Key Takeaways from LFJs Digital Event: Litigation Finance: What to Expect in 2024

Private equity (PE) firms often view legal disputes involving portfolio companies as liabilities—not opportunities for value creation. However, in a recent blog post, Omni Bridgeway argues that when properly modeled and leveraged, dispute finance can unlock hidden value throughout a PE investment lifecycle.
An article on Omni Bridgeway’s website explains that dispute finance enables PE firms to convert uncertain legal claims into a probability‑weighted, risk‑adjusted net present value (NPV), which can be used as a powerful negotiating lever in acquisitions. The firm illustrates this with an example: a $10 million litigation claim, after probabilistic weighting, legal cost deductions, and discounting, yields a risk‑adjusted NPV of roughly $3.5 million—highlighting how firms can avoid overpaying for speculative legal value
Once the investment is underway, dispute finance can preserve EBITDA by funding legal costs outside the P&L, since such non‑recourse financing isn’t treated as an SG&A expense or recorded as debt. Omni Bridgeway demonstrates that a $2 million litigation expense can be eliminated from SG&A, boosting EBITDA from, say, $11 million to $13 million.
As dispute finance becomes more accepted in M&A workflows, funders that offer robust valuation frameworks and flexible, non‑recourse instruments may gain a competitive edge. Overall, Omni Bridgeway’s post highlights that monetising legal claims—through non‑recourse capital advances or outright sale to a funder—can free up liquidity for operational initiatives without increasing downside risk.
Pollen Street Capital ("Pollen Street") today announces a new senior secured credit facility of up to £50 million to New North Litigation Capital (“New North”). New North is a commercial litigation finance company and a direct subsidiary of Capital Law, a Cardiff based law firm founded in 2006.
Capital Law has a strong track record in commercial litigation, having closed over 400 claimant cases since 2001 with a 95% win rate. Drawing on its senior leadership and experienced disputes team, Capital Law launched New North to address the underserved small to mid-market segment of commercial litigation market.
New North will be the only litigation financier in the UK owned and operated by practicing lawyers, bringing their day to day lived experience of handling mid-market litigation into pricing the risk and the funding investment decisions.
Christopher Nott, Founder and CEO of New North commented: “We are pleased to work with Pollen Street on this financing to launch New North Litigation Capital. The funding supports us to bridge a critical gap by funding claims that are often deemed too small by other players in the market. We are excited to work with the Pollen Street team as we create this new kind of litigation funding.”
Connor Marshall-Mckie, Investment Director at Pollen Street, commented: “New North addresses an important gap in the litigation funding space, focusing on smaller mid-market commercial litigation. With the significant opportunity available and the deep experience of the leadership team from Capital Law we are excited to partner with the team to support their growth.”
About Pollen Street
Pollen Street is a fast-growing and high-performing private capital asset manager. Established in 2013, the firm has built deep capability across the real estate, financial and business services sectors aligned with mega-trends shaping the future of the industry. Pollen Street manages over €7bn AUM across private equity and credit strategies on behalf of investors including leading public and corporate pension funds, insurance companies, sovereign wealth funds, endowments and foundations, asset managers, banks, and family offices from around the world. Pollen Street has a team of over 95 professionals.
A new salvo in the UK’s collective actions saga puts third-party funding in the spotlight. The Solicitors Regulation Authority (SRA) has criticized aspects of mass-consumer practices—specifically around funding and referral fees—raising uncomfortable questions for claimant firms and their financial backers. The latest flashpoint again involves Innsworth, the funder behind the long-running Mastercard litigation brought by class representative Walter Merricks CBE, where wrangling over settlement distribution and funder economics has spilled into public view.
An article in The Times reports that the watchdog sees “poor practices” in parts of the market and notes escalating tensions tied to the £200 million Mastercard settlement—well below the claim’s original £14 billion headline—prompting Innsworth’s threatened action over the deal’s terms. The piece underscores the funding dynamics now woven into virtually every major UK mass claim, from opt-out competition cases to data-privacy suits; the SRA’s framing suggests a harder regulatory edge on fee flows and governance in arrangements that align firms, funders and marketing affiliates.
Beyond the immediate case drama, two structural trends are converging. First, post-PACCAR contract examination has left funders and class reps renegotiating economics and disclosure with tribunals watching closely. Second, political and judicial appetite for “light-touch” oversight (rather than price caps) remains in flux, even as market size and claimant outreach expand.
If the SRA proceeds from cautionary statements to targeted enforcement, firms may re-paper referral arrangements and introduce additional ring-fencing around funder influence to avoid conflicts.