The legal market is fast developing given the current challenges faced globally, and the directories are no exception. The landscape of different directories and awards has itself changed dramatically in the last 5 years, as have their commercial approaches and new products.

The current landscape

The directories space continues to be dominated by the biggest groups, Chambers and Partners and Legal 500. A few other directories such as IFLR1000 are also prominent, as are some specialist directories covering particular areas such as Benchmark Litigation for Disputes, IP Stars for IP and WTR for tax.

Outside of this group, there are many other organisations that assess law firms, and the last few years have seen a major increase in their numbers. It should be noted however that very few of these new organisations are considered to be reputable. Many of these are described as “pay-to-play”, wherein law firms can buy products in order to improve their chances of being ranked by that directory. These rankings are therefore not considered to have much integrity. The larger directories know that they trade entirely on their reputation of being fair and equitable in their rankings, hence they are more reliable.

Growth of private equity

That said, the larger directories are starting to change their approach to their own rankings, particularly in how best to commercialise their data, engage with law firms and create new products. This increased focus on the commercial arm is largely driven by the fact that a number of the big directories are now owned by private equity. Chambers and Partners was first bought out in 2018 by the PE firm Inflexion, and in 2023 was sold on to Abry Partners- at this sale, Chambers was valued at over £400 million. Meanwhile, earlier this year, IFLR’s parent group Legal Benchmarking was bought out by Triple Private Equity in a similar deal.

In light of the value that is now placed on these companies, the directories have been bolstering their commercial arms to support these products, and sales groups within the key rankings are increasingly getting in touch with firms of their own accord, independently of the research process.

The directories understand that they have a certain tightrope to walk between maintaining the integrity of their rankings and commercial pursuits. They are fully aware that the independence and impartiality of their process is the absolute core of their business; nonetheless, these are businesses, and they are therefore exploring what they can do to maximise their commercial potential whilst also maintaining that integrity.

Directory expansion

As part of the directories’ drive for growth, as well as their goal to produce more comprehensive content, the rankings themselves are continually expanding. The main drive for this expansion is in new ranking tables as their coverage of legal markets deepens and researchers begin to look at new practice areas that are fast developing. For example, the most recent Chambers Europe 2025 guide introduced 17 new ranking tables across 7 key jurisdictions.

The ranking tables themselves have also grown, with more law firms now being recognised on average per practice area than previously. There is therefore an increasing opportunity for firms to achieve a ranking where previously they may have been overlooked. The particular beneficiaries are smaller law firms, those that have been founded more recently, and boutiques who have a very particular area of expertise. One example of this development in Chambers USA guide is known as USA Spotlight, which looks to award recognition to these kinds of smaller law firms in certain states.

They have also sought to release new products making use of the existing data they collect. For example, in the last month Chambers have rolled out a new product called Market Pulse, a tool which makes use of all the commentary the company receives about recent market trends, and identifies what the market considers to be the most pressing issues.

Changes in products: Profiles

Alongside expanding the rankings themselves, the directories are also interested in finding sources of revenue connected to their rankings and are increasingly inviting firms to engage with products relating to the rankings process. For example, one of the major sources of revenue for directories has always been the profile, where a firm can add information about themselves on the directories website.

However recent changes to try and improve the efficacy of the profiles have included displaying law firms with a profile more prominently in the list of rankings, as well as allowing you to post editorial directly to social media.

Changes in products: Expansion of Insight/Research+

Another longstanding tool that is seeing great expansions are the directories’ reports about their ranking decisions. At Chambers these are called Insight reports, whereas Legal 500 refers to them as Research+.

When they were first introduced, these reports were fairly simple breakdowns of the information that the researchers received and the logic behind their ranking decisions. Over the last five years however, these reports have become much more detailed in the information they offer.

Newer features they provide include historical ranking data, numerical ratings for the firm’s performance in key metrics, and comparative data which shows how a team is performing versus closely competing law firms. Legal 500 for example now produces an array of these reports with slightly different areas, such as submission analysis documents and Client satisfaction KPI reports. They have therefore become better value and can be more useful for marketing teams than previously.

Changes in products: Research Management Tool

Another key product that Chambers released a few years ago is the Research Management Tool, which has had a dramatic effect on the research process and the ability of the firms to keep control of the process. Legal 500 have announced that they are introducing a similar tool as part of their Premium subscription.

These tools keep track of the referee process during active research, flagging if somebody
has not responded or there has been an issue with contacting them. Many ranking decisions can come down to whether there is sufficient information to promote, so using this tool can make the difference.

AI

The question of AI and how the directories will use them is also an ongoing issue. So far, the directories have taken a cautious approach to adopting these new technologies internally. As it stands, research remains very labour intensive, backed by large teams (Legal 500 has approximately 50 researchers, whilst Chambers has over 200.)

This is something that may change in future, and no doubt they will be considering how best to use new technology to improve their process. We are keeping an eye out for any potential changes and will send out updates if so.

Continuity in ranking methodology

As much as these changes have significantly altered the approach of the directories and their relationships with law firms, there is a major continuity that should be noted, and that is their core methodology of the rankings. Each directory has a slightly different approach and they have been tried and tested. For example, Chambers places particular emphasis on the feedback they receive from sources, whilst Legal500 primarily focuses on the work evidence provided.

These methodologies have remained steady almost since they were founded over 30 years ago, and whilst the approach around this method may change, it is unlikely that the core process will see any significant transformation.

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If you liked this article, you might be interested reading Laurence’s latest article on How to prepare for the next directories cycle available here.