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I looked at this space a couple years ago. There's some sponsor activity with Towerbrook financing the launch of a company (Validity Finance) and I believe one other PE-backed platform. Burford Capital is the big public comp in the space and their stock has gotten annihilated recently ($20 down to $5 in the last 12 months).

FWIW the lawyer friends I've talked to about it are not fans of the concept as it greatly complicates conflict checks on their part since you have to consider the financier and all their investors as parties in the lawsuit.

 

I've been in the lit fin business for over 15 years.  It's changed a lot.  I've been on the buy side (identifying, sourcing, investing in and managing legal assets) and sell side (claimants and law firms). I've also run a lit fin strategy for a PE owned company, and run a lit fin strategy for an asset manager.  Happy to answer questions.

 
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