Burford Capital invests in law firm consultancy as investment drive grows

Burford Capital has taken a minority stake in law firm consultancy Kindleworth, as the listed legal finance giant deepens its push into law firm investment.

Kindleworth provides operational support for new and startup firms across areas like finance, tech and HR. It says it has helped launch more than 50 firms and offices.

Its recent track record includes helping to set up litigation boutique Pallas Partners and, earlier this year, helping with the tech infrastructure aspects of the relaunch of Rosenblatt from collapsed listed legal services group RBG Holdings.

Burford said the partnership will give it opportunities to invest in Kindleworth-backed firms.

Burford’s wider strategy

The deal underlines Burford’s move beyond litigation finance into direct investment in law firms and the businesses that support them. Explaining Burford's strategy on The Non-Billable Podcast in August, chief development officer Travis Lenkner said the funder’s approach differs from private equity, focusing on minority stakes and "patient capital" without the pressure of near-term exits.

Burford has already tested the model with litigation boutique PCB Byrne, a 2020 minority investment that Lenkner described as "exactly the type of situation we want to reconstruct as many times as we can."

What they said

Lenkner said the Kindleworth investment was a "prime example" of its strategy of investing in businesses that are reshaping the legal landscape, adding "Kindleworth’s mission aligns with Burford’s focus since its inception on innovation and excellence, and we are excited to support their growth and the vision of the exceptional lawyers and firms they champion."

Kindleworth co-founder James Hacking said: "By providing the resources, expertise and infrastructure they need to thrive, we help turn ambition into market-leading law firms. Burford shares our vision, and this partnership strengthens our ability to help exceptional lawyers and firms reach their full potential."

Terms of the deal, which closed in August, were not disclosed. Burford said the consideration was in cash but the investment did not "represent a material investment."