Talking With Dealmakers at LF Conference: Litigation Finance

Hi there! I spent the week at the LF Dealmakers conference in New York City. There was a lot of discussion around regulation, mass torts, and funding trends.

I moderated a panel on the state of the industry and we discussed everything from deal flow to interest in Managed Service Organizations.

The panel flew by, but here are some takeaways:

• Mike Nicolas from Longford Capital said the Tillis bill was a “wake-up call” and it will not be the last effort for regulation. He said Longford did not lose a single deal while they waited to see whether the bill would be part of the tax package.
• Nate Catez of Moelis said Managed Service Organizations have become a focus for a number of their clients. He said MSOs can increase efficiency and are a good way to raise capital. They’re also subject to less regulatory oversight than Alternative Business Structures.
• Craig Martin of Wilkie Farr said that his $50 million funding deal with Longford in 2021 has gone “incredibly well.” Even though the deal was made public, there hasn’t been any pushback from defendants, he said. I also asked him about my colleague Roy Strom’s piece on Big Law skepticism around MSOs. Craig said “never say never” but he’s not seeing widespread interest or acceptance of the model.
• Simon Warr of AmTrust International said most of the cases they insure are at the federal level, so they have more interest in the federal efforts to regulate the asset class.

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Photo courtesy of Simona Sermont

Photo courtesy of Simona Sermont

What I’m Reading

My colleague Tatyana Monnay wrote about how ex-Paul Weiss litigators who started their own boutique are co-counseling with their old firm while also taking on more politically sensitive cases. Jeanne Rhee, one of the partners, said the firm is flexible on billing arrangements and being open to litigation funding, depending on the client.

Certum Group announced Chris Seidl as the new head of IP strategies. He previously worked at Fortress Investment Group. At Certum, he’ll oversee intellectual property business, including IP litigation funding, acquisitions, and licensing opportunities.

The International Legal Finance Association announced Bridge Legal as the first member of its industry partnership program. The program extends the organizations reach to other areas of the legal ecosystem. Bridge Legal is a technology program that streamlines litigation workflows.

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