Law firms seek international growth opportunities

According to the latest sector research from HSBC UK, nearly half of law firms, specifically 45%, are looking towards international opportunities for growth. Released in partnership with Briefing, HSBC UK's annual Law Firm Strategy and Investment research for 2025/26 reveals the shifting dynamics within the legal sector. This sixth annual report surveyed over 90 senior representatives at legal firms, addressing key issues such as growth, technology, investment, and environmental, social, and governance (ESG) initiatives.

The findings indicate that North America and the Middle East are emerging as prime targets for growth among law firms. Notably, 42% are prioritising North America while 31% are focusing their efforts on the Middle East. Meanwhile, steady interest in the rest of Europe remains intact at 40%. Victoria Ritchie, Head of Professional Services at HSBC UK, stated “The legal sector's international growth ambitions are a testament to its resilience and adaptability. Firms are strategically positioning themselves in key markets like North America and the Middle East to capitalise on emerging opportunities and navigate the complexities of a globalised economy."

The report further highlights a growing enthusiasm for private equity investment. In contrast to 2023, 24% of law firm leaders now regard private equity as a more attractive option for funding growth and transformation. Ritchie added “The increasing appeal of private equity investment underscores a strategic shift in the legal sector. Firms are recognising the potential of external capital to fuel growth and innovation, allowing them to remain competitive in a rapidly changing market."

In line with these trends, the report also indicates a significant rise in technology investment. Law firms plan to allocate an average of 6.5% of their annual revenue towards technology initiatives through 2026, an increase from 6.1% in 2024. This allocation aims to leverage the potential of artificial intelligence while enhancing secure infrastructure, showcasing the legal sector's dedication to innovation and operational efficiency.

For a detailed breakdown of the findings, the full report is available at Professional Services