Law firms can take advantage of innovative legal financing structures such as portfolio arrangements, and law firm equity in countries like the UK where non-lawyers can be equity investors in law firms through ABS structures.
Distinct from traditional fees and expenses financing, law firm equity arrangements provide an immediate infusion of capital to law firms that isn’t tied to case outcomes. Whereas capital provided in a traditional legal finance arrangement is used most frequently to litigate the underlying claims themselves, capital from an equity financing arrangement is specifically intended for firms to invest in growth.
Law firms can also use portfolio finance—the provision of capital tied to a pool of existing or future cases—in the same way as any other corporate capital source and to fund law firm activity unrelated to the underlying matters in the portfolio.
About the panel
The panel included Jamie Curle, Partner, DLA Piper; Natasha Harrison, Founder & Managing Partner, Pallas Partners LLP; Richard Healey, Partner, Gateley; Elena Rey, Partner, Brown Rudnick LLP; Clive Zietman, Partner, Stewarts; and was moderated by Neil Purslow, Chief Investment Officer, Therium.