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Slingshot Capital

34 Articles

Gross v. Net Return Dispersion in Commercial Litigation Finance

By John Freund |

The following is an article contributed by Ed Truant, founder of Slingshot Capital,

Executive Summary

  • Gross v. Net return dispersion needs to be considered by investors & fund managers
  • While present in many private equity classes, managers that can limit dispersion can attract more capital for a given return profile
  • Wide dispersion prevents many institutional investors from considering investing in the asset class
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Managing Duration Risk in Litigation Finance (Part 2 of 2)

By John Freund |

The following is the second of a two-part series (Part 1 can be found here), contributed by Ed Truant, founder of Slingshot Capital,

Executive Summary

  • Duration risk is one of the top risks in litigation finance
  • Duration is impossible to determine, even for litigation experts
  • Risk management tools are available and investors should make themselves aware of the tools and their costs prior to making their first investment
  • Diversification is critical in litigation finance
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Managing Duration Risk in Litigation Finance (Pt. 1 of 2)

By John Freund |

The following is the first of a two-part series, contributed by Ed Truant, founder of Slingshot Capital,

Executive Summary

  • Duration risk is one of the top risks in litigation finance
  • Duration is impossible to determine, even for litigation experts
  • Risk management tools are available and investors should make themselves aware of the tools and their costs prior to making their first investment
  • Diversification is critical in litigation finance
Read More

Innovation in Legal Finance (Part 1 of 2): What is “Event Driven Litigation Centric” Investing & Why Should Investors Care?

By John Freund |

The following is a contributed piece by Ed Truant, founder of Slingshot Capital,

Executive Summary

  • EDLC Investing is a relatively new, niche market requiring highly specialized skills
  • EDLC has many advantages over CLF investing, although it is not a directly comparable investment strategy due to its application to publicly traded markets
  • EDLC investing requires investors to have more of a buy/hold mentality than a ‘trader’ mentality due to the ‘fundamental’ risk being assumed
  • Despite EDLC ‘events’ being non-correlated, the publicly listed security aspects of their portfolios add some level of correlation which will impact fund performance, both positively and negatively
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What is a better investment, Commercial or Consumer Legal Funding? (2 of 2)

By John Freund |

Executive Summary

  • Consumer legal funding is a much more consistent and predictable asset class
  • Headline risks, while real in the earlier days of the industry’s evolution, are now consistent with more mature consumer finance asset classes
  • Consumer legal funding has a strong ESG component through the social benefits provided to the segment of society that relies on it the most
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What is a better investment, Commercial or Consumer Legal Funding? (1 of2)

By John Freund |

Executive Summary

  • Consumer legal funding is a much more consistent and predictable asset class
  • Headline risks, while real in the earlier days of the industry’s evolution, are now consistent with more mature consumer finance asset classes
  • Consumer legal funding has a strong ESG component through the social benefits provided to the segment of society that relies on it the most
Read More

Should Law Firms Steer Clients to Litigation Funders – or Steer Clear of the Funding Process?

By John Freund |

The following is a contributed piece by Ed Truant, founder of Slingshot Capital, and Andrew Langhoff, founder of Red Bridges Advisors.

When we write about litigation finance, we often assume it is easily accessible and that plaintiffs undertake most of the ‘leg work’ to secure financing.  In practice, litigation finance is often difficult to obtain, and plaintiffs typically rely quite heavily on their law firms to obtain it.  This is a very different dynamic than one sees in other areas of financial services. And because law firms may not have the expertise and bandwidth to properly broker a litigation funding transaction, their involvement in the process may be unintentionally short-changing their clients. With some law firms now entering contractual “tie-up” or “best friends” arrangements with favored funders, we thought this an opportune time to consider the law firm’s proper role in the litigation funding process.

This article will explore common but unexamined efforts by law firms to deal with funders, the practical challenges posed and suggest a preferred approach for law firms and their clients.

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‘Secondary’ Investing in Litigation Finance (part 2): Why, why now, and how to approach investing in Lit Fin Secondaries

By John Freund |

The following article is part of an ongoing column titled ‘Investor Insights.’ 

Brought to you by Ed Truant, founder and content manager of Slingshot Capital, ‘Investor Insights’ will provide thoughtful and engaging perspectives on all aspects of investing in litigation finance. 

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‘Secondary’ Investing in Litigation Finance: Why, why now, and how to approach investing in Lit Fin Secondaries

By John Freund |

The following article is part of an ongoing column titled ‘Investor Insights.’ 

Brought to you by Ed Truant, founder and content manager of Slingshot Capital, ‘Investor Insights’ will provide thoughtful and engaging perspectives on all aspects of investing in litigation finance. 

Read More