Private capital legal advisory activity saw a strong acceleration in July 2026, with the top ten law firms collectively advising on 203 announced transactions, up from 180 in June. Kirkland & Ellis maintained its top position for the second consecutive month with 48 deals, a 17.1% increase from 41 in June, extending its lead over second-place Latham & Watkins to 17 deals. Latham & Watkins, despite holding second place with 31 deals, experienced a slight decline of 3.1% from 32 deals in June, making it the only top-three firm from June to post a month-over-month drop. White & Case made a significant leap from 9th to 3rd, with an 80% increase in deals, from 10 in June to 18 in July.
The surge in legal work is largely attributed to the expansion of private credit markets, particularly in Europe, where lawyers are navigating complex financing structures, varied currencies, and multiple legal and regulatory frameworks. The market for private credit collateralized loan obligations (CLOs) is growing, exemplified by Europe's first mid-market private credit CLO valued at €380 million, advised by Dechert for Barings. Moody's forecasts the global private credit market to reach $3 trillion in assets under management by 2028, further fueling demand for legal expertise.
Law firms are also capitalizing on the rise of private credit continuation funds, a mechanism allowing private credit investors to roll over investments into new vehicles. This niche area has become a significant source of work for corporate lawyers, as seen in a $3.2 billion continuation fund transaction for Crescent Capital, advised by Kirkland & Ellis, with Hogan Lovells guiding lead investor Pantheon Ventures. The private credit secondary market nearly doubled in 2025, reaching $20 billion in annual transaction volume, up from $10.9 billion in 2024, highlighting the rapid growth and complexity of these deals.
The competitive landscape among law firms for private equity clients remains intense. While Kirkland & Ellis has dominated market share, firms like Simpson Thacher, Paul Hastings, Proskauer, and Weil are actively boosting their private equity-focused headcount. New entrants and re-entries to the top 10 in July 2026, such as DLA Piper, Simpson Thacher & Bartlett, McDermott Will & Schulte, Sullivan & Cromwell, and Clifford Chance, underscore the dynamic nature of the legal advisory market for private capital deals.
