Litigation Finance Journal Webinar on Corporate Portfolio Funding
Litigation finance journal webinar on corporate portfolio funding: Edward Truant of Slingshot Capital based in Canada hosted the one-hour webinar created by Litigation Finance Journal. The event was a panel discussion with other actors in the litigation finance space. Andrew Langhoff from New York-based Red Bridges Advisors, Peter Peyt from 4 Rivers Legal based in the United Kingdom, and Rebecca Berrebi from Avenue 33, LLC based in New York. All three companies are consulting litigation funding companies, attorneys seeking funding, or investors interested in getting involved in the industry.
The webinar was about Corporate Portfolio Funding and how its evolution will affect the legal industry. The panel agreed with the idea as more corporations understand litigation funding and how it can be to their benefit, it will become even more popular than it seems to be today. One benefit will be the ability to set company budgets without having to account for litigation. A litigation funder can provide the money upfront to help the corporation launch a lawsuit. Companies tend to cut back during hard times and having to set up reserves for litigation can have a big effect on the budget.
Another benefit is to be able to monetize a claim they have but haven’t collected as of yet. A company may have an award due to them via the courts but may have not collected it or is having a hard time collecting it. The funding from a litigation funder is non-recourse so the corporation will be able to get some liquidity right away instead of waiting.
According to the panel, the legal and financial departments of corporations will have to come together to really educate themselves and understand how beneficial it will be before it becomes popular.
Another topic touched on in the conversation was why a corporation wouldn’t just go to the bond market to raise money instead of using litigation funding. Bond financing, while being able to provide cheaper capital than most funders can offer, also comes with its caveats. For one, there are costs for underwriters and advertising for the entire process. The company will have to start servicing the loan once payments are due. Collateral assets or receivables will need to be pledged for the bond. If the company defaults on payments that collateral could be in jeopardy. The panel also talked about the presence of private equity in the space as well as other parts of a transaction including looking at the reputation of the lawyers involved and managing all parts of the relationship during the transaction.
Litigation Finance Journal has been around for over ten years and has focused on the industry highlighting the different aspects of funding available. In addition, the publication issues content about company news, fundraising investment, case developments, regulatory issues or changes, conferences, and legal innovation. They also publish a podcast where they interview personalities involved in the space.
Balanced Bridge specializes in post settlement funding solutions for both attorneys and plaintiffs. To learn more about how our legal funding solutions help with delayed settlements, you can browse through our website or call us at 267-457-4540 to speak directly with a legal funding specialist. Balanced Bridge is happy to answer any questions you may have and discuss the funding process in more detail.