Written by Michael Daya-Winterbottom | | Recruitment Consultant – Corporate, Funds and Capital Markets Consultant at Eden Rose USA
For much of the last two years, the narrative around the US transactional market was relatively consistent:
That environment now appears to be shifting.
Across New York, there is renewed momentum in M&A, leveraged finance and capital markets activity, particularly at the top end of the market. Investment banking revenues and deal activity have rebounded sharply in early 2026, with firms increasingly positioning themselves for a sustained recovery cycle.
What is particularly interesting, however, is that this is not simply a return to the 2021 market.
The structure of the market itself has changed.
Private capital continues to dominate dealmaking. Companies are staying private for longer, private credit has become embedded in acquisition financing structures, and sponsors are demanding increasingly sophisticated cross-border and multi-product advice from outside counsel.
That is having a very real impact on legal hiring.
In the New York market, the strongest demand continues to sit across:
At the same time, firms are becoming far more strategic about the profiles they pursue.
The “generalist corporate associate” is becoming less valuable than lawyers with demonstrable sponsor-side exposure, complex financing experience, or genuine sector expertise.
We are also seeing continued pressure on the mid-to-senior associate market.
Many elite firms remain lean following the slowdown period, while deal flow is returning faster than internal talent pipelines can adjust. As a result, strong mid-level and senior associates with elite training and portable sponsor relationships remain exceptionally attractive.
Interestingly, another trend emerging in 2026 is the increasing convergence between private equity, private credit and capital markets practices.
The traditional distinctions between sponsor counsel, lender counsel and broader financing practices are becoming less rigid as transactions grow more bespoke and financing structures more complex.
That has implications not only for firms, but also for lawyers thinking about long-term positioning.
Lawyers with exposure across products, particularly those who understand both sponsor-side transactional dynamics and financing mechanics are increasingly well-positioned for the next decade of the market.
There is also a broader structural shift underway.
AI and automation are beginning to reshape parts of the junior banking and professional services ecosystem, but high-end transactional legal work remains fundamentally relationship-driven and judgement-intensive.
If anything, the premium on commercially minded lawyers who can operate effectively with clients, counterparties and sponsors appears to be increasing.
For recruiters operating in the New York market, this creates a very different environment from the post-2021 correction period.
The market is still selective.
But firms are hiring again and increasingly willing to move aggressively for the right talent.
The key difference now is that firms are prioritising strategic capability rather than simply adding headcount.
The firms winning lateral talent today are generally those able to articulate:
Over the next 12–18 months, it will be fascinating to see how firms continue to adapt as:
For lawyers considering a move, this is likely to become one of the most interesting lateral markets we’ve seen since the post-pandemic boom.
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