At recent conferences in New York City, Statera Capital’s co-founders, Chip Hodgkins and Andy Woltman, shared their thoughts on the latest trends, developments, and innovations in the commercial litigation finance industry. Chip spoke at IMN’s 3rd annual Financing, Structuring and Investing in Litigation Finance conference on September 13. Andy spoke at the 4th annual LF Dealmakers Forum on September 29.
Andy and Chip’s insights centered on several key themes. First, more specialization in the legal finance market. As the industry continues to grow and mature, funders are becoming more specialized. This trend enables funders to better serve the needs of the companies and law firms seeking to utilize litigation finance. It also allows funders to focus on those industries or segments of the market where they have a comparative advantage.
For instance, Statera’s focus on more mid-sized investment needs – disputes requiring approximately $500,000 to $4 million in financing – meets a growing need in the market. It also leverages Statera’s s flat decision-making structure that makes Statera more transparent in its diligence and decision-making process and able to close investments within 30-45 days, a timeframe often touted yet rarely achieved in the litigation finance market.
Second, litigation finance is becoming a mainstream solution. The number of companies and law firms accessing litigation finance continues to grow. From Fortune 100 companies to start-ups, from AmLaw 100 firms to boutiques, litigation finance is becoming a more common and sought-after solution in the marketplace. Judicial decisions and bar association working groups are also accelerating this trend. More courts continue to affirm the ethics of commercial litigation finance and protect the confidentiality of information shared with funders. And more bar associations are issuing white papers that address best practices in litigation finance and that endorse litigation finance for the benefit that it brings to the civil justice system.
Third, there’s more innovation taking place. Whether its new financing structures in a bankruptcy context or regulatory changes regarding law firm ownership, the legal finance industry specifically and the legal services industry generally are finding new ways to effectively and efficiently serve clients. Law firms are also partnering with funders early in the life-cycle of a case, looking to the funder’s commitment as a key element of effectively litigating complex disputes.
Statera extends its thanks and congratulations to the IMN and LF Dealmakers teams for hosting these well-attended and flawlessly executed events and to all the panelists and moderators that helped make these events so informative.
For more information about LF Dealmakers, click here.
To listen to a recording of Chip’s panel, check out the recording below.