Rocade CEO Says He’s ‘Choosing the Winners': Litigation Finance

Happy Friday! This week I had exclusive news about a big M&A announcement in the litigation finance space.

On Wednesday, Rocade Capital announced it acquired litigation funder Law Finance Group LLC. I spoke with Rocade CEO Brian Roth about the deal and how consolidation is a sign of a maturing asset class. He also noted that a lot of the M&A that’s already occurred has come from a place of distress.

“We’ve seen other deals in the market, other portfolio sales, things that look like maybe more of a foreclosure or wind down,” he said. “This is the opposite, right? This is choosing the winners.”

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What I’m Reading

• The US Second Circuit Court of Appeals rejected the request by former investors in YPF SA to have a full panel of judges reconsider the March ruling in favor of Argentina.
• Illinois passed a bill that aims to prevent private equity firms from influencing law firms, according to the Wall Street Journal. The bill passed the state Senate and now heads to Governor JB Prtizker.
• Will Marra of litigation funder Certum Group wrote for Bloomberg Insights about the Big Law AI arms race and how most US law firms are effectively prohibited from entering it due to legal ethics rules that ban firms from raising equity financing and sharing fees with non-lawyers. In the piece he argued that the rule gives an advantage to larger, wealthier firms that can self-finance long-term investments.

In the Courts

Revised Amicus Disclosure Rule Advanced by Judicial Committee

A federal judicial committee unanimously approved a revised disclosure rule for organizations submitting friend-of-the-court briefs in appellate cases.

Who are the leaders of the legal industry?

Bloomberg Law’s Leading Law Firms list, now in its second year, recognizes the top performers across the key pillars of finance, growth, talent, and tech & innovation. The list identifies which firms—big or small, based in the US or abroad—are raising the bar for their competitors.

“The challenge for firms is now the pace of change,” said McDermott Will & Schulte Chairman Ira Coleman. Firms need to both keep their heads down and be ready to pivot, he said.

Read More: Leading Law Firms: The Only Constant Is Change

Business & Practice

Milbank, McDermott Raise Associate Salaries Up to $455,000

Milbank LLP is raising salaries for its associates, a move quickly followed by McDermott Will & Schulte.

Freshfields Taps New York M&A Partner Zoubek to Oversee US

Freshfields named Damien Zoubek as US regional managing partner after he served in a pivotal role growing the firm’s mergers and acquisitions practice in the states.

Commentary & Opinion

Kirkland Signals Meaningful but Not Transformational AI Future

Kirkland & Ellis’s $500 million investment in artificial intelligence isn’t likely to translate to a fundamental change in the Kirkland business model—or in the Big Law model generally—that will lead to immediate discounts for clients, Baretz + Brunelle’s Casey Flaherty writes.

Texas Business Court Is a Powerhouse for Resolving Civil Disputes

The Texas Business Court reflects a recognition that a large and complex economy with a capital-intensive, technology-driven industry needs a forum designed for those cases, writes White & Case’s Sean Gorman.