Litigation Finance from IB Background?
Been reading different articles that have inspired an interest in litigation finance, and am wondering about the balance of finance vs legal acumen to land/succeed in one of these roles.
Browsing LinkedIn it appears that at least 70%+ of those in the space have attorney/other legal experience, but wanted to hear from anyone here who might have any better insight into the ability to exit into this field from an IB or RX analyst or associate role. Or even is it possible to do IB/RX --> PE --> litigation finance? (also have no idea what comp or hours are like for this, so please lmk if I'm off on this and if there wouldn't normally be any incentive to switch from traditional PE to a litigation investing role)
The couple other threads I saw on this were more focused on the actual funds doing this type of investing and not the skill & experience profiles of the people working in it, so I appreciate any insight you all can offer
I'm pretty sure litigation finance involves taking a bet on the outcome of the case which entails an immense legal knowledge of case law, trial settings/procedures, case precedence, knowing the judges, understanding how to grease the system etc.
I think the finance aspect goes as far as how much is up for grabs if we win, time frame, and probability of winning- which most lawyers can do with basic IRR.
I spoke with someone who has a connection to this platform at a Hedge Fund and he said it pretty much requires law school and possibly some experience practicing law in Big Law.
If anyone else knows more though please share!
thanks, this is really helpful
I worked for several years at one of the biggest asset managers in the litigation finance space, at least in the US.
It's a rapidly developing market, and several years ago when I got hired on I worked on the front end investment research/valuation modeling side and slowly transitioned to the ops side. My background is pure finance, straight out of university. As we expanded and hired we viewed having a law background as a plus, but not required and hired people from IB, PE, accounting, etc. However, that was the place I worked for and we had a different financing model than the more common purchase agreement like investment in the future receivables of a case some of the more headline making firms. We were bigger than just about everyone yet we operated in the shadows and catered to elite law firms.
Happy to share more insight if you would like, it's an industry that is operates in the dark but it's huge for how new it is and the products being created to serve the market are getting more creative and complex. PM me if you want to know more.
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