Bentham IMF launches innovative tool to help law firms improve financial performance with litigation funding
For every $10M in funding, law firms are projected to gain 360 basis points on their realization rates
NEW YORK, June 22, 2016: Bentham IMF, the pioneer and world leader in commercial litigation funding, has created a new product designed to address two critical – but often opposing – law firm business objectives: boost the bottom line while meeting client demand for more service at lower costs. Bentham’s Accelerator is a true multiplier for firm revenues, profits and realization rates, extending the benefits of litigation funding far beyond the growth made possible by other funding products. The advantages of the product are demonstrated in an interactive model. The model allows firms to input their unique revenue data and see the bottom-line impact of funding existing and newly won business (single cases), and of developing funded portfolios (multiple cases) to accelerate profits. The three-phase approach holds great appeal for firms willing to take measured risk to achieve strong financial improvements.
The Accelerator hits the market just as news of associate salary bumps has been countered with corporate clients’ refusal to pay higher rates. Escalating operating costs were already prompting firms to explore litigation funding as a means of maintaining profitability. Now case financing can do more. The Accelerator’s dynamic model is being used to create bespoke reports. These reports show how adoption of Bentham’s three-phase approach positions litigation departments to achieve realization rates of 90% or more, without increasing hourly rates or exceeding client budgets.
“Our Accelerator is designed to help law firms increase the yield on their litigation business, and thereby increase overall revenues and profits,” said Ralph Sutton, Bentham’s Chief Investment Officer. “For big law firms with many litigation practice groups, this is a game-changer.”
The use of litigation funding continues to gain favor across the legal industry. Mr Sutton noted that Bentham is seeing more funding opportunities originating from AmLaw200 firms. “We’re also seeing leading firms creating formal litigation funding committees and strategic working groups –demonstrating that firms are looking to litigation finance as a vehicle for driving their financial performance and growth,” he said.
“The incremental shared assumption of risk made possible through the Accelerator can help firms reap measurable financial benefits while delivering value to clients,” said Sutton. “We think in the current economic environment, that’s a proposition every law firm should be considering.”
About Bentham IMF
Bentham IMF is the only award-winning commercial litigation funder in the United States, recognized by The American Lawyer magazine as being among the “Top 50 Big Law Innovators in the Last 50 Years."
A publicly listed (ASX: IMF) company, Bentham provides innovative litigation funding solutions for complex commercial litigation. The company has 10 offices throughout Australia, the United States, Europe and Canada and provides funding to clients in jurisdictions including the US, Australia, the UK, Europe, Canada, New Zealand, Hong Kong and Singapore.
Bentham has reviewed thousands of commercial cases in the past 15 years and enjoys a 90% success rate. To date, Bentham has funded to completion more than 180 commercial litigation matters that have generated over $1.7 billion in recoveries. Clients utilizing Bentham’s funding have retained an average of 63% of all case proceeds.
For more information, please visit www.benthamimf.com.