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Aon Joins The European Litigation Funding Association (ELFA)

September 19, 2023

Aon Joins The European Litigation Funding Association (ELFA)

The European Litigation Funding Association (ELFA) is pleased to announce Aon’s Litigation Risk Group, the litigation risk solutions arm of Aon’s M&A and Transaction Solutions, has joined ELFA as an associate member.  “ELFA founding members are on the forefront of litigation finance in Europe”, said Paul Jeroen van de Grampel, Managing Director and Global Co-Head of Aon’s Litigation Risk Group. ”As a pioneer of litigation risk and insurance capital solutions, it is important for Aon to offer its leadership as part of ELFA and continue to shape this industry. ”  Van de Grampel added, “We are delighted to join ELFA and look forward to collaborating with like-minded professionals and industry leaders to build a deeper understanding of litigation funding within the industry. Aon is well positioned to contribute valuable insight on how litigation funding can be leveraged as a valuable tool for access to justice and, where possible, seek combinations with insurance solutions, to better support the growth of fair and effective dispute resolution mechanisms and shape better decisions.”  Omni Bridgeway Managing Director and ELFA Chairman, Wieger Wielinga commented: “ELFA was established to serve as the European voice of the commercial litigation funding industry, and we are immensely proud to welcome reputable and knowledgeable professional services firms such as Aon. The members of ELFA look forward to collaborating with Paul Jeroen and the entire Aon Litigation Risk Group who have decades of experience with the practice of litigation funding globally and particularly in the context of European civil law. Their expertise with litigation risk transfer through insurance will create deeper understanding in the market and help clients leverage bespoke insurance solutions.”
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Commercial Legal Innovation

WinJustice Pushes Litigation Finance into LegalTech and SaaS

By John Freund |

Litigation funding may soon be more than a tool for plaintiffs — it’s shaping up to be a cornerstone of growth strategy for tech startups, according to a new thought piece by funder WinJustice.

A recent post on LinkedIn from the firm outlines how litigation funders are expanding their remit to support LegalTech and SaaS companies embroiled in high-stakes litigation over IP, data privacy, and cross-border regulatory issues. As these companies scale, legal exposure often rises faster than revenue, making litigation finance not just a defensive tool, but a growth enabler.

For early- and growth-stage tech firms, litigation costs can cripple cash flow and deter investment. WinJustice argues that non-recourse funding allows companies to protect IP and contractual rights without diverting resources from R&D or expansion. By absorbing litigation costs — and recovering only on success — funders offer startups a financial shield that levels the playing field against larger adversaries.

The piece also explores how LegalTech platforms are feeding value back into the funding ecosystem. AI tools now assist funders with diligence, risk modeling, and portfolio management, creating what WinJustice calls a “two-way synergy” between finance and technology. The UAE, with its dual ecosystems in litigation funding (DIFC and ADGM) and tech innovation, is spotlighted as an ideal hub for this convergence.

The strategic implications stretch across stakeholders: founders get breathing room, legal departments shift from cost centers to value creators, and funders broaden their pipeline while enhancing operational efficiency. As litigation funding migrates from courtrooms to cap tables, WinJustice paints a future where disputes are assets, not liabilities.

Commercial

LCM Sets October 1 Date for FY25 Results

By John Freund |

Litigation Capital Management (LCM) has set a timetable for its next major disclosure, telling the market it will release audited results for the year ended June 30, 2025, on Wednesday, October 1. The notice gives investors and counterparties a clear marker for updates on realizations, fair-value movements, new commitments, and progress across single-case, portfolio, and claims-acquisition strategies. With funding markets steady and secondary activity picking up, attention will focus on monetizations and cash generation as LCM cycles older matters and deploys into new ones.

An announcement on Investegate dated September 8 confirms the reporting date and recaps LCM’s operating model: direct investments from balance sheet capital alongside third-party fund management, pursuing single-matter funding, portfolio structures, and acquisitions of claims. The company notes it derives revenue both from direct investments and from performance fees on managed capital. The notice also reiterates LCM’s international footprint, with headquarters in Sydney and offices in London, Singapore, and Brisbane, reflecting a pipeline that spans common-law jurisdictions and arbitration hubs.

While the update is procedural, the date sets expectations for details on commitments, deployments, and realizations through fiscal 2025—metrics that typically drive NAV, fee accruals, and liquidity for further commitments. Investors will also look for commentary on case duration, provisioning, and any balance-sheet recycling that can support new originations without dilutive capital raises.

Against a backdrop of competitive pricing and increasingly bespoke structures, LCM’s disclosures should offer a read-through on demand for commercial funding and the cadence of exits across core verticals. If realizations and commitments point in the right direction, expect continued momentum in portfolio-level and acquisition strategies as funders lean into capital-efficient growth.

Commercial Regulatory Issues

Burford’s MSO Law-Firm Stakes Draw Critique

By John Freund |

Burford Capital’s proposal to take minority, non-controlling stakes in U.S. law firms via management services organization (MSO) structures has sparked a fresh round of debate over investor involvement in legal practice. The funder frames the plan as a way to provide growth capital while remaining a passive owner outside the practice of law. Critics counter that any move toward outside ownership, even indirectly through MSOs, risks putting investor preferences ahead of client interests and could entangle firms in thorny ethics issues across multiple jurisdictions.

An article in Insurance Journal reports that Burford Chief Development Officer Travis Lenkner said the firm is “pursuing strategic minority investments” and would be a passive investor. The piece canvasses pushback from the Florida Justice Reform Institute and outlines the patchwork of state rules: most jurisdictions still bar nonlawyer ownership; Arizona allows it directly; and a recent Texas ethics opinion signaled that well-structured MSOs can be permissible if they don’t engage in the practice of law or share fees.

Insurance Journal also notes the broader political and regulatory context—more states moving toward disclosure or licensing of funders—while highlighting unresolved questions about how courts and bars might treat MSO-based ownership in practice.

For funders, the proposal—if accepted by regulators and clients—could represent a new pipeline to origination and data, deeper relationships with firms, and adjacencies to traditional case funding. For firms, it dangles capital for tech, talent, and operations without ceding control of fee streams. The near-term test is whether any first-mover deals clear ethics review and demonstrate independence in substance, not just form. If they do, expect a competitive race among funders and private capital to define the template. If not, this episode may reinforce the status quo—and accelerate states’ efforts to spell out guardrails for third-party finance and law-firm ownership models.