Citigroup’s legal chief, Michael Helfer, said that about 30% of the bank’s legal spend now falls under alternative fee arrangements, primarily in the form of fixed fees and contingency fees.
October 5, 2009
September 30, 2009
Third-Party Litigation Funders: The New Alternative to Hedge Funds?
Already popular in Australia, third-party litigation funds are raising money in the U.K. as a play on commercial lawsuits. Under such arrangements, litigation funds pay the legal fees associated with commercial disputes, and in return receive a percentage (15% - 45%) of the award or settlement. A portion of these returns are then passed on to shareholders in the form of dividends. Such arrangements can benefit companies who understand the risk-reward structure of contingency fees, but some question whether the search costs for promising cases and the companies willing to enter into such arrangements can create and sustain a viable market long-term.
Third-Party Litigation Funders Offer Alternative to Hedge Funds