When litigation finance first burst onto the scene, I’ll admit to having doubts. On the one hand, without an influx of capital, the rising cost of litigation risked allowing deep-pocketed tortfeasors to price victims out of the process before they got their day in court. On the other hand, I wondered if these firms could stay profitable given the vagaries of litigation without being so overly cautious in picking cases that the positive public effect remained too cabined.
As the years have gone on, it’s pretty clear that my worry was misplaced. Litigation finance firms have proven remarkably sophisticated in finding gems to finance.
In fact, the field is sufficiently fruitful that new entrants keep jumping in. Arcadia Finance officially launched this morning, fronted by litigation finance veterans David Kerstein, Ronit Cohen, and Joshua Libling. And they’ve secured over $100 million in capital to invest in “U.S.-based commercial and patent litigation and domestic and international arbitration, as well as mass torts, law firm lending, and patent acquisition, including cross-border and offshore matters,” per this morning’s announcement.
The firm expects most of its deals to be in the $2 million to $25 million range, but stressed that it can fund matters “with commitments as low as $500,000 and as high as necessary to meet a client’s needs.”
“I believe that the future of litigation funding is client-focused,” Kerstein said, “and that means being able to meet clients where they are and cover the waterfront of potential litigation-backed investment opportunities.”
Cohen added that, “We understand the challenges you face, having been trial lawyers ourselves. That’s why we created our ‘frictionless funding’ approach. It means streamlined processes, clear communication, and efficient decision-making, all aimed at getting clients the capital they need, fast.”
Joe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.
