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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.
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Commercial

Harris Pogust on What Not to Do with Half a Billion Dollars

By John Freund |

Veteran mass tort attorney Harris Pogust is offering a cautionary tale to the litigation finance community, reflecting on the collapse of his former firm, Pogust Goodhead, after an eye-popping $500 million investment from Gramercy Funds Management. Now serving as a senior adviser at Bryant Park Capital, Pogust is urging funders to rethink how capital is deployed—and monitored—when backing law firms.

An article in Bloomberg Law captures Pogust’s retrospective on the 2023 mega-funding round, which at the time marked one of the largest single infusions into a plaintiff-side law firm. Despite the capital, Pogust Goodhead faltered under internal investigations and allegations of lavish spending, ultimately surrendering asset claims to Gramercy tied to the full $617 million value of the funding arrangement. Pogust bluntly warned that, absent proper oversight, handing a large check to a law firm can quickly devolve into what he described as “buy a Maserati and have fun,” with firms burning through capital without accountability.

In his current role, Pogust is advocating for a more hands-on model where funders act more like partners than passive financiers. He supports collaborative budgeting, ongoing financial oversight, and stronger alignment on outcomes between funders and firms. He also pushed back against calls for heightened regulation or taxation of litigation funders, suggesting that current legislative efforts unfairly target the industry.

For litigation funders, Pogust’s experience offers a timely reminder of the risks that accompany rapid deployment of capital without guardrails. As the size and complexity of funding deals continue to grow, the industry may need to adopt stricter governance standards, enhance operational due diligence, and establish frameworks that ensure discipline in how law firms deploy capital. Pogust’s remarks serve as both a warning and a blueprint for what responsible litigation funding should look like going forward.

Commercial Deals

Lyford Partners Launches With Backing From Moody Aldrich Partners

By John Freund |

London-based private credit firm Lyford Partners, founded by industry veterans Matt Meehan and Toby Bundy, has officially launched with equity backing from U.S. alternative investment firm Moody Aldrich Partners (MAP). The new venture aims to provide hard-asset, situation-specific lending across the UK, Europe, and select offshore jurisdictions.

An article in Insider Media outlines Lyford’s lending focus, which includes bridging short-to-medium term liquidity needs of ultra-high net worth individuals, families, and businesses. The firm will also fund special situations such as matrimonial disputes, probate proceedings, and insolvency-related asset financing. Headquartered in London, Lyford also has a presence in the Cayman Islands, Monaco, and Nassau. The firm typically provides loans ranging from £2 million to £20 million, using high-quality assets as underlying collateral.

Matt Meehan serves as Chief Investment Officer, bringing over three decades of experience and more than £3 billion in deployed capital across 200+ companies in the UK, Europe, and the U.S. Toby Bundy adds deep experience in restructuring and special-situations lending. From MAP’s side, Co-CEO and CIO Eli Kent noted that Lyford is already executing deals and has a strong pipeline, stating that MAP is focused on underwriting “world-class niche investment firms.”

From a legal funding industry perspective, Lyford’s launch is notable for its overlap with scenarios often served by litigation funders—particularly in family, estate, and insolvency matters. Its hard-asset-backed approach offers a flexible alternative to traditional legal funding, and the involvement of MAP signals continued U.S. capital interest in niche credit platforms abroad.

Commercial Regulatory Issues

ISO Approves New Litigation Funding Disclosure Endorsement

By John Freund |

A new endorsement from the Insurance Services Office (ISO) introduces a disclosure requirement that could reshape how litigation funding is handled in insurance claims. The endorsement mandates that policyholders pursuing coverage must disclose any third-party litigation funding agreements related to the claim or suit. The condition applies broadly and includes the obligation to reveal details such as the identity of funders, the scope of their involvement, and any financial interest or control they may exert over the litigation process.

According to National Law Review, the move reflects growing concern among insurers about the influence and potential risks posed by undisclosed funding arrangements. Insurers argue that such agreements can materially affect the dynamics of a claim, especially if the funder holds veto rights over settlements or expects a large portion of any recovery.

The endorsement gives insurers a clearer path to scrutinize and potentially contest claims that are influenced by outside funding, thereby shifting how policyholders must prepare their claims and structure litigation financing.

More broadly, this endorsement may signal a new phase in the regulatory landscape for litigation finance—one in which transparency becomes not just a courtroom issue, but a contractual one as well.