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Burford’s Payday Shows Litigation Funding Not Only About Lawyers

Oct. 2, 2020, 12:36 PM

Burford Capital turned a $145 million investment in a group of related lawsuits into a $423 million payday, according to a public filing released Thursday. The litigation funder’s results highlight one of the fastest-growing segments of the legal finance industry: monetizing claims.

Money for Claims: Litigation funders are more frequently buying direct stakes in judgments or legal claims from the clients who hold them. That compares to investing in a case at the outset by agreeing to pay the lawyers’ fees and expenses in exchange for a share of any returns.

Far From Free: So-called monetization deals allow funders to put more money to work and can be easier to close without having to negotiate with lawyers over a legal budget. Burford also said it expects its shares to start trading on the New York Stock Exchange in October. Roy Strom has the story.

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To contact the reporter on this story: Patricio Chile in Washington at pchile@bloomberglaw.com

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