamber – recruited since early July.

But opportunistic hiring – even of the biggest names – does not always pay off. The problems are particularly evident for those bringing in partners from the magic circle where client relationships are typically so institutionalised that importing new business via laterals is notoriously difficult.

Not that it is all bad news. For those picking up partners with even one or two portable client relationships or with a genuine need to strengthen a team, the opportunity to gain talent previously out of reach has never been greater.

The real winners here though are the recruiters. With the market picking up for non-distressed moves, and law firms – both UK and US – and banks now willing to invest, business has picked up after a painfully quiet first half of the year.

And as one seasoned recruiter says: "In 18 months there will be another rejig when the current crop doesn't work out. I estimate only around 25% will prove to be very effective hires; a lot of people have simply run for cover and taken what they can."