Litigation Funding For Credit Investors: Seven (7) Things You Need To Know

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.  LSTA members joined us for this afternoon CLE program where speakers explained some of the more critical risks that arise in litigation funding and described strategies that can mitigate these risks.

EVENT DETAILS

Tuesday, October 2, 2018
4PM to 5PM (ET) |Webcast Only
1.0 | CLE Credit |  For NYS Transitional and Non-Transitional Areas of Professional Practice

SPEAKERS:

  • Paul B. Haskel, Partner, Richards Kibbe & Orbe LLP
  • James Q. Walker, Partner, Richards Kibbe & Orbe LLP
cle-webcast_emailheader-january-2019.wide

Become a Member

Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.

View a list of all members.

Our Partners

cusip-global-services-vector-logo.svgFitch Group logoRefinitiv-(March-2019)SP-Global-Market-Intelligence

Search Results by Relevancy

The Volcker Rule Amendments: What Do They Mean for CLOs

Earlier today the Federal Deposit Insurance Company (FDIC) and the Office of the Comptroller of the Currency (OCC) separately approved final rules amending rules originally published in November 2013 that implemented the Volcker Rule. Importantly, today’s amendments do not affect loans and CLOs. The FDIC signaled that amendments to the part of the Volcker Rule pertaining to CLOs would be forthcoming sometime in the future. Today’s amended rules are available here.

LSTA Newsletter: August 16, 2019

This week we cover LIBOR-Good News and Less Good News; Docs Terms of Use; Delayed Comp Docs Released; Loans Mag Announcement

Loans Magazine – Summer 2019 Edition

This edition provides members with valuable content on the latest developments in the syndicated loan market. An article from David Chmiel of Global Torchlight Limited which explores “Current Geopolitical Trends Impacting the Loan Market”. We continue with a series of articles on the many aspects of the LIBOR/SOFR transition, an analysis of the secondary loan […]

LIBOR Fallbacks: Good News… and Less Good News

There is good news – and less good news – on LIBOR fallback language in cash products like loans, FRNs and CLOs. On the good news front, it looks like most cash products are now including fallback language in new deals. This is critical because many instruments will be outstanding when LIBOR ends after 2021, and if they don’t have good fallback language, there could be contract frustration (and litigation). However, on the less-good-news front, the fallback language is not always consistent (which may lead to a lot of work to determine exactly how each instrument would fall back) or workable en masse (which may lead to traffic jams as everyone tries to amend their deals at the same time). We discuss the fallback status of FRNs and loans below. (And we’d gently remind readers that several CLOs have gone “hardwired”, per LCD and Covenant Review).