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Commercial Deals

A Recap of the Opening Panel at LF Dealmakers

September 28, 2022

A Recap of the Opening Panel at LF Dealmakers

Day 1 of the LF Dealmakers conference has begun. The opening panel saw Ted Farrell, founder of Litigation Funding Advisors, moderate a wide-ranging discussion on the state of legal finance. Panelists included James Bedell, Associate Director of Legal Finance at Yieldstreet, Cindy Chen Delano, Partner at Invictus Global Management, Stephen Kyriacou, Managing Director of Aon, and Michael Nicolas, Co-Founder and Managing Director of Longford Capital. The discussion began with the evolution of the sector as a maturing asset class, away from discussions between ‘smart lawyers’ and into the mainstream. The panel underscored the range of players in the space now—3M, J&J, and others—which illustrates how far the industry has come. Additionally, the size and scope of claims—large-scale, nine-figure claims—which highlights the impact the asset class has had on the broader Legal Services sector. Additionally, the embrace of litigation funding by Big Insurance is a signal of the industry’s ongoing growth prospects. Michael Nicolas of Longford noted how his firm can now protect principal investment, and even some of the profit they’d like to return to investors, which is ‘a game changer,’ as now credit investors can consider becoming LPs because they can grow more comfortable with the risk profile of the sector. Cindy Chen Delano echoed the ‘game-changer’ remark, noting the different types of debt structures that can be originated now that insurance is on board, all the way up to high-yield bonds, which she sees coming down the pike. Stephen Kyriacou of Aon also pointed out how he was one of two insurance providers at last year’s conference, and there was no discussion of the subject. This year, there are more insurers in attendance, and the subject has already come up in the first discussion, and will continue to as the event progresses. Perhaps something unique about this conference is the encouragement of questions from the audience. The first panel took a question from an inventor who stressed the importance of funding in the inventor space, and lamented that in his experience it’s been so difficult to obtain the financing needed. The panel acknowledged his concern, and noted the industry’s emphasis on IP investment, while also pointing out that selectivity is paramount if a funder is going to survive long-term.

Commercial

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Commercial Fundraising

Loopa Finance Closes $70 Million Fund III

Loopa Finance has announced the successful closing of its third litigation finance vehicle, raising USD 70 million and pushing the firm’s total capital commitments past the USD 100 million mark since inception. The milestone underscores the continued maturation of the litigation funding market across continental Europe and Latin America, where Loopa has positioned itself as a tech-driven, cross-border player focused on complex disputes.

A press release issued by Loopa Finance confirms that the new fund builds on two prior vehicles totaling USD 38 million, both of which have been fully deployed into meritorious cases across key jurisdictions in Europe and Latin America. With Fund III, Loopa intends to deepen its investment capacity in judicial litigation and complex arbitrations, while accelerating geographic expansion across strategic markets on both continents.

Co-founder and Managing Partner Fernando Folgueiro described the fundraise as a “turning point” from a legal-business perspective, noting that surpassing USD 100 million in commitments reflects growing market acceptance of litigation finance within the regional legal ecosystem. The firm emphasized its model of assuming litigation risk in exchange for a return only upon successful outcomes, while maintaining non-interference in legal strategy. Loopa invests across a broad range of disputes, including commercial and investment arbitration, corporate and contractual claims, insolvency proceedings, intellectual property matters, environmental disputes, and claims against the State.

Co-founder Yago Zavalia Gahan highlighted the firm’s continued investment in technology and scalable processes, reinforcing Loopa’s positioning as the first tech-focused litigation funder operating across both Latin America and continental Europe. Fund III attracted a mix of institutional and private investors from Europe and the Americas, including returning backers and new strategic participants.

As capital formation in emerging and cross-border markets accelerates, Loopa’s latest raise signals sustained investor confidence in litigation finance as an asset class beyond traditional Anglo-American jurisdictions—raising the question of how quickly regional regulatory frameworks and court practices will evolve alongside that growth.

Case Developments Commercial

Legal-Bay Spotlights $8.5M Uber Verdict in Arizona

By John Freund |

Legal-Bay has highlighted an $8.5 million jury verdict against Uber in an Arizona bellwether sexual assault trial, a result that may influence settlement postures across similar dockets. The Arizona jury found Uber liable and awarded damages to a plaintiff who alleged assault connected to the rideshare platform.

While case specifics remain limited in the public domain, the outcome provides another data point on potential exposure as claims advance nationwide. For funders and plaintiffs’ counsel, the verdict offers a reference point for damages modeling and negotiation strategy. Bellwether trials often test liability theories and damages presentations ahead of broader resolution, giving parties a benchmark for risk assessment. The Arizona ruling arrives as plaintiffs pursue a range of claims tied to driver misconduct and platform oversight.

An article in PR Newswire states that Legal-Bay characterized the case as a bellwether matter and underscored the significance of the $8.5 million award. The company reiterated that it provides pre settlement funding to claimants pursuing sexual assault lawsuits against rideshare companies, positioning capital to help plaintiffs bridge lengthy litigation timelines.

The report notes that ongoing proceedings involving Uber have drawn heightened attention to driver screening, in-app safety features, and incident response protocols. According to the release, Legal-Bay views the Arizona result as instructive for counsel evaluating case posture and timing of potential resolutions. The release also encourages potential claimants to consult their attorneys and consider non recourse advances where appropriate.

Commercial

Litigation Finance Supports Access to Justice

By John Freund |

Misconceptions about third party funding continue to surface in policy debates and courtrooms, yet the commercial litigation finance market has become a practical bridge to justice for businesses facing costly disputes.

An article in Mondaq explains that funding enables claimholders to pursue meritorious cases without diverting operating capital, particularly when litigation spend and duration are unpredictable. It also addresses recurring critiques, including allegations of funder control, the risk of frivolous filings, and opaque arrangements. Industry participants point to non recourse structures, rigorous underwriting, and counsel independence as guardrails that align incentives. For corporate legal departments, financing can rebalance negotiating dynamics against well capitalized adversaries, support portfolio based risk management, and preserve budgets for core projects. As interest rates and legal costs rise, the economic rationale for external capital has only strengthened.

Commercial litigation finance remains an important access to justice tool in the United States, countering false narratives that have colored recent commentary. It explains that most agreements are non recourse, so funders recover only from successful outcomes, which moderates risk taking and screens out weak claims. The piece notes that funders contract for information rights and consent on settlement only in limited circumstances, while strategic decisions remain with clients and counsel under ethics rules and court oversight.

It also observes that funding can complement contingency arrangements, after the event insurance, and defense side budgeting, creating optionality for both plaintiffs and defendants. On disclosure, the article surveys a patchwork of rules and argues that blanket mandates could chill capital formation without improving case management, favoring targeted judicial inquiries instead.

Expect continued legislative and rulemaking activity on disclosure and conflicts management, alongside growing adoption of voluntary best practices. As data sets on funded matters mature, stakeholders will seek more empirical analysis of outcomes and impacts on settlement dynamics. Cross border frameworks and portfolio structures are likely to expand as corporate users normalize funding within broader capital planning.