Burford Capital has bought a major stake in a U.K.-based litigation law firm, in the first example of an investment type that could become common across the industry.

The listed litigation funder is purchasing 32% of disputes specialist PCB Litigation LLP as part of a 'capital transaction' tie-up deal, it announced in a statement. In addition, Burford will finance a portfolio of matters on behalf of PCB.

To facilitate the deal, London-based PCB – which was founded in 1979 and has since gained a reputation in global civil fraud and asset recovery matters – has converted from an LLP into an alternative business structure—a mechanism introduced in the U.K. in 2012 to enable non-lawyer ownership in law firms. The transaction has received approval from the Solicitors Regulation Authority.