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.
Bentham IMF Spotlight Series: We speak to Los Angeles Investment Manager and veteran insurance recovery litigator, Fiona Chaney, on why companies and firms in the insurance recovery field should be aware of how #litigationfunding can make a successful impact on the bottom line.
Litigation finance can serve as a powerful tool for law firms seeking to attract new clients or win plaintiff-side work from existing clients. Incorporating funding as an option in pitches submitted to secure work affords significant advantage to law firms. Among other benefits, funding helps clients reduce litigation risk, afford their top-choice law firm and improve their balance sheet.
Bentham IMF Spotlight Series: New York Investment Manager Daniela Raz, former General Counsel and veteran litigator, discusses what a game-changer litigation funding can be for companies
IMF Bentham announced it is approaching investment targets for two of its funding vehicles ahead of schedule and has successfully increased the capacity to meet strong market demand for investment funding.
Justice Brett Kavanaugh made headlines earlier this month when he issued his first majority opinion for the United States Supreme Court. The opinion resolved a circuit split over whether the Federal Arbitration Act permits a court to decline to enforce arbitration agreements that delegate arbitrability questions to an arbitrator.
Last week, the U.S. District Court for the Northern District of California denied as irrelevant defendant Micron Technology’s demand that plaintiff MLC Intellectual Property disclose the identity of the source of any third-party funding in MLC’s patent infringement lawsuit.
Modern litigation finance offers an alternative to the rising costs of traditional loans, and can allow cash-strapped businesses to simultaneously pursue growth strategies and valuable litigation claims.
The American litigation finance industry is seeing increasing demand for litigation funding taking root at companies and law firms across the country. This demand, which companies like Bentham are meeting with increasing capital available for investment, demonstrates recognition within the legal and business communities of the economic value that litigation funding affords to parties pursuing and handling high-stakes commercial litigation.
Another year, another leap forward for commercial litigation funding: as we predicted at the end of 2017, the industry’s rapid growth continued unabated in 2018. The year was marked by story after story covering the growth of litigation funds as an attractive alternative investment class.
IMF’s funds under management have increased to over A$1B. The new fund positions the company to substantially grow its US team and offer the resources needed to address market need and make larger investments.
