The number of partner promotions in the City offices of US law firms is on track to exceed last year's tally, with 33 new partners made up in London in 2011 so far out of a global promotions total of 382.

Legal Week's annual survey of US firms' lateral partner hiring and internal appointments found there have been only five fewer partner promotions in London so far this year than in the whole of 2010.

This comes despite the fact seven of the 35 firms taking part in the survey have yet to announce their internal promotions – including large London players Baker & McKenzie and Kirkland & Ellis.

Reversing the trend

Prior to 2011, the number of London promotions at US firms has dipped year-on-year since 2008, falling from 69 that year to 46 in 2009 and 38 last year. In total, the firms surveyed have made 245 London promotions over the last five years out of 2,765 global promotions.

White & Case is the most prolific US firm in the City in terms of internal promotions, making up 32 partners between 2007 and 2011. Mayer Brown, Bakers and Kirkland rank second and joint third respectively, promoting 28 and 20 partners respectively to date.

Three firms have not made any London partner promotions since 2007: Cadwalader Wickersham & Taft, Cravath Swaine & Moore and Fried Frank Harris Shriver & Jacobson.

Kirkland London managing partner Jim Learner (pictured) commented: "When the economy is down and a business is at risk, many law firms take a more conservative approach to internal investments. Kirkland, however, has taken a longer-term view, and has continued to provide access to the partnership to those candidates who are deserving of it."

Lateral view

Legal Week's wider lateral hiring research found 2010 was a record year for new hires, with US firms bringing in more London partners in 2010 than in any year since 2006.

The 84-strong haul of new hires, 81% of whom were partners at their previous firms, represents a rebound in recruitment activity across the group after new hires fell to just 56 in 2009 as a result of the recession – down 21% on the previous year's figure of 71.

More than three-quarters (77%) of the firms taking part in the 2010 survey brought in at least one partner during the year, with nine firms bringing in three or more new partners. Looking at partner recruitment activity over the last five years as a whole, Reed Smith, Greenberg Traurig Maher and Mayer Brown picked up the most lateral partners.

High-profile partner moves in 2010 both from US to US firm and UK to US firm included Latham & Watkins' hire of a team of finance partners from US rival White & Case led by co-head of banking Chris Kandel.

Meanwhile, in July Simpson Thacher & Bartlett announced a rare lateral hire from magic circle firm Clifford Chance – with Jason Glover following corporate partner Adam Signy to the New York firm to launch a European funds practice.

Other significant moves included Kirkland's hire of Ashurst private equity partners Gavin Gordon and David Arnold and Debevoise & Plimpton's appointment of Travers Smith buyout partner David Innes.

Commenting on the increased recruitment at partner level, White & Case London managing partner Oliver Brettle said: "US firms in London have weathered the recession better than some of the UK-focused law firms that operate below the magic circle.

"Some lawyers at these firms have found themselves between a rock and a hard place, and have succumbed to US firms' determination to continue to build English law practices in London notwithstanding the ongoing domestic UK downturn."

Cadwalader London managing partner Angus Duncan said: "Some firms have struggled during the recent downturn and that has enabled the better-performing firms to take the opportunity to make lateral hires in strategically important areas."

Total lawyer numbers excluding partners across the firms rose from 2,373 to 2,423 within the last year, with those to significantly boost their more junior ranks including White & Case, Mayer Brown and Latham & Watkins.

Bakers was the largest US firm in London by total number of lawyers including partners, with 406 lawyers on 1 January, followed by White & Case, with 358 lawyers, while Reed Smith came in third at 297.

"The firm has a very mature practice here in London, and is one of the longest-established London offices of any firm that is not headquartered in the UK. We play a long game, our attrition rates have tended to be low, and growth in London continues to be a priority for the firm. Growing through lateral hires in London is still one of our global priorities," said Bakers' London managing partner, Gary Senior (pictured).

Eight firms declined to participate in the survey: Jones Day, Howrey, Milbank Tweed Hadley & McCloy, Morgan Lewis & Bockius, Quinn Emanuel Urquhart & Sullivan, Wilmer Hale, Edwards Angell Palmer & Dodge and Davis Polk & Wardwell.

Mergers and ABSs on the agenda

Six US firms responding to the survey are open to a transatlantic merger, according to Legal Week's research, with the same number open to the idea of alternative business structures (ABSs).

White & Case, Winston & Strawn, Reed Smith, K&L Gates, Mayer Brown and Morrison & Foerster admitted that they would be open to a merger with a UK firm if the right opportunity came along. Of the group, K&L Gates, Mayer Brown and Reed Smith have already carried out at least one UK/US tie-up.

A further 17 firms refused to answer the question, while the remaining 12 stated that a merger was not an option.

The findings come in the wake of Hogan Lovells launching on 1 May 2010, with SNR Denton and Squire Sanders Hammonds going live in September 2010 and on 1 January 2011 respectively.

Winston & Strawn London managing partner Thomas Benz commented: "Lateral recruitment and the integration of individuals is time-consuming, which explains why an increasing number of US firms are open to a transatlantic merger. It is definitely not a soft option – a merger is fraught with difficulties and simply creating critical mass is a hard strategy to follow."

Mayer Brown, Reed Smith, Covington & Burling, Greenberg Traurig Maher (GTM) and Weil Gotshal & Manges said they would be open to establishing an ABS when the Legal Services Act comes into effect this year, by either taking outside investment or floating.

GTM chairman Paul Maher (pictured) said: "In our current form it isn't immediately obvious that it would be right for us but I think it's going to become a reality for law firms in the next few years.

"The more interesting point is that it will change the career structure and could give the industry the same remuneration and benefits tools as corporates have, such as share options and golden parachutes."

[asset_library_tag 2664,Click here] for a statistical breakdown of the top US firms in London.

• For more, see US firms in London push City partner hiring to record levels in 2010