Total lawyer numbers across the UK's 50 largest commercial law firms increased by only 3.5% to 45,655 in 2014-15 despite three mergers across the group.

Stripping out the combinations of Wragge Lawrence Graham & Co, Blake Morgan and Charles Russell Speechlys, total lawyer numbers increased to 44,238 across the group from 43,519 the previous year – a rise of just 1.6%.

The small increase outpaced growth in partner and equity partner count with partner numbers nudging up only 0.7% to 12,978 and equity partner numbers falling 0.2% to 6,363. Including the mergers, total partner numbers climbed 4.2% and equity partner numbers rose 2.1%.

Against a backdrop of more positive market conditions, average leverage rose from 5.9 to 6.2 in 2014-15, with Mishcon de Reya, Fieldfisher and DWF seeing the fastest growth in lawyer numbers across the top 50. Mishcon saw total lawyer numbers climb by 25% year-on-year, closely followed by DWF (22%) and Fieldfisher (19%).

The trio saw leverage ratios jump as a consequence, with Mishcon seeing leverage increase from 6.6 to 6.9, DWF moving from 12.4 to 15.9 and Fieldfisher's rate increasing from 5.2 lawyers per equity partner to 7.

A Mishcon spokesperson said the firm had bulked up its fee earners over the past financial year to support "a growing client base" as well as new practice areas including competition, business crime and insurance.

Hill Dickinson saw the strongest decline in total lawyer numbers at 8%, followed by Ashurst at 7.5%.

Partner increases

Looking at changes in partner numbers, Withers and BLM saw their partnerships rise by nearly 30%, with equity partner numbers growing at nearly the same rate. Both firms expanded significantly over the last financial year. For example, earlier this year, Withers entered into a formal alliance agreement with Singapore's KhattarWong, taking on all of the firm's 26 partners in the process. BLM meanwhile combined with Scottish law firm, HBM Sayers and Northern Ireland based Campbell Fitzpatrick Solicitors.

Overall, Gateley's equity partner count grew at the sharpest pace, with equity partner numbers rising nearly 40% to 100. The firm listed on London's AIM exchange in June.

Shrinking partnerships

In contrast DWF and Kennedys both saw their partnerships shrink by nearly 10%.
Commenting on the change in partner count at DWF managing partner and chief executive Andrew Leaitherland said the firm had gone through "a significant period of consolidation" following a series of mergers, most recently with London litigation boutique Watmores, leading to a number of departures.

By equity partner numbers Hill Dickinson, Shoosmiths and Berwin Leighton Paisner (BLP) saw the sharpest drop, with the first two firms' equity partner numbers dropping 11.6% while BLP's fell 9.5%.

The steep drops in Hill Dickinson's total lawyer numbers and equity partners follow a review of its UK business leading to a strategic decision to exit the claimant law market and spin off the firm's Chester office to Knights.

Magic circle changes

Across the magic circle equity partner growth was higher than across the top 50 as a whole with equity partner numbers across the five firms climbing 2%, while total partner and lawyer numbers stayed flat. Slaughter and May posted the biggest increase in overall partner numbers at 3.3%, while the growth in equity partner numbers was driven largely by Freshfields Bruckhaus Deringer where equity partner numbers rose 7.4% to 419 as it brought a number of fixed share partners into its equity structure in 2014-15.

Commenting on the move, managing partner David Aitman said: "Several years ago we introduced fixed share partners. Last year we felt we should give all partners equivalent rights to harmonise our structure and create equal incentives."