Matthew Knowles’ article for Financier Worldwide draws on his expert knowledge of litigation finance to look at some recent developments in the industry and considers the opportunities and challenges its evolution brings.
In the article, Matthew considers how perceptions have changed: third party funding is no longer simply the ‘David vs Goliath’ access to justice tool it once was. Rather, litigation finance is now, “in many ways … simply a maturing arm of the finance market”.
“As more and more capital has come into the market – there have been at least two $500m investments into UK litigation finance providers over the last few months, as well as a number of other significant fundraisings – and litigation finance has become increasingly mainstream, the available structures have multiplied.”
Matthew also assesses the ways in which the evolution of litigation finance has affected corporate attitudes and the challenges in this space for financiers, corporates and legal advisers.
“So what does the future hold? In all probability, we will see continued assimilation of litigation finance into the corporate toolbox, more money into the market, at least for the time being, more multi-case deals and softening but still strong margins for investors. No doubt there will be a few high-profile failures along the way and then the Cassandras will have their moment in the spotlight. But for those who engage in the business with clear and realistic goals and thought-through strategies, there is still likely to be much growth ahead.”
This article first appeared in Financier Worldwide. To read the full version of the article, please click here.