Using legal finance to meet both business and litigation needs

A Fortune 500 company had for years devoted resources to recovering damages through litigation and had worked with Burford to offset the costs for a group of claims in its portfolio. This use of funding to turn liabilities into assets had won praise not only from the legal team but also the broader C-suite, especially the CFO.  

When the company faced a new capital need, the CFO contacted the legal department to see if the company’s high-value litigation assets could be used to help craft a financing solution. The GC then approached Burford. 

Using the client’s existing high value claims as collateral, Burford provided a monetization facility to provide immediate and substantial liquidity and augment the company's affirmative recovery efforts. 

The deal, structured with more than $200 million in upfront financing and an option for additional financing, provided the company with immediate liquidity to address the CFO’s short-term needs and flexibility for future needs. Burford would only earn its return if there were successful resolutions within the portfolio, significantly de-risking the claims for the company. 

With a deal Burford was uniquely situated to orchestrate, the client not only helped solve a liquidity need but also changed the dynamics between the GC and the CFO. What would typically be the CFO's problem became an opportunity for the GC to proactively deliver value to the business.  

This case highlights how legal departments can become value generators by implementing affirmative recovery programs and working with Burford to use funded affirmative claims from that program to enhance the company’s liquidity, improving GCs’ standing with CFOs and benefiting their businesses.