Ken Epstein is a co-founder and principal of Backlit Capital Solutions and brings 25 years of experience in bankruptcy law, commercial litigation, restructuring and finance. Ken leverages his deep industry expertise to provide tailored solutions for companies, law firms, investors, and individuals navigating complex litigation and financial restructuring challenges.

Prior to co-founding Backlit, Ken was a Senior Investment manager and Legal Counsel in the New York office of Omni Bridgeway, a legal finance and risk management company, where he led the company’s U.S. insolvency litigation finance platform. In this role, he originated, structured, and managed a diverse portfolio of legal assets, playing a key role in many of the firm’s most significant transactions. Prior to his tenure at Omni Bridgeway, he was a managing director at MBIA, a public financial services company, where he led large-scale initiatives and crisis management efforts. He was also on the board of directors of MBIA Services Corp. Ken started his career as a lawyer at Cadwalader, Wickersham & Taft, where he specialized in financial restructuring and corporate bankruptcy law.

Ken graduated from Brooklyn Law School (cum laude) and holds an accounting degree from the University of Maryland. Ken has also served as an adjunct professor of bankruptcy law at Cardozo Law School. He has been recognized in Who’s Who Legal: Thought Leaders – Third Party Funding Guide and the LawDragon Global Restructuring Advisors & Consultants Guide.

Matt Leland brings over 20 years of experience in commercial litigation and litigation finance to Backlit Capital Solutions.  Most recently, Matt was as an Investment Manager and Legal Counsel in the Washington, D.C. office of Omni Bridgeway.  There, Matt sourced and evaluated funding opportunities, negotiated deal terms, and monitored funded matters through to resolution.

Before Omni Bridgeway, Matt served as partner and as a commercial litigator for nearly two decades at AmLaw 100 firms King & Spalding LLP and McDermott Will & Emery LLP, experienced in all facets of civil litigation, including appeals, trials, arbitrations, and mediations. He successfully represented corporate clients engaged in diverse legal issues including government reimbursement claims, contractual disputes, unfair business practices, deceptive trade practices, civil RICO, and trademark infringement. Over his career, Matt helped clients recover hundreds of millions in damages and has extensive experience working closely with corporate executives and in-house counsel to develop budgets, fee structures, and strategies for all phases of litigation, including early case assessment, discovery, trial, and settlement. He has repeatedly been recognized in peer-reviewed guides including The Best Lawyers in America, Legal 500, and Super Lawyers.

Matt received his Juris Doctor from Georgetown University Law Center, where he was the Publications Director for The Tax Lawyer and The State and Local Tax Lawyer. He earned his B.A. in Political Science from the University of New Hampshire.

While earning his law degree, Matt was as a top aide for former U.S. Senator and Congressman John Sununu, after serving previously as the Deputy Campaign Manager on Mr. Sununu’s first campaign.

Below is our LFJ Conversation with Ken and Matt: Could you elaborate on Backlit Capital's approach to fundraising support for law firms, particularly start-ups, and what key factors contribute to successful fundraising in today's market?

There’s been no better time to be a law firm seeking financing, as new investors enlarge the funding universe and options multiply. However, the landscape can be daunting and complex.  We invite those firms to take advantage of our experience.  We have spent years on the funding side of negotiations - evaluating claims and risks - and understand the nuanced distinctions between a fundable investment and one that gets passed over by litigation funders, lenders, and alternate investment sources.

Rather than simply connecting lawyers to potential sources of capital, we collaborate with firms, no matter their experience level, to implement comprehensive strategies that achieve specific financing goals.  We showcase the potential of their assets with smart strategic positioning and precise financial modeling to address the investment concerns of potential funding sources. And to drive successful fundraising, we help firms provide transparency with risk profiling, highlight their operational credibility, and seize upon tactics to mitigate unpredictability so that the firm can showcase high-grade opportunities.

Finally, to ease the burden of this process, we provide end-to-end transaction management.  We take on all of the complex and time-consuming tasks associated with legal funding so that clients can focus on providing first-rate legal services.

With the increasing complexity of legal finance, what innovative risk management strategies does Backlit Capital employ to mitigate potential losses for investors and lenders?

We appreciate that these are high-stakes transactions for both the investor and the claimant and our review is disciplined, transparent and robust. Each transaction is different and we provide additional services depending on the client’s need, but here’s how we approach every opportunity:

• Early-Stage “Pressure Testing”:  We test key legal theories, jurisdictional issues, damages, and enforcement risk with input from independent experts before approaching funders. Backlit will only move forward with quality transactions that bring clear value to all parties. Our funders know that we’ve done the work and stand behind every law firm and claimant we represent.

• Contingent Insurance Products:  Whether for judgment preservation or adverse cost coverage, we’ll provide detailed financial modeling and help source appropriate products that can reduce litigation risk and, in turn, improve pricing or expand access to capital.

• Post-funding Oversight:  We offer ongoing monitoring of case progress, legal developments, and emerging risks.  Our proactive oversight, combined with strategic advisory services, allow for early adjustments to protect investments and provide better measures of valuation as the investment moves through the litigation process. Further services include exploration of secondary market options when an investor wants to acquire or monetize a litigation asset.

By combining deep legal and financial expertise with market tools, Backlit ensures that risk is not just identified, but actively managed.   

How does Backlit Capital stay ahead of emerging trends in legal finance, and what future developments do you anticipate will significantly impact the industry?

We’re always focused on potential shifts in the market.  At Backlit, our experience comprises not only litigation finance, but also decades of credit analysis, restructuring, commercial litigation, and government policymaking.  This expertise enables us to identify how trends in financial, legal, and public sectors might influence litigation funding, and this positions Backlit extremely well for what we see as the biggest catalyst in the market – the addition of significant new funding capacity driven by new investors in the sector, like hedge funds, family offices and middle-market institutions. This provides a great opportunity for claimants and law firms looking for funding, but also injects unprecedented complexity into the marketplace.

At Backlit, we developed our services to not only identify, but capitalize, on opportunities for clients on either side of these transactions. Our connections with and understanding of the private capital space allow Backlit to find and structure deals that address the financial, operational and reporting requirements of all parties. As this market continues to grow, we’re positioned to create exciting new investment opportunities for funders and drive strong deals for clients seeking capital.

Can you share insights into a recent successful deal Backlit Capital facilitated, highlighting the unique challenges and solutions implemented?

We expect that over time, most of our business is likely to be on the brokerage side and we are actively working with numerous clients to develop solutions to their diverse funding needs. In the short period since our launch there are two particular engagements that demonstrate the breath of the services we offer beyond traditional funding.

In the first, we have been engaged as an expert in a multibillion-dollar, high-profile bankruptcy litigation to assist a private equity client in the valuation of a complex litigation asset. Backlit has provided counsel, analytics and testimony in support of the client’s position. Our broad in-house capabilities and market expertise allow us to quickly analyze and deliver valuations that support our clients’ goals and survive deep scrutiny.

We have also been engaged on a project basis to help a large multi-billion dollar investment fund evaluate, structure and close a large loan transaction backed by a legal claim.  The borrower’s existing lending relationship ended when the share collateral was involuntarily converted into a legal claim due to litigation surrounding a merger of the entity that had issued the shares.  This was a time sensitive transaction with high stakes for all involved. Selecting legal counsel, working through conflicts, providing assistance on the unique features of legal finance - a discreet asset class - as part of the diligence and in-house deal team was a rewarding experience.

In the context of distress and insolvency, what specific pre- or post-Chapter 11 assistance strategies have proven most effective for Backlit Capital in maximizing creditor trust and claims management?

While we work across sectors, we have a proven specialty in maximizing litigation assets for entities in financial distress and insolvency. Claimants facing the challenges of bankruptcy often have few other meaningful assets, and are extremely capital-restricted in their ability to effectively pursue damages. Additionally, these parties have fiduciary duties that need to be satisfied fully and transparently. Running a robust marketing process and ensuring best pricing is in the best interest of the estates, will enable the trustees to defend their fiduciary decisions if challenged, and given the multiple interests in the case, ensure a fair process and optimization of assets.

With such complex interests to manage, these clients demand specialized approaches that differ significantly from traditional commercial litigation support.

• Funding for the debtor or trustee: We can help a debtor, bankruptcy trustee or litigation trustee secure funding to pursue legal claims (e.g., fraudulent transfer, preference, breach of fiduciary duty) or help support ongoing administrative costs. Our process ensures all parties are comfortable with transparency, discipline and reporting.
• Funding for creditors and committees: We can help creditors and committees push back on a debtor’s attempt to bury valuable claims because they don’t benefit management or insiders.  Consulting with us early in the process can help add negotiating leverage and drive up recoveries.
• Sale or assignment: When parties want to divest all or part of an estate asset, we can help sell or assign litigation claims and judgments, accelerating recoveries and ensuring a minimum return to stakeholders.
• Post-confirmation litigation trusts: When establishing a post-confirmation trust to investigate and prosecute claims, we can help drive a competitive process, ensuring that the trust is adequately funded and that key professionals are fairly compensated for their work.

Juliana Giorgi Is a Colombian lawyer and holds a law degree from Spain, with postgraduate studies in international arbitration. She has over 15 years of experience in consulting, litigation, domestic and international arbitration, and alternative dispute resolution mechanisms. Below is our LFJ Conversation with Juliana Giorgi: Could you elaborate on Loopa Finance’s specific investment criteria when evaluating potential litigation and arbitration funding opportunities in Latin America and continental Europe? The first and foremost consideration in our investment decision-making process is to conduct a rigorous due diligence procedure aimed at maximizing the likelihood that the fund is making a sound investment.  To this end, we follow a two-tiered analysis process comprising both internal and external legal due diligence. The internal review is carried out by our in-house legal team, while the external review is conducted by top-tier law firms retained specifically for this purpose. During these due diligence phases, counsel will thoroughly review the case documentation and information provided by the claimant. To be eligible for funding, the case must meet the following minimum criteria:

• Financial metrics: The amount of funding sought and the value of the claim must be reasonable and proportionate.
• Duration: The maximum timeframe the fund is willing to wait for a return on its investment is five years.
• Respondent’s solvency: There must be sufficient evidence to reasonably conclude that the opposing party has the financial capacity to satisfy a potential award.
• Merits of the claim: The likelihood of success must be high, based on a legal and factual assessment.

How does Loopa Finance manage the risks associated with funding litigation and arbitration cases, particularly in regions with varying legal systems and enforcement mechanisms? Variability—and even instability—in legal systems is not necessarily a negative factor. On the contrary, it can be advantageous for the litigation funding industry, as it often leads to a higher volume of disputes, thereby generating a broader pool of investment opportunities. What is particularly noteworthy is that legal instability in a given country does not automatically translate into judicial instability or unpredictability in adjudication. In fact, while fluctuations in substantive law may lead to more disputes, the procedural rules and the competence of the adjudicating authorities often remain stable and reliable. This enables us to reasonably forecast litigation outcomes. That said, we recognize that external factors unrelated to the merits of a case may still influence its resolution. To mitigate such risks, our team includes highly trained and internationally experienced dispute resolution lawyers. This internal capability is further reinforced through the engagement of top-tier law firms to conduct independent due diligence, as previously outlined. Finally, we are fully aware that there are exceptional jurisdictions where the level of systemic instability makes outcome predictability unfeasible or where adverse rulings may result from extrinsic factors. In such cases, we simply refrain from investing in disputes arising in those jurisdictions. Since Loopa Finance operates with its own capital, how does this influence your investment strategy and decision-making process compared to firms that use external funding? Operating with our own capital allows us to act with greater agility and make swift investment decisions without relying on third parties, external processes, or outside funding sources. This autonomy is particularly valuable when participating in a “beauty contest” among funders. In such competitive processes—where multiple funds vie for the opportunity to finance a case—clients place a premium on the funder’s ability to respond quickly and decisively. The ability to independently negotiate commercial terms, assess client counteroffers, and move expeditiously through the decision-making process is critical. In this regard, Loopa holds a significant competitive advantage. What impact has Loopa Finance’s funding had on access to justice and the resolution of legal disputes in Latin America and continental Europe? Broadly speaking, our service has a significant social impact and contributes meaningfully to the administration of justice.  On the one hand, we provide the financial resources necessary for a party with a meritorious claim—who may otherwise lack the means to pursue it—to bring their case forward. In doing so, our involvement facilitates access to justice. On the other hand, our service promotes the principle of “equality of arms.” In many disputes, there may be a significant disparity in the financial capabilities of the parties. While the economically stronger party can afford to retain top-tier legal representation, the weaker party may not have such access. Litigation funding helps level the playing field, enabling both sides to secure high-caliber legal counsel and pursue the dispute on more equitable terms. Can you discuss any recent trends or developments in the litigation and arbitration funding landscape that are influencing Loopa Finance’s strategies and priorities? We are a technology-driven litigation fund with operations across Latin America and Europe. The fund has been active since 2019 and has experienced significant growth in recent years. As our operations expand, we have identified several key trends shaping the markets in which we operate: Market Growth Across Jurisdictions While there are substantial differences between the Latin American and European markets, we are seeing growth in both regions.

• In Latin America, where the litigation funding industry is still in its early stages and claims tend to be smaller in value, we have observed increasing demand and a rising number of funding inquiries. We are funding more cases—particularly in the energy, mining, oil & gas, construction, and infrastructure sectors.
• In Europe, our activity has increasingly shifted toward portfolio funding, which provides greater risk diversification and operational efficiency. We are also seeing the rise of hybrid funding structures, involving partnerships with insurers and specialized litigation finance products tailored to complex cases.

Moreover, there has been notable growth in environmental and consumer rights litigation, which amplifies the corporate accountability dimension of our portfolio and enhances the social impact of our investments. Integration of Technology and Artificial Intelligence As a technology-based fund, technology underpins every aspect of our operations. Our team includes not only lawyers but also software engineers who have developed a proprietary platform to support the fund’s end-to-end operations. This platform supports the commercial management of leads, case sourcing, and comprehensive case tracking, from legal analysis and economic structuring to contractual execution and post-investment monitoring. It features a wide range of functionalities and is under continuous development. We are consistently integrating advanced tools into the platform, including AI modules to support legal review, machine translation, and data analytics tools, all aimed at increasing the efficiency and accuracy of our case assessment and management processes.