Money talks. And apparently, when Kirkland & Ellis is doing the talking, even the fortress of Wachtell, Lipton, Rosen & Katz can’t hold.

According to a recent Financial Times report, Kirkland & Ellis has managed to snag Joshua Feltman, the Chair of Wachtell’s Restructuring and Finance Department, by offering a guaranteed pay package of $80 million over three years. Feltman, who joined Wachtell as an associate in 2002, made partner in 2010, and has since led his department in some of the most high-profile restructurings, including cases for Toys "R" Us and AMC Theatres.

The timing of Feltman’s recruitment aligns with the departure of David Nemecek from Kirkland to Simpson Thacher, shaking up the competitive landscape in the restructuring and liability management sector. Nemecek, known for his innovative approaches in liability management, left a void at Kirkland that has proven significant enough to warrant this lucrative countermove.

The legal industry has seen a flurry of activity with at least nine partners with leadership roles in restructuring or liability management switching firms since late 2024, a phenomenon Bloomberg Law describes as a "super cycle" of lateral moves. This reshuffling is reflective of the growing importance and lucrative nature of restructuring practices, especially in an unstable economic climate marked by market volatility and looming corporate debt maturities.

Feltman, earlier this year, predicted an uptick in Chapter 11 activity due to the fallout from unsuccessful liability management transactions and significant debt maturities. Kirkland’s decision to bring Feltman on board with such a substantial offer highlights the urgency and strategic importance of maintaining a top-tier restructuring team.

Wachtell has long been considered a pinnacle of Biglaw profitability, boasting the highest revenue per lawyer in the industry and a highly selective partnership model. However, Kirkland’s bold move illustrates that even the most elite firms are not immune to poaching when significant financial incentives are on the table.

With over $10.56 billion in annual revenue, Kirkland has both the motive and the means to make such a significant investment in talent, signaling a fierce competition among top law firms to capitalize on the expected increase in restructuring and bankruptcy proceedings. As the legal battles for billing these lucrative cases heat up, the industry watches closely to see how these strategic shifts will affect the landscape of legal services.