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Commercial

Litigation Investment Sees Fewer Contract Breaches 

The long running argument in favor of the ‘up-and-coming’ field of litigation finance has been equitable access to justice. With this Robinhood type mindset, there is also new research into what other ancillary benefits litigation investment has provided.  Validity Finance's new research explores the benefits and deterrents to contractual breaches, and the role litigation finance plays in mitigating those breaches. Validity notes that in some instances, breaking contractual obligations can be a keen strategic exercise. Oftentimes, breaching an agreement has money-making benefits. In most cases, however, the organized effort and resources necessary to recover a breach simply amounts to a great headache.  Validity argues that litigation finance brings both parties to a level of excellence, notably with far fewer contract breaches than straight non-financed litigation. Validity highlights that more and more litigation finance contracting should be expected over both the near and long terms.  Check out their research to learn more on the fascinating trends related to litigation finance’s role in mitigating contractual breaches.   
Commercial

Forbes Brazil Report on Litigation Finance 

Brazil’s National Council of Justice tracks an average of four years and three months for decisions for normal litigation claims. Time to execute winning decisions is attributed to ‘God only knows…’. Now some in Brazil are embarking on new ideas to speed up the process of successful litigation: Selling litigation orders.  Forbes.com Brazil issued a new story profiling metrics attributed to high values of litigation finance in capturing returns on successful litigation. Many in Brazil are awakening to the benefits that litigation funding has in store for balance sheet management. Forbes suggests that Brazilian litigation funders commonly expect to receive upwards of 15% return on their litigation investments.  Forbes notes the success that Harbour Litigation Funding has had in Brazil, funding 126 cases, and seeing 76 come to conclusion. The high profile cases include a Petrobras minority partner fraud claim.  Techniques to capture such high value claims are growing increasingly reliant on FinTech platforms, which is an interesting trend to watch as litigation funders spread their wings globally, into jurisdictions like Brazil.
Commercial

Millennial Attorneys Embrace Litigation Finance 

The proverbial millennial attorney graduated law school at the height of an economic recession. Greeted with one political and bank scandal after another … followed by the mother of all pains, a global pandemic now three years running. Safe to say that the modern, young, savvy attorney of today would be keen to explore any and all benefits that could positively affect the bottom line.  PravatiCapital.com profiled attorneys with ten years or more of experience and how they can excel with the tools of litigation finance. The notion of litigation finance being a crutch for ambulance chasing legal quacks has faded away, especially for the younger generation of legal professionals, according to Pravati.  The concept seems to reside in an ability for lawyers to live the life they had always dreamed of: Winning cases and sporting a bounty of happy clientele. Pravati argues the invisible hand to meet such goals is that of litigation investment.  Check out their features to learn more.
Commercial Legal Innovation

Legal Finance and Legal Analytics 

The impact of legal analytics will soon become priceless, according to a new report. As big law embraces the next generation of technology, adoption acceleration can be tracked via balance sheet line items. Big data sometimes can be a misnomer, but now more than ever, dashboard signals indicate the investment in technology may be paying off. BufordCapital.com recently conducted a survey sampling the role of technology in modern litigation finance practices. Results showed that 98% of respondents attribute technology as a beneficial analytical tool to overall litigation success. Burford claims that adding legal analytics tools to a successful litigation practice is the future of litigation investment.  Technical analytics tools are now being engaged to evolve litigation portfolios into ‘unicorns,’ according to Buford. Traditionally, the term unicorn is attributed to a $1B corporate valuation. Refer to Buford’s research to learn more about technology and litigation finance.
Consumer

Georgia Man Gets 5 Years in Prison for Consumer Legal Funding Scheme

Anyone who was wondering if the Federal Bureau of Investigation (FBI) is tracking the up-and-coming litigation finance sector, need wonder no more. A Georgia man who has been tricking litigation investigators since 2016, has met the heavy hand of justice.  Justice.gov reports that Chalmer “Chuck” Detling, II, is now a disbarred attorney, was sentenced to five years in prison this week, with three years supervised release, due to a multi-year, multi-client litigation finance fraud. According to investigators, Mr. Detling made significant efforts to take out advanced loans against medical litigation claims without his client’s knowledge. When clients got wind of Mr. Detling’s actions, it is alleged that he lied to cover his tracks.  The dozens of fraudulent litigation investment loans totaled upwards of $400,000. Yet, Mr. Detling was only ordered to pay restitution of $254,837.89. Read Justice.gov’s full report to learn more.   
Announcements Commercial Fundraising

Siltstone Capital Raises New Litigation Finance Fund To Invest In Patent, Energy & Commercial Opportunities.

Siltstone Capital, LLC (“Siltstone”), a Houston, Texas based investment and advisory firm, announced the successful closing of SC Litigation SPV, LP (the “Fund”). Siltstone, through its subsidiary Litigo Financial, LLC (“Litigo”), will invest in commercial, patent, technology, and other business litigation finance opportunities that the firm sees on an increasing basis.

Mani Walia, Managing Director and General Counsel, leads the Fund’s efforts and noted, “While we are a newer player in the industry, we have reviewed hundreds of investment opportunities through a rigorous diligence process that reflects the technological, investment, and legal expertise of the team. We are humbled to partner with deserving plaintiffs and trial lawyers from the country’s top law firms.”

Founded in 2013, Siltstone invests in organically sourced niche opportunities that provide downside protection along with significant upside potential. Robert Le, Co-Founder and Managing Partner, commented, “We are grateful for the continued support from our limited partners, as we believe litigation finance is an emerging institutional asset class. To prepare for that growth, we have built a best-in-class team with a rare combination of investment acumen and legal expertise, which positions us to offer compelling returns to leading institutional investors that seek uncorrelated exposure in a volatile market.”

Siltstone is excited to host LITFINCON, an inaugural litigation finance and legal private credit conference to be held in Houston Texas on March 2-3, 2022. LITFINCON will showcase a diverse mix of speakers, panel discussions, and case studies designed to provide current data on deals, regulatory changes, and investment trends in litigation finance. To attend, please visit http://www.litfincon.com for registration details.

To learn more information about Siltstone Capital and Litigo Financial, please visit http://www.siltstonecapital.com and http://www.litigofinancial.com, respectively. You can also follow LITFINCON and Litigo Financial on LinkedIn and Twitter.

Commercial

Podcast: Litigation Funding in Canada 

Paul Rand, Omni Bridgeway’s Chief Investment Officer, is joined by Andrew McCoomb and Ailsa Bloomer in a podcast feature discussion on the current litigation finance trends in Canada.  NortonRoseFulbright.com explains that litigation finance is an established practice in the United States and United Kingdom, and is starting to see an increase in business across Canada. The podcast also featured Arad Mojtahedi, who is an associate insolvency practitioner managing proceedings under the Canadian Companies’ Creditors Arrangement Act.  Listeners of the podcast qualify for CPD credits in Ontario and British Columbia.
Commercial Deals

When Will Litigation Finance Enter Africa? 

In Africa, there are 340 money agents per 100,000 people. Yet, only six ATMs per 100,000. With the continent yet to embrace any real ambitious litigation finance marketplace, the question remains if a new form of business such as litigation funding can sweep across Africa.    Simon-kucher.com’s new report on banking in Africa outlines the pivotal role mobile money has played in innovation of the continent’s banking sector. Similarly, money agents offer financial services including taking deposits, cashing out funds and facilitating transactions. The report suggests that the future of litigation finance in Africa consists of building strong litigation investment portfolios.  The value in African litigation finance lies in capturing premium cases in key markets. Also, international human rights litigation can be acted upon simultaneously in large Western markets (like New York State). For example, a human rights claim of a large bank in New York who had potentially violated human rights in Kenya could be a segway into building a strong ligation investment portfolio in Africa.  There are many barriers to entry for litigation funders in Africa, but as the report notes, there is opportunity as well.
Commercial

Burford Blames COVID for $80 Million Loss

COVID has adversely impacted most industries, and litigation funding is no exception. While new commitments and deals are up from last year, cases are simply not concluding in a timely manner. Sharecast explains that Burford has predicted an annual net loss of AU $70-80 million. Burford maintains that the loss is due to timing, and not any other factor. CEO Christopher Bogart explains that performance has been strong, and that the value of the company’s portfolio has not diminished. Thus far in 2022, Burford shares have fallen 15%.