What Is a Magic Circle Firm?

What Is the Magic Circle?

The term Magic Circle refers to the top 5 commercial law firms in the United Kingdom. They are widely regarded as prestigious and elite and attract thousands of law students each year. Their reputation is built on challenging work, high salaries, and the status that comes with training at one of the country's most competitive firms.

Who Is in the Magic Circle?

All 5 firms are based in London. The Magic Circle comprises:

• Allen and Overy
• Clifford Chance
• Freshfields Bruckhaus Deringer
• Linklaters
• Slaughter and May

This group has remained unchanged for decades.

Why Are These Firms in the Magic Circle?

Profit is a key factor in determining Magic Circle membership. Although Slaughter and May has historically generated lower overall profits than some peers, it had the highest profit per equity partner of any UK firm in 2011 to 2012. In 2010, 4 Magic Circle firms ranked among the top 10 law firms globally when measured by revenue.

Firm Biographies

Allen and Overy

Allen and Overy is known for financial expertise and operates 20 practice areas across 11 sectors, including real estate, private equity, energy, telecommunications, media and technology. The firm has an 83-year history and a strong international presence, with 60 per cent of revenue generated from international work. Clients include Goldman Sachs, J.P. Morgan and Barclays. The firm has 525 partners and 5,000 employees in 32 countries. The starting trainee salary is £40,000.

Clifford Chance

Clifford Chance is known for exceeding client expectations and specialises in financial work. It operates 6 practice areas across 11 sectors, including insurance, banking, consumer goods and retail. Although its UK history dates back to the 1800s, it expanded internationally in 2000. The firm is known for innovation, including opening an office in South Korea and adopting CV blind interviewing to reduce Oxbridge bias. Clifford Chance has 36 offices in 26 countries and employs 3,300 lawyers. The starting trainee salary is £40,000.

Freshfields Bruckhaus Deringer

Freshfields is known for long-standing client relationships and teamwork. It operates 15 practice areas across 14 sectors, including media, government, health, retail and real estate. With more than 250 years of experience, Freshfields began international work in 1840 with an office in Germany. A three-way merger in 2000 created Freshfields Bruckhaus Deringer. The firm's first client was the Bank of England, and it later served as the official legal services provider for the London 2012 Olympic and Paralympic Games. Freshfields has 29 offices and 2,600 lawyers. The starting trainee salary is £40,500.

Linklaters

Linklaters aims to be the world's leading law firm and specialises in financial work. It offers more practice areas than any other Magic Circle firm, with 25 practices across 15 sectors. Founded in 1838, Linklaters has advised on major matters, including the News Corporation phone-hacking investigation. The firm employs around 2,600 lawyers and has 29 offices in 20 countries. The starting trainee salary is £40,000.

Slaughter and May

Slaughter and May is known for its attention to detail and high-quality service. It works in areas including sport, tax, information technology and global investigations. Although the smallest Magic Circle firm, it is often considered the most prestigious. Its international presence is smaller and relies on a network of best friend firms. Founded in 1889, Slaughter and May opened its first international office in Hong Kong in 1974. It advised Cadbury on its sale to Kraft Foods Inc. The firm has 117 partners and more than 1,100 employees, representing 24 nationalities and 61 universities. The starting trainee salary is £38,000.

Finally

Many other UK firms offer strong salaries and challenging work, including Hogan Lovells, Norton Rose Fulbright, Clyde & Co, Ashurst and Olswang. Some have broader practice areas beyond finance and corporate law and provide excellent training opportunities.