Macfarlanes grew revenue just under 5% in the year to 31 March 2026, to £389.5m, in a year the top UK independent characterised as "transitional".
Operating profit inched up from £206.5m to £212.0m, while profit per equity partner (PEP) held steady at £3.1m.
The results follow stronger gains across those metrics for the firm over the past two financial years after revenue and profits dipped in FY23 off the back of challenging market conditions across its core sectors of private equity and public M&A and a 10% growth in its equity partnership.
Despite Macfarlanes' flat PEP, the firm remains well ahead of those of its UK Magic Circle rivals that report their numbers, with Linklaters its nearest competitor at £2.5m, followed by Clifford Chance at £2.3m and A&O Shearman at £2.2m.
That level of profitability allows the firm to dip into the market for top-level strategic partner hires in London. Earlier this year Nick O'Grady joined the finance practice from Baker McKenzie, focusing on sponsor-side leveraged and acquisition finance.
The firm also promoted four to partner in March across disputes, finance, employment and private client, and around the same time opened a representative office in New York – its third base after London and Brussels – to be closer to the US private capital and private wealth markets.
Damien Crossley, who took over as senior partner earlier this year, said FY26 was "a transitional year for the firm, and it produced a satisfactory outcome".
He added: "The results reflect some standout mandates in our M&A and disputes practices and continued strength in our advisory practices against a market backdrop that was challenging at times."
Work highlights included advising Evelyn Partners on its £2.7bn sale to NatWest Group, one of the largest UK wealth management transactions in recent years, and acting for private equity firm 17Capital on the closing of 17Capital Strategic Lending Fund 6, which held a final closing at $5.5bn. Macfarlanes said it has acted for 17Capital since its inception in 2008 through six fundraisings over the past 17 years.
"We used the year to make some changes that we believe will drive future success," said Crossley. "We've sharpened our focus around our four pillars of private capital, private wealth, M&A and disputes and have doubled down on our independence. We have restructured our practice areas to align with our view of market opportunities, continued to invest in our people and technology, and have opened a representative office in New York. The early signs for the new financial year are encouraging."
Email your news and story ideas to: [email protected]
