In this article, Liam outlines how the London restructuring market has entered a phase of steady, sustained recovery, with deal flow increasing and confidence returning across firms, banks and funds. While activity is rising, hiring remains selective, with demand concentrated on mid-level associates who bring strong judgement, cross-border capability and exposure to private credit, liability management and distressed situations. Strategic partner hires across leading firms signal long-term investment and future team expansion, even as Associate recruitment stays targeted. Overall, the market is shifting from “wait and see” to “prepare and build,” creating a window of opportunity for lawyers who can operate in complex, fast-moving matters as momentum continues to grow into the next cycle.
It hasn’t been a sudden surge, but there’s a clear uptick – more conversations are happening, more mandates are coming through, and a general sense that activity is building after a quieter spell.
Why are we highlighting this? Because restructuring is one of those spaces that tells you a lot about where the wider market is heading. When things start to move here, it usually signals changes around credit pressure, liquidity, and deal dynamics more broadly.
From speaking with partners, banks, funds, and in-house teams across the space, the message is consistent: the work is there and growing, but hiring remains targeted. Firms are now very selective, focusing on high-quality candidates who demonstrate strong judgement and can operate in complex situations. It’s no longer a volume market; it’s now a strategic one.
While we’re not suddenly back to a peak cycle, momentum is definitely improving, and those who position themselves well will benefit as things continue to pick up.
So, what does this shift in sentiment actually look like in practice? When speaking with Partners and Senior Associates across the market, a few clear themes are emerging.
We’re seeing more situations coming through the pipeline, but firms are being very intentional about the talent they bring in. The focus is on people who can hit the ground running in complex, fast-moving situations, and who already understand the nuances of restructuring, private credit, and cross-border work.
Here’s how that’s playing out across the market right now.
1. Resurgent activity, but selective hiring
Restructuring and distress-driven work has increased, especially in sectors under pressure such as real estate, energy, and leveraged capital structures.
Firms have stayed cautious on hiring because the market has been in a transition phase – work has been coming through, but not yet at a level where teams feel confident aggressively expanding. From a recent conversation with Partners, the sentiment has been the same: they expect activity to keep building, but want to see a sustained pipeline before committing headcount. That’s why the focus has been on mid-level Associates (PQE 2–6) who can slot straight into live matters and run with deals, especially those with cross-border, distressed-debt and liability management experience.
In short, growth is happening, but firms are being selective and prioritising lawyers who can add value immediately.
As funding conditions tighten, more deal flow is expected over the next 6 to 12 months. However, firms are looking for Associates who can contribute right away with minimal training. Those with experience in distressed or special situations work, cross-border deals, or private credit will be in the strongest position.
What to expect:
2. Growth in liability management and exchange work
A major shift has been the rise of liability management exercises (LMEs), distressed exchanges, and negotiated workouts before any formal insolvency steps.
Firms now see formal insolvency processes as a last resort. Associates who understand both transactional work (debt, covenants, financing) and restructuring advisory are highly valued. As noted by firms such as Simpson Thacher, the modern restructuring toolkit now includes more behind-the-scenes solutions before things reach the courts.
3. Cross-border and private capital experience are key
Many distressed situations involve multiple jurisdictions. Firms want Associates who are comfortable working across borders and time zones. There is also growing demand for lawyers who understand the private capital and credit side of the market. Being able to speak both restructuring and private credit language is a major advantage.
Alongside this selective Associate hiring, we’re also seeing meaningful movement at the senior end of the market. While firms may not be building large Associate benches just yet, they are investing in strategic leadership, signalling confidence in the long-term trajectory of the restructuring space.
While Associate hiring has been cautious, several major Partner hires show firms are positioning for long-term growth. These moves don’t happen unless there’s confidence in the market – Partners bring clients, strategy and momentum. Rather than building large teams now, firms are securing leadership first, then planning to scale around them as deal flow continues to build. For candidates, this is a strong signal for career options: where Partners move today, hiring and opportunity typically follow. Here are just some of the recent major Partner hires, demonstrating firms positioning themselves for long-term growth in restructuring:
These senior hires often lead to Associate openings later as firms build capacity around new leadership. It’s an early signal that firms are preparing for increased restructuring activity and want the right foundations in place. In other words, even if hiring feels selective right now, the groundwork is being laid for a more active recruitment cycle ahead.
The London restructuring market is steadily strengthening. Firms are thinking long-term, hiring carefully, and prioritising Associates who can operate across products, sectors and jurisdictions. Over the rest of the year, we expect momentum to continue building not through sudden spikes, but through a steady increase in complex refinancing, liability management, and special situations work.
As capital structures come under greater pressure and maturities roll forward, teams that invested early will be best placed to capture that demand. For lawyers, this means a window is opening – those with hands-on deal experience, private credit exposure and cross-border capability will be well-positioned as hiring becomes more active.
In short, the market is shifting from “wait and see” to “prepare and build.” The firms laying foundations now and the lawyers aligning themselves with them are likely to be the ones who benefit most as activity accelerates through the year and into the next cycle.
If you would like a confidential chat to understand how your experience compares to current market trends, I’d be more than happy to share insights and data from recent searches across top Am Law and Magic Circle firms.
