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An LFJ Conversation with Louisa Klouda, CEO at Fenchurch Legal

March 25, 2024

An LFJ Conversation with Louisa Klouda, CEO at Fenchurch Legal

As the litigation funding industry continues to evolve, Louisa Klouda, CEO of Fenchurch Legal shares insights into the sector and Fenchurch Legal’s approach and practices. Below is our LFJ Conversation with Louisa Klouda:

What drew you to the world of litigation funding?

My entry into the world of litigation funding wasn’t a direct one, but rather a spark of curiosity during my previous role in corporate finance and the asset-backed lending world. I came across the concept of litigation funding and found myself instantly drawn to its unique characteristics. I discovered a market dominated by large funders focusing on large cases like class actions. However, I noticed a significant gap: a lack of support for smaller claims, particularly in areas like housing disrepair and the challenges the law firms faced in accessing funding for these meritorious claims. Recognizing the gap in the small-claims market, I saw an opportunity to create Fenchurch Legal in 2020. The aim of the business was twofold: to facilitate access to justice for smaller claims and to provide an avenue for investors looking for alternative investment opportunities.

Can you provide an overview of small ticket litigation funding and its significance in the UK legal landscape?

Small ticket litigation funding plays a vital role in the UK legal landscape, offering an alternative approach to financing legal claims. In essence, it involves providing funding to law firms for smaller value cases across various areas like personal injury, housing disrepair, and financial mis-selling, unlike large-ticket funding which targets high-stakes class actions. Small-ticket funders like Fenchurch Legal focus on quantity, funding a high volume of smaller cases. These case types have clear legal precedent, and are protocol-based and process-driven consumer claims, with high success potential. This subset of litigation funding addresses a gap in the legal financing ecosystem created by rising legal costs and resource-intensive cases. Small ticket litigation funding ensures that even modest claims, like housing disrepair receive the backing necessary to navigate the legal process, ultimately facilitating access to justice and contributing to a more balanced and inclusive legal landscape.

How does this subset of litigation funding attract investors?

The appeal of small-ticket litigation funding to investors is multifaceted, driven by three key factors –  flexible entry points, portfolio diversification, and unique security features. Firstly, it provides investors with lower entry points compared to larger funders. This is particularly attractive to those moving away from traditional markets and seeking a more balanced investment approach with steady returns. The accessibility of smaller minimum investment amounts aligns with the preferences of investors aiming for a diversified and resilient portfolio. Small-ticket funders focus on quantity, funding a high volume of smaller cases. This diversification approach effectively spreads the risk across various law firms, multiple cases and case types, reducing the reliance on the success of a single case. Investors are drawn to the stability and risk mitigation inherent in this investment strategy. Moreover, investors like the insurance-backed nature of this investment. All cases are supported by an After the Event (ATE) insurance policy, covering all costs and disbursements if the case is unsuccessful. Additionally, upfront interest is charged, debentures are in place and there is an assignment over the case proceeds.

How has Fenchurch emerged and established itself in this market, and what key strategies contributed to its growth?

Our key strategy is to have a niche focus on smaller claims within specific case types where we have a deep understanding and only partnering with fully vetted law firms. Recognizing growing interest in litigation funding as an alternative asset class, Fenchurch strategically lowered investment entry barriers making it a more accessible investment solution. This has enabled us to broaden our investor base, enabling us to raise more capital and support a wider range of law firms seeking funding.

How have you seen the landscape of small ticket litigation funding evolve, and what trends do you anticipate for the future?

There’s a noticeable shift towards recognising the significance of smaller-scale claims in the funding market. I anticipate the market to continue its expansion into new case types beyond traditional areas but with that will come changes in the regulatory landscape, potentially impacting market dynamics and requiring adaptation from funders. As a funder specialising in small ticket claims, especially those funded at volume, staying ahead of regulatory changes is important. We remain cautious about specific case types, recognising that shifts in litigation trends could render a case type unviable, as witnessed in the Road Traffic Cases (RTA) cases when fixed costs were brought in. Funders must develop a broad network of contacts to stay informed about evolving market conditions. Another trend I see growing is wider tech adoption within the industry. Technology is playing a pivotal role in streamlining processes, enhancing risk assessment and driving efficiency and scalability. Recognizing the limitations of off-the-shelf solutions, we developed our own loan management software, providing a bespoke platform for managing loan repayments, monitoring, and onboarding. Continued tech integration is needed to enable automation, boost efficiency, enhance risk assessment capabilities, and improve investor reporting. I also see increased awareness and interest from investors. I think small-ticket litigation funding will become increasingly more attractive as investors become more familiar with the potential benefits and opportunities, resulting in a rise in investment inflows. Lastly, the focus on Environmental, Social, and Governance (ESG) considerations is likely to gain prominence, influencing investment decisions and funder strategies. The growing recognition of the value and impact of small-ticket litigation funding aligns with ESG requirements.

What sets Fenchurch Legal apart from other funders? What are your unique value propositions?

Our core strength lies in our deep understanding of the small-ticket claims landscape. We have developed a rigorous and data-driven selection process tailored to this specific segment, allowing us to identify top-tier law firms and high-potential case types with lower individual risk profiles. Through discussions, we’ve learned that law firms often face challenges with other funders, including issues like complex drawdown procedures, undisclosed fees, and the non-funding of crucial costs like WIP capital or case acquisition expenses. Recognizing these pain points, we’ve developed an offering specifically designed to avoid these issues. As mentioned before having access to our own proprietary software has been a game-changer. It has significantly enhanced our whole business operations, driving efficiency and enabling us to scale. This technological edge not only sets us apart but also positions us as an innovative and forward-thinking player in the industry. Additionally, our team is a vital component of our unique value proposition. Made up of experienced professionals who understand the industry, our team ensures we look thoroughly at both legal merit and financial viability. This dual expertise ensures that every funding decision is based on a thorough understanding of the legal intricacies and financial soundness of each case.

Could you elaborate on your approach to case selection and investment criteria?

Our selection process is multi-layered, considering both legal merit and financial viability. In the initial stages, we conduct an in-depth evaluation of case strength, law firm expertise, financial strength and claim history, while also examining the specific legal and procedural landscape surrounding each claim. After completing the underwriting process, we grant each firm a facility limit. They can regularly draw down against this limit, as long as they adhere to the terms of the agreement, including providing a list of claims for auditing and granting us access to their systems. We also employ robust financial modelling and stress testing to evaluate potential returns and manage risk effectively. This approach ensures we invest in case types with strong success potential and manageable risk profiles. So far, we’ve funded various case types with strong merits, including Plevin, Motor Finance Mis-selling (PCP), Tenancy Deposit Schemes, and Housing Disrepair claims. Our compliance criteria for each case type involve thorough vetting, examining details such as case referrals, fee earners, and the experience of law firms. This process enables us to partner with trusted law firms, further mitigating risks associated with our investments. Importantly, Fenchurch Legal only provides funding for cases where After the Event (ATE) insurance has already been obtained. This insurance covers costs and disbursements in the event of an unsuccessful claim. By advancing the premium directly to the ATE Insurer, we ensure that each policy is live at the time of funding, adding an extra layer of security to our investment strategy. This unique security feature enhances the attractiveness of funding ATE claims, aligning with our commitment to minimising associated risks.

The recent PACCAR ruling in the UK has sparked discussions about the future of litigation funding. What are your thoughts on its implications and potential impact on the industry?

The recent PACCAR ruling didn’t impact Fenchurch as our small ticket business model is focused on charging a fixed return per case, regardless of the outcome and not a percentage of damages recovered. However, whilst the ruling presents certain challenges, I believe it ultimately presents an opportunity for the industry to strengthen its practices and regulations.

Could you share your vision for Fenchurch Legal’s future growth and expansion plans?

We plan to maintain our focus on small-ticket litigation funding, leveraging our experience, growing our loan book, and onboarding new borrowers. As the business grows, we plan to deploy more capital aiming to reach a loan book value of £75 million within the next two years. We will also recruit key roles to bolster our team.

Lastly, for investors considering small ticket litigation funding, what key factors should they take into account, and how can Fenchurch Legal add value to their investment strategies?

For investors contemplating small ticket litigation funding, several key factors should be carefully considered to make informed and strategic decisions. Firstly, understand the specific criteria and due diligence processes the litigation funder uses and pay attention to their track record in managing and funding small ticket claims.  Risk management is vital and investors should seek funders with robust strategies in place. This includes an assessment of how the funder mitigates risks associated with smaller claims and adapts to changing circumstances. In the case of Fenchurch Legal, our approach to small-ticket litigation funding is grounded in a commitment to comprehensive due diligence, case assessment, and risk management. We have created an offering suitable for investors seeking diversification, lower risk profiles, access to a broader market, and lower entry points.
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How Nera Capital Reached $150M in Investor Returns

By John Freund |
Aisling Byrne is a Director at Nera Capital, a leading litigation funder with a global footprint, where she plays a central role in driving the firm’s growth and strategic initiatives. With extensive experience in litigation funding and investor relations, Aisling focuses on building strong partnerships with law firms, funders, and stakeholders while overseeing the operational efficiency of the firm. Her leadership combines a pragmatic, solutions-driven approach with a deep understanding of both consumer and commercial claims.
Below is our LFJ Conversation with Aisling Byrne:
Nera recently passed $100 million in investor repayments, citing a “data-driven approach to case selection and risk management” as a key factor. What specific data-centric approaches have contributed the most impact?
At Nera, we see data not as a supporting tool but as the backbone of our decision-making. Our proprietary models assess thousands of variables across historical case outcomes, jurisdictional nuances, law firm performance metrics, and even the efficiency of courts. By feeding this data into predictive analytics, we can more accurately model recovery timelines and probabilities. What’s been most impactful is combining quantitative scoring with qualitative oversight—data helps us remove emotional bias, while our team of experienced professionals ensures the analysis is grounded in real-world legal and enforcement dynamics. That dual approach has allowed us to deliver consistent investor repayments while scaling responsibly.
Nera has now reached $150m in investor returns.
You secured a £20 million funding line from Fintex Capital, bolstering Nera’s ability to support consumer claims and expand funding sources. How do such funding lines influence your ability to take on riskier or less predictable claims, including those where pre-judgment attachment might play a role in enforcement?
Regardless of how many new funding lines we secure, it doesn’t mean our approach changes. In the consumer division, our strategy of supporting proven, legal precedent set claim types and claim selection criteria remains exactly the same—and that high bar has been fundamental to our success and our ability to deliver substantial repayments to investors. The additional capital simply allows us to scale what we already do well, without diluting our standards.
For investors with a different criteria, the commercial division may be better suited. Those cases can sometimes have less predictable timelines, but also offer higher potential returns. In this way, we can align capital sources and timelines with the most appropriate claim types, ensuring consistency in performance while broadening the opportunities we can pursue.
Many financialized legal claims carry the potential for post-judgment or post-award interest and/or enforcement costs. Could you speak to how Nera evaluates the enforceability of judgments, including the likelihood of successful asset attachments (domestic or abroad), in structuring returns for investors?
Enforceability is as important as the merits of the case itself. A favourable judgment is meaningless without a realistic pathway to recovery. At Nera, we always seek to avoid claims where enforceability is in doubt. Before committing, we carry out a comprehensive enforceability assessment, which includes mapping the defendant’s asset profile, reviewing local enforcement regimes, and stress-testing recovery prospects. This rigorous upfront analysis is a cornerstone of our underwriting approach, and in our 15 years of business, we have not experienced enforcement issues—a strong validation of the discipline and prudence built into our process.
Given that litigation finance is often argued to be an “uncorrelated asset class,” how does Nera balance its portfolio of consumer mass claims, commercial disputes, and potential cross-border enforcement matters to provide both stability and high upside for investors?
Diversification is central to our portfolio construction. Consumer claims tend to generate steady, repeatable outcomes that provide stability and heavy settlement cash flows. Commercial disputes, on the other hand, carry larger ticket sizes and higher upside, but sometimes involve greater complexity and longer timelines.
When it comes to cross-border enforcement matters, we take a very cautious stance. We look to avoid supporting claims where enforceability could present difficulties and always conduct an upfront enforcement assessment. By working with leading lawyers and advisers in each jurisdiction, we ensure risks are fully evaluated and mitigated before committing capital.
Because these different claim types are not only uncorrelated with traditional markets but also with one another—thanks to variations in claim structure, jurisdiction, and duration—we can actively balance short-term liquidity against long-term growth. This layered approach allows us to deliver both stability and meaningful upside, while staying true to the uncorrelated nature of litigation finance.
 
As Nera has expanded into the Netherlands and joined the European Litigation Funders Association (ELFA), what regulatory, ethical, or procedural hurdles have you confronted? How do these shape your funding models?
Europe presents both opportunities and challenges. In the Netherlands, collective redress mechanisms are still evolving, and with that comes heightened regulatory and judicial scrutiny. By joining ELFA, we’ve committed to the highest standards of transparency, governance, and ethical practice, which we see not as a constraint but as a competitive advantage.
One hurdle has been adapting our funding structures to meet jurisdiction-specific requirements, such as disclosure obligations and court oversight of funder involvement. These challenges have made us more deliberate in how we design our funding contracts and financial models, ensuring they are robust, compliant, and aligned with the long-term sustainability of the sector. Ultimately, we welcome this direction—it elevates the industry and builds trust with investors, law firms, and claimants alike.
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An LFJ Conversation with Jim Batson and Robert Le of Siltstone Capital

By John Freund |

Jim Batson serves as Managing Partner, General Counsel, and Chief Investment Officer of Siltstone Capital’s legal finance strategy, where he leads investment origination, diligence, and portfolio management for global dispute-related opportunities. With over a decade of experience in legal finance, Jim brings a unique blend of legal expertise and investment acumen to Siltstone’s expanding platform.

Before joining Siltstone, Jim served as the Chief Operating Officer at Westfleet Advisors, a litigation finance advisory company, and before that, as the Co-Chief Investment Officer – U.S. at Omni Bridgeway, a global litigation finance fund manager. At Omni, Jim was instrumental in expanding the firm’s U.S. presence, implementing the U.S. investment strategy, and developing one of the most respected teams in the industry.

Jim began his career as a trial lawyer. He later became a partner at Liddle & Robinson in New York, where he handled groundbreaking cases, including the seminal e-discovery case Zubulake v. UBS Warburg. His experience as both a litigator and investor enables him to evaluate risk and opportunity from multiple angles, making him a trusted partner to law firms, claimholders, and investors.

Robert Le is a Founder and Managing Partner of Siltstone Capital. Prior to founding Siltstone, Mr. Le was a Portfolio Manager at an investment platform of Millennium Partners, a hedge fund located in New York. Mr. Le managed a portfolio of public investments in the energy sector. Before Millennium, Mr. Le helped launch the E&P strategy at Zimmer Lucas Partners (“ZLP”), a Utility and Master Limited Partnership (“MLP”) focused hedge fund. During his tenure, the E&P portfolio became the top performing strategy.

Prior to ZLP, Mr. Le worked as an Analyst at Canyon Capital. Prior to Canyon, Mr. Le was an Investment Banking Analyst at Morgan Stanley in the Global Energy Group. Mr. Le graduated from the University of Pennsylvania magna cum laude and as a Benjamin Franklin Scholar. Mr. Le also received a Rotary Ambassadorial Scholarship for postgraduate studies in Sydney, Australia.

Below is our LFJ Conversation with Jim Batson and Robert Le:

How does Siltstone integrate legal considerations into your investment strategies, particularly in the niche asset classes you focus on?

At Siltstone, legal analysis is at the heart of every decision we make. Before we commit capital—whether it’s in complex commercial disputes, or intellectual property—we start by looking at the case through a legal lens.

We’ve also developed proprietary software that allows us to quantify and track those risks in a disciplined way. By integrating legal considerations directly into our financial models, we’re able to bridge the gap between legal strength and economic value. Bringing on Jim Batson further strengthens our focus on diligence, given his breadth of experience.

Siltstone emphasizes 'organically sourced alternative investment opportunities.' Can you elaborate on the process of identifying and securing these unique opportunities?

When we talk about “organically sourced alternative investment opportunities,” we mean opportunities that come to us through the network we’ve built and cultivated.  Over the years, we’ve developed deep relationships across the litigation finance ecosystem, including law firms, businesses, claimants, insurers, experts, and brokers.  Those connections give us access to opportunities early, often before they hit the broader market.

We’ve also worked hard to create platforms that connect the industry more broadly, most notably LITFINCON—the premier litigation finance conference. LITFINCON has become a central gathering point for funders, law firms, insurers, investors, and thought leaders. In January 2026, we’ll host our fifth iteration in Houston, where we will once again be at the center of conversations shaping the industry and making connections.

By combining long-term relationships, our collective experience, and the connections we form at LITFINCON, we’re able to consistently identify and secure unique, high-quality opportunities that align with our investment strategy.

Siltstone aims to provide 'uncorrelated risk-adjusted returns.' What strategies do you employ to ensure the portfolio remains uncorrelated and resilient to market fluctuations?

At Siltstone, when we talk about delivering “uncorrelated risk-adjusted returns,” we mean building a portfolio that’s insulated from broader market swings. Case outcomes move on their own timelines and are driven by judicial processes, not by macroeconomic headlines.

Our proprietary risk-assessment tools enable us to model duration, damages, appeal exposure, and recovery probabilities, which provides discipline in portfolio construction and helps keep correlations low.

This mix of uncorrelated assets, disciplined structuring, and diversified exposure makes the portfolio resilient, regardless of broader market fluctuations.

Could you share insights into any recent developments or trends you're observing in the legal finance sector, and how Siltstone is adapting to these changes?

One of the biggest developments we’re seeing in legal finance is the continued professionalization and institutionalization of the space. What was once a niche, under-the-radar asset class is now drawing attention from major investors who are looking for uncorrelated returns. That shift brings both opportunity and competition.

We’re also watching growth in secondary markets—funders and investors are increasingly finding ways to trade exposure midstream, whether through portfolio sales, insurance solutions, or securitized products. That liquidity dynamic is changing how capital flows into the sector and how risk is managed.

Another important development is the ever-changing landscape of insurance. The use of insurance to protect downside risk has become far more sophisticated, with products ranging from adverse costs coverage to judgment preservation insurance. For funders like us, insurance provides an additional tool to de-risk investments and expand our ability to structure creative solutions for clients and investors alike.

We’re also seeing the rise of technology and data-driven tools. From case analytics to AI-driven damages modeling, the sector is moving toward greater use of predictive insights. At Siltstone, we’ve leaned into this by building proprietary software to better quantify and track litigation risk, which enhances both origination and portfolio management.

Finally, the regulatory conversation is becoming more active. We’re paying close attention to potential disclosure requirements and other legislative proposals. Our approach is to stay ahead of the curve by structuring deals with transparency in mind and building flexibility into our agreements so that regulatory changes don’t disrupt performance.

LITFINCON has quickly established itself as a premier event in the U.S. Now that it’s expanding globally, what factors drove that decision?

LITFINCON has quickly become the premier litigation finance event in the U.S., and expanding globally was the natural next step. As we continue to deploy capital and evaluate opportunities, we’re seeing that the market is increasingly international as claims, structures, and counterparties are emerging across multiple jurisdictions. To stay at the forefront, we need to be engaged globally.

We’re also seeing greater diversity in both the types of cases and the investment structures being developed around the world. Expanding LITFINCON beyond the U.S. allows us to explore those innovations directly, while also connecting with new partners and perspectives.

That’s why, in addition to hosting LITFINCON Houston on January 14–15, 2026, we’ll be taking the event global—with a conference in Singapore this July and another in Amsterdam this Fall. Ultimately, going global is about building on the momentum we’ve created by expanding relationships, opening new doors, and growing a broader, more connected LITFINCON community.

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An LFJ Conversation with Kris Altiere, US Head of Marketing, Moneypenny

By John Freund |
Kris Altiere is the US Head of Marketing at Moneypenny, the leading provider of customer conversation solutions for the legal sector. With more than 20 years of experience in marketing and brand development, she is an award-winning strategist who helps law firms and legal service providers enhance client experience, strengthen reputation, and drive growth.  Kris is passionate about blending creativity with data-driven insight, ensuring attorneys and their teams benefit from smarter, more efficient ways to connect with clients while maintaining the highest standards of professionalism. Below is our LFJ Conversation with Kris: Litigation funders and firms are under pressure to respond instantly to client inquiries. From your perspective, how can they meet these expectations without overburdening staff or creating burnout? Across both funding companies and law firms, clients expect clear, informed answers almost immediately. The solution isn’t to expect internal staff to be ‘always on’, that leads to fatigue and errors. Instead, the answer lies in building an intake structure that blends smart technology and AI with flexible human support. At Moneypenny, we see huge success when firms use tools like intelligent call routing or secure live chat to capture every inquiry, triage urgency, and pass only relevant conversations to specialists. By combining in-house capability with trusted outsourced teams, organizations maintain round-the-clock responsiveness without compromising staff wellbeing. Moneypenny’s model offers outsourced communication support. What role can outsourcing play in ensuring consistent, high-quality client interactions, and how do you balance personalization with scalability? Outsourced communication support should never feel outsourced. The best providers act as a seamless extension of your team. At Moneypenny, our receptionists are trained to represent the companies brand, understand escalation paths, and client sensitivities, so every caller feels known and valued. This hybrid model means law firms and funders alike can deliver a highly personalized experience, while still having the scalability to absorb surges in demand. That balance is what protects reputation in high-stakes, time-sensitive matters. What best practices have you seen for maintaining responsiveness while also protecting the wellbeing of in-house teams—especially in high-stakes, time-sensitive legal funding matters? 
  • Define clear service levels: agree internally which inquiries require immediate attention and which can wait.
  • Use shared dashboards and call logs so tasks are visible and distributed fairly.
  • Rotate responsibilities for after-hours or urgent coverage and protect genuine downtime.
  • Partner with specialists like Moneypenny for overflow support during campaigns, press interest, or large case volumes.
  • Celebrate client praise so people see the impact of their professionalism, reframing responsiveness as value, not just pressure.
As the litigation funding market becomes more competitive, pricing alone no longer sets players apart. How important is the client journey—from first inquiry through to resolution—in shaping brand reputation? As competition intensifies, fees alone won’t win loyalty. Clients are looking for reassurance and transparency from the very first call through to resolution. Whether it’s a funder evaluating a claim or an attorney guiding a litigant, the speed, clarity, and empathy of your communications define how your brand is perceived. At Moneypenny, we’ve seen firms use exceptional communication to build loyalty, generate referrals, and justify premium pricing, because a smooth, human-led journey builds trust that competitors can’t easily replicate. Many funders struggle to align their communications, marketing, and operations. What practical steps would you recommend to ensure a seamless and empathetic experience across every touchpoint? To align marketing, communications, and operations:
  1. Map the lifecycle for funded matters and legal cases, capturing every stage from inquiry to closure.
  2. Set a consistent tone and language so outreach, intake, and case updates are aligned.
  3. Adopt shared technology (CRM, case management, call notes) to prevent siloed touchpoints.
  4. Monitor & refine: listen to sample calls, gather client feedback, and adjust scripts or processes to stay aligned with brand values.
Moneypenny partners with firms at each of these steps, ensuring consistency across touchpoints and allowing legal teams to focus on the matters that really need their expertise.