Helping a US law firm increase contingency exposure and manage additional risk
US law firm
Challenge: Law firm needed capital to take on new clients
A leading US law firm that primarily bills by the hour sought to take on a series of high-conviction, similar affirmative claims against major service providers on behalf of large US-based companies. The firm anticipated considerable client interest if it offered to work on contingency, but it needed to manage its level of contingency exposure before moving forward with the claims.
Solution: $30 million non-recourse portfolio facility
The law firm entered into a risk-share portfolio deal with Burford, receiving funding for a portion of the incurred hourly fees and out-of-pocket case expenses for the cases it took on contingency. Based on strong client demand, Burford later extended its commitment to $40 million.
Impact: Firm grew its business but managed its overall risk exposure
The law firm was successful in retaining clients using full contingency fee engagements and was able to increase its potential profit on the cases from success fees while managing its overall risk exposure.