By taking a minority ownership stake in a boutique UK law firm, PCB Litigation, in July 2020, Burford became the first legal financier to provide capital in exchange for law firm equity. Additionally, Arizona recently abolished rule 5.4, becoming the first state to allow law firms to move to ABS structures, signaling increased momentum for outside ownership in the US. As law firm equity financing becomes a reality, legal finance providers can help law firms find innovative new paths to growth.
Burford Insights: How would law firm equity work?
Burford's Jonathan Molot, CIO and Co-Founder, is a globally influential thinker and practitioner in the world of legal finance. He is among the most cited thinkers on how law firms can evolve to address the limits of the cash partnership model. In this video, he explains how law firm equity would work including:
- What Burford's equity stake in litigation boutique PCB Litigation and the Arizona law firm ownership rule change means for the industry as a whole
- Why traditional law firm structures impede business growth and efficiency
- How the economic uncertainty triggered by Covid-19 will affect demand for law firm equity financing