Burford MD Craig Arnott recently spoke with Lawyerly about the continuing evolution of legal finance in Australia. Arnott notes that future growth will reward litigation funders like Burford that are capable of providing portfolio financing to firms and clients. He cautions that not all legal financiers have sufficient capital to offer lower-risk and lower-cost portfolio arrangements:
“What you’re seeing in the market is a lot of current interest. The reality is that in a few years’ time the risk will have bitten in a number of cases and some funders will find themselves exposed. I’m not sure that all the funders will remain. You have to ask yourself who will be around in five years?”