In this Financially Legal episode, host Emery Wager interviews Evan Meyerson, Managing Director of Burford Capital, to explore the rapidly evolving world of legal finance. Evan brings a unique blend of legal and venture capital experience, which gives him insight into how litigation funding can transform legal claims into strategic assets for law firms and clients alike.
This episode dives into different funding models, from single-case to portfolio financing, each designed to support firms with varying needs.
What is Litigation Funding?
At its core, litigation funding offers capital to support ongoing legal claims. Evan likened it to other investment strategies, except in this case, the asset is a legal claim. In this setup, funders provide capital to plaintiffs or law firms with the expectation of repayment from successful litigation outcomes, making it an option to cover legal expenses without financial risk for the claimant.
Litigation funding isn’t just about covering legal costs; it’s about rethinking how firms finance long-term, high-stakes cases.
Why Law Firms Use Litigation Funding
Litigation can be lengthy and costly, especially for firms working on a contingency basis. With litigation funding, law firms mitigate financial risks, allowing them to pursue cases without tapping into their own resources. If a case is successful, the funder shares in the recovery; if unsuccessful, there is no repayment obligation.
Types of Funding Structures
- Single-Case Funding: Focuses on one case, with pricing based on the higher risk.
- Portfolio Financing: Involves multiple claims, spreading risk across cases and allowing more flexible funding options. Portfolio financing is ideal for law firms or corporations with multiple legal claims, offering steady financial support without being tied to a single outcome.
A Tool for Strategic Growth
Litigation funding isn’t just for cash-strapped clients—it’s a strategic choice for sophisticated firms. Many corporate clients and large law firms are realizing the benefits of using external capital to smooth out budget demands or pursue affirmative litigation.
With tools like AI enhancing underwriting and analytics, litigation funding is poised to become even more precise and accessible. Burford Capital continues to lead the field, offering financial solutions that align with the complex needs of the legal industry.
For law firms and clients alike, litigation funding represents a promising avenue to manage risk, enhance financial flexibility, and ultimately support the pursuit of justice.
Going Further
To get in touch with Evan Meyerson, reach out to him on LinkedIn or visit Burford's website.
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