Why investors are eyeing law firms: Burford Capital's Travis Lenkner on how external capital is changing the market

Private equity and other forms of external capital are moving into the legal sector - a shift that is very likely to reshape law firm strategy. In this episode, we speak with Travis Lenkner, chief development officer at Burford Capital, the world’s largest provider of legal finance, about why investors are increasingly eyeing law firms and what that means for the market.

Travis shares his unique perspective, having worked as a litigator at Gibson Dunn, served as senior counsel at Boeing, co-founded litigation funder Gerchen Keller Capital (later acquired by Burford), and launched his own law firm before rejoining Burford in 2024. Now focused on exploring potential equity investments in law firms, Travis explains the forces driving investor interest - from the UK’s long-standing ABS regime to growing recognition of law as a professional services market ripe for consolidation and technology-led transformation.

We discuss the different ends of the market attracting attention, from private equity-backed regional roll-ups to strategic growth capital for top-tier global firms. Travis explains why Burford prefers minority stakes, the kinds of structures that make sense for law firms wary of losing control, and how outside capital can fund strategic hires, technology investment and geographic expansion. He also tackles the challenges of the traditional partnership model and the cultural shifts required to align incentives with long-term growth.

Finally, Travis offers insights on the evolving US market - where regulatory constraints mean law firm investment often looks different - and why he expects both markets to develop rapidly in the next five years.

Chapters

00:45 Introduction to Travis And Career Journey
02:31 Understanding Burford Capital's Role in Legal Finance
04:50 The Financial Model Behind Litigation Funding
05:46 The Rise of External Capital in Law Firms
06:12 Investment Strategies for Law Firms
09:13 The Future of Law Firms in a Competitive Market
13:46 The Evolving Landscape of Law Firm Investments
17:28 Navigating Risks in Law Firm Dynamics
19:20 Understanding Investor Exit Strategies
24:14 Burford's Unique Position in Legal Investments
25:26 Targeting Growth in Boutique Law Firms
29:35 The Future of the US Legal Market
34:24 Burford's Portfolio in Five Years