In an article published in Bloomberg Law’s Big Law Business on October 4, Lucian Pera discusses the recent announcement that Burford Capital, the world’s largest litigation finance firm, had raised $250 million in a span of just 24 hours.
“My anecdotal sense, confirmed by Burford putting more money in the market, is that it’s growing,” said Lucian, who has worked with litigation funders. “How much it’s growing is very hard to say.”
Burford is the largest litigation funder and claims a market cap of over $5.4 billion. However, sources believe market saturation will eventually come as smaller funders continue to enter the market. There is also continued interest from entities who are interested in the asset class and who want to be on the list the next time the capital is raised.
“Investors are looking for returns that are off the beaten track,” said Lucian. “I keep hearing from people, … mostly law firms and lawyers exploring some option. They want to talk through how does it work, what are the possibilities, what are the dangers.”