Brian Hooven is an Associate in the
New York office
Litigation funders are well aware that half of the potential
market is largely untapped. Clients would prefer to focus on their
business rather than litigation, and offload some or all of their
defense costs to a third-party. Law firms want the fee flexibility
that defense-side funding could provide.
So why is defense funding still the exception rather than the
rule? To begin with, because the synergies that propel
plaintiff-side funding are much more difficult to capture on the
defense side.
Consider the Value-Producing Relationships when Funding a
Plaintiff-Side Case
The balance sheet benefits, cost of capital asymmetries,
risk-bearing capabilities, and fee flexibility create a win-win-win
situation for plaintiff-side litigation financing.
