5 minutes with... Kanika Shah
1. Before joining Burford, you spent seven years at Fortress Investment Group, a $53+ billion AUM global investment manager, originating and evaluating legal finance investments, following earlier experience at Quinn Emanuel and clerking in the Eastern District of New York. How did this mix of financial services and legal experience shape your view of law and legal finance, including legal finance as an asset class?
In moving from complex business litigation to underwriting legal finance investments, I’ve been privileged to view the industry from multiple perspectives. I’ve worked with parties to lawsuits and counterparties to financial transactions, so I know first-hand how critical due diligence is.
That’s true in legal finance, too. Understanding the needs of the client is essential to creating the right transaction structure, pricing appropriately to the risk, and making sound investment decisions taking into account the prospects of success, duration and creditworthiness of the counterparties involved.
More broadly, the rigorous due diligence that underpins legal finance is probably one reason it has gained traction with companies seeking non-recourse capital and with investors looking at alternative assets. Claims are carefully assessed across a variety of factors including their legal strengths, not on market conditions or economic cycles. For our clients, that means legal finance remains available even when traditional sources of capital are constrained, with outcomes driven by legal performance rather than external volatility. For investors, that offers an investment uncorrelated to traditional markets.
2. How has the legal finance industry evolved since you entered the field, and where do you see it heading?
I’ve seen legal finance evolve from the traditional plaintiff side single-case litigation to a go-to strategy actively used by law firms and corporate C-suite members over the last seven years. That usage is only going to accelerate as more people understand its value – especially from a risk mitigation and accounting perspective.
Legal finance is continually responding to what’s happening in the broader market. We’re already doing larger, more creative structures, providing companies and law firms with a suite of solutions to help boost revenue and manage risk. As markets, regulations and technology evolve, legal finance will expand to address emerging conditions.
3. What trends are you seeing in how companies use legal finance?
Companies are realizing that they can use third-party financing for litigation rather than carrying that cost internally. This not only allows the legal department to add value, since they can pursue affirmative recoveries and generate significant returns without adding to operating expenses, but also allows companies to spend money on enhancing core business, such as investing in AI or other structures that could help scale a business.
4. What excites you the most about the way legal finance is evolving in Spain and across continental Europe?
Legal finance can be incredibly useful in terms of managing cost, and it’s particularly valuable for firms pursuing affirmative litigation strategies. Legal finance providers can customize structures on a non-recourse basis to fit specific business needs.
So, while most people think of legal finance as a way to manage costs, that’s only part of the story. Our funding can be used in many ways: for example, using legal finance to pursue recoveries can allow the C-suite to use its own capital to focus on other aspects of the business.
5. What makes Burford's approach to legal finance different from others in the market?
Burford has many competitive advantages over other funders, but I’m going to focus on our commitment to doing everything in-house. From understanding client requirements to deep-dive due diligence, structuring and execution, everything is managed by Burford experts. There’s no waiting for an opinion from outside counsel or delays due to external diligence.
That means we can operate and finance at a pace that meets counterparties where they need to be. Beyond the capital provided, clients benefit from Burford’s expertise and insight while retaining control over their litigation.
