Edward T.’s Post

Gross v. Net Return Dispersion in Commercial Litigation Finance The following article is an original content contribution from by Edward T., founder of Slingshot Capital Inc.. Executive Summary: *Gross v. Net return dispersion needs to be considered by investors & fund managers *While present in many private equity classes, managers that can limit dispersion can attract more capital for a given return profile *Wide dispersion prevents many institutional investors from considering investing in the asset class https://lnkd.in/gqc-Q5VT #litigationfinance #litigationfunding #litfin #legalfinance #disputefinance

Litigation Funding - Attracting Diverse Funding Sources The litigation funding arena has seen a surge in diversity among funding sources. Beyond specialised litigation finance firms, institutional investors and alternative capital providers have entered the market in force. Institutional investors such as pension funds, hedge funds, and private equity firms are finding appeal in litigation finance as an alternative asset class. Its potential for uncorrelated returns with traditional investments is drawing substantial capital from these large-scale investors. This influx is driving larger fund sizes and more substantial investments in the industry. Additionally, the lack of correlation between litigation finance returns and broader financial markets can make it an attractive inclusion in diversified investment portfolios. This unique characteristic has the potential to assist investors in mitigating risks linked to market volatility and economic downturns. Litigation Funding is an asset class worth investigating, and if you would like to learn more about the fundamentals of how this truly unique asset class works, please DM me.

I have written previously about the attractiveness of third-party portfolio funding for the private credit market. Essentially, if you have a well-structured, diversified portfolio (which is not always a straightforward process), you are moving the investor's risk away from binary risk to a much lower risk profile which still has attractive returns. There are good insights in this Private Debt Investor article from Zachary Krug of NorthWall Capital and Brandon Baer of Contingency Capital LLC. Please contact me about how best to put together portfolios which are attractive to these and other investors. #thirdpartyfunding #litigationfunding #litigationfinance #lawfirm #litigation #arbitration https://lnkd.in/gE6uF-Wk

Join us for an eye-opening webinar on the lucrative and recession-proof asset class reshaping the legal landscape. Discover why savvy investors are flocking to this rapidly growing market! Don't miss your chance to explore this booming industry! 💼💰 Register now! 👉 https://lnkd.in/gbgTnVJz #LitigationFinance #Webinar #InvestmentInsights #ExperityVentures #LegalFinance #InvestmentOpportunity

Big thank you to Albert Tan, who sat down with me to provide a breakdown on subscription financing and share why infrastructure funds are using this financing model to achieve liquidity. Learn more here.

“In traditional litigation funding, firms tend to focus on single event cases with a high level of binary risk in each investment. So, there are multiple win or lose bets that together create a portfolio with decent returns. Our approach tends to focus on law firm finance, so we access broader portfolios with diversification across a number of different claims with different timelines."   Zachary Krug, Managing Director in our Legal Assets Investment team, recently spoke to Private Debt Investor about litigation finance, for an article discussing key trends in specialty finance.   You can find the article here: https://lnkd.in/eqrbm9hX #legalassets #litigationfinance #privatecredit

Here's the latest in Emily Siegel's insightful articles on recent issues experienced by some funders. Duration risk is clearly a big part of this discussion; some funders did not estimate this correctly when making investor pitches a few years back and are now feeling the consequences. Well-packaged and advised cases that address duration risk along with structured case budgets, damages evaluation, routes to recovery etc- with predictive analytics where possible- are ultimately those which will deliver the best investor returns. In conjunction with the above, funds need to be structured properly. They need adequate human resources for the capital they are managing but they also need to get clever about outsourcing and using technology to improve efficiency and speed of execution. Funds with unnecessary headcount and poorly managed origination (e.g Augusta, which Emily Siegel references) will always struggle in this market. LexShares abandoning its capital raise, cutting staff, and changing its CEO on several occasions, hardly inspires confidence. Perhaps this is all just survival of the fittest but you can't help but think that some of the damage could have been avoided with more prudent planning and a better understanding of the market. #litigationfinance #litigationfunding #legalfinance #thirdpartyfunding #lawfirm https://lnkd.in/ggHzuDBM

Learn about the effects of economic difficulties on portfolio companies and their private fund sponsors in 2024. In our ongoing Top Ten Regulatory and Litigation Risks for Private Funds series, our asset management litigation team discusses how financial strain and changes in interest rates are transforming the industry, driving disputes, and increasing litigation risks. https://bit.ly/3vs3nbT #Proskauer #privatefunds #privatecapital #assetmanagementlitigation

Litigation funding is not just a mechanism for businesses facing financial strain. It can also be an investment opportunity, as Deminor Senior Legal Counsel, Paloma Castro Hernández explores in her blog: 'Litigation financing as an opportunity in the investment market.' In the blog article, Paloma provides insight how litigation funding can offer as strategic choice for those looking to: ➡️ Allocate capital wisely ➡️ Mitigate risk ➡️ Maintain liquidity You can read more about the benefits that litigation financing can bring your organisation in Paloma's full article here: https://lnkd.in/eHtiD5dJ #LitigationFinance #RiskManagement #Liquidity #LitigationFunding

•📳 BRIEFING NOTE | Asset Recovery and Litigation Finance Opportunities 💵 In April 2024, Martin Kenney and Jack LeGresley published a Briefing Note in 'The Company Lawyer', outlining the case for litigation funding of asset recovery matters. ➡️ Litigation finance is a rapidly expanding asset class. Investors are attracted by an appealing risk-reward profile. The performance of the asset class differs depending on the category of claim. ➡️ Martin and Jack's article explains how the asset recovery category of claims are an attractive investment opportunity for litigation funders. Read more in our Briefing Note below: 📲 https://lnkd.in/ekSKY3Z9 #assetrecovery #litigation #litigationfunding #litigationfinance #leadinglawyers