McDermott Will & Emery and Schulte Roth & Zabel have completed their merger in August 2026, creating a combined firm with nearly $2.8 billion in revenue that is expected to rank among the top 20 U.S. law firms. The transaction marks one of the most significant combinations in the U.S. legal market this year and reflects a continued trend of consolidation among firms serving sophisticated financial sponsors, asset managers, and institutional clients.
For clients of both legacy firms, the combination promises access to a deeper bench of practitioners and a broader platform across core practice areas. The merger meaningfully expands McDermott's New York footprint, consolidating talent and client relationships in one of the country's most competitive legal markets. New York remains a central hub for hedge fund formation, private capital deployment, regulatory engagement, and complex transactional work, and the combined firm is positioned to deliver an integrated offering across these matters.
The transaction also strengthens capabilities in hedge fund and private capital markets, an area where Schulte Roth & Zabel has long maintained a well-established reputation. By combining that focused expertise with McDermott's broader corporate, tax, regulatory, and litigation platform, the merged firm aims to serve clients across the full lifecycle of fund formation, investment activity, portfolio management, and dispute resolution. Sophisticated financial sponsors and asset managers may find the expanded offering particularly relevant as regulatory scrutiny, market volatility, and cross-border complexity continue to shape the industry.
The combination is also a market signal. Continued consolidation among large U.S. firms suggests that scale, geographic breadth, and integrated specialty practices remain important competitive differentiators for firms serving institutional clients with complex, multi-jurisdictional needs. Calloway And Frost is monitoring the merger as part of the evolving competitive landscape and its implications for clients evaluating outside counsel relationships in the hedge fund, private capital, and broader asset management sectors.
Clients considering how developments in the legal services market may affect their outside counsel arrangements, fund structures, or ongoing regulatory obligations should seek tailored advice based on their specific circumstances. This publication is provided for general informational purposes only and does not constitute legal advice.