Trending Now

All Articles

3453 Articles
Announcements Commercial

James Foster joins Litigation Capital Management (LCM) in London

AIM-listed Litigation Capital Management Limited, a leading international provider of litigation financing solutions, is pleased to announce the hire of seasoned disputes practitioner and third-party finance expert James Foster as an Investment Manager based in London. James brings to LCM more than 25 years of experience of litigation and dispute resolution in the building and construction sector and has been involved in some of the world’s most challenging construction projects in major commercial hubs such as Dubai, Hong Kong, Saudi Arabia and Vietnam. Before transitioning to litigation finance, James was a partner of the international law firm Gowling WLG and has more recently held the title of head of international arbitration with a London-based litigation funder. Commenting on James’ hire, LCM’s Executive Vice Chairman Nick Rowles-Davies said: “James has a formidable reputation in the market and having known him for several years, I am delighted to welcome him at such an exciting time of expansion for LCM, which includes our recent close of a new US$150m third-party fund.” Chief Executive Officer Patrick Moloney adds: “The hire of James presents a significant opportunity for LCM in relation to single-case funding, but, more particularly, as a valuable asset in considering corporate portfolio applications. Presently, LCM is receiving a large volume of applications for corporate portfolios from the global building and construction sector and James brings a particular skillset to LCM which will assist us greatly in considering those applications.” James Foster commented: “I am delighted to be joining LCM at such an exciting point in its growth and development. I know the LCM team both from my time in private practice and from their outstanding individual reputations in the market and so I am very pleased to be part of that team going forward. LCM’s international and sector focuses are a strong match for my own experience as a law firm partner and in the litigation finance field. I am very much looking forward to the opportunity to contribute to the continued success of the business.” Last week, in its first step towards a management relocation to London, LCM appointed Mary Gangemi as its new London-based chief financial officer and announced that Patrick Moloney is to relocate to London from Sydney later this year. In March, LCM closed a new US$150m third-party fund backed by significant global blue-chip investors. The fund marks LCM’s return to managing third-party funds, following its building of a permanent source of balance sheet capital through the equity markets. Contact: Angela Bilbow Global Head of Communications abilbow@lcmfinace.com +44 (0)20 3955 5271 Litigation Capital Management (LCM) is a leading international provider of litigation financing solutions. This includes single-case and portfolios across; class actions, commercial claims, claims arising out of insolvency and international arbitration. LCM has an unparalleled track record, driven by effective project selection and robust risk management. Headquartered in Sydney, with offices in London, Singapore, Brisbane and Melbourne, LCM listed on AIM in December 2018, trading under the ticker LIT.
Commercial

Economic Uncertainty? Consider Litigation Finance

The Coronavirus is impacting every industry, not to mention affecting all of us personally. This leads to economic anxiety on a massive scale. It can also mean that the sizable recoveries some firms are counting on may not be viable once this crisis is over—and for some time afterwards.  With everyone scrambling to stay afloat, Ted Farrell of Litigation Funding Advisers LLC has some thoughts. As Farrell writes in Bloomberg Law, litigation finance might be one of the most impactful ways to stem losses, no matter where you are in the world. At this moment, billions of dollars in capital can be made available to firms struggling to keep balance sheets in balance. Nine-figure investments are not as rare as one might think. Individual partners in law firms are paid a monthly draw, which is different from a salary in terms of bookkeeping. These draws are based on profits predicted for the year. So if the books don’t balance at the end of the year, partners can be liable to pay some of that money back. With that in mind, firms would do well to consider litigation funding, particularly for high-end cases. Once you have that capital, what do you do with it? Step one should be calculating existing risk, then selling off as much as you can. Now is the time funders are seeking promising cases in which to invest. A popular strategy involves pooling contingency cases and allowing funders to invest in them together. This type of arrangement makes for good deals, allowing firms to take a healthy portion of recovery while still making funder investments worthwhile.
Commercial

What Every GC Needs to Know About Monetization

2019 was a year of change and growth in the legal field. Monetization was of particular interest to in-house legal teams. This practice allows firms to de-risk portfolios and exert greater control over receivables by essentially converting an impending recovery into working capital.   As Burford Capital explains, their goal as a funder is to empower in-house counsel to be proactive in securing recoveries, while reducing their costs. Burford reveals that General Counsel from various companies share many of the same questions. Why, for example, is lit fin preferable to companies simply using their own funds? It’s often to a company’s benefit to leverage funding to assure liquidity of funds and to manage balance sheets. Monetization also frees up funds sooner than a post-trial collection—and sometimes, timing makes all the difference.  How is working with a funder better than hiring a legal team on contingency? This seems like a sensible question. The answer is about more than simple finance. It’s about the caliber of legal team one can hire on contingency versus the type of strategy that can be developed using a powerhouse firm backed by an experienced litigation funder. Burford wants you to know that this difference is significant—and can be the deciding factor when it comes to getting the resolution you want, and settling for something far less.  What about control?  How much say do funders have on decision making or settlements?  While every funder is different, Burford acts as a silent partner; providing capital is where their input ends. At the same time, should a client request additional support, a worthy funder will work with clients to devise a strategy in everyone’s best interests. 
Commercial

Lit Fin as an Alternative Finance Solution

Many law firms and even in-house counsel are feeling the pinch from court closures and delays due to the COVID-19 outbreak. Depending on how long this disruption lasts, many legal entities may find themselves scrambling to fund in-progress claims or take on new ones. As the risk of insolvency grows, maintaining healthy balance sheets is of the essence.  As Pinsent Masons reveals, the types of cases brought about by COVID-19—breach of contract, for example—are unlikely to result in the sizable recoveries firms will need to stay afloat. When times are lean, it makes sense to hold back reserves and use third-party funding to take on new cases. This leaves more money in the operating budget, and less risk on balance sheet. Even when cases are clearly meritorious, it can take months or even years for firms or clients to see a return.   Mark Roe, partner at Pinsent Masons, explains that using a preferred supplier arrangement allows them to provide better terms to clients. Their funder, Augusta Ventures, has declared their commitment to funding the infrastructure sector—which is an unusual focus for third-party funders. They also promise transparency in terms and standardized documentation so clients can sign with confidence. 
Commercial

Got Litigation Claims? Don’t Forget to Monetize!

It cannot be denied that this is a time of stress, uncertainty, and delays. The legal field feels this more acutely than other industries, and it’s already showing in how cases are conducted. We all have a choice: react to what happens, or try to get ahead of it through diligent planning. One key factor in said planning comes in the form of monetization. As ACC Docket reports, monetization involves utilizing legal claims as collateral to gain working capital. This might be calculated as a multiple of the monetized amount, a percentage of the total recovery amount, or some combination of the two.  Monetization funds are provided for the purpose of working capital. That means they can be used to pay legal fees, under specific conditions. Monetized funds can be used in conjunction with traditional funding, which allows lawyers to be compensated as sort of a hybrid-contingency platform. Coronavirus constraints may make this an attractive option for firms and counsel whose budgets are impacted. In addition to slowdowns in most courts, there are other factors impacting the closing of cases—like the inability or unwillingness to take remote depositions impacting discovery. With that in mind, a firm experiencing budget constraints during COVID-19 would do well to consider monetization.
Announcements Commercial

Forbes Ventures Plc – Board Changes and Operational Update

Forbes Ventures announces that Kirk Kashefi and Igor Zjalic have resigned as Non-executive Directors of the Company with immediate effect.  Additionally, Igor Zjalic has resigned as a director of Forbes’ subsidiary, Forbes Ventures Investment Management Limited.  The resignations of Kirk and Igor are by mutual consent and follow Forbes’ announcement of 2 March 2020, which confirmed that the Company’s future strategy would focus on the securitisation of litigation funding assets, via the establishment of a Securitisation Cell Company (SCC) in Malta.

Forbes expects to appoint additional directors to the Board as the Company’s strategy progresses.

Peter Moss, Chairman of Forbes, commented, “We would like to thank both Kirk and Igor for their service to Forbes over the last couple of years and wish them both the very best in their future endeavours.  We at Forbes are extremely excited about our new direction and the establishment of our securitisation capability in Malta.  The set-up of our Securitisation Cell Company is progressing well, and we do not foresee any delays in the process, despite the Covid-19 virus.

While global markets may remain volatile in the short term, we believe that securitised litigation funding assets, with appropriate credit support, will prove to be popular with institutional credit investors when the current market volatility subsides.

The Directors of Forbes accept responsibility for the contents of this announcement.

Announcements Commercial

Delta Capital Partners Announces Liquidity Solutions for Law Firms, Businesses and Individual Claimants

Chicago, IL, March 30, 2020 -- Delta Capital Partners Management LLC (Delta), a private equity and advisory firm specializing in litigation and legal finance, today announced its ability to provide bespoke liquidity solutions to law firms, businesses, private investment funds, and individual claimants affected by recent macroeconomic developments, including those caused by the COVID-19 pandemic. As the world economy has slowed due to the COVID-19 pandemic, liquidity has become a major concern for all economic actors and many traditional sources of liquidity will be tapped out very shortly. As a result, many law firms, private investment funds, businesses and individual claimants will not have access to capital to fund their needs.  Delta can provide liquidity to such parties based on their litigation or arbitration claims, judgments, awards, alternative fee engagements (i.e., contingency or success based), outstanding accounts receivables or work-in-process, or a combination thereof. Christopher DeLise, Delta’s Founder, CEO and Co-CIO stated, “In the face of horrible healthcare and economic challenges, we are still able to go forward and be helpful, we hope, in a troubled marketplace. As Delta’s core business is the pricing of litigation, enforcement and recovery risks, we are able to timely provide lending and liquidity solutions based on our assessment of such factors.” Delta provides such solutions to meet the needs of law firms, private equity firms, businesses and individual claimants through a variety of arrangements, including litigation-collateralized loans, draw-down facilities, and term loans. Each of these arrangements can be customized to suit the particular needs of borrowers, are competitively priced, and can be backed by a variety of assets and/or enhancements. These flexible solutions ensure that Delta can effectively meet the needs of a broad range of professional service firms, businesses, and individual claimants and thereby improve their financial situations during these unprecedented times. “While Delta has offered such bespoke credit-oriented solutions for many years, these products typically accounted for only a small percentage of its total business. However, we have already started to see that demand for such products is rapidly increasing and we anticipate that this demand will continue to significantly escalate as traditional sources of liquidity will dry up and/or the rates being offered by traditional lenders will materially increase. We are grateful to be able to play a constructive role in helping firms, especially troubled ones, keep their heads above water. Accordingly, we have allocated more resources and capital to meet this growing demand, and will continue to do so as we expect high demand now and for the foreseeable future as the aftereffects of the pandemic are felt around the world,” stated Mr. DeLise. Learn more at www.deltacph.com or contact Delta Capital Partners via email at liquidity@deltacph.com
The LFJ Podcast
Hosted By Validity Finance |
In this episode, we speak with Dave Kerstein, Chief Risk Officer of Validity Finance, and Will Marra, Portfolio Counsel at Validity. Dave and Will discuss the Working Group on Litigation Funding's response to the controversial NYC Bar opinion, which found that third party funding violates the prohibition on fee sharing. They also discuss the role of litigation funding in today's stressful economic times, and how the COVID-19 crisis is likely to impact the funding industry. [podcast_episode episode="5213" content="title,player,details"]
Commercial Covid-19

Australian Government Rallies to Protect Insolvent Businesses

Australia is being extremely proactive when it comes to mitigating the impact of the Coronavirus outbreak. In addition to swift self-quarantine protocols and shutdowns, Australia has enacted the COVID-19 Response Act, which passed both houses of parliament.  Lexblog reports that the goal of these laws is to protect existing businesses from insolvency.  The primary purpose is to provide businesses more time to meet their financial obligations to creditors—six months in most cases. It also shields some directors from being held personally liable for financial shortfalls in their companies. The main focus of the COVID-19 Response Act is to mitigate the impact that the pandemic is having on businesses across the spectrum. Australian government foresaw that directors will need to seek additional credit and inventory, raise equity, and take on new debt to keep businesses afloat. As many businesses are forced to employ remote workers, the need for tech and training must be addressed as well.  Not all the new regulations of the C19RA have been released to the public. But they appear to focus on reporting obligations, treatment of existing debt, and extensions of how much time must pass before non-payment on insolvency claims can be made. Directors should be aware that unless a provision is specifically stated in the act, their usual responsibilities remain the same. The responsibilities to employees and shareholders do not change, even during a pandemic.  Given how prevalent litigation funding has become in Australia, both funders and class action law firms should take note of the recent changes.