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Litigation Finance 

Litigation Finance in London

TownCenter Partner Team , ,

When it comes to toying with the traditional law firm business model, the United Kingdom has become a hotbed of innovation.  It all began in 2007 when the United Kingdom enacted the Legal Services Act (LSA).  This act attempted to liberalize a tradition legal market that was “outdated, inflexible, over complex and insufficiently accountable.”  Further, the LSA allowed law firms to redefine their traditional business structure into something completely unique.  Now non-lawyers are allowed to take a role in the management of law firms and also allows law firms to raise capital from external investors.  As such, the United Kingdom litigation finance companies became excited.  Most notably, the United Kingdom market leader announced it was tripling their amount of available litigation financing to $180 million.  Lastly, more and more litigation finance companies are beginning to pop up.

Robert Hickmott of Quinn Emanuel best states the mainstreaming of litigation finance industry in the United Kingdom: “Third-party funding has been available for some time, but now has become mainstream in the past few years.  This is because both the market and the products have become a lot more sophisticated.  It used to be considered an option for only particular types of cases… [w]hereas it is now considered at an early point in most commercial litigation cases. It makes sense for any business to want to share the financial risk and operational burden of pursuing a claim by using external capital.”

Keywords: litigation finance, United Kingdom, innovation

Work Cited:  Brian Dalton, Is London a Sunnier Clime for Litigation Finance? Above the Law (February 11, 2019)

TownCenter Partner Team

TownCenter Partners, LLC lead Asset Manager is Mr. Roni A. Elias. From modest beginnings, and with the help of a hand-picked dream team of professionals we have built one of the most dynamic and fastest growing companies in the country. TownCenter Partners LLC(TCP) is a real estate partner and master-planner providing development, leasing, management, and third party services. The company’s demonstrated ability to apply big ideas in creative and innovative ways has played a defining role in the firm’s success. Yet, TCP's most important insight has been the core understanding that it is not sight lines or site plans, but human activity, that defines a space and creates a place.