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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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Longford Capital Doubles Down to Support American Innovation

By John Freund |

Longford Capital Management, LP today announced that it has launched the Longford Capital American Innovation Initiative to help American inventors protect their legal rights, access the U.S. legal system, and advance American innovation.

America is the greatest country in the world and Americans are achieving advancements in every facet of our lives, including healthcare, artificial intelligence, clean energy, technology, aerospace, cybersecurity, transportation, wireless communications, and many others. Intellectual property is critical to American exceptionalism and national security. American inventors are systematically the victims of intellectual property theft at the hands of foreign and domestic bad actors. Well-financed multi-national corporations steal the innovations of small and medium size American companies leaving them will little options to protect their legal rights in the expensive U.S. legal system. For more than a decade, Longford has been supporting American inventors, investing approximately $500 million to support nearly 100 intellectual property owners trying to defend their assets. These efforts have resulted in recoveries of more than $1.5 billion from patent infringers.

Take, for example, Malcolm Beyer, Jr., a graduate of the United States Naval Academy, retired Captain in the U.S. Marines, and small business owner. His company developed a communication system that increases safety and operational effectiveness for the U.S. military, law enforcement, and first responders. When his patented technology was infringed by foreign companies, he didn’t have the money to defend his legal rights in court. He turned to Longford Capital. Longford provided millions of dollars to pay his legal fees, which allowed Mr. Beyer to successfully defend his legal rights and protect his innovation. Without access to litigation finance, Malcolm Beyer’s company would not have survived.

Today, we are ramping up our efforts to support our country, American inventors, small and medium size businesses, and the advancement of American exceptionalism. The ability to protect innovation through the patent system and the U.S. legal system is essential to attract investment and encourage the best and brightest Americans to dedicate their careers to improving our lives. Longford’s funding empowers American innovation and makes America stronger. Members of Longford’s legal team are perennially recognized as leading IP strategists with an established record of developing and implementing world-class IP value creation programs for American companies.

About Longford Capital

Longford Capital is a leading private investment company that provides capital to leading law firms, public and private companies, research universities, government agencies, and other entities involved in large-scale, commercial legal disputes. Longford was one of the first litigation funds in the United States and is among the world’s largest litigation finance companies with more than $1.2 billion in assets under management. Typically, Longford funds attorneys’ fees and other costs necessary to pursue meritorious legal claims in return for a share of a favorable settlement or award. The firm manages a diversified portfolio, and considers investments in subject matter areas where it has developed considerable expertise, including, business-to-business contract claims, antitrust and trade regulation claims, intellectual property claims (including patent, trademark, copyright, and trade secret), fiduciary duty claims, fraud claims, claims in bankruptcy and liquidation, domestic and international arbitrations, claim monetization, insurance matters, and a variety of others.

Commercial Legal Innovation

Startup Founder Touts Data-Driven Funding Model

By John Freund |

A litigation funding startup founder is making the case that technology, disciplined underwriting, and alignment with law firms will define the next phase of growth in the funding industry.

In Part II of its interview series, Above the Law spotlights the founder’s views on building a differentiated funding platform in an increasingly competitive market. The discussion centers on how newer entrants can compete with established players by leveraging data analytics, focusing on select case types, and maintaining tight operational controls. Rather than pursuing volume for its own sake, the founder emphasizes a strategy built around rigorous case selection and long-term partnerships with law firms.

A key theme in the interview is the importance of underwriting discipline. The founder notes that not all meritorious cases make good investments, underscoring the need to evaluate damages models, collectability, and litigation timelines with precision. Technology plays a central role in that process, with analytics tools helping to assess risk factors and identify patterns across similar claims. This approach, the founder argues, allows the company to move efficiently while avoiding the pitfalls of overly aggressive capital deployment.

The interview also touches on market education. Despite litigation finance’s growing acceptance, misconceptions persist among lawyers and corporate stakeholders. The founder suggests that transparency around pricing, control, and alignment of interests remains critical to winning trust—particularly among firms that may be considering funding for the first time.

Commercial

AI Reshapes Mass Torts With Cost-Saving Promise

By John Freund |

Artificial intelligence is rapidly moving from a back-office efficiency tool to a central driver of strategy in mass tort litigation, with significant implications for plaintiff firms, defense counsel, and the litigation funding community.

An article in Bloomberg Law explores how AI-powered tools are transforming the economics of large-scale product liability and personal injury cases. From claimant intake and medical record review to document analysis and settlement modeling, AI platforms are enabling law firms to process vast amounts of data at a fraction of the traditional cost and time. In mass torts—where tens of thousands of claims can hinge on nuanced medical and factual distinctions—these efficiencies are particularly valuable.

According to the report, firms are deploying AI to automate the review of medical records, identify injury patterns, and categorize claimants more quickly. This not only reduces overhead, but also enhances early case assessment, helping firms determine which claims warrant full investment. On the defense side, corporate legal teams are leveraging similar technologies to assess exposure and streamline discovery. The result is a technological arms race in high-volume litigation.

While some observers raise concerns about accuracy, oversight, and ethical guardrails, proponents argue that AI can reduce administrative waste and free attorneys to focus on higher-value legal analysis. Vendors servicing the mass tort bar are also positioning AI as a way to increase access to justice by lowering the cost of bringing claims that might otherwise be economically unviable.