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An LFJ Conversation with Neil Purslow

April 29, 2024

An LFJ Conversation with Neil Purslow

Neil Purslow co-founded Therium in 2008 and is a director of Therium Capital Management Limited and the firm’s Chief Investment Officer. Neil is a solicitor with over 26 years’ experience and was previously Litigation Counsel in-house for Marsh & MacLennan Companies, Inc. (MMC). Prior to this he was in practice in the City of London with US firm Reed Smith and Withers. Neil is Chair of the Executive Committee and on the management committee of ILFA, he is also a board member of the Association of Litigation Funders, the self-regulatory body for the litigation funding industry in England and Wales. Neil has given expert evidence on litigation funding and speaks regularly at conferences and is often quoted in the media on issues related to the industry and asset class. He gained an MA in Jurisprudence from the University of Oxford (1995). Neil Purslow was ranked as a Tier 1 individual in litigation finance by Chambers and Partners, Leaders League, Law Dragon and other directories. Below is our LFJ Conversation with Neil Purslow: As the PACCAR situation continues to develop, how do you think this will ultimately play out?  Will the litigation funding industry face enhanced regulation in the UK going forward? The steps the Government has taken in response to PACCAR have been very positive and reaffirm the Government’s recognition of the importance of the litigation funding industry in supporting access to justice and the UK legal sector. The Litigation Funding Agreements (Enforceability) Bill (LFA Bill), which is presently going through Parliament, will reverse the PACCAR decision and reestablish the Government’s original policy intent, ensuring continued access to third-party funding in the UK.  The Bill is expected to be passed before the summer recess at the end of July. The benefits of funding were highlighted throughout the recent debate on the Bill in the House of Lords, in particular that funding enables access to justice and upholds the rule of law, enabling ordinary individuals and SMEs to bring claims against better resourced companies and institutions, such as the Post Office. Several Lords even made the point that funders’ returns were fair, given the significant risks involved in funding litigation, especially against large and deep pocketed defendants. This week, the Civil Justice Council (CJC) published the terms of reference for its review of third party litigation funding. It is extremely encouraging that the CJC is committed to making litigation funding more accessible in order to improve access to justice and fairness for all, so that claimants like the sub-postmasters, can seek redress against large corporations.  The litigation finance industry shares that aim. Whatever the outcome of the review, regulation will need to align with the government’s goals of furthering access to justice. The risk with any regulatory regime is that it can have unintended consequences, which could ultimately disadvantage claimants by limiting the availability of funding and curtailing access to justice. How should the industry respond to calls for regulation? Some stakeholders are suggesting that litigation funders should lead the charge here. Do you agree or disagree, and why?  The industry has always taken a proactive approach to regulation through the UK’s Association of Litigation Funders (ALF) and its Code of Conduct which has been influential in setting standards in litigation funding, both for members and non-members alike in the UK and elsewhere.  Litigation funders are already subject to Court’s oversight.  The industry has nevertheless rightly welcomed the CJC review as an opportunity to take a fresh look at the sector and the positive role that it plays in the legal system and how the review can improve access to litigation funding. Consistent with many of the speeches in the House of Lords on the LFA Bill as well as the CJC’s stated objective, the starting point for the review must be the recognition that in the absence of legal aid and with the high cost of litigation, litigation funding is an important and essential tool to provide access to justice.  Any proposals arising from the review should promote the potential for litigation finance to perform that role. The review of the industry provides an opportunity to examine any other changes that would improve the availability of funding to claimants and also deliver better financial outcomes for claimants in litigation.  For instance, empowering the Courts to order defendants to pay successful claimants’ funding and insurance costs would result in significantly improved financial outcomes for claimants and disincentivise the defence strategy of running up costs to stifle claims, seen so starkly in the Post Office litigation. Any regulatory proposals should seek to address a problem and there should be clear evidence that such a problem exists.  Self-regulation of the industry has worked well in practice for over 10 years and litigation finance arrangements have many checks and balances already built in, not least the involvement of lawyers advising claimants on their litigation funding arrangements.  There is an important role for the International Legal Finance Association (ILFA) and the ALF to provide the CJC with an understanding of how claims are funded in practice. Any proposal for regulation must also be workable and effective.  The industry witnessed the impact of the clumsy and inappropriate regulation brought in by the Liberal government in Australia which significantly impeded the proper functioning of the industry for a period until the regulation was withdrawn.  The UK should be wary of falling into that trap. ILFA and ALF are ideally placed to assist the CJC in understanding the practice of litigation finance and the opportunities that exist to make the best use of its potential in upholding the rule of law.  Both organisations will work constructively with policy makers to ensure that the review supports greater access to justice for consumers and SMEs and maintains the UK’s place as a leading global legal centre. Has PACCAR influenced your investment thesis at all? Are you adapting your underwriting standards in any way – either in the UK, or globally?  In common with the entire UK market, Therium has had to take steps as far as possible to mitigate the potential effects of PACCAR.  That in itself has been time consuming and there has been opportunistic satellite litigation which has both wasted Court time and cost money.  The LFA Bill however will restore the pre-PACCAR position for both existing and future funding arrangements, which will remove the uncertainties that PACCAR has created and restore the ability of funders to offer funding to as many cases as possible.  It also preserves the viability of the CAT collective proceedings regime, which is reliant on funding. The Government’s response to PACCAR has demonstrated that it understands and values the benefits that the litigation finance sector brings and that it reinforces the attractiveness of the UK as a jurisdiction in which to invest.  From a public relations perspective, what more can the industry do to convince legislators and the general public that litigation funding is ultimately a force for positive change in the world?  The Post Office scandal has been an important example of how civil litigation can play a pivotal role in righting a huge miscarriage of justice. In turn, the media coverage has been a game changer in increasing awareness of the vital role that litigation finance plays in providing access to justice.  That example continues to resonate with the public and with legislators, with its effects felt both domestically and also internationally. ILFA plays an essential role in helping legislators and policymakers to understand litigation finance and in countering misinformation about the industry pedalled by corporate lobbyists such as the US Chamber of Commerce and their proxies like Fair Civil Justice and its forerunner, Justice Not Profit, which unsuccessfully tried to derail the introduction of the collective proceedings regime in the CAT in 2015. Their objective is to limit access to justice and frustrate litigation against big corporate wrongdoers. It is also important that the benefits of litigation funding to upholding the rule of law are appreciated more widely. Lord Sandhurst made the point in the House of Lords that the absence of legal remedies damages our economic system and the society in which we live.  Finding funding mechanisms to achieve legal remedies for individuals and small and medium sized businesses who do not have the resources to achieve this is of social value and in the public interest. Being able to enforce legal rights is essential for a functioning market economy.  According to Bain and Co’s Transatlantic Confidence Index, the rule of law remains one of the most appealing reasons to invest in the UK. At an event at Gray’s Inn that was supported by The Law Society and the Bar Council, Shadow Justice Secretary, Shabana Mahmood made her first major speech since assuming the role in which she expressed her desire for the UK be home to the fastest growing legal sector in the world. The availability of litigation funding will undoubtedly help to ensure that the UK retains its position as a leading global disputes hub that currently contributes £34 billion to the UK economy each year.
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An LFJ Conversation with Ken Epstein and Matt Leland, Co-Founders, Backlit Capital Solutions

By John Freund |

Ken Epstein is a co-founder and principal of Backlit Capital Solutions and brings 25 years of experience in bankruptcy law, commercial litigation, restructuring and finance. Ken leverages his deep industry expertise to provide tailored solutions for companies, law firms, investors, and individuals navigating complex litigation and financial restructuring challenges.

Prior to co-founding Backlit, Ken was a Senior Investment manager and Legal Counsel in the New York office of Omni Bridgeway, a legal finance and risk management company, where he led the company’s U.S. insolvency litigation finance platform. In this role, he originated, structured, and managed a diverse portfolio of legal assets, playing a key role in many of the firm’s most significant transactions. Prior to his tenure at Omni Bridgeway, he was a managing director at MBIA, a public financial services company, where he led large-scale initiatives and crisis management efforts. He was also on the board of directors of MBIA Services Corp. Ken started his career as a lawyer at Cadwalader, Wickersham & Taft, where he specialized in financial restructuring and corporate bankruptcy law.

Ken graduated from Brooklyn Law School (cum laude) and holds an accounting degree from the University of Maryland. Ken has also served as an adjunct professor of bankruptcy law at Cardozo Law School. He has been recognized in Who’s Who Legal: Thought Leaders – Third Party Funding Guide and the LawDragon Global Restructuring Advisors & Consultants Guide.

Matt Leland brings over 20 years of experience in commercial litigation and litigation finance to Backlit Capital Solutions.  Most recently, Matt was as an Investment Manager and Legal Counsel in the Washington, D.C. office of Omni Bridgeway.  There, Matt sourced and evaluated funding opportunities, negotiated deal terms, and monitored funded matters through to resolution.

Before Omni Bridgeway, Matt served as partner and as a commercial litigator for nearly two decades at AmLaw 100 firms King & Spalding LLP and McDermott Will & Emery LLP, experienced in all facets of civil litigation, including appeals, trials, arbitrations, and mediations. He successfully represented corporate clients engaged in diverse legal issues including government reimbursement claims, contractual disputes, unfair business practices, deceptive trade practices, civil RICO, and trademark infringement. Over his career, Matt helped clients recover hundreds of millions in damages and has extensive experience working closely with corporate executives and in-house counsel to develop budgets, fee structures, and strategies for all phases of litigation, including early case assessment, discovery, trial, and settlement. He has repeatedly been recognized in peer-reviewed guides including The Best Lawyers in America, Legal 500, and Super Lawyers.

Matt received his Juris Doctor from Georgetown University Law Center, where he was the Publications Director for The Tax Lawyer and The State and Local Tax Lawyer. He earned his B.A. in Political Science from the University of New Hampshire.

While earning his law degree, Matt was as a top aide for former U.S. Senator and Congressman John Sununu, after serving previously as the Deputy Campaign Manager on Mr. Sununu’s first campaign.

Below is our LFJ Conversation with Ken and Matt: Could you elaborate on Backlit Capital's approach to fundraising support for law firms, particularly start-ups, and what key factors contribute to successful fundraising in today's market?

There’s been no better time to be a law firm seeking financing, as new investors enlarge the funding universe and options multiply. However, the landscape can be daunting and complex.  We invite those firms to take advantage of our experience.  We have spent years on the funding side of negotiations - evaluating claims and risks - and understand the nuanced distinctions between a fundable investment and one that gets passed over by litigation funders, lenders, and alternate investment sources.

Rather than simply connecting lawyers to potential sources of capital, we collaborate with firms, no matter their experience level, to implement comprehensive strategies that achieve specific financing goals.  We showcase the potential of their assets with smart strategic positioning and precise financial modeling to address the investment concerns of potential funding sources. And to drive successful fundraising, we help firms provide transparency with risk profiling, highlight their operational credibility, and seize upon tactics to mitigate unpredictability so that the firm can showcase high-grade opportunities.

Finally, to ease the burden of this process, we provide end-to-end transaction management.  We take on all of the complex and time-consuming tasks associated with legal funding so that clients can focus on providing first-rate legal services.

With the increasing complexity of legal finance, what innovative risk management strategies does Backlit Capital employ to mitigate potential losses for investors and lenders?

We appreciate that these are high-stakes transactions for both the investor and the claimant and our review is disciplined, transparent and robust. Each transaction is different and we provide additional services depending on the client’s need, but here’s how we approach every opportunity:

  • Early-Stage “Pressure Testing”:  We test key legal theories, jurisdictional issues, damages, and enforcement risk with input from independent experts before approaching funders. Backlit will only move forward with quality transactions that bring clear value to all parties. Our funders know that we’ve done the work and stand behind every law firm and claimant we represent.
  • Contingent Insurance Products:  Whether for judgment preservation or adverse cost coverage, we’ll provide detailed financial modeling and help source appropriate products that can reduce litigation risk and, in turn, improve pricing or expand access to capital.
  • Post-funding Oversight:  We offer ongoing monitoring of case progress, legal developments, and emerging risks.  Our proactive oversight, combined with strategic advisory services, allow for early adjustments to protect investments and provide better measures of valuation as the investment moves through the litigation process. Further services include exploration of secondary market options when an investor wants to acquire or monetize a litigation asset.

By combining deep legal and financial expertise with market tools, Backlit ensures that risk is not just identified, but actively managed.   

How does Backlit Capital stay ahead of emerging trends in legal finance, and what future developments do you anticipate will significantly impact the industry?

We’re always focused on potential shifts in the market.  At Backlit, our experience comprises not only litigation finance, but also decades of credit analysis, restructuring, commercial litigation, and government policymaking.  This expertise enables us to identify how trends in financial, legal, and public sectors might influence litigation funding, and this positions Backlit extremely well for what we see as the biggest catalyst in the market – the addition of significant new funding capacity driven by new investors in the sector, like hedge funds, family offices and middle-market institutions. This provides a great opportunity for claimants and law firms looking for funding, but also injects unprecedented complexity into the marketplace.

At Backlit, we developed our services to not only identify, but capitalize, on opportunities for clients on either side of these transactions. Our connections with and understanding of the private capital space allow Backlit to find and structure deals that address the financial, operational and reporting requirements of all parties. As this market continues to grow, we’re positioned to create exciting new investment opportunities for funders and drive strong deals for clients seeking capital.

Can you share insights into a recent successful deal Backlit Capital facilitated, highlighting the unique challenges and solutions implemented?

We expect that over time, most of our business is likely to be on the brokerage side and we are actively working with numerous clients to develop solutions to their diverse funding needs. In the short period since our launch there are two particular engagements that demonstrate the breath of the services we offer beyond traditional funding.

In the first, we have been engaged as an expert in a multibillion-dollar, high-profile bankruptcy litigation to assist a private equity client in the valuation of a complex litigation asset. Backlit has provided counsel, analytics and testimony in support of the client’s position. Our broad in-house capabilities and market expertise allow us to quickly analyze and deliver valuations that support our clients’ goals and survive deep scrutiny.

We have also been engaged on a project basis to help a large multi-billion dollar investment fund evaluate, structure and close a large loan transaction backed by a legal claim.  The borrower’s existing lending relationship ended when the share collateral was involuntarily converted into a legal claim due to litigation surrounding a merger of the entity that had issued the shares.  This was a time sensitive transaction with high stakes for all involved. Selecting legal counsel, working through conflicts, providing assistance on the unique features of legal finance - a discreet asset class - as part of the diligence and in-house deal team was a rewarding experience.

In the context of distress and insolvency, what specific pre- or post-Chapter 11 assistance strategies have proven most effective for Backlit Capital in maximizing creditor trust and claims management?

While we work across sectors, we have a proven specialty in maximizing litigation assets for entities in financial distress and insolvency. Claimants facing the challenges of bankruptcy often have few other meaningful assets, and are extremely capital-restricted in their ability to effectively pursue damages. Additionally, these parties have fiduciary duties that need to be satisfied fully and transparently. Running a robust marketing process and ensuring best pricing is in the best interest of the estates, will enable the trustees to defend their fiduciary decisions if challenged, and given the multiple interests in the case, ensure a fair process and optimization of assets.

With such complex interests to manage, these clients demand specialized approaches that differ significantly from traditional commercial litigation support.

  • Funding for the debtor or trustee: We can help a debtor, bankruptcy trustee or litigation trustee secure funding to pursue legal claims (e.g., fraudulent transfer, preference, breach of fiduciary duty) or help support ongoing administrative costs. Our process ensures all parties are comfortable with transparency, discipline and reporting.
  • Funding for creditors and committees: We can help creditors and committees push back on a debtor’s attempt to bury valuable claims because they don’t benefit management or insiders.  Consulting with us early in the process can help add negotiating leverage and drive up recoveries.
  • Sale or assignment: When parties want to divest all or part of an estate asset, we can help sell or assign litigation claims and judgments, accelerating recoveries and ensuring a minimum return to stakeholders.
  • Post-confirmation litigation trusts: When establishing a post-confirmation trust to investigate and prosecute claims, we can help drive a competitive process, ensuring that the trust is adequately funded and that key professionals are fairly compensated for their work.
LFJ Conversation

An LFJ Conversation with Juliana Giorgi, General Counsel for Latin America at Loopa Finance

By John Freund |
Juliana Giorgi Is a Colombian lawyer and holds a law degree from Spain, with postgraduate studies in international arbitration. She has over 15 years of experience in consulting, litigation, domestic and international arbitration, and alternative dispute resolution mechanisms. Below is our LFJ Conversation with Juliana Giorgi: Could you elaborate on Loopa Finance’s specific investment criteria when evaluating potential litigation and arbitration funding opportunities in Latin America and continental Europe? The first and foremost consideration in our investment decision-making process is to conduct a rigorous due diligence procedure aimed at maximizing the likelihood that the fund is making a sound investment.  To this end, we follow a two-tiered analysis process comprising both internal and external legal due diligence. The internal review is carried out by our in-house legal team, while the external review is conducted by top-tier law firms retained specifically for this purpose. During these due diligence phases, counsel will thoroughly review the case documentation and information provided by the claimant. To be eligible for funding, the case must meet the following minimum criteria:
  • Financial metrics: The amount of funding sought and the value of the claim must be reasonable and proportionate.
  • Duration: The maximum timeframe the fund is willing to wait for a return on its investment is five years.
  • Respondent’s solvency: There must be sufficient evidence to reasonably conclude that the opposing party has the financial capacity to satisfy a potential award.
  • Merits of the claim: The likelihood of success must be high, based on a legal and factual assessment.
How does Loopa Finance manage the risks associated with funding litigation and arbitration cases, particularly in regions with varying legal systems and enforcement mechanisms? Variability—and even instability—in legal systems is not necessarily a negative factor. On the contrary, it can be advantageous for the litigation funding industry, as it often leads to a higher volume of disputes, thereby generating a broader pool of investment opportunities. What is particularly noteworthy is that legal instability in a given country does not automatically translate into judicial instability or unpredictability in adjudication. In fact, while fluctuations in substantive law may lead to more disputes, the procedural rules and the competence of the adjudicating authorities often remain stable and reliable. This enables us to reasonably forecast litigation outcomes. That said, we recognize that external factors unrelated to the merits of a case may still influence its resolution. To mitigate such risks, our team includes highly trained and internationally experienced dispute resolution lawyers. This internal capability is further reinforced through the engagement of top-tier law firms to conduct independent due diligence, as previously outlined. Finally, we are fully aware that there are exceptional jurisdictions where the level of systemic instability makes outcome predictability unfeasible or where adverse rulings may result from extrinsic factors. In such cases, we simply refrain from investing in disputes arising in those jurisdictions. Since Loopa Finance operates with its own capital, how does this influence your investment strategy and decision-making process compared to firms that use external funding? Operating with our own capital allows us to act with greater agility and make swift investment decisions without relying on third parties, external processes, or outside funding sources. This autonomy is particularly valuable when participating in a “beauty contest” among funders. In such competitive processes—where multiple funds vie for the opportunity to finance a case—clients place a premium on the funder’s ability to respond quickly and decisively. The ability to independently negotiate commercial terms, assess client counteroffers, and move expeditiously through the decision-making process is critical. In this regard, Loopa holds a significant competitive advantage. What impact has Loopa Finance’s funding had on access to justice and the resolution of legal disputes in Latin America and continental Europe? Broadly speaking, our service has a significant social impact and contributes meaningfully to the administration of justice.  On the one hand, we provide the financial resources necessary for a party with a meritorious claim—who may otherwise lack the means to pursue it—to bring their case forward. In doing so, our involvement facilitates access to justice. On the other hand, our service promotes the principle of “equality of arms.” In many disputes, there may be a significant disparity in the financial capabilities of the parties. While the economically stronger party can afford to retain top-tier legal representation, the weaker party may not have such access. Litigation funding helps level the playing field, enabling both sides to secure high-caliber legal counsel and pursue the dispute on more equitable terms. Can you discuss any recent trends or developments in the litigation and arbitration funding landscape that are influencing Loopa Finance’s strategies and priorities? We are a technology-driven litigation fund with operations across Latin America and Europe. The fund has been active since 2019 and has experienced significant growth in recent years. As our operations expand, we have identified several key trends shaping the markets in which we operate: Market Growth Across Jurisdictions While there are substantial differences between the Latin American and European markets, we are seeing growth in both regions.
  • In Latin America, where the litigation funding industry is still in its early stages and claims tend to be smaller in value, we have observed increasing demand and a rising number of funding inquiries. We are funding more cases—particularly in the energy, mining, oil & gas, construction, and infrastructure sectors.
  • In Europe, our activity has increasingly shifted toward portfolio funding, which provides greater risk diversification and operational efficiency. We are also seeing the rise of hybrid funding structures, involving partnerships with insurers and specialized litigation finance products tailored to complex cases.
Moreover, there has been notable growth in environmental and consumer rights litigation, which amplifies the corporate accountability dimension of our portfolio and enhances the social impact of our investments. Integration of Technology and Artificial Intelligence As a technology-based fund, technology underpins every aspect of our operations. Our team includes not only lawyers but also software engineers who have developed a proprietary platform to support the fund’s end-to-end operations. This platform supports the commercial management of leads, case sourcing, and comprehensive case tracking, from legal analysis and economic structuring to contractual execution and post-investment monitoring. It features a wide range of functionalities and is under continuous development. We are consistently integrating advanced tools into the platform, including AI modules to support legal review, machine translation, and data analytics tools, all aimed at increasing the efficiency and accuracy of our case assessment and management processes.
LFJ Conversation

An LFJ Conversation with Bo Moss, President of Bridgehead Legal Capital

By John Freund |

Bo Moss is the Co-Founder and President of Bridgehead Legal Capital. A former litigator in Atlanta and Charlotte, Bo earned a reputation for being a tough but fair adversary. His deep understanding of the legal landscape led him to a Charlotte-based litigation funder, where he leveraged his litigation background to successfully underwrite and tailor loans for contingency fee law firms nationwide.

Since co-founding Bridgehead with Scott Richards and Megan Baer in 2021, Bo has spearheaded the company's mission to provide accessible capital to contingency fee lawyers. Under his leadership, Bridgehead has engaged in over 150 transactions, demonstrating his strategic vision and operational excellence. Bo is a graduate of The University of the South (Sewanee) and Samford University Cumberland School of Law.

Below is our LFJ Conversation with Bo Moss:

Bridgehead Legal Capital emphasizes "Freedom Through Funding" and aims to be a long-term partner. Can you elaborate on how this mission guides your approach to client relationships and what specific long-term benefits firms can expect beyond just capital?

"Freedom Through Funding" isn't just a catchy phrase for us; it's the core of how we do business. As former litigators ourselves, we see every client relationship as a real partnership, all about helping you achieve sustained growth. So, beyond just giving you capital, here's what else firms gain:

  • Smart Advice: We share insights on things like case selection, portfolio management, and growth strategies, drawing directly from our own legal experience. This makes sure our funding acts as a real boost for well-thought-out, lasting expansion.
  • More Control: Our predictable capital gives your firm greater financial freedom. That means less pressure to settle cases too soon, the ability to invest in top-notch experts or the latest tech, and the capacity to take on more truly meritorious cases.
  • Better Portfolio Management: We work hand-in-hand with you to understand your entire case pipeline, helping you spot opportunities to leverage your existing assets for future growth.
  • We're Nimble and Responsive: We anticipate your evolving needs and quickly adapt, offering agile solutions that truly support your journey. We build relationships based on trust and a shared vision for success.

Your services include both Portfolio Loans and Asset Purchase Loans. For a small to mid-sized plaintiff law firm, how do you help them determine which product is the most advantageous for their specific financial needs and case pipeline?

Great question. When it comes to choosing between Portfolio Loans and Asset Purchase Loans, it really comes down to your firm's specific needs and what your case pipeline looks like. We don't do cookie-cutter solutions; instead, we go through a thorough, collaborative process:

  • What are Your Goals? We kick things off by figuring out what you're really trying to achieve – whether it's managing daily expenses, investing in marketing, funding a big, complex case, or growing your team.
  • Looking at Your Pipeline:
    • Portfolio Loans are usually best for firms with a diverse, ongoing stream of contingency cases. They let you tap into the collective value of your active cases, giving you consistent cash flow for general operations or bringing in new clients.
    • Asset Purchase Loans are a better fit if you have specific, high-value, well-developed cases. This lets you monetize a portion of the expected future recovery from that particular asset, giving you a bigger lump sum for targeted investments like major trial expenses.
  • Comfort with Risk: We'll chat about your comfort level with recourse and how different repayment structures fit your risk appetite.
  • Future Cash Flow: We'll project your future cash flow to show how each product impacts your financials, making sure the chosen solution genuinely helps your firm's health.

Ultimately, our job is to guide you in making a smart, strategic decision that truly aligns with your unique business model.

Bridgehead Legal Capital highlights its ability to unlock greater funding for plaintiff law firms by recognizing the value of their case portfolios. Could you explain the unique aspects of your underwriting process that allow you to assess and leverage these portfolios more effectively than traditional lenders?

Our ability to unlock more funding really comes down to our unique underwriting process, which is a big departure from traditional lenders who often just don't have our legal finance expertise:

  • Litigator-Led Due Diligence: This is huge for us. Since many on our team, including founders, are former litigators, we inherently understand case merits, legal strategy, and the practicalities of litigation. We analyze legal strengths, attorney experience, jurisdiction, and potential settlement ranges, letting us accurately evaluate the true value of a portfolio where others might only see uncertainty.
  • Our Own Valuation Models: We've built sophisticated, proprietary models that dig deep into factors specific to contingency fee litigation. This includes case type, complexity, damages assessment, jurisdictional nuances, and historical performance, allowing us to accurately value future earning potential.
  • Portfolio Diversification Analysis: We're really good at understanding the collective strength of an entire portfolio of cases. By looking at diversification by type, litigation stage, and estimated value, we see a more stable asset, which in turn allows us to offer more substantial funding.
  • Looking Forward: Unlike banks that often just look at past performance, we focus on the future earning potential of your active cases, assessing success probability and expected recovery.
  • Relationship-Based Assessment: Our underwriting isn't just numbers; it's also about understanding your firm's operational efficiency, management capabilities, and overall business strategy. This holistic view gives us a more complete picture of your firm's creditworthiness.

This unique blend of legal expertise, sophisticated modeling, and a forward-looking, relationship-based approach is what allows us to leverage your case portfolio so much more effectively than traditional lenders.

The website mentions categories of loans such as "Start-up," "Case Investments," and "Growth Loan." How do you tailor the terms and support for a start-up firm compared to an established firm seeking a growth loan?

We know a brand-new firm has totally different needs than an established one looking to expand. That's why we tailor our loan terms and support accordingly:

For Start-up Firms:

  • Terms: These loans are all about providing that essential working capital to get a solid foundation (think office space, tech, initial marketing, overhead). Repayment structures are often more flexible, maybe with interest-only periods or deferred principal payments, so you can focus on building your case pipeline. Our underwriting here really emphasizes your business plan, the founders' individual legal track records, and how viable your practice area is.
  • Support: As former litigators, we offer invaluable mentorship on building a practice, from getting clients to managing cases efficiently. We can also connect you with other professionals in our network and provide scalable funding solutions as your firm matures.

For Established Firms (Growth Loan):

  • Terms: These loans are primarily based on the proven value and predictable cash flow of your existing case portfolio, meaning much larger funding amounts are possible. With a solid track record, you'll typically qualify for more favorable interest rates and longer repayment periods. The terms are specifically designed to support your growth initiatives, whether that's expanding into new practice areas or acquiring another firm.
  • Support: We provide advanced analysis of your portfolio, helping you spot opportunities for greater efficiency and profitability. We offer data-driven market insights and can help brainstorm strategies for expansion. For complex growth plans, we can even structure customized financial solutions.

Our whole philosophy is about making sure you get the right capital at the right time, with the right level of tailored support, so your firm, no matter its stage, can hit its full potential.

 Given the fast approval process and funds typically delivered within two weeks, what are the key factors that contribute to this efficiency, and what advice would you give to firms to ensure a smooth and rapid funding experience?

Our quick approval process and getting funds to you within two weeks really comes down to our specialized focus and streamlined operations:

  • Specialized Expertise: We only do law firm financing. Our team can quickly and accurately assess legal assets without needing a ton of outside help. We just get the nuances.
  • Streamlined Due Diligence: We've developed a super efficient process that focuses only on the critical information. We know what we need, and we don't ask for extra paperwork. Our internal systems are built for fast data intake and analysis.
  • Agile Structure: As a private lender, we're simply less bureaucratic than big banks. That means quicker internal approvals and faster movement from your application to you actually receiving the funds.

To make sure your funding experience is as smooth and fast as possible, here's my best advice:

  • Be Prepared and Organized: Have your firm's financial statements (past 2-3 years) and a detailed list of your active contingency cases (type, stage, estimated value, deadlines, and expenses) all ready to go. The more organized you are, the faster we can move!
  • Know Your Needs: Clearly tell us exactly how much capital you need and what you plan to do with it. Saying something to us like “Well I am not entirely sure, maybe something in the range of _____” does not give us confidence that the firm has really spent the requisite amount of time properly reflecting upon their current and future funding needs and how our money is going to be used to assist in growing the firm.
  • Designate One Point Person: Pick one person at your firm to be our main contact. This really helps streamline communication.
  • Be Responsive: Our efficiency relies on your quick responses to any information requests or clarifications. The faster you get us what we need, the faster we can get you funded!

By partnering with Bridgehead Legal Capital, you're not just getting capital; you're gaining a strategic ally genuinely committed to your long-term success.