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Burford clinches portfolio funding deal with UK firm

While much of the attention regarding third party litigation finance has been directed at single-case funding, portfolio funding — in which a financier agrees to fund a range of matters — is growing in popularity as firms seek alternate sources of capital and funders look to diversify their risk.

In 2014, Burford made 63 percent of its new litigation finance investments in portfolio-based and complex arrangements, but in 2016, that number grew to 88 percent, with only 12 percent invested in single-case financing.

According to Craig Arnott, managing partner in Burford’s London office, single-case funding represents about 10 percent of the company’s current litigation investments.

Arnott said the growing popularity of portfolio financing attests to how it is a boon for firms, funders and potential clients alike. Since the risks and potential rewards are spread out among a number of representations, portfolio funding allows Burford to offer better pricing, and with a standing financial arrangement in place, firms are able to put together agreements with new clients with greater efficiency, he told Law360.

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