Increasingly, funds that specialize in purchasing distressed credit have been looking to litigation funding as a potential new investment opportunity.  This novel area of finance provides commercial plaintiffs and law firms with the capital to prosecute complex claims, and can reap large rewards for the litigation funder if the litigation is successful.  Investment returns are uncorrelated with other asset classes, which makes this investment category very attractive to alternative lenders and multi-strategy funds looking to build diversified investment portfolios. But new investors need to understand that litigation finance can be complex, and presents unique legal and business risks that are distinct from those associated with more traditional areas of investment. Presented by Paul B. Haskel, Partner, Richards Kibbe & Orbe LLP and James Q. Walker, Partner, Richards Kibbe & Orbe LLP. Presentation available to LSTA Members.

Effective as of August 1, 2018, Delaware amended its Limited Liability Company Act to allow LLCs to divide themselves into two or more LLCs and to allocate their assets, liabilities, rights and duties among the newly divided LLCs pursuant to a “plan of division”. Loan documents typically do not contemplate divisions, and so lenders should consider whether their agreements need to be modified to prevent leakage of credit support through the use of this new device. Presented by Emin Guseynov, Orrick, Herrington & Sutcliffe, LLP, Tal Hacohen, Orrick, Herrington & Sutcliffe, LLP and Bridget Marsh, LSTA. Presentation available to members.