As we close the books on 2025, the in-house legal market revealed surprising patterns. What began as a year of hesitation and delayed decisions evolved into something more nuanced, with late-breaking signals suggesting 2026 may bring significant change. Through hundreds of conversations with General Counsels, Chief Legal Officers, and in-house leaders across the country, clear trends emerged that every legal professional should understand and consider either as they plan their next career move or look to add to their team.
The Network Effect: How 95% of Legal Leaders Found Their Next Role
The most striking trend of 2025 was how legal leaders landed their next opportunity. Throughout the year, whenever someone in my network secured a new GC or CLO role, I reached out to understand their search process. The feedback was remarkably consistent: approximately 95% found their position through a personal connection in their network.
This isn’t entirely surprising. We’ve always known that networking matters. But the sheer volume was unprecedented. In a typical market, I’d estimate 50-60% of new roles come through personal networks. In 2025, that figure nearly doubled.
The pattern repeated itself over and over. A former CFO recommended them for the role. A CEO they’d worked with at a previous company brought them along to a new organization. Someone from their law school days made an introduction that turned into an offer. Very few roles materialized through LinkedIn job boards or even traditional recruiting agencies. The jobs simply weren’t on the public market. They were filled through known quantities before postings ever went live.
What this means for you: If there’s one takeaway from 2025, it’s that your network isn’t just nice to have; it’s essential. The best opportunities never see the light of day on job boards. They’re filled by trusted referrals before anyone thinks about posting them publicly. This isn’t about collecting LinkedIn connections. It’s about fostering genuine professional relationships that create mutual trust and respect over time.
Market Uncertainty and the Preference for Known Quantities
The dominance of personal connections in 2025 wasn’t just about networking. It reflected deeper uncertainty in the market. Companies weren’t sure whether to hire and grow their teams, stay still, or even reduce headcount. All three scenarios played out across different organizations throughout the year.
When decision-makers face uncertainty, they naturally gravitate toward what feels safe. A personal recommendation transforms a candidate from an unknown risk into a known quantity. Someone the CEO or CFO has worked with before carries immediate credibility that no resume can match. The uncertainty didn’t just slow decision-making; it fundamentally changed who got hired.
Candidates experienced similar hesitation. Many legal professionals who might have been open to new opportunities in a more stable market decided to stay put. The most common refrain I heard from candidates withdrawing from searches was, “The market is so uncertain, I’m not confident in the economic outlook. I’m going to stay at the known quantity.”
This created a strange dynamic. Clients paused. Candidates stayed. The talent market froze or slowed in many segments.
The Coming Wave: Retirements and Private Equity Activity
But markets don’t stay frozen forever. As we moved into Q4 2025, cracks began to appear in the ice.
Starting in late Q3 and accelerating through year-end, we saw a dramatic uptick in planned retirements for Q1 2026. Many legal leaders who had contemplated retirement over the past few years but held on due to uncertainty are now ready to move forward. This wave of retirements will create openings at the top that haven’t existed for years.
Simultaneously, private equity sponsors began ramping up their recruiting efforts in earnest. By mid-August, I started hearing consistently that PE firms were aggressively pursuing high-level GC talent with proven track records in scaling companies. They’re pounding the phones, building out their teams, and positioning themselves for what appears to be a significant uptick in deal activity.
The drivers are clear. Private equity sponsors need to exit companies they’ve held for nearly five years now. Five-year financing cycles that started in 2020 are coming due. Portfolio companies need meaningful transactions to move from one fund to the next. The PE world is preparing for action, and they need experienced legal leaders who can execute in high-pressure, high-stakes environments.
The Leadership Shift: More Senior Hires on the Horizon
Another notable shift emerged in late November. For most of 2025, the market was characterized by junior and mid-level hires, with senior leadership searches sprinkled in occasionally. But as the year closed, the balance shifted dramatically. Approximately 50% of the searches we’re now working on are senior leadership hires.
These openings are driven by retirements (as mentioned above), internal promotions, and companies finally feeling confident enough to invest in experienced leadership again. After a year of treading water, organizations are looking ahead and thinking about growth. That requires seasoned legal leaders who can build departments, manage risk strategically, and operate as true business partners to the C-suite.
The Rise of Interim and Project-Based Legal Talent
One of the more interesting developments in 2025 was the growing demand for interim and project-based legal talent. We saw various scenarios such as:
- Companies going through acquisitions needed temporary help getting their documentation in order.
- Organizations facing budget constraints but still requiring legal support turned to fractional GC arrangements.
- Others wanted to “try before they buy,” bringing on interim talent to assess fit before committing to a full-time hire.
This trend signals a broader shift in how companies think about legal resources. The traditional model of building a full-time, permanent legal department remains important, but it’s no longer the only model. Flexibility matters. Companies want the ability to scale legal support up or down based on immediate needs without the long-term commitment of a permanent hire.
For legal professionals, this creates new opportunities. Experienced GCs and senior counsel can build practices offering fractional services, interim leadership during transitions, or project-based support for M&A activity and other specialized needs. It’s not just a stopgap solution; it’s becoming a legitimate career path and service model.
What 2026 Holds
Taking all these trends together, we believe 2026 will be a significantly busier year from both a hiring and talent attraction perspective. The factors are aligning: pending retirements creating openings at the top, private equity activity ramping up, companies ready to invest in senior leadership again, and a talent pool that’s been largely static, finally willing to consider new opportunities, which means more natural attrition and movement.
But the lesson of 2025 remains relevant. The best opportunities will still go to known quantities. Personal connections will still matter more than polished resumes. The difference is that more opportunities will exist in 2026, and the talent market will become more fluid.
Practical steps you can take now:
Invest in your network today, not when you need a job. Reach out to former colleagues, attend industry events, and engage meaningfully with professional communities. These relationships take time to build and can’t be manufactured overnight when you suddenly need them.
Stay visible in your professional community. Write articles, speak at conferences, and share insights on LinkedIn. When opportunities arise, decision-makers should immediately think of you.
If you’ve been thinking about a career move but held back due to 2025’s uncertainty, start positioning yourself now. Update your materials, clarify what you’re looking for, and let trusted contacts know you’re open to conversations.
For organizations, recognize that the best talent won’t be found on job boards. Build relationships with legal leaders before you need to hire. Invest in referral networks. Create roles and opportunities compelling enough that strong candidates will consider leaving their “known quantity” for what you’re offering.
The in-house legal market in 2025 taught us that in times of uncertainty, trust becomes the ultimate currency. Personal relationships, proven track records, and known quantities win.
As we move into 2026 with more opportunities on the horizon, those fundamentals won’t change. But the market will reward those who prepared, maintained their networks, and positioned themselves for what’s coming next.
If you’re navigating a career transition or building an in-house legal team, The Lion Group is here to help. We specialize in connecting exceptional in-house legal talent with organizations that value strategic legal leadership. Reach out to discuss how we can support your goals in 2026.
