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Key Takeaways From LFJ’s Podcast With Erik Bomans, CEO and Executive Board Member of Deminor

May 31, 2022

Key Takeaways From LFJ’s Podcast With Erik Bomans, CEO and Executive Board Member of Deminor

On the latest episode of the LFJ Podcast, we spoke with Erik Bomans, CEO and Executive Board Member of Deminor. Mr. Bomans discussed recent developments and trends in litigation funding in continental Europe, including what the total addressable market looks like and how that is expected to grow over time, how country-specific jurisdictions are differentiated, some of the main barriers to investing in litigation funding in Europe, and how the regulatory environment across the continent can actually be a benefit to funders. Below are some key takeaways from the conversation, which can be found in full here. LFJ: How big is the European market for funding? How do you assess the total addressable market?  EB: We have conducted our own research and have estimated the total addressable market in Europe at $1.8B, and that includes the UK. It is a small market, we estimate that it is 16% of the total addressable market of litigation funding.  By comparison, we estimate that the total addressable market in the US is $9B. That is nearly 5x bigger than the entire European market.   When we say the total addressable market, we mean the potential for litigation funding. We get to these numbers by looking at the value of the litigation market, and we apply a percentage which is the penetration rate in that specific market.  LFJ: In terms of a country specific breakdown, I imagine most of the activity happening in Germany and France. Your company Deminor has offices in Belgium, Luxembourg and Milan, so there must be a lot of action in these other jurisdictions as well. Is that the case, is there a lot of activity across Europe?  EB: We are active in most European countries. The top countries without a doubt are the UK and Germany.  We estimate the total addressable market in the UK at $800M. The other $1B is spread out over continental Europe. With Germany definitely taking the biggest part, nearly ⅓. . The Netherlands is the third most active country in Europe.  LFJ: What are some of the barriers to investing in the litigation funding market? Can you share some challenges funders find in this market?  EB: There are pitfalls, Europe is a highly regulated market in general. Litigation funding contracts come with mandatory rules with highly regulated rules such as consumer protection. In Germany and France, legal advice can only be provided by practicing lawyers.  One of the areas in Europe where litigation funding has been scrutinized most in Europe is antitrust cases, where some funders have used the assignment level to structure their litigation funding agreements.   LFJ: How does the EU’s regulatory environment provide opportunities for litigation service providers? I want to ask you specifically about Deminor. How does the regulatory environment provide your business with growth opportunities? EB: Antitrust is the next big area of growth, with the UK and Germany taking the lead. With Italy and Spain becoming active in this area as well. Litigation finance is a risky business, but there are new areas of growth in new emerging areas of litigation funding. Definitely, there are new  opportunities there for litigation funders. But it will be important for litigation funders to pick the right cases.  LFJ: What are your predictions for how the EU litigation funding market develops over the next few years? EB: Litigation funding is strongly growing here in Europe. The business is volatile, and no matter how much you diversify, returns may always be volatile.    
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A Framework for Measuring Tech ROI in Litigation Finance

This article was contributed by Ankita Mehta, Founder, Lexity.ai - a platform that helps litigation funds automate deal execution and prove ROI.

How do litigation funders truly quantify the return on investment from adopting new technologies? It’s the defining question for any CEO, CTO or internal champion. The potential is compelling: for context, according to litigation funders using Lexity’s AI-powered workflows, ROI figures of up to 285% have been reported.

The challenge is that the cost of doing nothing is invisible. Manual processes, analyst burnout, and missed deals rarely appear on a balance sheet — but they quietly erode yield every quarter.

You can’t manage what you can’t measure. This article introduces a pragmatic framework for quantifying the true value of adopting technology solutions, replacing ‘low-value’ manual tasks and processes with AI and freeing up human capital to focus on ‘high-value’ activities that drive bottom line results  .

A Pragmatic Framework for Measuring AI ROI

A proper ROI calculation goes beyond simple time savings. It captures two distinct categories:

  1. Direct Cost Savings – what you save
  2. Increased Value Generation – what you gain

The ‘Cost’ Side (What You Save)

This is the most straightforward calculation, focused on eliminating “grunt work” and mitigating errors.

Metric 1: Direct Time Savings — Eliminating Manual Bottlenecks 

Start by auditing a single, high-cost bottleneck. For many funds, this is the Preliminary Case Assessment, a process that often takes two to three days of an expert analyst's time.

The calculation here is straightforward. By multiplying the hours saved per case by the analyst's blended cost and the number of cases reviewed, a fund can reveal a significant hard-dollar saving each month.

Consider a fund reviewing 20 cases per month. If a 2-day manual assessment can be cut to 4 hours using an AI-powered workflow, the fund reallocates hundreds of analyst-hours every month. That time is now moved from low-value data entry to high-value judgment and risk analysis.

Metric 2: Cost of Inconsistent Risk — Reducing Subjectivity 

This metric is more complex but just as critical. How much time is spent fixing inconsistent or error-prone reviews? More importantly, what is the financial impact of a bad deal slipping through screening, or a good deal being rejected because of a rushed, subjective review?

Lexity’s workflows standardise evaluation criteria and accelerate document/data extraction, converting subjective evaluations into consistent, auditable outputs. This reduces rework costs and helps mitigate hidden costs of human error in portfolio selection.

The ‘Benefit’ Side (What You Gain)

This is where the true strategic upside lies. It’s not just about saving time—it’s about reinvesting that time into higher-value activities that grow the fund.

Metric 3: Increased Deal Capacity — Scaling Without Headcount Growth

What if your team could analyze more deals with the same staff? Time saved from automation becomes time reallocated to new higher value opportunities, dramatically increasing the value of human contributions.

One of the funds working with Lexity have reported a 2x to 3x increase in deal review capacity without a corresponding increase in overhead. 

Metric 4: Cost of Capital Drag — Reducing Duration Risk 

Every month a case extends beyond its expected closing, that capital is locked up. It is "dead" capital that could have been redeployed into new, IRR-generating opportunities.

By reducing evaluation bottlenecks and creating more accurate baseline timelines from inception, a disciplined workflow accelerates the entire pipeline. 

This figure can be quantified by considering the amount of capital locked up, the fund's cost of capital, and the length of the delay. This conceptual model turns a vague risk ("duration risk") into a hard number that a fund can actively manage and reduce.

An ROI Model Is Useless Without Adoption

Even the most elegant ROI model is meaningless if the team won't use the solution. This is how expensive technology becomes "shelf-ware."

Successful adoption is not about the technology; it's about the process. It starts by:

  1. Establish Clear Goals and Identify Key Stakeholders: Set measurable goals and a baseline. Identify stakeholders, especially the teams performing the manual tasks- they will be the first to validate efficiency gains.
  2. Targeting "Grunt Work," Not "Judgment": Ask “What repetitive task steals time from real analysis?” The goal is to augment your experts, not replace them.
  3. Starting with One Problem: Don't try to "implement AI." Solve one high-value bottleneck, like Preliminary Case Assessment. Prove the value, then expand. 
  4. Focusing on Process Fit: The right technology enhances your workflow; it doesn’t complicate it.

Conclusion: From Calculation to Confidence

A high ROI isn't a vague projection; it’s what happens when a disciplined process meets intelligent automation.

By starting to measure what truly matters—reallocated hours, deal capacity, and capital drag—fund managers can turn ROI from a spreadsheet abstraction into a tangible, strategic advantage.

By Ankita Mehta Founder, Lexity.ai — a platform that helps litigation funds automate deal execution and prove ROI.

Case Developments Commercial

Burford Capital’s $35 M Antitrust Funding Claim Deemed Unsecured

By John Freund |

In a recent ruling, Burford Capital suffered a significant setback when a U.S. bankruptcy court determined that its funding agreement was not secured status.

According to an article from JD Journal, Burford had backed antitrust claims brought by Harvest Sherwood, a food distributor that filed for bankruptcy in May 2025, via a 2022 financing agreement. The capital advance was tied to potential claims worth about US$1.1 billion in damages against meat‑industry defendants.

What mattered most for Burford’s recovery strategy was its effort to treat the agreement as a loan with first‑priority rights. The court, however, ruled the deal lacked essential elements required to create a lien, trust or other secured interest. Instead, the funding was classified as an unsecured claim, meaning Burford now joins the queue of general creditors rather than enjoying priority over secured lenders.

The decision carries major consequences. Unsecured claims typically face a much lower likelihood of full recovery, especially in estates loaded with secured debt. Here, key assets of the bankrupt estate consist of the antitrust actions themselves, and secured creditors such as JPM Chase continue to dominate the repayment waterfall. The ruling also casts a spotlight on how litigation‑funding agreements should be structured and negotiated when bankruptcy risk is present. Funders who assumed they could elevate their status via contractual design may now face greater caution and risk.

Commercial

Manolete Partners PLC Posts Flat H1 as UK Insolvency Funding Opportunity Grows

By John Freund |

The UK‑listed litigation funder Manolete Partners PLC has released its interim financial results for the half‑year ended 30 September 2025, revealing a stable but subdued performance amid an expanding insolvency funding opportunity.

According to the company announcement, total revenue fell to £12.7 million (down 12 % from £14.4 million a year earlier), while realised revenue slipped to £14.0 million (down 7 % from £15.0 million). Operating profit dropped sharply to £0.1 million, compared to £0.7 million in the prior period—though excluding fair value write‑downs tied to the company’s truck‑cartel portfolio, underlying profit stood at £2.0 million.

The business completed 146 cases during the period (up 7 % year‑on‑year) and signed 146 new case investments (up nearly 16 %). Live cases rose to 446 from 413 a year earlier, and the total estimated settlement value of new cases signed in the period was claimed to be 31 % ahead of the prior year. Cash receipts were flat at about £14.5 million, while net debt improved to £10.8 million (down from £11.9 million). The company’s cash balance nearly doubled to £1.1 million.

In its commentary, Manolete emphasises the buoyant UK insolvency backdrop — particularly the rise of Creditors’ Voluntary Liquidations and HMRC‑driven petitions — as a tailwind for growth. However, the board notes the first half was impacted by a lower‑than‑average settlement value and a “quiet summer”, though trading picked up in September and October. The firm remains confident of stronger average settlement values and a weighting of realised revenues toward the second half of the year.