Litigation Finance - Thoughts

At this point, most FO roles are occupied by former litigators. Their focus is still on assessing if a particular case has a high probability of producing a positive outcome. The plain vanilla lit fin doesn't require in-depth business/financial due diligence. It's a game of pattern recognition. However, some funds interested in principal investing have been steadily building out a team of investors/analysts. For example, Omni Bridgeway has expanded into distressed debt by hiring a global director of distressed debt. Burford has active complex strategies where they invest in legal-related assets. Some has hired statisticians to have them perform more granular modeling. For obvious reasons, there is limited data on pay, exit oppty, etc., but I certainly believe that is an interesting niche.