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Key Takeaways from LFJ’s Special Digital Event: “Investor Insights into Consumer Legal Funding”

Key Takeaways from LFJ’s Special Digital Event: “Investor Insights into Consumer Legal Funding”

Litigation Finance News
This past Tuesday, Litigation Finance Journal hosted a special digital event, “Investor Insights into Consumer Legal Funding.” The panel discussion featured a trio of institutional investors, including Ben Kaplan (BK), co-founder of C9 Partners, Don Plotsky (DP), co-founder of Uinta Investments, and Michael Morris (MM), Managing Director of Northleaf Capital. Dan Avnir (DA), Managing Director of Bryant Park Capital moderated the discussion.  The panel covered a wide range of ground on Consumer Legal Funding as an asset class. Below are some key takeaways from the event:             DA: What types of investments do you target across the legal funding marketplace? BK: We target investments in operating companies. Operating companies with direct or indirect exposure to underlying consumer litigation assets which can include funded assets, with medical liens being the core focus. DP: We’re looking to basically get investment exposure to the asset—the way we do it is typically in some sort of structured transaction where we’re providing liquidity to the funding company. We’re definitely not plaintiff-facing…we’ll also buy cases directly and partner with funding companies that might be too large for their balance sheets. MM: We’re about a 15 billion dollar AUM, operating a range of strategies across the credit to equity continuum to get exposure to underlying assets. Generally, we’re looking to deploy $25-200 million or so, in some sort of partnership form with the funder.  DA: What can you say about your experience with collections these days? Have there been any variants, as compared to pre-COVID levels? BK: Interesting questions, pre-COVID versus post-COVID. Again, what I’m sharing is from the viewpoint of medical liens where there’s probably more volatility in and around that asset class depending on geography and a myriad of other circumstances—the nature of the treatment whether it’s surgery or MRI. To summarize, when COVID hit, there was actually, we experienced across a few different areas, a massive acceleration. At the outset of COVID, the takeaway is that there was an acceleration of collections. What I would say is that COVID has advanced…what we’re starting to see now is a backlog of cases attributable to court closures and other issues, that I would say at the beginning of 2021 has started to slow down collections a bit. Insurance companies have taken more of an aggressive posture with respect to litigation and they’re fighting those a little bit more aggressively. So I think we’ve seen an acceleration early on in COVID, and a bit of a slowdown in early 2021. DA: Don, what are you seeing out there from the funders you’ve been partnering with? Are trials in most states delayed? DP: In many cases, if not most typically, there’s some sort of settlement involved, rather than necessarily a trial verdict. But we’ve definitely noted an extension of maturity of the assets in the portfolio. Statistically, we would look at an 18-month duration to a three-year final type of profile on the assets that we buy, and we’re seeing things really creep out there beyond three years. Some of the assets that we own, we expected to have gotten greater cash flows than we received so far. We hear from the funding companies that business has definitely slowed down 20 or 30%, and we’re noting the extension of the portfolio. That certainly seems to be COVID-related. DA: What are your current return expectations across these assets that you’re investing in? Have the results lived up to the expectations you had? MM: There are two different lenses through which to look at it. I think in the space overall, in the two primary areas of the US…I do think over the last several years going back even before COVID, you seen some return compression at the asset level. As more money has come into the space, the search for yield that you can’t help but read about, it has made its way into the space a bit. DA: Are you seeing origination levels still down across the board as compared to pre-COVID levels, or are we beginning to see an uptick as of late? DP: Again, we’re not plaintiff-facing, so we don’t have people coming through the door. What we do see is fairly steady activity from the funding companies we deal with. What I’ll point out, is that more so than the actual volume of cases, it’s the condition of the financial markets surrounding this asset that are really driving supply. DA: What is the typical ROI target for a facility to a pre-settlement funding company? What information would you look to review in consideration of a facility? DP: From an investment perspective, we’re looking for a low-to-mid teen preferred rate of return…so in terms of total return on investment, we would hope to get perhaps slightly higher than that. When you look at all the components of the net return to investors, you also have to take into account that there are enormous cash flows here. We look to deliver 10-12% net annual return to our investors, and after that, 15% IRR. MM: For us, we’re sort of looking for kind of the best run cleanest plain vanilla senior debt, to make high single digits, and go up from there. DA: On pre-settlement funding side, if a group starting an origination platform today, what would you say would be the biggest challenges and opportunities? BK: I think the greatest opportunity is probably that there exists enough people who have been involved with businesses that have become institutional at this point, that there’s some good talent out there in terms of people who really know how to run a business and manage balance sheets and understand the industry. I think it’s an opportunity as the industry has grown…there’s better human capital out there.
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Karyn Cerulli Joins High Rise Financial to Bolster PI Funding

By John Freund |

High Rise Financial has added industry veteran Karyn Cerulli as Regional Vice President of Sales, deepening the Los-Angeles-based funder’s reach into the personal-injury bar. Cerulli spent more than a decade with FindLaw and Thomson Reuters, where she partnered with firms on digital marketing and business-development strategies. In her new role she pivots from lead generation to liquidity, positioning High Rise’s non-recourse advances as a client-care tool for plaintiffs’ firms facing lengthy litigation timelines.

A post on LinkedIn sets out Cerulli’s agenda: hands-on attorney support, a “best rate guarantee,” and white-glove service that places “zero pressure” on case strategy while delivering cash within days. Cerulli frames High Rise as a complement rather than a competitor to existing funders, inviting firms to keep her on standby as a “second option” or safety net when primary partners stall or pricing shifts.

The move comes amid rapid growth for High Rise, which secured a $100 million senior credit facility late last year to expand its pre-settlement portfolio and medical-lien program. The funder touts 24-hour approvals, no credit checks, and repayment only from a successful resolution—features that resonate with Cerulli’s long-time focus on consumer-friendly legal services. With her network of plaintiff-side marketers and case managers, the company hopes to accelerate origination across high-volume auto and premises claims.

Golden Pear Upsizes Corporate Note to $78.7M Amid Growth Plans

By John Freund |

Golden Pear Funding has extended and upsized its investment-grade corporate note to $78.7 million, further bolstering the firm's capacity to serve the expanding litigation finance sector. The New York-based funder, a national leader in both pre-settlement and medical receivables financing, said the proceeds will support working capital and fuel strategic growth initiatives.

A press release from Golden Pear outlines how the capital raise reflects continued investor confidence in the firm’s business model. CEO Gary Amos noted that the infusion is critical as Golden Pear seeks to scale alongside the “rapidly expanding litigation finance market.” CFO Daniel Amsellem added that the new funding aligns with the company’s capital allocation strategy, aimed at optimizing operational efficiency and executing strategic projects.

Brean Capital, LLC acted as the exclusive financial advisor and sole placement agent on the transaction.

Founded in 2008, Golden Pear has funded more than $1.1 billion to over 87,000 clients and remains one of the largest specialty finance companies in the U.S. Its business model spans legal case funding and medical receivables purchasing, with backing from a network of private equity partners that provide institutional support for continued expansion.

Mayfair Legal Launches Wildfire Support Program for Plaintiffs

By John Freund |

Mayfair Legal Funding has unveiled a new initiative aimed at aiding wildfire victims in Los Angeles and Maui by providing pre-settlement advances tailored to individuals pursuing legal claims related to recent wildfire disasters. The program seeks to ease the financial burden on plaintiffs during the lengthy litigation process, allowing them to cover essential living expenses and medical costs without being forced into early or inadequate settlements.

An article in OpenPR reports that Mayfair’s program will provide wildfire-impacted claimants with cash advances while their cases proceed through court or settlement negotiations. The funding is non-recourse, meaning recipients are only obligated to repay the advance if their case is successful. This offering is particularly timely in light of the mounting legal battles related to utility-sparked wildfires in California and the catastrophic 2023 fires in Maui, both of which have left thousands seeking legal recourse and financial recovery.

Mayfair emphasized that this initiative aligns with its mission to ensure access to justice regardless of a claimant’s financial status. “We believe that no one should have to choose between basic survival and pursuing a rightful claim,” said a spokesperson for the funder, noting that the company’s underwriting process is designed for speed and minimal paperwork.

With natural disasters on the rise and litigation timelines stretching longer than ever, targeted pre-settlement funding like this may become an increasingly vital tool for plaintiffs. The wildfire-specific program from Mayfair underscores a growing trend of funders developing specialized products for mass torts and disaster-related litigation—an area likely to see heightened investor and regulatory attention in the years ahead.