Winston & Strawn Sponsors the 2024 IMN Financing, Structuring & Investing in Litigation Finance Conference

Winston & Strawn was a proud sponsor of the 2024 IMN Financing, Structuring & Investing in Litigation Finance Conference at the Union League Club. This one-day conference focused on providing high-quality educational content and networking opportunities for litigation funders, law firms, corporate claimants, investors, brokers, and associated service providers in the litigation funding space.

Associate Christopher Capitanelli spoke on the panel “Has Litigation Finance Reached Maturity as an Asset Class?” Partner Pete Morgan was in attendance as well.

Key Takeaways

• The question as to whether litigation finance as an asset class has reached maturity depends on the sub-category within litigation finance, with different levels of maturity and market acceptance for commercial pre-settlement/post-settlement funding, personal injury funding, mass tort funding, etc.
• In terms of evaluating investments in deals and funders, case underwriting, case monitoring and track record remain key factors, as well as the legal experience of the funding team. Within the personal injury space specifically, it’s also important to understand how and where the funding company originates and whether they’ve created a diversified portfolio.
• There are a number of concerns inhibiting others from investing in litigation funding, notably a lack of understanding of the asset class and financing structures. In addition, concerns over legal, regulatory and ESG implications continue to create roadblocks for certain investors.
• While there is certainly saturation in some areas of litigation finance (notably personal injury funding), there is room for added growth particularly given the ongoing development of sub-categories within litigation finance.