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The Litigation Finance 2017 Year-in-Review

December 29, 2017

The Litigation Finance 2017 Year-in-Review

Evolution. Maturity. Growth spurt. Those are the terms one might use to describe Litigation Finance in 2017.  The industry saw a flurry of activity that would make any beehive jealous: Markets opened, funds raised, legal precedents established, and a host of new entrants already looking to disrupt the lit fin industry, which itself is in the midst of disrupting one of the oldest institutions on the planet. So let’s take a look back at how Litigation Finance ‘took off the training wheels,’ and properly came of age in 2017… First, let’s state the obvious: As litigation costs have soared globally, more and more companies and law firms are turning to third party funding to finance their legal claims. While legal questions remain over issues concerning disclosure, enforceability, privilege, and costs and security for costs, generally courts have held a favorable view towards third party funding, with rare exceptions. Globally, litigation finance is on the march. New markets opened in Singapore and Hong Kong, international arbitration is cementing its presence in Brazil, and funders are opening shop in countries all around the world, from New Zealand to Canada and everywhere in between. In terms of the funding specifics, Burford Capital – the world’s largest litigation funder – conducted a 2017 Litigation Finance Survey. Their findings show the most requested types of financing by practice area:
  1. IP/Patents
  2. Contract
  3. Business Torts
  4. Asset Recovery
  5. International Arbitration
  6. Monetization Of Pending Legal Receivables
  7. Bankruptcy/Insolvency
  8. Antitrust/Competition
  9. Securities
  10. Fiduciary Duty
  11. Fraud
  12. Tax Disputes
Notably, over the last 12 months, among AmLaw 100 ranked firms, 74 made at least one request for financing from Burford or represent a client who did. Burford also tops the list in terms of fundraises, having launched a $500MM investment vehicle in 2017. Not to be outdone, Chicago-based Longford Capital also raised $500MM, the largest such fund in North America. IMF Bentham raised an aggregate $350MM over 3 fundraises – all taking place in 2017. And other firms such as LexShares and Pravati Capital both raised investment vehicles. New entrants, both large and small, also made a splash in 2017. Nick Rowles-Davies launched his long-awaited fund, Chancery Capital, and boutique shops like TownCenter Partners expanded their presence nationwide. Meanwhile, 2017 also saw the expansion and launch of potential industry disruptors, like CrowdJustice (which expanded from the UK into the US), Facebook Personal Fundraising (which launched this year and has the potential to disrupt consumer legal funding), and of course, Legalist, which has been making highly-publicized moves to attract attention and gain market share. Peter Thiel – the ‘Godfather of Litigation Finance‘ (I’m trying to coin that… if it catches on, you heard it here first!) – invested in the Silicon Valley-based startup, which aims to disrupt the lit fin industry by using algorithms instead of lawyers. Think about that: Litigation Finance is disrupting the world’s legal system, and now a startup is trying to disrupt the disruptor! But wait – I’ve saved the best for last! 2017 is also the year that the FIRST AND ONLY dedicated news source to the litigation finance industry opened its doors. Any idea who I’m talking about…? NO??? Well here’s a nifty article that might help jog your memory… All said, 2017 was a turning point. This is the year that lit fin finally went mainstream. Everyone from in-house counsel to private practice litigators to Wall Street investors to lawmakers around the world are perking up and taking notice. We’re excited for what 2018 has in store, and eagerly anticipating the industry’s inevitable expansion both in the United States and globally. Here’s to a memorable 2017, and to even bigger news stories on the horizon… Happy 2018 everyone!!
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Announcements Commercial

Harris Pogust Joins Bryant Park Capital as Senior Advisor

By John Freund |

Bryant Park Capital (“BPC”) a leading middle market investment bank and market leader in the litigation finance sector, is pleased to announce that Harris Pogust has joined the firm as a Senior Advisor.  Harris (Mr. Pogust) is one of the best known and prominent attorneys in the mass tort and class action fields, he was the founding partner and Chairman of Pogust Goodhead worldwide until early 2024 and is currently working with Trial Lawyers for a Better Tomorrow, a charity Harris founded, to help children reach their educational potential all over the world.  Harris’ life work has been to deliver justice for those who have been damaged or injured through the negligence or bad faith of others.

“We are thrilled to have Harris as part of our team.  His knowledge, experience and relationships in the litigation finance sector are of great value to Bryant Park and our clients.  As the litigation finance world becomes more competitive, complex and challenging, having an expert like Harris on our team is invaluable,” said Joel Magerman, Managing Partner of Bryant Park.

Harris’ efforts, in conjunction with Bryant Park will focus on assisting law firms and funders in developing strategies to more efficiently fund their operations and cases and assist them in establishing the right relationships for future growth.  Harris commented, “I have been fortunate to have been a practicing attorney and partner in law firms for over 35 years focused on building and growing a worldwide book of business in the class action/mass tort field.  That required significant capital and throughout my career I have raised over $1 billion for my firms.  I have learned what works and what doesn’t.  I have seen both the risks and rewards in this industry.  I look forward to being able to work with law firms and funders to assist them in putting the right strategies in place with Bryant Park and bringing capital and liquidity to help them grow and flourish.”

About Bryant Park Capital

Bryant Park Capital is an investment bank providing capital raising, M&A and corporate finance advisory services to emerging growth and middle market public and private companies. BPC has deep expertise and a diversified, well-founded breadth of experience in a number of sectors, including specialty finance & financial services. BPC has raised various forms of credit, growth equity, and assisted in mergers and acquisitions for its clients. Our professionals have completed more than 400 assignments representing an aggregate transaction value of over $30 billion.

For more information about Bryant Park Capital, please visit www.bryantparkcapital.com.

Announcements Commercial

Therium Capital Advisors Launched to Provide Litigation Finance Advisory Services

By John Freund |

Therium Capital Advisors (TCA) announced today the launch of its independent advisory services business dedicated to helping claimants, law firms and corporates to source, structure and secure litigation finance. TCA offers end-to-end support including funding strategy, investor engagement, financial modelling, deal structuring, ongoing case management and secondary market advisory. Based in London, the firm is advising on deals in the UK, continental Europe and Australia.

Therium Capital Advisors is led by litigation funding pioneer Neil Purslow and co-founded by investment banker Harry Stockdale. Neil has over 16 years of experience in litigation finance, raising capital and investing worldwide across all forms of litigation finance from single cases funding through to portfolio, corporate and law firm funding arrangements. Harry was previously head of UK M&A at investment bank Haitong with twenty years of experience in investment banking, advising law firms and litigation funders on complex financial transactions.  

TCA is the first advisory firm to provide clients with advisory services that are backed by a deep understanding of litigation finance investing coupled with the financial and transactional expertise of investment banking. Therium Capital Advisors bridges the gap between claimants, law firms and corporates on the one side and existing and new sources of institutional capital on the other.  Through the combined expertise of its founders, TCA opens up the investor universe that is available to clients and drives quality in the investment propositions, efficiency in the funding process and competition in the funding market.

TCA exclusively advises claimants, law firms and corporates, ensuring that it remains conflict-free.  The firm advises across the full range of legal assets including single case and portfolio funding, law firm financing, financing options for corporates and existing portfolios of legal assets.   

Neil Purslow, co-founder and Managing Partner of Therium Capital Advisors said: “We are at a pivotal moment in the development of the legal finance industry, given the relative paucity of traditional funding capital available.  However, we are seeing a shift towards new categories of investors in legal assets who want exposure to this uncorrelated asset class. By leveraging our unrivalled experience across both litigation funding and investment banking, we are assisting our clients to navigate this landscape with confidence, speed and understanding, and we provide them with access to a broader set of funding options and to meet their funding needs efficiently and cost effectively.”

Harry Stockdale, co-founder and Partner of Therium Capital Advisors said: “We are bringing an investment banking mind set to the litigation funding world which has developed largely without the benefit of specialist advisors. This professionalisation of the funding process will make the sector more efficient and accessible to a wider audience of investors in addition to the traditional litigation funders. We are already seeing the benefit of this, for both clients and investors alike, and is part of the maturing of litigation finance as an asset class.”

Therium Capital Advisors provides the following services to claimants, law firms and corporates:

  • Deal Preparation: Preparing funding propositions to be investment-ready.
  • Capital Sourcing: Identifying and engaging with suitable funders and capital providers from across the spectrum of legal assets investors.
  • Financial Modelling and Analysis: Providing robust financial modelling and scenario analysis to evaluate deal structures and model returns.
  • Investor Materials and Outreach: Advising on the preparation of investor-facing materials and documentation, inserting rigour and discipline to ensure efficiency in the funding process.
  • Co-Funding: Advising on the identification and engagement of potential co-investors to optimise risk-sharing and capital raising.
  • Negotiating Funding Terms: Leading negotiations with investors to secure terms which balance commercial viability with the interests of the funded party.
  • Deal Structuring and Documentation: Advising on deal structures and overseeing the drafting and execution of all relevant documentation.
  • Post-Funding Case Management: Providing ongoing monitoring, reporting, and servicing support post-funding on behalf of the claimant, to manage risks and support positive case outcomes.
  • Secondary Market Advisory: Advising on secondary transactions of existing legal assets including sub-funding arrangements and exits.

More information can be found at: www.therium.com/theriumcapitaladvisors

Announcements Commercial

Gryphon Law Launches as Contingency-Fee Firm for International Disputes

By John Freund |

A new player is entering the international disputes arena—this time with a distinct twist on legal funding. Gryphon Law has officially launched as the first law firm globally to specialize in contingency-fee representation for cross-border disputes.

Gryphon Law aims to offer an alternative to third-party litigation funding by shouldering the cost of legal claims in return for a share of the outcome. Based in New York and with plans to expand into London and Miami, the firm targets clients who might otherwise turn to traditional funders, offering instead to partner with them directly through performance-based fee structures.

The firm was founded by John Templeman, a seasoned international disputes attorney qualified in New York, England & Wales, and Australia, who previously held roles at leading global law firms. Templeman has assembled a multilingual team capable of handling the full lifecycle of international litigation and arbitration in English, Spanish, and French—from initiation to enforcement. Co-founding the venture is Daura Dutour, an 18-year disputes veteran with experience in the U.S., France, and Haiti, supported by three additional associates.

Templeman stated: "I believe there's a real opportunity in the market to provide clients with an appealing alternative to third party funding, particularly in the sub-US$30 million value range below where many of the funders operate. I've been fortunate to assemble a world-class team of disputes lawyers who share this vision – we're looking forward to contributing to this rapidly evolving field.”

Gryphon Law’s business model suggests a more vertically integrated approach to litigation finance—embedding the funder role within the law firm itself. For clients, this could mean greater alignment of interests, fewer intermediaries, and possibly reduced costs when compared to traditional third-party funding arrangements.