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Day Two Recap of the LF Dealmakers Conference

Day Two Recap of the LF Dealmakers Conference

Day two of of the two-day event saw a trio of panels that covered topics such as investment strategy and risk management, the interplay between fund types, and litigation finance as a tool for ESG. The first panel of the day was titles “CIO Roundtable: Focus on Investment Strategy & Risk Management,” and was moderated by Steven Molo, Founding Partner of MoloLamken. Panelists included:
  • Patrick Dempsey, Chief Investment Officer, US, Therium Capital
  • Sarah Johnson, Co-Head Litigation Finance, The D. E. Shaw Group
  • Aaron Katz, Chief Investment Officer, Parabellum Capital
  • David Kerstein, Chief Risk Officer & Senior Investment Manager, Validity Finance
The conversation began with the rise of business interruption claims. Patrick Dempsey of Therium hasn’t seen much in the way of business interruption claims that have been successful yet.  There was an initial interest in this case type, but then a lot of negative decisions came out of federal courts, and so interest waned. That said, you can build a portfolio of these claims and hedge your risk going forward. Aaron Katz of Parabellum noted how his firm hasn’t been active in the business interruption space, though the pace of all other claim types is picking up, with interesting new product areas being developed, including credit-like structures, different stages of cases being presented, lower risk investment types, and even partial recourse feature investment. Sarah Johnson of D.E. Shaw commented on the emergence of new entrants into the litigation funding space. Competition does affect pricing, and this has more of an impact in creative structuring—with new tranches of risk being created. David Kerstein of Validity jumped in to parse this out. He has seen more competition in pricing in larger size deals, however not so much in the more modestly-sized deals. There is still competition there, as claimants are approaching a lot of funders, just not as much price pressure in these types of claims. The conversation then turned to bankruptcy. This was a very quick distressed cycle—given that there was a lot of sophisticated money chasing these deals, there wasn’t as much of a need for litigation funding. However, we may soon begin to see bankruptcies driven by litigation, which could prompt claimants to approach funders for partnership or monetization. And smaller cases might be a place for funders, given that these bankruptcy claims are typically underfunded. As David Kerstein of Validity noted, “When there are bankruptcies that are based on litigation assets or issues, litigation funders are well placed to come in and provide value.” And on the issue of insurance, Aaron Katz noted that judgments are being protected with insurance, products are out there to preserve capital or even back some of the profit in a deal. That said, Parabellum hasn’t seen it as part of the bread and butter of their work. Yet Katz feels it’s only a matter of time before insurance permeates the space, but we’re not there yet. Patrick Dempsey chimed in on his experience with insurance in UK-based claims. Adverse costs insurance is inherent in the jurisdiction there, and so insurance on a portfolio basis was being considered very early on. That was ultimately deemed unnecessary, but that discussion is starting to return, and will likely come back in full force. Therium only uses insurance for judgment protection in the U.S. On the issue of regrets, Sarah Johnson noted how she wishes she had been more aggressive at the outset—doing more deals, and being less price sensitive. Having worked previously in distressed investments, she was used to price sensitivity being an issue, but she found that the industry grew a lot faster and provided much better returns than perhaps even she expected. This speaks well to the industry’s continued growth potential. Later in the day, a pair of panels tackled topics such as fund types, deal structures and costs of capital, as well as ESG and impact investing. One interesting takeaway from the former discussion came from Sarah Lieber, Managing Director and Co-Head of the Finance Group at Stifel. Lieber commented on the large commercial bank syndication model that her firm is structured with. What Stifel does is essentially a merchant banking model—they use their own balance sheet and originate their own transactions. When they approach a partner, whether that is a litigation funder, insurance company, private equity or multi-strategy firm, they choose their partner based on the return profile. And they can syndicate their partnerships within a larger deal construct. Stifel generally operates in the $50MM+ range, and can take on multiple co-investors with various tranches. So Stifel operates in cooperation with many other in the space, in a syndicated investment model. Stifel’s very presence in the market is emblematic of how prominent the funding industry has grown, and how much it has matured over the past few years. Doubtless there will be further maturation ahead, and likely more funding entities which enact a similar merchant banking model. As Tets Ishikawa Managing Director of LionFish noted (on the same panel discussion): “When the market started in the last 15-20 years, it really started as a litigation funding industry—as one single entity. But I believe this market will become like the commercial real estate market. There are many different types of real estate, just as there are many different types of litigation, so in the end there will be many different types of litigation finance investors.”
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Siltstone vs. Walia Dispute Moves to Arbitration

By John Freund |

Siltstone Capital and its former general counsel, Manmeet (“Mani”) Walia, have agreed to resolve their dispute via arbitration rather than through the Texas state court system—a move that transforms a high‑stakes conflict over trade secrets, opportunity diversion, and fund flow into a more opaque, confidential proceeding.

An article in Law360 notes that Siltstone had accused Walia of misusing proprietary information, diverting deal opportunities to his new venture, and broadly leveraging confidential data to compete unfairly. Walia, in turn, has denied wrongdoing and contended that Siltstone had consented—or even encouraged—his departure and new venture, pointing to a release executed upon his exit and a waiver of non‑compete obligations.

The agreement to arbitrate was reported on October 7, 2025. From a governance lens, this shift signals a preference for dispute resolution that may better preserve business continuity during fundraising cycles, especially in sectors like litigation finance where timing, investor confidence, and deal pipelines are critical.

However, arbitration also concentrates pressure into narrower scopes: document production, expert analyses (especially of trade secret scope, lost opportunity causation, and valuation), and the arbitrators’ evaluation. One point to watch is whether interim relief—protecting data, limiting competitive conduct, or preserving the status quo—will emerge in the arbitration or via court‑ordered relief prior to final proceedings.

ASB Agrees to NZ$135.6M Settlement in Banking Class Action

By John Freund |

ASB has confirmed it will pay NZ$135,625,000 to resolve the Banking Class Action focused on alleged disclosure breaches under the Credit Contracts and Consumer Finance Act (CCCFA), subject to approval by the High Court. The settlement was announced October 7, 2025, but ASB did not admit liability as part of the deal.

1News reports that the class action—covering both ASB and ANZ customers—alleges that the banks failed to provide proper disclosure to borrowers during loan variations. As a result, during periods of non‑compliance, customers claim the banks were not entitled to collect interest and fees (under CCCFA sections 22, 99, and 48).

The litigation has been jointly funded by CASL (Australia) and LPF Group (New Zealand). The parallel claim against ANZ remains active and is not part of ASB’s settlement.

Prior to this announcement, plaintiffs had publicly floated a more ambitious settlement in the NZ$300m+ range, which both ASB and ANZ had rejected—labeling it a “stunt” or political gambit tied to ongoing legislative changes to CCCFA.

Legal and regulatory observers see this deal as a strategic move by ASB: it caps its exposure and limits litigation risk without conceding wrongdoing, while leaving open the possibility of continued proceedings against ANZ. The arrangement still requires High Court consent before going ahead.

What’s the Smartest Growth Strategy for Law Firms in 2025? Client Service

By Kris Altiere |

The following article was contributed by Kris Altiere, US Head of Marketing for Moneypenny.

The legal sector is already operating against a backdrop of economic unpredictability, rising client expectations, and fast-moving advances in technology. For firms of all sizes, but especially small and mid-sized practices, the pressing question is: what’s the smartest and most sustainable path to growth?

The answer isn’t a new practice management system or a radical shift in service lines. It’s something more fundamental yet far more powerful: client service.

And not the kind that gets lost in endless phone menus or delegated to faceless chatbots. We’re talking about human-led, AI-supported service that’s fast, personal, and friction-free. In today’s legal market, client service isn’t just an operational necessity. It’s a growth strategy.

Trust as the new currency of growth

Clients navigating complex legal challenges are often anxious, risk-averse, and under pressure. In that environment, trust becomes the currency that drives engagement and retention.

It’s no longer enough for firms to offer technically sound legal advice at competitive rates. Clients want to feel heard, supported, and valued throughout their journey. Firms that can embed this into every interaction, whether it’s the initial consultation or a late-night update, are the ones that win loyalty, referrals, and long-term revenue.

This plays to the strengths of small and mid-sized firms. With leaner teams and flatter hierarchies, they’re often more agile and capable of delivering the personal, tailored support clients crave. A partner who picks up the phone, knows the client’s name, and understands the case context instantly builds credibility. In 2025, that credibility is the bridge between staying relevant and achieving meaningful growth.

Smart tech, human empathy

Yes, AI is everywhere. But the firms using it most effectively are those that integrate it where it adds real value while also keeping the human touch where it matters most.

AI can streamline administrative work, speed up intake, and automate repetitive tasks like document review or appointment scheduling. But it can’t replace the reassurance of a lawyer who listens carefully to a client in distress, or the receptionist who ensures urgent calls are routed to the right person immediately.

The winning formula is balance: let AI handle the heavy lifting, while people deliver the moments that build trust. Imagine a litigation funder using AI to flag cases requiring immediate attention, while a trained case manager provides the nuanced support clients need. Or a family law practice using chatbots for document collection but ensuring sensitive discussions are handled by a real lawyer with empathy and tact.

That combination of efficiency plus empathy is what cuts through the noise.

Service as a growth engine

When client service is done well in law firms, it doesn’t just fix problems it drives growth. Every answered call, prompt update, or thoughtful follow-up is a touchpoint that builds brand equity and deepens relationships. 

Great client service is about being reactive, for example, answering questions, but also it is about being proactive, through spotting patterns, identifying sales opportunities, and deepening client relationships. Your service team becomes a source of insight and influence. And often, they’re the difference between a one-time transaction and long-term loyalty.

Take funding conversations as an example. A firm that keeps clients informed on timelines, explains financing options clearly, and checks in regularly is positioning itself not just as a legal advisor but as a trusted partner. That kind of proactive, client-focused service often creates opportunities for cross-referrals and repeat work.

And thanks to modular, scalable tools—from virtual receptionist to live chat—these capabilities are no longer exclusive to the Am Law 100. Boutique firms and regional practices now have access to the same client service infrastructure as the industry’s largest players.

Connection builds resilience

With margins tight and competition fierce, the strongest legal practices in 2025 will be those that build loyalty through connection. That doesn’t mean over-promising or relying on outdated customer care models. It means meeting people where they are, and offering support that’s proactive, consistent and personal.

It also means supporting teams. When lawyers and staff are backed by smart systems that free them to focus on meaningful work, morale improves. And in a small or mid-sized firm, morale directly fuels performance.

Client service is where growth, loyalty and operational resilience meet. For practices looking to thrive this year, the message is clear: don’t see service as a back-office function. See it as a growth engine, a brand differentiator, and one of the most valuable assets a law firm has.

Because in a market full of uncertainty, the one thing that’s certain is this: customers will always remember how you made them feel. And that feeling might just be the difference between surviving and scaling.