Case study

Helping a FTSE 20 company move legal costs off-balance sheet

Company challenge

A FTSE 20 company paid for the significant legal fees and expenses associated with litigation out-of-pocket—and suffered negative accounting consequences as a result. By financing litigation out of its own revenues, the company was reducing its operating profits and sought a solution that would help take legal costs off its own balance sheet.

Burford legal finance solution

Burford provided $45 million in financing backed by a portfolio of pending litigation matters, which transformed how the company managed litigation expenses and provided multiple corporate benefits.

Legal finance impact

Not only did the client have the flexibility to use Burford’s capital either to relieve legal expense budget pressure or for corporate purposes unrelated to the litigation matters, but because the capital was provided on a non-recourse basis, the client was entitled to book it as income as received, without waiting for the result of the underlying litigation matters. And, because the investment was structured around a portfolio of matters as opposed to a single case, Burford was able to offer attractive pricing commensurate with the lower risk profile.