Fred R. Conrad/The New York TimesJonathan T. Molot, left, chief investment officer of Burford Capital, a litigation investment firm, and Christopher P. Bogart, the firm’s chief executive.
When it comes to legal spats, companies often loathe having to spend millions of dollars on legal fees while waiting months for a case to drag through courts. But to Wall Street, lengthy litigation is a growing investment opportunity.
Once considered taboo in the legal profession, the practice of litigation finance is enticing more corporate lawyers to become investors, bankrolling lawsuits in exchange for a piece of the potential winnings.
Two litigation investment firms run by former lawyers, BlackRobe Capital and Fulbrook Management, both started last year. In January, the litigation finance team at Credit Suisse left the bank to form Parabellum Capital, after a former colleague’s move to start a similar firm, Bentham Capital, a few months earlier.
For more of the article see: http://dealbook.nytimes.com/2012/04/30/looking-to-make-a-profit-on-lawsuits-firms-invest-in-them/
Once considered taboo in the legal profession, the practice of litigation finance is enticing more corporate lawyers to become investors, bankrolling lawsuits in exchange for a piece of the potential winnings.
Two litigation investment firms run by former lawyers, BlackRobe Capital and Fulbrook Management, both started last year. In January, the litigation finance team at Credit Suisse left the bank to form Parabellum Capital, after a former colleague’s move to start a similar firm, Bentham Capital, a few months earlier.
For more of the article see: http://dealbook.nytimes.com/2012/04/30/looking-to-make-a-profit-on-lawsuits-firms-invest-in-them/
