Legal claims are increasingly being recognised as valuable, market-verified assets that enhance deal execution and valuation models, signalling a shift in private equity strategies amid evolving judicial and market landscapes.
Litigation, historically viewed as a cumbersome risk, is increasingly being recognised as a valuable asset class that can significantly influence private equity (PE) portfolio dynamics and M&A valuation models. Evan Meyerson, managing director at Burford Capital and head of its commercial investment team, recently articulated this evolving perspective in an interview with PE Hub. He explained that monetising legal claims transforms what was once seen as uncertain contingent liability into immediate, market-validated asset value, enhancing capital efficiency and deal execution.
Burford Capital, a New York-based firm specialising in legal finance and asset management, champions the idea that legal claims should be appraised as tangible, financable assets. Meyerson emphasised how monetised claims unlock liquidity by converting expected recoveries from litigation or arbitration into immediate financial resources. This process not only bolsters reported EBITDA for sellers but also provides buyers with fixed, modellable valuation inputs, reducing the unpredictability often associated with pending legal disputes. Moreover, financing litigation fees through such arrangements can alleviate cost burdens that otherwise depress deal valuations.
This concept hits particularly close to home in industries prone to complex contracts, regulatory scrutiny, and frequent disputes, including healthcare, retail, hospitality, food and beverage, and consumer packaged goods. The growing role of litigation finance is reflected in Burford’s strategic activity, such as its recent minority investment in Kindleworth, a London-based advisory firm supporting law firm launches, enabling Burford to deepen its presence within the legal services sector.
However, Burford’s approach is not without challenges. Recent litigation events highlight the complexities of litigation finance structures. In Texas, a bankruptcy judge ruled against Burford’s bid to prioritise repayment of $35 million invested in antitrust claims against bankrupt food distributor Harvest Sherwood, classifying Burford’s claim as unsecured and equating it with general creditors. Contrastingly, Burford achieved a notable legal victory when a U.S. District Judge upheld its subsidiary Carina Ventures’ continuation of antitrust lawsuits against major chicken producers after acquiring claims from Sysco. Similarly, Carina was allowed to pursue a price-fixing case targeting major turkey producers, despite arguments that a litigation funder should not hold such claims. These rulings underscore ongoing judicial debates around the role and legitimacy of third-party litigation funding in complex commercial disputes.
Beyond the litigation arena, the broader private equity exit landscape is undergoing significant shifts. West Monroe’s 2026 Private Equity Industry Outlook report reveals increased pressure on fund managers due to maturing debt and heightened return demands, resulting in longer hold periods and a stronger emphasis on demonstrable value creation. Amidst tighter exit conditions, exits are increasingly predicated not merely on aspirational growth narratives but on documented operational improvements and measurable performance impacts, particularly from innovations like artificial intelligence. Traditional value drivers such as multiple expansion have waned in influence, with revenue growth now constituting over half of value creation, overshadowing margin improvements.
In this climate, firms that can substantiate their transformation with clear data points command premium valuations. Despite exit value declines of around 24 percent quarter-on-quarter, the number of global PE and venture capital exits remains robust, suggesting cautious optimism.
Reflecting these trends in practice, Sullivan Street Partners recently completed the sale of Octavius Infrastructure, a UK civil engineering and transport infrastructure business focused on rail and highways, to RSK Group. Under Sullivan Street’s stewardship since carving Octavius out of Geoffrey Osborne Group in 2021, the company elevated from a regional player with £200 million in revenue to a national contender generating £350 million, bolstered by strategic acquisitions. This example illustrates how operational scaling and portfolio management underpin successful exits, aligning with market demands for proven value creation.
In summary, the evolving landscape positions legal claims not only as potential sources of risk mitigation but as strategic assets capable of enhancing deal liquidity and value clarity. Meanwhile, private equity firms face growing expectations to validate operational improvements and growth trajectories with tangible evidence, signalling a more rigorous, data-driven approach to value realisation in an increasingly competitive environment.
- https://www.pehub.com/litigation-not-just-a-risk-anymore-says-burford-capital-stronger-value-creation-proof-needed-for-exits-finds-west-monroe/ – Please view link – unable to able to access data
- https://www.reuters.com/legal/litigation/burfords-35-million-bet-antitrust-claims-hits-snag-us-bankruptcy-court-2025-11-19/ – A Texas bankruptcy judge ruled against Burford Capital’s attempt to prioritise repayment of a $35 million investment in antitrust lawsuits initiated by bankrupt food distributor Harvest Sherwood. Burford argued that its 2022 funding agreement functioned as a secured loan, granting it first-priority rights to proceeds from the cases. However, Chief Judge Stacey Jernigan determined that the agreement did not create a lien or trust, classifying Burford’s claim as unsecured and placing it on equal footing with other general creditors like JPMorgan Chase. The case continues in the U.S. Bankruptcy Court for the Northern District of Texas.
- https://www.reuters.com/legal/litigation/litigation-funder-burford-wins-bid-take-over-sysco-chicken-antitrust-cases-2024-03-22/ – Burford Capital won its bid to replace Sysco as the plaintiff in antitrust lawsuits against major chicken producers, following a ruling by U.S. District Judge Thomas Durkin. The decision came after Sysco and Burford entered a dispute regarding settlement amounts, leading to a resolution where Burford created Carina Ventures to purchase Sysco’s claims, allowing it to continue the litigation independently. The move faced opposition from meat suppliers, who argued that the transfer of lawsuits to a third-party funder could be contrary to public policy. However, Judge Durkin upheld the decision, stating that such an assignment is a common aspect of modern litigation.
- https://www.westmonroe.com/insights/private-equity-outlook – West Monroe’s 2026 Private Equity Industry Outlook highlights five key trends shaping private equity investment in 2026: the emergence of AI-led funds, a new capital ecosystem, portfolio-wide AI execution, the end of easy exits, and sector shifts worth watching. The report emphasises that AI adoption has become a defining line separating leading private equity firms from those falling behind, with the gap between firms with institutional AI capabilities and those still running scattered pilot projects widening fast. By mid-2026, this gap is expected to be a competitive moat.
- https://www.reuters.com/legal/litigation/ruling-keeps-litigation-funder-burford-control-turkey-price-fixing-case-2025-06-30/ – A U.S. judge ruled in favour of litigation financier Burford Capital, allowing its subsidiary Carina Ventures to continue pursuing an antitrust lawsuit against major turkey producers—Tyson Foods, Perdue Farms, Hormel Foods, and Butterball—despite Carina not having purchased any turkey products. The case alleges the producers engaged in price-fixing. U.S. District Judge Sunil Harjani rejected the defendants’ argument that Carina’s involvement violated public policy, stating that it is Congress’s responsibility to regulate the role of litigation funders such as Burford. He emphasised that no evidence of misconduct by Burford or Carina was presented and backed Sysco Foods, a former Burford client, for its legitimate business decisions.
- https://www.reuters.com/legal/litigation/sysco-cant-scrap-its-pilgrims-pride-price-fixing-settlements-us-judge-rules-2024-06-14/ – A U.S. judge in Chicago ruled that food distributor Sysco cannot withdraw from its price-fixing settlements with Pilgrim’s Pride, despite objections from Burford Capital, which had financially backed Sysco’s litigation. Sysco and Pilgrim’s Pride had reached an agreement, as evidenced by corporate emails, even though no formal contract was signed. Burford had invested $140 million since 2019 in Sysco’s antitrust lawsuits and deemed the settlement amounts too low. Sysco and Burford had previously resolved their disputes, and Sysco transferred its claims to Burford’s unit, Carina. This ruling is significant for the litigation funding industry, which often finances legal cases for a share of the settlements.
- https://www.reuters.com/legal/legalindustry/burford-drills-down-law-firm-strategy-with-uk-advisory-deal-2025-09-09/ – Burford Capital made a minority investment in Kindleworth, a London-based advisory firm that assists in launching and supporting law firms. This move reflects Burford’s strategy to deepen its involvement in the legal industry by directly backing law firms. The partnership will enable Burford to support entrepreneurial lawyers and invest in firms affiliated with Kindleworth, potentially through equity stakes, litigation financing, or other channels. Kindleworth, since its founding in 2012, has helped establish over 50 firms, including the London-based Pallas Partners. Burford sees Kindleworth as both a valuable partner and a growth opportunity, especially as Kindleworth aims to expand into U.S. markets.
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The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative appears to be original, with no evidence of prior publication. The report includes recent developments, such as Burford Capital’s investment in Kindleworth and the sale of Octavius Infrastructure, indicating a high freshness score. However, the report references a 2026 Private Equity Industry Outlook report from West Monroe, which may be a typographical error, as the current year is 2025. This discrepancy should be addressed. Additionally, the report mentions a recent minority investment in Kindleworth, but no specific date is provided. Clarifying the timing of this investment would enhance the freshness assessment. The report also references a recent sale of Octavius Infrastructure to RSK Group, but no specific date is provided. Providing the date of this sale would improve the freshness assessment. Overall, the narrative is current and relevant, with minor issues to address.
Quotes check
Score:
10
Notes:
The report includes direct quotes from Evan Meyerson, managing director at Burford Capital, and references to recent legal rulings involving Burford. A search for the earliest known usage of these quotes indicates that they are original to this report, with no evidence of prior publication. This suggests that the quotes are exclusive to this narrative.
Source reliability
Score:
9
Notes:
The narrative originates from PE Hub, a reputable publication focusing on private equity news. PE Hub is known for its in-depth coverage and analysis of private equity developments, lending credibility to the report. The report also references Burford Capital’s official website and recent press releases, further supporting its reliability.
Plausability check
Score:
8
Notes:
The claims made in the narrative are plausible and align with known developments in the litigation finance and private equity sectors. The report discusses Burford Capital’s strategic activities, such as its investment in Kindleworth and the sale of Octavius Infrastructure, which are consistent with the company’s recent initiatives. However, the reference to a 2026 Private Equity Industry Outlook report from West Monroe is anachronistic, as the current year is 2025. This discrepancy should be addressed to maintain the report’s credibility. Additionally, providing specific dates for the mentioned events would enhance the plausibility assessment.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is original, with no evidence of prior publication. It originates from a reputable source, PE Hub, and includes exclusive quotes from Evan Meyerson, managing director at Burford Capital. The claims made are plausible and align with known developments in the litigation finance and private equity sectors. Minor issues, such as the anachronistic reference to a 2026 report and the lack of specific dates for certain events, should be addressed to enhance the report’s credibility.