The announcement that Burford Capital will buy litigation funder Gerchen Keller Capital, creating an industry giant with a portfolio of over $1 billion, is being met with a mix of enthusiasm and puzzlement by other figures in the litigation finance industry.
The $160 million, mostly cash deal was generally greeted by other funders as a sign that the nascent industry has come into its own and is starting to see the kind of consolidation that is common to mature markets. But some are also scratching their heads as to why Gerchen Keller—which is roughly the same size as Burford in terms of investments—would sell just three years after its launch.
