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Key Takeaways from the LITFINCON Event

LITFINCON’s inaugural conference kicked off last week at the Post Oak Hotel in Houston, Texas, with attendees flying in from all over the globe. Guests had a front-row seat to several thought-provoking conversations about the growing asset class from a variety of industry experts.

The LITFINCON event featured a variety of timely and insightful panel discussions. Below are some key takeaways from the two-day conference:

Day 1 highlighted current trends, the state of the industry, best strategies when seeking litigation finance, and the relationship between corporate legal departments and litigation finance.

The day kicked off with the “Views From The Judiciary On All Things Litigation Finance” panel, which was certainly a crowd favorite. Three distinguished judges shared their insights: The Honorable Charles R. Eskridge, III, of the United States District Court for the Southern District Court of Texas, The Honorable Andrew M. Edison, of the United States District Court for the Southern District of Texas, and The Honorable Lauren Reeder of the 234th Judicial District, Harris County. They offered their unique views, as only active judges can, on a variety of issues affecting litigators, funders, and plaintiffs.

Day 2 highlighted what investors should know about this asset class, when and how to use a broker when looking for funding, technology trends in the legal field, and expert insights on fund formation. Day 2’s lunch break was something special, as it featured Chief Comedic Officer of Making Lawyers Laugh, LLC Sheng Weng, who most recently was seen touring with Ali Wong and was a featured stand-up on HBO’s “2 Dope Queens” special. Sheng also wrote for the ABC show “Fresh Off the Boat.” He kept guests entertained and roaring with laughter – a unique addition to the conference agenda.

Guests enjoyed rare in-person networking opportunities, and the opportunity to establish new business relationships. The attendee list included industry-leading firms, such as: Omni Bridgeway, Yieldstreet, Liti Capital, Law Finance Group, Polsinelli, Schulte Roth & Zabel, CAC Speciality, Parker Poe, 4 Rivers Legal, Critchfield, Critchfield & Johnston, Roche Freedman, Women of Litigation Finance (WOLF), Global Litigation Consultants, D. E. Shaw & Co., Arran Capital, Law Office of Philip A. Reale, Dunning Rievman, and Kerberos Capital Management.

Overall, attendees were delighted by how the event turned out. We received some sparkling reviews, a smattering of which is offered for you here:

“LITFINCON was a very positive experience. The range of speakers and panelists was impressive and a great deal of ground relating to the current trends in the industry was covered. The attendees were a good representation of the main industry players, namely funders, attorneys and advisors/brokers. Texas is still a relatively nascent third-party funding market and there are without doubt some exciting opportunities there, particularly in the energy and IP sectors. Siltstone did a great job in setting this up and I am already looking forward to the 2023 renewal!”

  • Peter Petyt (CEO and Co‑Founder, 4 Rivers)

“It was a pleasure to discuss how corporate legal departments can utilize litigation funding at the inaugural LITFINCON. The diversity of viewpoints and experiences of my distinguished co-panelists really contributed to a candid, free-flowing discussion of what more can be done to acclimate corporate legal departments to the exciting possibilities offered by litigation finance.”

  • Gaston Kroub (Partner, Markman Advisors)

“The litigation finance industry is growing rapidly, which makes networking at events like LITFINCON both important and exciting. We are building something together. It is particularly important that we share best practices and that we find ways to communicate those to stakeholders who may not be knowledgeable about them, such as litigation clients and members of the judiciary. LITFINCON did a great job of convening a diverse group and sharing that information.

I particularly enjoyed the “Crypto” panel, “How Will Blockchain, Cryptocurrency, And Other Technological Innovations Impact Litigation and the Legal Field.” It is nice to attend a conference that offers new information and perspectives.”

  • Lauren Harrison (Vice President/Investment Counselor, Law Finance Group)

According to Siltstone Capital, the organizer of the event, LITFINCON was such a rousing success that the second installation is already being planned.

“Our entire Siltstone Capital team was humbled to host industry leaders at our inaugural LITFINCON. LITFINCON attracted a global array of speakers and attendees to help promote best practices for the growing and still malleable field of legal private credit. Hosting the conference in Houston, Texas also helped advance the legal private credit field to one of the biggest legal markets in the country. We can’t wait to host LITFINCON II in March 2023.”

  • Mani Walia (Managing Director & General Counsel, Siltstone Capital)

“The inaugural LITFINCON was a tremendous success. It received rave reviews. I want to thank all the sponsors, panelists, and attendees, who came in from all over the world – London, Geneva, New York, Miami, San Francisco, and Austin. LITFINCON highlighted the growing field of litigation finance and the importance of Texas as a hub that unites all participants in the legal field. Siltstone Capital is excited about continuing the momentum and advancing the litigation finance field by hosting LITFINCON II in March 2023. We expect the event to be two to three times bigger!”

  • Robert Le (Founder & Managing Partner, Siltstone Capital)

We are equally excited for the 2023 version, and look forward to bringing you a recap of that event next year as well!

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Commercial Fundraising

FORIS AG Reports Strong Market Interest in Litigation Financing Fund

By Harry Moran |

As LFJ reported in February, one legal funder in Germany is seeking to elevate its engagement in the country with a new fund that demonstrates significant ambition for the growth of litigation financing in this underserved market.

In an update posted by FORIS AG, the German litigation funder revealed that its FORIS Centris Litigation Financing Fund I has already attracted strong market interest from professional and institutional investors, allowing for case financing to begin. According to the post, the fund was already sufficiently capitalized in February to start backing lawsuits. FORIS AG launched this fund in partnership with Liechtenstein-based CAIAC Fund Management AG and Vienna-based Centris Capital AG.

Frederick Iwans, CEO of FORIS AG, said that the funder was confident it will be able to build on this momentum and reach the fund’s target of financing 20 to 25 cases within the next two years. Iwans also shed some light on the types of cases the fund was able to finance, explaining that FORIS AG had seen “a significant increase in financing requests or cases with amounts in dispute exceeding €50 million”. He also suggested that it was even possible for the fund to support cases above the €100 million threshold.

Michael Nagy, CEO of Centris Capital AG, said that he believes the fund has “hit a nerve” with the market and highlighted that they have already received twelve subscriptions to the fund. Nagy went on to explain that the uncorrelated nature of the litigation financing fund is particularly attractive to investors, given the ongoing turmoil in the stock market and the opportunity for these investors to diversify both their portfolios and risk profiles.

Commercial Regulatory Issues

Bombay High Court Judgment Affirms Litigation Funding’s Legality in India

By Harry Moran |

Although the presence and visibility of legal funding in India is limited, a recent judgment re-affirming the legality of litigation funding will no doubt be seen as a positive sign for supporters of the nascent litigation finance market in the country.

An article on Verdictum covers a ruling in the Bombay High Court which affirmed that third-party litigation funding is neither illegal nor does it violate Section 23 of the Indian Contract Act. The judgment was handed down following the appeal of a decision in the City Civil Court which had quashed the amalgamation of two trusts, ruling that it was a matter of “champertous litigation” and was therefore prohibited by Section 23.

The background of the case begins with the Assistant Charity Commissioner’s approval of a 2005 amalgamation of the Rizvi Education Society and the Kailash Seva Sadan Trust, with the approval later being challenged by the Brihan Mumbai Municipal Corporation (BMC) in the City Civil Court.

In his judgment for the High Court, Justice Sharmila U Deshmukh found that it “cannot be countenanced that third party funding of litigation is per se illegal and violates Section 23 of Contract Act, apart from the fact that such contemplation is alien to an inquiry under Section 50A (2) of Trusts Act.” 

Whilst this ruling was focused on a specific case within the limited context of the amalgamation of these two trusts, the repeated affirmation of litigation funding’s legality in India is a welcome sight for funders considering expanding their services to this jurisdiction.

The full judgment by the High Court in Rizvi Education Society & Ors. v. The Brihan Mumbai Municipal Corporation & Ors can be read here. 

Commercial Legal Innovation

Toremis Speciality Launches Website and Legal Risk Services

By Harry Moran |

In January of this year, LFJ covered the launch of Legatus Holdings Limited, with the legal funding venture designed as a one-stop shop offering funding, legal services, insurance and claims acquisition under one umbrella organisation. Four months later, the insurance arm of this venture has launched its website and offered new insights into the legal risk services it will be offering.

In a post on Toremis Speciality’s website, CEO Nathan Hull introduced the new MGA business and provided an overview of its solutions and capabilities to the legal insurance market. Highlighting the company’s focus solely on legal related risks, Toremis will focus on delivering capabilities in after-the-Event (ATE), contingent risk, and tax liability insurance. Given Toremis’ ties to the other Legatus subsidiary companies (Asertis, KP Law, Cavis), Hull emphasised that the MGA also brings “strong, long-term capacity partners, that understand the space and are committed to its growth.”

Hull, whose involvement with Toremis was revealed at the time of the Legatus launch, brings a wealth of experience in legal insurance to his position as chief executive. Before taking on this new venture, Hull had spent the last five years as Head of Contingent and Litigation Risk Europe at VALE Insurance Partners.

Toremis’ website lists three executives in its senior leadership team, with Sam Tacey and Koosha Kowsari completing the trifecta alongside Hull. Tacey holds the position of Senior Partner, having joined the new venture from Acquinex where he served as Head of Contingent Risks and Claims. Kowsari is in post as the company’s Finance Director, building on a long career in finance and accounting, including his most recent role as Head of Insurance Finance at Marshmallow.