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CIO Roundtable: Art of the Deal from Terms to Returns

CIO Roundtable: Art of the Deal from Terms to Returns

A panel consisting of Sarah Johnson, Senior VP and Co-Head of Litigation Finance at D.E. Shaw, Aaron Katz, Co-Founder and CIO of Parabellum Capital, David Kerstein, Managing Director and Senior Investment Officer at Validity Finance, and Joe Siprut, CEO and CIO of Kerberos Capital Management, discussed the various investment aspects of litigation funding as an asset class. The panel was moderated by Steven Molo, Founding Partner of MoloLamken. The conversation began with new trends in the industry. Price compression came up early. Joe Siprut of Kerberos Capital Management noted he has witnessed price comparison over the past couple of years, including having seen multiple term sheets that were mis-priced. Litigation finance has always been about attractive risk-adjusted opportunities, yet if the risk remains the same and price compression remains, that reduces the attraction of the asset class. Moderator Steven Molo was surprised there hasn’t been more fallout in this regard. Aaron Katz of Parabellum pointed out how things are opening up after COVID, and that helps a lot, given that a pipeline of cases awaiting trial quickly burns through ROI. Katz countered the price compression argument, stating that he hasn’t witnessed real price compression and hasn’t found his firm to be competing on raw price. Of course this depends on which segment of the market you are looking at. The conversation then steered toward ESG, and David Kerstein of Validity noted how there are green shoots of funders getting involved in impact litigation. Yet for most commercial funders, ESG would maintain the same type of analysis as any other case–that said, funders like to have a ‘good story’ for the case, and ESG can bring that to the table. Aaron Katz mentioned Parabellum is very cautious about ESG in particular. “We think people need to be careful about labelling things incorrectly,” said Katz. There are real impact players out there, and litigation funders should be careful about loosely claiming the mantle. The next question was pretty blunt: Is there a secondary market right now? Aaron Katz thinks not “I pray for it daily.” There is a network of well-resourced institutional players who like to look at claims, but the transactions are laborious (DD challenges, information asymmetry). The secondary participant is not going to be in a direct conversation with the counter-party, and that could cause complications. One final point: Joe Siprut noted that the evolution of a secondary market is one of the main things that can really unlock a lot of investment for the industry. One of the main barriers to investment is the long lockup period investors are staring at, and if a secondary market were to materialize, that would make fundraising a much easier sell.

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Singapore Court Rejects Public Policy Challenge to Tribunal’s Refusal of Third-Party Funding Costs

The Singapore International Commercial Court has upheld an arbitral tribunal's refusal to award third-party funding costs, rejecting arguments that denying such recovery offends public policy or amounts to a procedural failing reviewable under the Model Law.

As reported by the Wolters Kluwer Arbitration Blog, the decision in *DTH and another v DTF and others* [2026] SGHC(I) 5 arose from a joint venture dispute arbitrated under the SIAC Rules. The tribunal awarded the applicants approximately US$14.7 million but declined to award roughly US$14.6 million in funding costs, leaving them with minimal net recovery.

The applicants advanced two grounds. The first was that refusing funding costs conflicted with Singapore's public policy of promoting access to justice for impecunious parties. The court disagreed, holding that access to justice framed that narrowly does not rise to the level of public policy, and noting that Singapore's own SICC Rules expressly prohibit the recovery of third-party funding costs. A domestic rule barring recovery makes it difficult to characterise the same outcome in arbitration as contrary to national policy.

The second ground was that the tribunal had failed to comply with the agreed arbitral procedure. The court held that costs determinations fall outside the scope of procedural review under the Model Law, because they are substantive outcomes rather than questions of process. Framing an unfavourable costs result as a procedural defect does not convert it into a reviewable one.

On the underlying analysis, the tribunal had excluded the funding costs because certain fees were calculated as a percentage of the resolution amount rather than by reference to the principal advanced, placing them outside the statutory definitions governing third-party funding.

The ruling underscores that funders and funded parties in Singapore-seated arbitration cannot assume recovery of funding costs, and that how a funding agreement structures its return may determine whether those costs are recoverable at all.

Pogust Goodhead Disputes Client Committee’s Authority to Remove It From Mariana Dam Litigation

Pogust Goodhead has publicly rejected the decision to replace it as solicitors for claimants in the multi-billion pound group action against BHP, arguing that the client committee that voted to terminate its retainer had no authority to do so and warning that the move puts claimants' costs protection at risk.

As reported by Legal Futures, the dispute follows the appointment of Bailey Glasser International (BGI) to take over conduct of *Município de Mariana and others v BHP Group (UK) Ltd*, the claim brought for more than 420,000 Brazilian claimants arising from the 2015 collapse of the Fundão Dam.

BGI said its "priority is continuity for the claimants," adding that it "does not expect the change of legal representation to have any significant effect on the overall litigation timetable" and acknowledging "the work done by Pogust Goodhead in bringing the case to the High Court in London and securing the landmark ruling on liability."

Pogust Goodhead disagrees. The firm said the "client committee has no authority to terminate Pogust Goodhead's representation on behalf of the wider group of claimants in the proceedings," and that it "remains the solicitor of record and continues to act in claimants' best interests." It described the litigation as continuing "as normal."

The firm's sharpest warning concerns after-the-event insurance, which was secured through Pogust Goodhead on the basis that it acted in the matter. By moving to displace it, the firm said, "the committee risks placing claimants' costs protection in jeopardy and exposing them to significant financial liabilities."

The commercial backdrop is substantial. Pogust Goodhead announced a partnership with Quinn Emanuel in June 2026, alongside $150 million in funding from Gramercy Funds Management arranged through the two firms for the next stage of the litigation. BGI is a joint venture between Edward McCourt & Company — owned by former Pogust Goodhead senior partner Jeremy Evans — and US firm Bailey & Glasser, with Hausfeld & Co supporting in London. Partners Faranak Ghajavand and Callum Walters previously worked at Pogust Goodhead.

Liability was established at the Stage One trial in November 2025 and can no longer be challenged after the Court of Appeal refused BHP permission to appeal in May 2026. Evidence in the Stage Two trial on causation and quantum is listed from April to December 2027, with closing submissions in March 2028.

Carta Law Adds Four Senior Compliance and Contracts Leaders Across the US and Europe

Carta Law, the AI-native law firm serving private capital, has announced four senior appointments across its Compliance and Contracts practices, deepening its bench as asset managers turn to technology-backed managed services for legal and compliance work on both sides of the Atlantic.

According to a press release from Business Wire, Noah Levine joins as Legal Director, leading the firm's Compliance function for North America. Levine spent three years as Managing Director and Senior Compliance Counsel at Angelo Gordon, previously held compliance roles at Two Sigma and Dune Real Estate Partners, and most recently served as Deputy General Counsel and Compliance Officer at Madison International Realty.

Karin Porstendörfer joins as Compliance Director and Head of Inbound KYC, based in Luxembourg. She was previously Head of AML/CFT at Carne Group, where she built and led fund compliance programmes across European jurisdictions, and brings 18 years of audit, compliance and forensic experience to the firm.

Carta Law also promoted two of its own. Chrystel Marincich becomes Managing Director, Contracts Americas, having joined two and a half years ago from Kirkland & Ellis, where she was a Partner, and Simpson Thacher & Bartlett. Kenneth Howe becomes Managing Director, Contracts Europe and APAC, and will lead the build-out of the Contracts function in Europe after a career in private practice at Simmons & Simmons and Gowling WLG.

The appointments follow Carta Law's launch in May 2026 after Carta's acquisition of Avantia, which paired AI-native legal and compliance workflows with Carta's platform for private capital. The firm now serves more than 200 asset managers, including approximately 30% of the world's largest funds, and operates across the US, UK and Europe.

"Noah and Karin bring first-hand experience of the compliance challenges facing sophisticated asset managers, while Chrystel and Kenny have played a major role in building our Contracts practice," said James Sutton, General Manager of Carta Law.