The burgeoning private credit market is creating significant demand for U.S. finance lawyers, particularly as recent partnerships between banks and non-bank lenders expand opportunities in this sector. With private credit now a $2 trillion market, non-bank lenders are increasingly filling gaps left by traditional banks, benefiting from less stringent regulatory requirements.
Prominent law firms are ramping up their finance practices to capture this growing demand. Firms like Mayer Brown and Kirkland & Ellis have recently made strategic hires, bringing in partners with expertise in private credit transactions. For example, Mayer Brown welcomed Sheel Patel to lead its New York private credit practice, while Kirkland added H.T. Flanagan from Freshfields, who has worked with major clients in the industry.
The expansion into asset-based financing is also noteworthy, as evidenced by Concord’s recent $850 million financing deal, which was supported by a catalog of music assets and facilitated by Apollo. This diversification is seen as a key growth area, prompting traditional lenders to collaborate with investment firms to tap into the private credit space.
For instance, Citigroup and Apollo announced a partnership for a $25 billion private credit program, with multiple law firms advising on various aspects of the deal. Other financial institutions, like Raymond James and Wells Fargo, are also entering this arena, forming alliances that leverage their existing relationships to drive new business.
As these partnerships evolve, they are expected to generate more transactions, which in turn will create additional legal work for law firms that have developed strong private credit practices. The hiring trend reflects this shift, with significant increases in partner moves focused on private credit across major legal markets.
Law firm recruiters indicate that interest in private credit roles is soaring, with double the number of partner moves in this area compared to previous years. Overall, the legal landscape surrounding private credit is rapidly evolving, making it a focal point for firms looking to capitalize on this expanding market.
