Semafor

Who Wants To Own Big Law?

The episode of Semaphore’s “Compound Interest” dives into litigation finance, featuring Burford Capital CEO Chris Bogard, who explains how the nascent industry turns lawsuits into investable assets. Bogard describes litigation as an invisible balance‑sheet item that drains operating cash when corporations fund their own disputes. By providing non‑recourse capital, Burford lets companies keep cash for growth while law firms receive the cash they need without hourly billing constraints. “I was a cost center,” Bogard recalls from his time as Time Warner’s general counsel, noting that a $10 million legal spend can shave $200 million off market value. He adds that successful investments require three pillars: legal merit, quantifiable damages, and collectibility. The model, catalyzed by the 2008 financial crisis, has grown into a multi‑billion‑dollar market, attracting private‑equity‑style underwriting and prompting law firms to consider alternative financing structures, reshaping the economics of big‑law and corporate risk management.