Manolete, which is also a litigation financer but specialises in the insolvency market, is to accept a small investment from Burford so it becomes a 16% shareholder, matching Moulton's ownership in the firm.
Under the agreement, Burford will provide co-funding of up to £10 million for Moulton's insolvency litigation investments.
Commenting on the deal, Moulton, one of the UK's best-known private equity investors, said: 'Manolete has been very successful since I invested. The transaction with Burford reaffirms my enthusiasm for Manolete.'
Since its inception in 2009, Manolete has enjoyed strong growth of more than 100% each year.
Steven Cooklin, its founder and managing director, said the tie-up with Burford would take Manolete 'far beyond the next level', and added that the firm's success had already surpassed his own expectations.
Invesco Perpetual's Woodford (pictured) owns 15.9% of Burford's share capital in his £13.9 billion High Income fund, according to figures from Reuters, and is the litigation financer's largest shareholder. Manolete, meanwhile, also counts Punter Southall's P-Solve investment advisory business among its backers.