Kirkland & Ellis Boasts $1 Billion+ Line of Credit, Signaling Shift in Big Law Financial practices
Kirkland & Ellis, the nation’s highest-grossing law firm, reportedly maintains a revolving line of credit exceeding $1 billion – a figure dramatically larger than the average Am Law 100 firm’s access to similar financial resources. This considerable credit line underscores a growing trend within Big Law to proactively secure significant financial backing, even in times of apparent prosperity.
The increasing reliance on large lines of credit represents a strategic shift in how firms manage cash flow and prepare for potential economic headwinds. As Jeffrey Lowe,market president of CenterPeak’s Washington,DC office,explained to The american Lawyer,these lines of credit function “like having an overdraft line of credit…knowing it is there in case you go over is comforting.” While not intended for regular use, the availability of substantial funds provides a financial safety net and demonstrates financial stability to clients and partners alike. The average revolving credit line for an Am law 100 firm is significantly smaller, reportedly less than one-tenth the size of Kirkland & Ellis’s.
This practice, onc considered unusual, is now viewed as a “smart, common tool” by many in the industry, allowing firms to navigate large expenses, partner buyouts, or unexpected market fluctuations without disrupting operations. The move towards larger credit lines suggests a heightened awareness of potential risks and a proactive approach to financial planning within the increasingly competitive landscape of Big Law.
