The litigation finance industry has become an increasingly prominent fixture in the legal landscape, with firms recognizing the need to establish specialized practices to cater to the growing demand for these services. Two Pennsylvania-based firms, Fox Rothschild and Saul Ewing, have taken the lead in this space, leveraging their expertise to provide comprehensive support to both funders and law firms seeking funding for their cases.

Unlocking the Potential of Litigation Finance: A Hedge Against Interest Rate Volatility

Diversifying Portfolios and Mitigating Risks

The litigation finance industry has emerged as a unique investment opportunity, offering a non-correlated asset class that can provide a hedge against the fluctuations of interest rates. Firms like Fox Rothschild and Saul Ewing have recognized the growing appeal of this industry, with clients seeking legal guidance on both sides of the transaction – the funders and the law firms looking to secure funding.The specialized nature of this practice requires a deep understanding of the industry's nuances, as well as the ability to navigate the complex regulatory landscape. Firms have positioned themselves as trusted advisors, providing comprehensive due diligence services and ensuring that transactions comply with professional conduct rules, such as the prohibition on fee-sharing with non-lawyers.

Navigating the Evolving Landscape of Litigation Finance

The litigation finance industry has experienced significant growth in recent years, with firms like Fox Rothschild and Saul Ewing at the forefront of this trend. As the industry matures, these firms have adapted their strategies to meet the changing needs of their clients.Saul Ewing, for instance, has recognized the growing importance of the insurance side of litigation funding, with insurance companies increasingly offering litigation risk insurance products. This has opened up new opportunities for the firm, as it helps clients navigate the complex interplay between litigation funding and insurance.Similarly, Fox Rothschild has observed a diversification in the types of entities interested in litigation finance, with hedge funds and investment banks joining the fray. The firm's expertise in corporate finance has allowed it to seamlessly transition into this space, providing legal guidance on a wide range of transactions.

Carving Out Specialized Practices: Navigating the Complexities of Litigation Finance

The decision to establish specialized litigation finance practices within their firms was a strategic one, driven by the recognition of the industry's growth potential and the need for specialized legal expertise.For Saul Ewing, the initial focus was on due diligence work, as the firm saw an opportunity to be at the forefront of this burgeoning industry. Over time, the practice has evolved to encompass more transactional work, with the firm actively seeking out investment-worthy cases to bring to the attention of funders.Fox Rothschild, on the other hand, has taken a more holistic approach, providing legal guidance on the entire spectrum of litigation finance transactions. This includes negotiating terms, ensuring compliance with professional conduct rules, and advising on potential conflicts of interest.Both firms have acknowledged the specialized nature of this practice, noting that it requires a deep understanding of the industry's nuances and the ability to navigate the complex regulatory landscape. As the industry continues to evolve, these firms are well-positioned to capitalize on the growing demand for their services, offering clients a comprehensive and tailored approach to litigation finance.