Biglaw partners are shuffling the deck with more frequency than ever, but not all cards are being played equally. While many areas of practice witness a booming lateral movement, New York’s private equity partners find themselves oddly static. According to data from Macrae, a prominent recruiting firm, these partners have experienced a significant drop in lateral moves. In the first half of 2025, only nine private equity partners changed firms, a stark contrast to previous years.

Ryan Belville of Macrae explains this phenomenon by pointing to a cautious hiring approach amidst economic uncertainties. Factors like geopolitical tensions, fluctuating tariffs, and stubborn interest rates make firms hesitant to invest heavily in new partners without guaranteed returns. Despite an 8.7% increase in the number of deals and a 28.7% surge in the total value of private equity deals this year, the sector remains wary.

Compensation packages in Biglaw have soared, forcing firms to be more selective about their acquisitions. "Rates are skyrocketing and comp packages are through the roof," Belville notes, highlighting the financial gamble firms face when bringing on new partners. The uncertainty that these partners will bring and maintain profitable client relationships adds another layer of risk.

Michael Parrillo, founder of Parrillo Search Group, echoes this sentiment. The aggressive hiring trends of the past few years have shifted, making way for a more measured, deliberate approach. However, Parrillo also notes that, despite the slow market, the demand for robust private equity books of business has not completely dried up.

The shift in hiring dynamics poses a unique challenge for private equity partners looking to make lateral moves. While they may not see the frenetic pace of their litigation or corporate counterparts, opportunities still exist for those with strong client portfolios and proven track records. As the market continues to evolve, so too must the strategies of those navigating it. The current landscape demands patience and strategic planning from private equity partners aiming to advance their careers in an increasingly selective environment.