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Doorway Capital Launches New Product: The Shelf Facility

Doorway Capital, a specialist in legal funding solutions, has launched a new funding product designed to support law firms looking for M&A opportunities to achieve their growth ambitions.

The Shelf Facility provides a firm with pre-agreed access to funding – the facility is fully underwritten and documented in advance of being required, with funds being made available as they are needed.  This structure allows firms to actively pursue acquisition opportunities in the knowledge that they can act swiftly and decisively when they find the right target.

The product is an extension of the flexible solutions Doorway Capital has been offering law firms since 2015, including funding for the merger of Moore Blatch and Barlow Robins, and various acquisitions made by AWH SolicitorsSimpson Millar and other firms.

“Doorway Capital’s new shelf facility is a gamechanger” says Abdul Hussain, Chief Executive of AWH Solicitors.  “It means that we can secure access to additional funds when we find a suitable investment opportunity in the M&A market without having to wait on credit approval.”

The launch comes in response to increased demand from across the sector, with leading M&A broker, Acquira Professional Services, reporting more than 60 M&A deals in 2023 to date, with a spike expected shortly to coincide with the PII renewal season.

“Over the last 18 months, law firms have increasingly asked Doorway for a funding commitment that can be established in advance of needing to draw upon it” says Steve Din, founder of Doorway Capital.  “The catalyst for this is, undoubtedly, the desire for law firms to make acquisitions and ensuring acquisition funding is available to be drawn, often, at very short notice.”

For more information please contact Steve Din (funding@doorwaycapital.com) or Phil Hales (bd@doorwaycapital.com).

About Doorway Capital

Doorway Capital has been providing specialist funding solutions for UK law firms since 2015.  Facilities are typically written up to values of £20m and tailored to clients’ individual needs.

The team at Doorway Capital are extremely knowledgeable – they spent time and effort designing a facility that gave us the depth and flexibility we needed at a crucial time in our growth.  I couldn’t recommend a better funding partner for a law firm.” – Shane Hensman, CEO of Cordus Law.

As Doorway’s founder, Steve Din, was a former managing director of the global investment bank Morgan Stanley and European Head of Restructurings at Citigroup, it is no surprise that Doorway has chosen to pay close attention to the needs of law firms looking to grow by acquisition.

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More Than 100 Companies Sign Letter Urging Third-Party Litigation Funding Disclosure Rule for Federal Courts Ahead of October Judicial Rules Meeting

By Harry Moran |

In the most significant demonstration of concern for secretive third-party litigation funding (TPLF) to date, 124 companies, including industry leaders in healthcare, technology, financial services, insurance, energy, transportation, automotive and other sectors today sent a letter to the Advisory Committee on Civil Rules urging creation of a new rule that would require a uniform process for the disclosure of TPLF in federal cases nationwide. The Advisory Committee on Civil Rules will meet on October 10 and plans to discuss whether to move ahead with the development of a new rule addressing TPLF.

The letter, organized by Lawyers for Civil Justice (LCJ), comes at a time when TPLF has grown into a 15 billion dollar industry and invests funding in an increasing number of cases which, in turn, has triggered a growing number of requests from litigants asking courts to order the disclosure of funding agreements in their cases. The letter contends that courts are responding to these requests with a “variety of approaches and inconsistent practices [that] is creating a fragmented and incoherent procedural landscape in the federal courts.” It states that a rule is “particularly needed to supersede the misplaced reliance on ex parte conversations; ex parte communications are strongly disfavored by the Code of Conduct for U.S. Judges because they are both ineffective in educating courts and highly unfair to the parties who are excluded.”

Reflecting the growing concern with undisclosed TPLF and its impact on the justice system, LCJ and the Institute for Legal Reform (ILR) submitted a separate detailed comment letter to the Advisory Committee that also advocates for a “simple and predictable rule for TPLF disclosure.”

Alex Dahl, LCJ’s General Counsel said: “The Advisory Committee should propose a straightforward, uniform rule for TPLF disclosure. Absent such a rule, the continued uncertainty and court-endorsed secrecy of non-party funding will further unfairly skew federal civil litigation. The support from 124 companies reflects both the importance of a uniform disclosure rule and the urgent need for action.”

The corporate letter advances a number of additional reasons why TPLF disclosure is needed in federal courts:

Control: The letter argues that parties “cannot make informed decisions without knowing the stakeholders who control the litigation… and cannot understand the control features of a TPLF agreement without reading the agreement.” While many funding agreements state that the funder does not control the litigation strategy, companies are increasingly concerned that they use their growing financial leverage to exercise improper influence.

Procedural safeguards: The companies maintain that the safeguards embodied in the Federal Rules of Civil Procedure (FRCP) cannot work without disclosure of TPLF.  One example is that courts and parties today are largely unaware of and unable to address conflicts between witnesses, the court, and parties on the one hand, and non-parties on the other, when these funding agreements and the financial interests behind them remain largely secret.

Appraisal of the case: Finally, the letter reasons that the FRCP already require the disclosure of corporate insurance policies which the Advisory Committee explained in 1970 “will enable counsel for both sides to make the same realistic appraisal of the case, so that settlement and litigation strategy are based on knowledge and not speculation.” The companies maintain that this very same logic should also require the disclosure of TPLF given its growing role and impact on federal civil litigation.

Besides the corporate letter and joint comment, LCJ is intensifying its efforts to rally companies and practitioners to Ask About TPLF in their cases, and to press for a uniform federal rule to require disclosure. LCJ will be launching a new Ask About TPLF website that will serve as a hub for its new campaign later this month.

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Burford Capital Marks 15-Year Anniversary with Business Data and New Legal Finance Research

By Harry Moran |

Burford Capital, the leading global finance and asset management firm focused on law, has grown significantly since its founding in 2009. As part of ongoing recognition of the growth in legal finance and Burford’s industry leadership as it celebrates its 15th anniversary, it today shares data from its own performance and releases new research based on one-on-one phone interviews with senior lawyers at global law firms who have a front seat to growing awareness and use of legal finance by their clients and firms.

Christopher Bogart, CEO of Burford Capital, says: “Jon Molot and I started Burford 15 years ago because of economic inefficiencies we saw in the business of law. We’re delighted that our business has since grown from niche to mainstream and is now truly ‘corporate finance for law.’ From day one, our priority has been to listen to clients’ needs, and as a result, we have a suite of tools that provide liquidity, de-risk contingent matters and enable more strategic affirmative recoveries. Burford has earned a reputation as the go-to firm for legal finance, and we’re excited about the road ahead. We’ll keep our focus on clients, innovation and advancing the business of law.”

Data from Burford’s business confirms its performance as a legal finance industry leader:

  • Exceptional growth in our business: Burford began in 2009 as a $130 million fund; today, Burford has a portfolio of more than $7 billion.
  • Increased demand for what we do: In 2009, Burford committed $11 million to legal finance assets; in 2023, that number was $1.2 billion on a Group-wide basis.
  • Growing relevance to sophisticated businesses, with innovation to address corporate balance sheet and P&L needs: More than half our business now comes from corporate clients. Many seek monetizations ― where Burford provides businesses immediate capital by advancing some of the expected entitlement of a pending claim, judgment or award ― and we have committed very substantial capital over the past five years to monetization deals from $10 million to $325 million.
  • Development of human capital and proprietary data: In 2009, we had five employees; today, we have seven offices and more than 150 employees. In addition, Burford has built an industry-leading proprietary database of commercial dispute outcomes and tools that harness machine learning, data analytics and artificial intelligence to benefit our clients and our performance.
  • NYSE-listed in 2020: We have been public since 2009 and have been listed on the New York Stock Exchange since 2020.

Similarly, research released today by Burford reveals that legal finance has exploded in visibility and value with lawyers. Key findings include:

  • 82% of law firm lawyers surveyed claim to have used legal finance, a ninefold increase since Burford first asked law firm lawyers this question in 2012. Although confirmation bias may result in overstatement of actual use, even accounting for this, legal finance’s enormous increased stated use reflects its visibility and acceptance in the business of law.
  • Lawyers are using legal finance in more sophisticated ways: Many law firm lawyers affirm that legal finance is now used to strategically manage risk rather than because clients lack funds. Law firm lawyers and their clients see legal finance as a strategic tool across commercial litigation and arbitration as well as more complex financial structures like portfolio financing and funded patent divestitures.
  • An Am Law 50 law firm partner said: “For some of the bigger clients, you see more portfolio deals rather than single transactions. Not many companies start with a portfolio, but as they see success, both law firms and corporations are pursuing portfolio transactions.”
  • Law firms are embracing legal finance to fuel growth, as more than eight in ten of those surveyed report a more positive perception of legal finance than 15 years ago.
  • A Global 100 law firm partner said: “The client's mindset has completely changed, and they are now coming to their outside counsel and asking for litigation funding options. Offering the use of funding and using it is a validation of the merit of a claim and is a good pressure point.”
  • Law firm lawyers confirm that corporate clients are increasingly using legal finance, as 82% of those surveyed said the use of legal finance by corporations has increased over this period.
  • A litigation boutique partner said: “Litigation is a bottom-line cost. If corporations can spread that risk by sharing it with an outside capital provider, CFOs want to explore that option, especially because corporations hate litigation expenses. They are much more open to it if they can get some or all of it covered by legal finance.”

The research is based on one-on-one phone interviews conducted by Ari Kaplan Advisors with 44 senior lawyers from global law firms in August and September 2024. The participants included partners, department heads and practice group chairs. Of these respondents, 34% came from AmLaw 100 law firms and 30% from Global 100 law firms.

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International Legal Finance Association Adds IVO Capital Partners as New Member

By Harry Moran |

The International Legal Finance Association (ILFA), the only global association of commercial legal finance companies, today announced the addition of Paris-based legal finance provider IVO Capital Partners as its 25th member. 

“ILFA is pleased to welcome IVO Capital Partners to our growing membership ranks,” said Shannon Campagna, ILFA’s interim Executive Director. “IVO’s addition serves as the quarter century mark for ILFA’s global membership. The firm will play a crucial role in helping ILFA promote the highest standards of operation and service for the commercial legal finance sector around the world.” 

“We are thrilled that IVO’s team is joining ILFA’s diverse roster of commercial legal funders,” said Neil Purslow, ILFA Chairman and Co-Founder of Therium, an ILFA member. “The addition of yet another legal finance provider this year demonstrates the increasingly important role that ILFA plays as the global voice for the ever-expanding legal finance industry, particularly in Europe.” 

IVO Capital Partners is an independent asset management company specializing in corporate debt and has established itself as a leader in the European legal finance industry. The firm boasts over a decade of experience in litigation funding, investing over $166 million in 64 cases across a wide array of geographies and action types. IVO is currently deploying its third legal finance fund, IVO Legal Strategies Fund III SLP. 

“The key role being played by ILFA in working with members of the litigation funding industry, as well as all other professionals involved with this industry, has made this membership a requirement for us to be even more active in the evolution and growth of the industry,” said Paul de Servigny, the fund manager of IVO’s litigation finance activities. “With Europe as our main source of business, we are very happy to be able to contribute to growing ILFA’s reach and understanding of different jurisdictions and how litigation finance is viewed there.”

About the International Legal Finance Association 

The International Legal Finance Association (ILFA) represents the global commercial legal finance community, and its mission is to engage, educate and influence legislative, regulatory and judicial landscapes as the voice of the commercial legal finance industry. It is the only global association of commercial legal finance companies and is an independent, non-profit trade association promoting the highest standards of operation and service for the commercial legal finance sector. ILFA has local chapter representation around the world. 

For more information, visit www.ilfa.com and find us on LinkedIn and X @ILFA_Official.

About IVO Capital Partners 

IVO Capital Partners is an independent French asset management company with more than €1.5 billion in assets under management. Founded in 2012, it invests in listed and unlisted credit on emerging market corporate bonds and litigation finance. IVO Capital Partners' expertise allows its client-investors to access new investment universes with clarity and profitability and also to provide access to financing, on the one hand, to companies established in emerging countries and, on the other hand, to litigation so that they can lead to compensation. The company employs 14 nationalities and invests in more than 50 countries. IVO is among Europe’s leaders in the legal finance industry, with more than $166 million invested and more than 64 cases financed as of 2024. For over a decade, IVO’s expert investment team has ensured asymmetric returns for investors while promoting the rights of parties involved in meritorious litigation and class-action lawsuits. For more information, visit www.ivocapital.com

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