Magic Circle (law)

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The Magic Circle is an informal term used to describe collectively what are considered to be the five leading London law firms - all of which employ primarily solicitors. They are:

As of 2005 the first four listed were in the top six largest law firms in the world by revenue (in 2006 Clifford Chance became the world's highest-grossing business firm).

Slaughter and May only ranked 36th in the world on this measure[1], but it has consistently enjoyed the highest profits per equity partner of the Magic Circle for a number of years. The firm is ranked as the world's 9th most profitable law firm (the only English firm in the top 10) with profits per partner set to reach £2.5m in 2007.

One reason for the difference in turnover and profitability rests in the distinctive international strategy taken by Slaughter and May from the rest of the Magic Circle, which prefers to maintain its international capability by relying on a network of so-called “Best Friends”, members of which typically are leading independent law firms in the relevant jurisdiction. This allows Slaughter and May to enjoy a higher profitability at the expense of a lower turnover compared to the rest of the Magic Circle, which has instead expanded aggressively by establishing many overseas offices.

These firms are generally ranked amongst league tables as the most prestigious firms by other solicitors in England and Wales, and have the highest earnings per-partner and per-lawyer in the United Kingdom. Arguably however, their dominance of the London legal market has been challenged in recent years by American "big law" firms operating branch offices in London, due to differences in firm structure, remuneration and average attorney education^{[citation needed]}.

[edit] Related phrases

Global Quartet or Big Four, referring to members of the Magic Circle other than Slaughter and May as it has, in general, not pursued a policy of expansion
Golden Circle, a term used for example, by The Economist, or Silver Circle as used by "The Lawyer" to refer to a second tier of London law firms less prominent than the magic circle but consistently very successful
White shoe firms or Charm Circle, referring law firms perceived to be the leading New York law firms
Seven Sisters, referring to the seven Canadian law firms considered to be the top tier
Big Six, referring to six Australian law firms perceived to be of the top tier
Le Berg, referring to the character that leading experts have dubbed the 'world's greatest lawyer'.