Industry News – Mischon De Reya launches litigation finance venture with £150m of capital
Law firms can access a litigation finance facility in several ways. A firm may have access to a dedicated and highly bespoke finance facility managed by a professional litigation funder to help the firm onboard new cases. Alternatively, a firm could go further and create a dedicated special-purpose vehicle to ensure there is funding available for their clients.
The recent Mishcon de Reya press release is an example of how the gap between law firms and litigation finance capital is narrowing.
There are several important considerations to make when tying the firm’s clients and brand to a dedicated channel of litigation finance. The profile of the law firm, its typical client base, the firm’s risk tolerance and future aspirations of the partnership are all key aspects in determining the right funding solution.
As a provider of litigation funding capital with a particular interest in supporting law firm facilities, we sense that an increase in law firm facilities is the next step in the evolution of the litigation funding market, particularly for certain types of disputes and at Erso, we strongly advocate for innovation.
With our institutional investors, we can allocate 10s or 100s of millions of capital, while also providing capital in a variety of other ways to match a firm’s profile and objectives, which may include releasing value in existing conditional or contingent fee portfolios.
Additionally, through our insurance affiliate, TheJudge (ranked tier 1 by Chambers & Partners), we have unique flexibility in structuring insurance and funding, allowing efficient insurance-based solutions which often lead to better economic outcomes for law firms and clients.
If your team is interested in exploring a bespoke funding facility, please contact our team for a consultation.
Matthew Amey James Delaney