Competitive Landscape
Investment Manager at Omni Bridgeway
inpractise.com/articles/law-firm-competition
Why is this interview interesting?
- Advantages that experienced litigation finance companies have over financial institutions by having conducting the due-diligence in house
Ruth Stackpool-Moore
Investment Manager at Omni Bridgeway
Interview Transcript
Do you think you can build a leading litigation financer, outsourcing all the due diligence?
My personal view is, no. I have seen operators in the market who do that. I think you run significant risks. In the past, I was looking at a case that had already been funded by a funder and they were approaching us to co-fund with them. That funder was not like us. They didn’t have any legal background and they didn’t really appreciate the risks of the case. They had looked at the investment from an economics perspective and that was it. It was an investment treaty arbitration and, for those types of cases, the value of having legal knowledge and understanding the risks of a particular claim, being able to assess the underpinnings of the legal advice that you are being given by the lawyers, is very important. There are nuances in those cases. If you don’t understand the legalities and the substantive issues, you simply don’t appreciate the risk. I think it’s very hard to get to grips with the economics of a case if you don’t appreciate the underlying factors.
You can’t price it effectively.
Yes; that’s my view. Others take a different view.
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