Opening markets. Legis is dedicated to building a global open and transparent market for ALF and commercial claim investing, where law firms and their clients can access a variety of sensible options to finance a claim opportunity. “Litigation funding” companies are becoming legion, and capital has rushed into the new commercial claim asset class seeking to share the uncorrelated rewards of claim investing. But none of these “funders” is equipped or positioned to advise law firms or offer the solutions that are best for the firms themselves or their clients; they only purvey their own financial products. Due to lack of competition and perceived barriers to entry, the current market remains secretive, and the product offerings often overpriced.
Assisting the buy-side. The new law-finance markets demand ever-evolving products and services to meet changing needs and opportunities faced by law firms and claim holders. But curiously, there are few intermediaries to innovate, help solve market inefficiencies, or promote healthy competition. The existing litigation funders have resisted the creation of an intermediary or broker class in the marketplace that would drive competition. The needs and demands for an independent financial intermediary capable of providing advice to law firms and their clients and developing game-changing financial products have become clear to us and our clients.
Avoiding ethics and conflicts dilemmas. A lawyer should not actively shop his client’s claim to generate capital for the lawyer’s fees. Many leading ethics experts–and the American Bar Association–agree. Nor should lawyers be structuring complex venture capital (ALF) investments in their clients’ claims unless they have the expertise to do so. The leading litigators managing the world’s largest commercial claims would be well-advised to stay in their chosen lane and engage a third-party expert intermediary. Their sophisticated clients expect nothing less.
Offering choices and options. Even though guided by talented lawyers, the robust growth of the ALF market has been one-dimensional, inefficient, and redundant. Each new ALF supplier claims to have a slightly better mousetrap. By contrast, Legis is a true innovator. We offer sophisticated structuring advice, provide alternatives and risk-mitigation options, and have the skill and experience to design broader strategies to meet a specific commercial claim investment need or the firm’s wider strategic investment portfolio objectives. Our tools are not hidebound by allegiance to venture-capital return expectations; we design and offer lower-cost insurance and guaranty alternatives, develop derivatives to meet and respect ethics restrictions, arrange premium finance, and provide portfolio management, valuation, and underwriting services to meet specific law firm and client needs. We advise on traditional litigation finance as well as alternative litigation finance.
Empowering our clients. With assistance from Legis, a traditional, risk-adverse law firm can replicate the returns ALF suppliers earn on their commercial claim investments, and a broader range of investors can discover new ways to explore the commercial claim investment world.
Recently, the Chief Investment Officer and co-founder of Burford Capital, Jonathan Molot, presciently wrote: “Pretty soon there’s going to be investment banking for law firms.” (Business Insider, May 17, 2017).