While Bentham IMF appreciates the role it can play in giving plaintiffs the resources they need to have a fighting chance in cases where the strength of their claims merit pursuit, we must exercise caution when making investments.
IMF Bentham is delighted to be recognised as the only ‘Band 1' funder in the Asia-Pacific from the legal industry’s leading global directory, Chambers and Partners. We are also one of only two funders ranked Band 1 in the United States.
What many lawyers may not realize is that they can take proactive steps to do something about it—and in the process obtain new, or more, business while forging a stronger relationship with their clients. In working with a litigation funder, outside counsel can develop a plan for alternative fee arrangements for affirmative litigation that will drive revenue for their client, trim litigation costs, and reduce risk.
Litigation funding isn’t just for clients: increasingly, law firms are turning to funders to help them manage the business side of law so that they can better focus on winning cases, meeting client needs, and attracting new business.
Litigation finance can serve as a powerful tool for new general counsel looking to transform their law departments. The new GCs are inheriting a rapidly shifting legal department landscape. Increasingly, companies are expecting law department leaders not only to mitigate risk, but to help generate revenue and boost corporate profit margins.
Lawdragon’s 2019 guide to the 100 Leading Legal Consultants and Strategists has recognized Andrew Saker and Allison Chock among leading professionals in commercial litigation funding.
Legal industry surveys estimate 72 percent of litigators will have firsthand experience working with a litigation financing company within two years. Find out what sets a funder apart.
Many firms are now turning to litigation finance to get comfortable with taking matters on contingency. With litigation finance, firms are given the opportunity to maximize revenue and generate greater value for their clients.
Litigation finance is often thought of as a resource used solely by law firms, individual claimants and small companies. However, the benefits of using it to pursue strong claims also appeal to mid-sized and large companies.
When funding is used to finance litigation, legal spending is removed from the books, the company’s bottom line improves, and cases are transformed into financial assets.
Litigation finance allows law firms and companies access to a source of capital that can be far more flexible than other financing options—with stronger results for the bottom line.
Over the course of its years in the litigation finance industry, Bentham has developed funding criteria to guide its investment strategy. These criteria are tailored to each type of funding product Bentham offers, and, while they vary slightly by funding category, they are all designed with the common goal of helping to identify quality cases where the introduction of litigation funding can provide a fair, healthy return to all parties involved – claimant, lawyers, and funder.
As investment bankers realize how funding serves to leverage affirmative legal claims, which are commonly overlooked assets, they are seeking opportunities to connect their distressed clients with opportunities to transform claims into vehicles for immediate income and substantial future recoveries. Such opportunities can be impactful for distressed clients because they help to improve a company’s cash position and profitability.
Litigation finance provides litigants and lawyers access to capital to pursue meritorious litigation where there is a substantial chance of a positive outcome. In exchange, the funder receives a return, usually via a multiple of its investment or a percentage of the recovery. Financing is non-recourse, which means that the funder receives a return on its investment only in the event the litigation is successful .
Bentham IMF Spotlight Series: IP litigation veteran Sarah Tsou discusses how litigation finance helps companies mitigate the financial risks of protecting their IP.
Claimants should exercise caution in seeking out litigation funding, paying particular attention to the funder’s track record of success, source and availability of capital, and history of disputes (if any) with claimants or their attorneys.
With analysts predicting that the economy will slow in the year ahead, companies may find litigation finance to be a useful tool in managing their legal spend.
