“It is a dynamic melting pot of internationally connected markets through which money flows…” We sit down with recruitment firm Marsden to find out why London is the place to be for laterals looking to build a career in private capital and funds.
Market Status
Chambers Student: What’s been the pattern when it comes to recruitment in private capital & funds here in the UK? What has made it a growth area in the lateral market?
Tim Andrews and Liam Richardson: Private capital and funds practices have enjoyed unprecedented growth on either side of the legal service provision divide as financial services companies and law firms alike seek to establish, grow and evolve their capital deployment strategies. The creation or addition of these new strategies, in particular continuation vehicles, semi-liquid products and private credit, further drives demand as money is ‘put to work’ to deliver results against shifting economic and geopolitical influences.
CS: How has the demand changed over the past few years?
Tim & Liam: Private capital is a rapidly changing landscape. The growth is underpinned by the presence of private equity and investment banks within an ecosystem which is ostensibly powered by an entrepreneurial, acquisitive, US-driven mentality. In addition, we have seen several new client entrants to the market increasing their legal footprint in the UK.
CS: Why is the UK an exciting place to be in this line of work?
Tim & Liam: London is the European epicentre for private capital. It is a dynamic melting pot of internationally connected markets through which money flows – for those who are interested in working for some of the most sophisticated law firms or consumers of legal products, the City remains the only place outside of New York to consider a career within the legal landscape.
“London is the European epicentre for private capital…”
The recipe for success
CS: What sort of candidates stand out? What is it that makes for a great lawyer in the space?
Tim & Liam: Across both sides of the aisle, be it private practice or in-house, the strength of a candidate is determined by their ability to articulate their experience in a decisive, confident manner. Of course, a level of technical credentials is a ‘must’, but private capital is, at is core, a relationships game. If you can operate comfortably alongside investment professionals - communicating effectively to senior stakeholders in a solutions-centric manner - whilst offering adaptability and intellectual curiosity in the asset class or deployment strategy involved, then you will have very many options.
“Of course, a level of technical credentials is a ‘must’, but private capital is, at is core, a relationships game.”
CS: How important is a background in private capital & funds? How much recruitment comes from other practice areas?
Tim & Liam: Generally speaking, a background in private capital, be it funds, M&A, leveraged finance or restructuring is essential for those related roles. Legal teams within private capital tend to be very lean and with that comes the expectation that individuals are specialists in their area, who can provide speed and a high level of insight to the business. It also helps in-house counsel to have a direct network amongst the panel firms, when it comes to getting the external support they need.
CS: Do some crop up more than others? Of late, private funds and M&A have been the most ‘in-demand’ areas. Is there an ideal time to make the switch? Are firms more likely to hire junior, mid, or senior level associates?
Tim & Liam: For the move in-house: Mid‑level (4–8 PQE) is typically the sweet spot, where candidates have built strong technical foundations, are comfortable working autonomously and have honed their stakeholder management skills. We will occasionally see opportunities for more junior lawyers (2-4 PQE) and there has been a relatively strong demand for senior lawyers (8+ PQE) where we are looking at a ‘first in post’ role or support for a new strategy, as well as to replace the increasing flow of senior in-house lawyers moving back to private practice. This particular trend is creating significant liquidity at the senior end of the market.
The process
CS: What steps are involved in making an in house move as a lateral? What can be expected from a process?
Tim & Liam: The process typically starts with clarifying your narrative – being able to articulate why you want to move in‑house, and why into a particular strategy (e.g. PE, private credit, infrastructure). That is then followed by a targeted search process, often via recruiters, focused on platforms aligned with your experience and long‑term interests. From an interview perspective, the process is usually more commercially focused than private practice, with an emphasis on:
- stakeholder management and communication style
- judgement and risk calibration
- understanding of the asset class and fund dynamics
“From an interview perspective, the process is usually more commercially focused than private practice…”
Candidates should also expect a leaner but more senior‑led process, often involving direct interaction with investment professionals, not just legal teams.
CS: What should a prospective lateral hire be aware of before making the switch?
Tim & Liam: Be clear on the type of role they are looking for and how the legal function in the target client is structured – will it be a focused, transactional ‘desk counsel’ style role working closely with the deal team or more of an advisory role, encompassing a broader range of tasks? Also, what has driven the hire – a new fund raise, new strategy, geographical expansion or is it a replacement hire? If the latter, why did that person leave?
Prospects
CS: What’s on the horizon in private capital & funds work? Why is it an exciting time to make the switch?
Tim & Liam: We’re seeing continued growth in areas such as private credit, secondaries and hybrid capital strategies, all of which are increasing demand for technically strong and commercially minded lawyers. On the M&A side, infrastructure continues to be an asset class in demand. Private capital
CS: What opportunities does it offer long term?
Tim & Liam: The space offers excellent long‑term prospects, including clear in‑house pathways given the scale and sophistication of fund platforms. Furthermore, the continued trend of senior in-house lawyers moving back to private practice presents an opportunity in itself for those pursuing a partnership role as well as providing opportunity for succession within existing teams.
Advice
CS: What advice would you have for an associate looking to make a move in-house within the private capital space?
Tim & Liam: Position yourself, where possible, with one of the market leading law firms who are working with the clients that you ultimately want to see yourself moving to. Secondment experience can really set you apart in what is a crowded, competitive space and will go a long way to support your narrative of ‘why in-house’ as well as giving your potential employer some comfort that you know what the position entails. Importantly, it will also enrich your overall experience and give you a real sense of what life ‘on the inside’ is really like.