Growth in awareness and use of "corporate
finance for law" reinforced in data and in interviews with global
law firm lawyers
NEW
YORK, Oct. 1, 2024 /PRNewswire/ -- Burford
Capital, the leading global finance and asset management firm
focused on law, has grown significantly since its founding in 2009.
As part of ongoing recognition of the growth in legal finance and
Burford's industry leadership as it celebrates its 15th
anniversary, it today shares data from its own performance and
releases new research based on one-on-one phone interviews with
senior lawyers at global law firms who have a front seat to growing
awareness and use of legal finance by their clients and firms.
Christopher Bogart, CEO of
Burford Capital, says: "Jon
Molot and I started Burford 15 years ago because of economic
inefficiencies we saw in the business of law. We're delighted that
our business has since grown from niche to mainstream and is now
truly 'corporate finance for law.' From day one, our priority has
been to listen to clients' needs, and as a result, we have a suite
of tools that provide liquidity, de-risk contingent matters and
enable more strategic affirmative recoveries. Burford has earned a
reputation as the go-to firm for legal finance, and we're excited
about the road ahead. We'll keep our focus on clients, innovation
and advancing the business of law."
Data from Burford's business confirms its performance as a
legal finance industry leader:
- Exceptional growth in our business: Burford began
in 2009 as a $130 million fund;
today, Burford has a portfolio of more than $7 billion.
- Increased demand for what we do: In 2009, Burford
committed $11 million to legal
finance assets; in 2023, that number was $1.2 billion on a Group-wide basis.
- Growing relevance to sophisticated businesses, with
innovation to address corporate balance sheet and P&L
needs: More than half our business now comes from corporate
clients. Many seek monetizations ― where Burford provides
businesses immediate capital by advancing some of the expected
entitlement of a pending claim, judgment or award ― and we have
committed very substantial capital over the past five years to
monetization deals from $10 million
to $325 million.
- Development of human capital and proprietary
data: In 2009, we had five employees; today, we have seven
offices and more than 150 employees. In addition, Burford has built
an industry-leading proprietary database of commercial dispute
outcomes and tools that harness machine learning, data analytics
and artificial intelligence to benefit our clients and our
performance.
- NYSE-listed in 2020: We have been public since
2009 and have been listed on the New York Stock Exchange since
2020.
Similarly, research released today by Burford reveals that
legal finance has exploded in visibility and value with lawyers.
Key findings include:
- 82% of law firm lawyers surveyed claim to have used legal
finance, a ninefold increase since Burford first asked law firm
lawyers this question in 2012. Although confirmation bias may
result in overstatement of actual use, even accounting for this,
legal finance's enormous increased stated use reflects its
visibility and acceptance in the business of law.
- Lawyers are using legal finance in more sophisticated
ways: Many law firm lawyers affirm that legal finance is now
used to strategically manage risk rather than because clients lack
funds. Law firm lawyers and their clients see legal finance as a
strategic tool across commercial litigation and arbitration as well
as more complex financial structures like portfolio financing and
funded patent divestitures.
- An Am Law 50 law firm partner said: "For some of the
bigger clients, you see more portfolio deals rather than single
transactions. Not many companies start with a portfolio, but as
they see success, both law firms and corporations are pursuing
portfolio transactions."
- Law firms are embracing legal finance to fuel growth, as
more than eight in ten of those surveyed report a more positive
perception of legal finance than 15 years ago.
- A Global 100 law firm partner said: "The client's
mindset has completely changed, and they are now coming to their
outside counsel and asking for litigation funding options. Offering
the use of funding and using it is a validation of the merit of a
claim and is a good pressure point."
- Law firm lawyers confirm that corporate clients are
increasingly using legal finance, as 82% of those surveyed said the
use of legal finance by corporations has increased over this
period.
- A litigation boutique partner said: "Litigation is a
bottom-line cost. If corporations can spread that risk by sharing
it with an outside capital provider, CFOs want to explore that
option, especially because corporations hate litigation expenses.
They are much more open to it if they can get some or all of it
covered by legal finance."
The research is based on one-on-one phone interviews conducted
by Ari Kaplan Advisors with 44 senior lawyers from global law firms
in August and September 2024. The
participants included partners, department heads and practice group
chairs. Of these respondents, 34% came from AmLaw 100 law firms and
30% from Global 100 law firms.
About Burford Capital
Burford Capital is the leading global finance and asset
management firm focused on law. Its businesses
include litigation finance and risk
management, asset recovery and a wide range of legal
finance and advisory activities. Burford is publicly traded on the
New York Stock Exchange (NYSE: BUR) and the London Stock Exchange
(LSE: BUR), and it works with companies and law firms around the
world from its offices in New
York, London, Chicago, Washington,
DC, Singapore,
Dubai and
Hong Kong.
For more information, please
visit www.burfordcapital.com.
This announcement does not constitute an offer to sell or
the solicitation of an offer to buy any ordinary shares or other
securities of Burford. This announcement contains certain unaudited
alternative performance measures ("APMs"). The presentation of the
APMs is for informational purposes only and is based on information
available at the date of this announcement and certain assumptions
and estimates that Burford Capital believes are reasonable.
Additional information with respect to these APMs and their
definitions is provided in Burford Capital's periodic reports that
it files with, or furnishes to, the US Securities and Exchange
Commission.
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SOURCE Burford Capital