The lateral associate market in 2026 is shaped by forces familiar and new: deal flow returning to pre-slowdown levels, regulatory pressure driving demand in compliance and investigations, and a persistent shortage of mid-level talent in several key practice areas. Here's where the market is heading.
M&A and Private Equity: Hot, With Nuance
Corporate M&A remains the largest single category of lateral demand. After a relatively quiet period in late 2024 and early 2025, deal activity has rebounded — particularly in middle-market and upper-middle-market transactions. AmLaw 200 firms with strong sponsor-side practices are competing aggressively for 3rd–5th year associates who can run diligence processes, manage specialist teams, and draft primary deal documents with minimal partner oversight.
The nuance: demand is strongest in New York, Chicago, and Houston (energy M&A). West Coast corporate hiring is steadier but less frenetic. Associates with public-company M&A experience command a premium — that skill set is harder to develop and rarer in the lateral pool.
Litigation: Steady Demand, Specific Niches
General commercial litigation remains a consistent hiring category, but the real competition is for specialists. White collar and investigations associates are in high demand across DC and New York, driven by heightened regulatory enforcement. Securities litigation hiring is active across the AmLaw 200, particularly for associates with class action defense experience.
IP litigation continues to be a bright spot — especially for associates with technical backgrounds in electrical engineering, computer science, or life sciences. Firms with PTAB practices are hiring at above-market rates for 3rd–6th year associates who can handle both district court and administrative proceedings.
Fund Formation: The Quiet Engine
Perhaps the most under-the-radar growth area in 2026 is fund formation. As private equity, venture capital, and credit funds continue to proliferate, the AmLaw 200 firms that serve these sponsors need associates who understand limited partnership agreements, side letters, and regulatory considerations under the Investment Advisers Act.
Fund formation associates in New York, Boston, and Chicago are receiving unsolicited outreach with increasing frequency. The supply-demand imbalance here is acute: relatively few associates train in this area, and the ones who do are highly portable.
Regulatory and Healthcare: Steady Growth
Healthcare regulatory work — FDA compliance, fraud and abuse, reimbursement — is a consistent driver of lateral demand. Washington DC remains the epicenter, but firms in Nashville, Boston, and increasingly Texas are building out healthcare practices and hiring associates with 2–5 years of relevant experience.
Antitrust is another area of consistent demand, particularly for associates with merger clearance experience. The current regulatory environment is favorable to enforcement, which means more second requests, more litigation, and more work for associates in this space.
Tax and Benefits: The Perpetual Shortage
Tax associates — particularly those with LLMs and transactional tax experience — remain among the most sought-after laterals in the AmLaw 200. The supply of qualified tax associates consistently falls short of demand, creating favorable negotiating conditions for candidates. Partnership taxation, M&A tax structuring, and executive compensation are particular areas of need.
What This Means for Associates
If you're in a high-demand practice area — M&A, fund formation, IP litigation, or tax — you have more leverage than you probably realize. The window for lateral moves in these areas is wide open, and firms are competing on compensation, partnership track clarity, and quality-of-life factors that were off the table in previous years.
If you're in a lower-demand area, the calculus is different but not discouraging. The key is to position your experience in terms of transferable skills: complex matter management, client communication, and substantive depth that translates across practice boundaries.
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