Posts from Bench Walk Advisors

Funder mentalists: how much does a legal megabrain cost?

In my prior blogs I examined “implied probability of loss” as a way of analysing the risk and price of transactions in the litigation funding market. Let’s take for example (and with all the usual caveats about being reductive) a funder that determines that a case has, say, a 2/3 chance of winning and generating for both … Continue reading Funder mentalists: how much does a legal megabrain cost?

Funding Nemo: do funders fund too few cases?

In an earlier piece I proposed implied probability of loss as a means of analysing the risk of a single case investment. In this piece I will use the implied probability of loss to look at cases with different risks at different stages, and then to look at some different models for co-funding transactions with … Continue reading Funding Nemo: do funders fund too few cases?

Funders keepers: is litigation funding too expensive? (Part 2)

There are many ways to price litigation funding transactions, and different funders and their investors may employ different methods even for the same investment. In this piece and a preceding part 1, I explain one method of pricing single case investments using a simplified fundamental analysis where “risk” is reduced to a straight percentage chance … Continue reading Funders keepers: is litigation funding too expensive? (Part 2)

Funders keepers: is litigation funding too expensive? (Part 1)

There are many ways to price litigation funding transactions, and different funders and their investors may employ different methods even for the same investment. In this piece and a following part 2, I explain one method of pricing single case investments using a simplified fundamental analysis where “risk” is reduced to a straight percentage chance … Continue reading Funders keepers: is litigation funding too expensive? (Part 1)

Litigation funding: no longer sitting on defence

Litigation funding has typically focused on claimant side investment. Defence funding feels less valuable because it does not so obviously unlock an asset. In addition, the cash benefit of having a funder pay defence legal costs will often be dwarfed by the potential cash payout by the defendant on a loss. And finally, a defendant … Continue reading Litigation funding: no longer sitting on defence