5 minutes with... Stephanie Southwick

March 3, 2026

Stephanie Southwick

Summary

As a former first-chair commercial and IP litigator who went on to evaluate and structure legal finance investments, Stephanie brings a rare dual perspective to Burford Capital. She discusses what prompted her move from the courtroom to funding, why legal finance is a strategic capital allocation tool rather than a last resort, and what companies, boards and law firms should understand about positioning cases for successful financing.

1. You spent more than 15 years as a first-chair commercial and IP litigator and over seven years in legal finance. What prompted your move from the courtroom into funding, and how does that combined experience shape the way you evaluate and structure investments today?

I loved court and I loved helping my clients win. But I also saw firsthand how capital constraints shape legal strategy, and the impact of legal finance from multiple perspectives:

My first exposure to litigation finance was in a trade secret matter where funding allowed my client to see the case through. I was fascinated that litigation proceeds could be used as collateral to raise capital.
Having served as managing partner of my firm, I understand what law firms need in funding arrangements.
From my experience as lead counsel through trial and mediation, I understand how companies assess risk, leverage and settlement—not just legal merit.
Having funded cases for almost seven years, I have learned how to align interests for the best outcome.

This combined experience allows me to form strong funding partnerships, and structure investments that align incentives across all parties.

2. What do you see as the biggest misconception about legal finance? What do you wish more CFOs, GCs and founders understood about its role as a strategic tool?

That legal finance is only for companies that can’t afford their legal bills. The real question is: Is this the best use of capital? Even well-capitalized businesses recognize that tying up millions of dollars in legal spend—with uncertain timing and outcome—is often not the most efficient use of capital.

For CFOs, legal finance can preserve operating capital, smooth cash flow and convert an expense into an asset. For GCs, it allows meritorious claims that otherwise would not be filed, offloads downside risk and helps bring the legal department to a budget neutral position. For founders and boards, it maximizes profitability, protects runway and preserves equity by avoiding dilution. Today, legal finance serves as a sophisticated capital management solution—unlocking liquidity and enabling organizations to treat litigation as a monetizable asset.

3. You frequently speak about the importance of having a funder who can also serve as a strategic advisor in legal finance transactions. Why is that role so critical? How does it benefit clients?

Look, the reason I do this job is to help our funded partners succeed. I love working with companies and firms to understand their goals and help achieve them—whether it be growth, maximizing value, bringing a bet-the-company matter or stabilizing cash flow. A legal finance provider’s relationship with a funded company or law firm is a partnership—at least it should be. The longer I am in this industry the more I realize that a funding arrangement is not going to work well without trust and alignment. We deploy millions of dollars without controlling the outcome. Our partners need confidence in our capital, scale and expertise; we need transparency and disciplined decision-making. With trust and alignment, the funding partnership becomes a strategic advantage.

4. You've worked extensively with startups, tech companies and venture investors. Does legal finance offer particular benefits to founders and boards?

Can I answer in all caps? YES! Burford’s capital is NON-DILUTIVE. How many times have we heard investors say “don't litigate—win in the marketplace” because they are worried about a drain on resources? Some boards would rather forgo a meritorious claim than reduce runway or dilute equity. Legal finance allows companies to pursue high-value claims without diverting operating capital and protects portfolio value without additional capital calls.

5. Based on your experience evaluating single cases and law firm portfolios, what makes a case worthy of financing? Are there ways for claimants and their counsels to position matters for future funding?

Even a strong case can be unfinanceable if the economics don’t work. Bringing a trusted financing partner in early can help calibrate structure, damages and budget from the outset. If the investment is not structured well, a reasonable settlement offer may leave too little upside—pushing everyone toward unnecessary trial and appeal risk. Companies and firms looking for funding should focus on a disciplined damages analysis and a realistic, right-sized legal budget. And work with a financier they trust, of course!

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