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Community Spotlight: David Kerstein, Founder & Managing Director, Arcadia Finance

Community Spotlight: David Kerstein, Founder & Managing Director, Arcadia Finance

An early adopter of litigation finance with ten years of experience as a funding professional, David Kerstein uses his depth of knowledge and experience to serve as a trusted and strategic partner and advisor to lawyers and clients seeking to manage litigation risk and spend.

Dave is a sought-after speaker and recognized leader in litigation finance who has been named among Lawdragon’s “Global 100 Leaders in Legal Finance” and selected by Who’s Who Legal as a “Thought Leader in Third Party Funding.” Prior to founding Arcadia Finance in June of 2024 with fellow Managing Directors Ronit Cohen and Joshua Libling, he served as Validity Finance’s Managing Director and Senior Investment Officer.

In addition to co-leading Validity’s origination and structuring teams, he helped to guide Validity’s strategic growth into new and expanded markets and avenues for investment. Prior to joining Validity, Dave was a senior investment manager at Bentham IMF, now Omni Bridgeway. Before entering the world of litigation finance, Dave spent fifteen years as a trial lawyer handling complex commercial disputes at Gibson Dunn. With his deep experience as a litigator, Dave understands the landscape attorneys and their clients face when pursuing important claims and is uniquely positioned to help them navigate it. As a long-suffering Jets, Mets, Knicks and Islanders fan, Dave is keenly aware that facing adversity can build character. He knows that every litigation has obstacles that must be overcome but that those obstacles can be used as stepping-stones that guide us to achieving our goals.

Company Name and Description: At Arcadia Finance, we go beyond traditional litigation finance to provide frictionless funding, empowering clients and partners to achieve their legal goals through customized financial solutions and unparalleled support. Our seamless collaboration, clear deal terms, and broad mandate empower clients to navigate challenges, make informed decisions, and secure capital – fast. Led by industry veterans with over $400 million invested across 80+ deals, Arcadia Finance offers adaptable solutions for all–from litigation boutiques to AmLaw firms and corporations. Arcadia Finance’s mission is to invest in meritorious litigation, and with backing from multiple and flexible capital providers, we find new ways to help clients and law firms finance, monetize, and share risk on their legal assets. Our solutions include everything from traditional single-case funding and law firms portfolios, to purchasing companies or patent portfolios whose primary value is litigation. At every stage from pre-litigation to appeal and enforcement, Arcadia has the experience, flexibility, and capital to assist.

Company Website: arcadiafin.com

Year Founded: 2024

Headquarters: New York, New York

Area of Focus: With a focus on U.S.-based commercial and patent litigation and domestic and international arbitration, Arcadia Finance is open to the full spectrum of litigation-based assets, from mass torts to law firm lending to patent acquisition, including cross-border and offshore matters. We consider cases in all federal and state courts, as well domestic and international arbitrations.    

Member Quote: “Over my 25+ years of work in the legal and litigation finance industries, I’ve seen firsthand how meritorious claims can falter due to financial constraints. That’s why I’m passionate about litigation funding – it ensures that the strength of a case, not the size of a wallet, determines its outcome.”

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South African Litigation Funder’s Role in Long-Running “Please Call Me” Dispute Comes Under Scrutiny

A businessman and litigation funder has emerged as a recurring figure in the decades-long fight between Nkosana Makate and Vodacom over the "Please Call Me" service, following reporting on the origins of the funding that made the case possible.

As reported by ITWeb, Kevin Brian Jenkins was among an early group that raised R750,000 to help Makate pursue his claim, and until recently worked with Makate's attorney, Wilna Lubbe of Stemela Lubbe. In 2019 the late advocate Christiaan Schoeman told an arbitration that Jenkins introduced him to Makate and helped raise the funds alongside Schoeman, his former wife Wilma Schoeman, Errol Elsdon of Black Rock Mining and Tracey Roscher.

The composition of that original funding group matters because Elsdon is now claiming 40% of Makate's confidential Vodacom settlement, asserting that he provided R4.39 million. Lubbe and Makate contend the figure was at most R8,000. Elsdon testified that he first met Makate in 2011 alongside Schoeman and Jenkins, and that Schoeman signed a funding agreement that year in favour of a company to be nominated later — accepted by most courts as Black Rock, from mid-2013. A 2018 Pretoria High Court ruling by Judge Neil Tuchten placed Jenkins among the initial investors offered "equity in the venture."

Court records show other disputes involving Jenkins. In Odyssey Consultancy v Hurwitz, his company sued Dale Hurwitz over an unpaid fee; the court heard Jenkins had used senior counsel Cedric Puckrin's "name and reputation (and stature as a senior counsel)" to obtain payment, though Judge Ranchod found this "does not amount to the fraudulent misrepresentation" alleged and ruled in Odyssey's favour.

Jenkins resigned as a director of a company he shared with Lubbe on 18 August, days before the publication put questions to her. Lubbe said Jenkins was a client of the firm.

Manolete Reports Forward Book Growth and Revenues Ahead of Prior Year in FY27 Update

Manolete Partners has told shareholders that trading in the current financial year is running in line with board expectations, with realised revenues ahead of the prior year and continued growth in the value of its forward book.

As reported in a regulatory announcement issued ahead of the company's Annual General Meeting, the AIM-listed insolvency claims financier said: "The Group's trading performance has been positive and in-line with the Board's expectations for FY27. Realised revenues are ahead of the prior year, and the value of the Group's forward book has continued to increase, driven by growth in both the number and average value of new cases signed."

The reference to growth in both case volume and average case size is notable for a funder whose economics depend on the pipeline of insolvency claims it acquires or funds. The company said it intends to provide a more detailed update on first-half trading in early October, following the close of the period, and will announce its Half Year Results as usual in November. All resolutions put to the AGM were subsequently passed.

Manolete describes itself as the UK's leading insolvency claims financing company, operating in a market it values at over £500 million annually. The business has financed and completed more than 1,400 cases. It says it is the only company in the insolvency litigation funding section to have been ranked Band 1 in Chambers on six occasions, and a five-time winner of the 'Insolvency Litigation Funder of the Year' award at the TRI Awards.

The update was issued by Chief Executive Officer Mena Halton and Chief Financial Officer Will Sawyer. Canaccord Genuity acts as the company's Nominated Adviser and Sole Broker.

Administrators Probe £390M Woodville Collapse as FCA Targets Retail Loan Note Loophole

Roughly £390 million appears to have passed through Woodville Consultants Ltd, the collapsed litigation funder whose failure prompted a Financial Conduct Authority warning about retail investors buying unregulated loan notes.

As reported by the Law Gazette, the business operated from an unremarkable office at 5 Gelliwastad Road in Pontypridd, South Wales, where the blinds are now drawn and no one answers the door. Its loan notes were promoted from Dubai Media City by a self-described certified financial planner who marketed them as "a simple and attractive way to make additional money without a big effort," accompanied by the slogan "Don't wait to invest; invest and wait."

Woodville entered administration on 16 July. Four weeks later the FCA issued a notice stating that "the recent failure of Woodville Consultants Ltd, a litigation funder that raised capital from retail investors through unregulated loan notes, shows the potential risk to investors." The regulator has signalled it wants to close the self-certification loophole that allows individuals to declare themselves "sophisticated" or "high-net worth" investors and thereby access products otherwise restricted from retail distribution. One investor told the publication the loss "will be life-changing for me… Stupid, I know."

Kroll is administering the estate alongside law firm Crowell & Moring, and is investigating whether money from newer investors was used to pay returns to earlier ones. Director Peter James Legge wrote to investors on 8 June stating: "We are now finally live with our funder and are in the process of completing the first drawdown." The administrators' third progress report found that "no such funding/refinancing arrangements appear to have been documented or progressed."

Paul Muscutt of Crowell & Moring said "a number of investigations are ongoing relating to the law firms, including how claims were introduced to the firms and how funds borrowed were applied."