Can Investors Buy in to Big Law? Burford Capital Bets on It

Legal ethics attorneys Trisha Rich and Joshua Porte were quoted in a Reuters article about litigation finance company Burford Capital's plans to invest in U.S. law firms and the emerging trend of management services organizations (MSOs) in the American legal market. Under the MSO model, a law firm pays an MSO entity to handle billing, marketing, information technology (IT) and other administrative functions. Because the MSO does not share in a firm's profits, it can maintain compliance with ethical rules prohibiting non-lawyers from owning law firms or receiving a percentage of legal fees. Ms. Rich and Mr. Porte, who have advised law firms and investors on MSOs and are currently working on more than 12 such transactions, explained that these arrangements can help lawyers focus on their time on serving clients – which could transform how attorneys work on a day-to-day basis.

"It has the promise of modernizing the practice of law in a really material way," they commented.

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