Profits Per Equity Partner Increased 3.3 Percent Last Year
Law firm expenses outpaced revenue growth last year, putting the squeeze on profits.
Profits per equity partner increased by 3.3 percent in 2011, while revenue grew by 4.1 percent. The figures come from Citi Private Bank’s law firm group, which wrote about the results for the Am Law Daily. Its survey is based on a sample of 178 law firms, including 147 of the nation’s largest 200 law firms.
In 2010, the increase in profits per equity partner was 7.4 percent.
Growth started out strong in 2011, according to the report. “For law firms, 2011 was a tale of two years,” the story says. “The strong demand momentum coming into 2011, which continued through the first six months, caused many law firm leaders to believe that a degree of certainty had been attained. The second half of the year was a rude awakening as demand, particularly in transactional work, withered away and has yet to bloom again.”
