Who uses litigation finance?

Who uses litigation finance?

1 Expert Answer

Edward Truant

Chief Executive Officer,  Slingshot Capital

Litigation finance can be used by a variety of constituents and is useful in many situations. For example:

  • Risk Sharing: A client with a meritorious case may ask its hourly firm for alternative fee arrangements—and need an outside litigation funder’s help to do so
  • Hedging: A firm that embraces contingent work or alternative fee arrangements may surpass the financial risk they’re able or willing to bear—and seek the partnership of a litigation funder
  • A client or firm may need financing for case expenses (single case or portfolio)
  • A company may need to unlock the value of pending litigation or arbitration to lower its cost of borrowing
  • In-house counsel may need a solution to manage all legal costs—including defense (single case or portfolio)
  • CFOs and financial executives, seeing the negative accounting impact of litigation expenses on their balance sheets, may seek a better solution

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