With the numbers of insolvencies on the rise in the aftermath of the pandemic, insolvency litigation funders are seeing the market begin to shift in their favour, as reflected in new financial reporting from one of the UK’s leading funders of insolvency litigation. Manolete Partners released its unaudited half-year results for the six months up to 30 September 2023, reporting that the business has seen significant increases in case completions, new case investments and total revenues. According to the H1 FY24 results, Manolete recorded 116 case completions during this period, which marked a 21% increase from the 95 cases completed during H1 FY23. Across these cases, the average duration dropped from 14.9 months in FY23 to only 11.5 months in FY24. Manolete suggested that ‘this signifies a return to the Company's long established case duration of around 12.7 months, which had expanded temporarily due to the challenges presented by Covid.’ The funder also confirmed that it ended H1 FY24 with 417 cases that are still ongoing, which once again represented a significant increase of 58% over the same period in FY23. Moving on to Manolete’s investments, the funder reported a total of 179 new case investments in H1 FY24, representing a 116% rise from last year’s H1 total of 83 new investments. Manolete explained this increase, stating that ‘the higher level of insolvencies in the economy translated to higher new cases signed as well as the impact of the Barclay Bounce Back Loan Pilot (BBLs).’ Regarding the BBL pilot scheme, Manolete reported that since the start of the calendar year it has signed 80 of these cases and has already achieved completion on 27 cases. As LFJ reported in October, Manolete confirmed that it ‘is hopeful to shortly commence a separate BBL pilot with another well-known bank.’ Overall, Manolete recorded a 104% increase in total revenues, achieving £11.2m in H1 FY24 compared to £5.5m in H1 FY23 In his statement on the results, Steven Cooklin, Chief Executive Officer, highlighted the importance of the return of large company insolvencies “back to pre-pandemic levels”, which is now filtering down to create increased opportunities for funders focusing on insolvency litigation. He explained that “as the insolvency market develops through the current business cycle, the Directors anticipate a return to higher average case sizes, reflecting a greater mix of larger company insolvencies.”

Jade Road Investments Limited (AIM: JADE), the London quoted company focused on seeking the best risk-adjusted returns globally, announces a new investment of $250,000 into Heirloom Litigation Funding 2022 SPV XI ("Heirloom Litigation Finance").  The investment was made in support of JADE's updated Investment Policy to invest in attractive, uncorrelated, risk adjusted return opportunities. This is the second investment made by JADE under its new Investment Policy approved in February 2023.  Its first investment, in April 2023, was into an Alternatives fund which invests primarily in asset-backed and/or income-producing opportunities such as equipment leasing, agriculture and infrastructure, and that are highly uncorrelated to the general market.  Heirloom Litigation Finance has issued JADE a 1-year, 14% cash interest debt note, that is backed by a diversified portfolio of disbursement fundings for small consumer litigation claims in the UK, all backed by insurance. Interest is paid quarterly. Unlike many litigation finance opportunities, these claims fall under established precedents or quasi-governmental compensation programs, which are expected to increase the chance of success and reduce the length of time to settlement. The investment is a related party transaction under the Aim rules for Companies as Heirloom Investment Management LLC is a substantial shareholder in the Company and Heirloom Litigation Finance is a self-managed Cayman Islands company wholly owned by Heirloom Holdings. The Directors of the Company consider, having consulted with WH Ireland Limited, the Company's nominated adviser, that the terms of the transactions are fair and reasonable insofar as its shareholders are concerned. JADE recognizes the importance of genuine diversification in this volatile market, and how alternative investing can reduce volatility and improve returns in an investment portfolio.  JADE is pleased to add another investment that would be difficult for most investors to either access or diligence, and which aims to provide genuine diversification and risk-adjusted return enhancement to an investor's portfolio.  John Croft, the Company's Executive Chairman, commented: "JADE's investment in Heirloom Litigation Funding 2022 SPV XI continues to build on our updated Investment Policy and our commitment to providing our shareholders with a portfolio of investments with solid risk-adjusted global returns.  With its strong return profile, insurance -backing, short duration and high coupon, which is paid quarterly, the Heirloom Litigation Finance investment is another step forward in JADE's on-going transformation." 

Aon is a global insurance brokerage and professional services firm with approximately 50,000 employees across 120 countries that offers a wide array of risk mitigation products and structured solutions.  Aon’s Litigation Risk Group focuses on de-risking adverse outcomes in active and potential future litigation for corporate, private equity, hedge fund, law firm, and litigation finance clients through the use of insurance. Aon has spearheaded the rapid development of this insurance market over the past five years with pioneering solutions like judgment preservation insurance, insurance-backed judgment monetization, and portfolio-based “principal protection” coverage for funders and plaintiff-side law firms.  Aon’s Litigation Risk Group is the dominant market leader in the litigation and contingent risk space, having placed nearly $5 billion in total limits over just the last several years, including over $1 billion in limits in 2023 alone. Website:  https://www.aon.com/m-and-a-transaction/transactionsolutions/litigationsolutions.jsp Founded:  1982 HQ:  London (Global) and Chicago (US), with Aon’s Litigation Risk Group being based in New York About Aon’s Litigation Risk Group: Aon’s Litigation Risk Group works with a wide variety of clients across all industries and sectors of the economy, but the fastest-growing appetite for insurance solutions by far comes from litigation funders and other similar investors in litigation-related assets. Aon helps these clients protect their downside in litigation-related investments in many different circumstances, whether protecting a judgment they have obtained in a case in which they invested at inception, wrapping a loan they are making to a plaintiff-side law firm with principal protection insurance, or insuring an entire portfolio of uncorrelated investments in cases at different stages of the litigation lifecycle. Aon has fostered strong partnerships with dozens of insurance markets to bring our clients the most creative bespoke insurance solutions for the most complex litigation-related risks on the best possible coverage terms.  As the Director of Underwriting for a well-established litigation funder on whose behalf Aon has placed over $70 million in limits across a number of different investments put it:  “We have worked with the Aon’s Litigation Risk Group on a number of insurance policies over the years, and I can say unequivocally that they are second to none.  Besides being fantastic to work with, the team was also able to leverage their litigation know-how and strong relationships with insurers to obtain favorable terms for each of our policies.  Even when we had to file a claim on a policy, they jumped on it right away, handling it quickly and professionally without any need to involve a separate claims team.  We have been very happy with our partnership.”  Points of Differentiation: Innovation – Aon is a leader in terms of pushing the limits of what litigation and contingent risk insurance policies can do.  While this area of the insurance industry got its start on the defense side in the context of M&A transactions, where what is now refered to as “adverse judgment insurance” or “AJI” was used to ring-fence litigation risks that were getting in the way of an acquisition, they were the first to place insurance on plaintiff-side judgments, which led to Aon coining the term “judgment preservation insurance” or “JPI,” which is now used industry-wide and beyond. Aon was also the first to have the insight that once a judgment is insured, so long as the defendant is sufficiently creditworthy, the combination of “judgment plus JPI policy” can serve as collateral for a loan that can be made on more attractive terms than would be available without insurance.  Aon was among the first broker in the insurance industry to facilitate loans against this combination of “judgment plus insurance,” a solution they named “insurance-backed judgment monetization,” and which has now also become widespread and provided a significant boost to the broader litigation and contingent risk insurance industry.  Their team prides itself on finding new and unique uses for insurance to help our clients achieve their goals, and excels at using insurance capital to solve complex litigation-related issues. Pre-Underwriting­ – Aon’s team of former litigators has earned a reputation for submitting to insurers only the highest quality risks, after thoroughly analyzing their merits before submission to insurers. As one of the leading insurers in the litigation and contingent risk insurance space, Ambridge Partners, put it:  “We’re always happy to receive contingent risk submissions from the Aon team.  The deals are always pre-vetted and well-presented, and it’s clear that they’ve asked themselves ‘What would I want to see as an underwriter?’ – and then provide exactly that.  It makes Aon’s deals very attractive easy for us to consider.” And per Alston & Bird litigation partner Steve Penaro, “As outside counsel working with underwriters in the contingent risk space, when we see a contingent risk submission from Aon, we immediately know that is has been thoroughly vetted and the issues meticulously scrutinized.  And, once the underwriting process begins, Aon actively partners with us to ensure all relevant information is readily available and all questions have been answered allowing for a smooth close.  From the initial submission to the binding of the policy, Aon is there every step of the way.”  Given the explosive growth in this space, Aon values their underwriters’ scarce time, and enjoys a competitive advantage knowing that underwriters move Aon submissions to the top of their piles. Relationships with Insurers – Aon is not only a market leader in terms of litigation and contingent risk insurance, but also other lines of insurance written by the same carriers such as representations and warranties and tax insurance. As one lawyer we have worked with on policies for two different clients put it: “The Aon team did a magnificent job in placing adverse judgment insurance for one of my clients and judgment protection insurance for another.  They have deep contacts with the insurance market, and it was apparent to me that insurers trust their expertise and judgment.  I have not hesitated to recommend them to other attorneys.” Given the volume of business that Aon does in the broader transaction solutions insurance market, they maintain deep relationships with insurers, and that benefits their clients by helping them deliver the best possible coverage terms, pricing, and claims service. Key Metrics: Aon's Litigation Risk Group has placed billions of dollars in limits on litigation and contingent risks in the last several years, including ten separate insurance programs that each provided more than $100 million in coverage limits and four that provided at least $500 million in coverage limits. The policies placed by Aon have arisen in a variety of procedural contexts and run the gamut in terms of subject matter and types of claims – commercial litigation, breach of contract, patent infringement, trade secret misappropriation, and antitrust, just to name a few.  Aon has placed adverse judgment insurance on the defense side and judgment preservation insurance on the plaintiff side, including pre-trial, pre-judgment insurance for litigation funders to protect the value created by important evidentiary rulings that were the subject of interlocutory appeals. Aon has also placed principal protection insurance on several hundred million dollars that have been invested into early stage, pre-complaint patent litigations across multiple unique patent families. They have procured insurance for defendants who have lost significant damages verdicts at trial against the risk that an appellate court will not reverse, and have insured against adverse outcomes related to regulatory processes.  Put simply, as long as their team has access to sufficient underwritable information about the litigation risk to be insured, there are few limits on the kinds of cases or procedural postures that Aon can insure. Jurisdictions and Sectors Served: Aon’s Litigation Risk Group has insurance broking teams not only in the United States, but also in the United Kingdom (which can insure risks across much of EMEA), Bermuda, and Southeast Asia, which enables them to deliver to our clients truly global solutions across myriad jurisdictions. While the core of Aon's business remains insuring the outcome of judicial proceedings in the United States, they understand where to go to find appetite to insure litigation in other domestic courts, as well as insuring the outcome of international arbitration proceedings.  Key Stakeholders: Stephen Davidson is a Managing Director and both the Head of Aon’s Litigation Risk Group and Head of Claims for Aon’s broader Transaction Solutions team.  As Head of the LRG, Stephen works with clients and insurance markets on the development of litigation and contingent risk insurance.  As Head of Claims, Stephen manages transaction liability claims – which includes not only litigation and contingent risk insurance claims but also representation and warranty and tax insurance claims – and has overseen and helped negotiate the favorable resolution of hundreds of such claims in North America and around the world.  Prior to joining Aon in 2016, Stephen was a commercial litigation partner in DLA Piper’s New York office, and he began his career at Schulte Roth & Zabel LLP, where he worked as a litigation associate for several years. Stephen Kyriacou is a Managing Director and Senior Lawyer in Aon’s Litigation Risk Group, and was the first insurance industry hire dedicated solely to the litigation and contingent risk insurance market, which he has been working to develop and grow since 2019.  Stephen has twice received the designation of “Power Broker” from Risk & Insurance Magazine (in 2022 and 2023), which called him “a pioneer in judgment preservation insurance,” and is the only litigation and contingent risk insurance broker to have been so recognized.  While Stephen places insurance across all of Aon’s solution lines, he specializes in single-case judgment preservation insurance and adverse judgment insurance placements.  Prior to joining Aon, Stephen spent close to a decade as a complex commercial litigator at Boies, Schiller & Flexner, where he amassed significant trial, appellate, and arbitration experience representing both plaintiffs and defendants in the U.S. and abroad across a wide array of practice areas, and clerked in the U.S. District Court for the District of Columbia. Ed Conlon is a Managing Director in Aon’s Litigation Risk Group, and is the team’s resident insurance industry veteran, having been in the industry for over 15 years and having placed litigation and contingent risk insurance since 2015, when the market for such insurance was still in its embryonic stages.  While Ed brokes across all of Aon’s litigation and contingent insurance lines, he focuses primarily on developing cutting edge bespoke portfolio-based coverage structures for law firms, litigation funders, and other investors in litigation.  Ed also leverages his deep, battle-tested relationships across the broader insurance industry to bring new carriers into the growing litigation and contingent risk insurance market and to maximize limits and optimize coverage terms on Aon policies.  Prior to his current role, Ed led Aon’s Financial Institutions Group and, before that, was a complex commercial litigator and ran a complex commercial claims desk at AIG. David Hodges is a Vice President and joined Aon’s Litigation Risk Group in 2021.   David brokes across all of Aon’s litigation and contingent insurance lines, and focuses primarily on single-case judgment preservation and adverse judgment insurance placements.  Prior to joining Aon, David was a complex commercial litigator at Boies, Schiller & Flexner and Lankler Siffert & Wohl, and was also a law clerk for federal judges on the Second Circuit and D.C. District Court. Bill Baker is a Managing Director in Aon’s Litigation Risk Group and joined the team in early 2020.  Bill leads the team’s work on structured solutions, including loans that are collateralized by judgment preservation insurance policies and other financing solutions that are customized to meet the unique capital needs of our clients.  Prior to joining Aon, Bill was an investment banker at various firms throughout a 15-year career, after which time he worked in private equity and corporate roles, including strategy, corporate development, and investor relations. Mike Kenny is a Director in Aon’s Litigation Risk Group and joined the team in 2021.  Mike is responsible for the team’s structured finance solutions, including premium finance and judgment monetization.  Mike works with clients to structure bespoke credit transactions, allowing them to leverage the combination of their judgments and insurance to access the capital markets and obtain liquidity.  Mike uses his industry relationships and a broad network of investors to help clients find the best deal terms and structure for their specific needs.  Mike is also a licensed investment banker with Aon Securities.  Prior to joining Aon, Mike was an investment banker at BTIG, where he focused on M&A, public and private financing, and strategic advisory for software industry clients.  

Jamie is a Naval Academy graduate with a Johns Hopkins’ Masters in Finance. He served on a ground combat tour in Iraq, on hazardous duty in the Arabian Gulf and at the Pentagon managing an $800 million tech fund before entering the civilian sector as the CFO of a multi-million-dollar startup. He later became the COO of a 1,000-employee company owned by a NYSE listed entity. Allen then transitioned to the litigation finance sector in 2021 with the founding of Allen & Calabro. Below is our LFJ Conversation with Jamie Allen: I understand you made the transition from service member to litigation finance investor. What drove you to make this transition, and what about litigation finance has surprised you the most?  Following graduation from the US Naval Academy, I spent nearly eight years on active duty in assignments around the world.  After my service, I attended Johns Hopkins for business school (finance) and began consulting for “David like” plaintiffs in disputes stemming from the crisis of 2008.   During my own experience as an entrepreneur and an executive of a NYSE listed entity, litigation and funding thereof became my focus.  After successes with investments in probate, employment, and RICO claims, it made sense to make the transition to a full-time investor and to operate a fund, as I had managed an $800 million tech portfolio while serving at the Pentagon.  Additionally, my dad, a Navy Veteran, lawyer and seasoned entrepreneur, and J. Toji Calabro, Esq., a coast-to-coast litigator, were available to join as my co-founders.  Together, we are “business, litigation and finance,” the three staples of commercial litigation finance. The thing that has been the most surprising is the amount of open space for investments with smaller contingency based, plaintiff counsel.  Many such offices are unfamiliar with litigation finance for commercial disputes. What types of cases does Allen Calabro invest in, and what differentiates you from other funders in the market? We focus on whether the claim is meritorious first and foremost.  After that, we like small to medium investments where a small business owner or entrepreneur is out of business—or their only assets are the legal claims against the wrongdoer.  We have been in those shoes and came out successfully—and want to help our clients do the same. How does your past military and business experience inform your partnerships with your clients? The military helped me learn how to listen to varying ideas--getting along with others that may not share the same viewpoints or opinions and those with diverse backgrounds.  Listening to our clients and understanding their challenges when their backs are against the wall—enabling them with the resources to carry out the battle plan to defeat Goliath and sharing how to adapt and overcome. What are the key questions / concerns that clients ask when considering a funding partnership, and how do you allay those concerns? Clients want to know their rights and responsibilities. The amount and timing of our investment are of keen interest. We review and discuss the proposed budget explaining our risk analysis that includes the complexity of the case, defenses, the defendant’s ability to pay and an estimate of the duration of the investment among other things. The generally non-recourse nature of our investment and our willingness to provide advice from our experiences, if requested, allay many concerns. Our clients know we’ve been in “their shoes” and through our empathy and emotional support they identify with us. What are some interesting trends we should be aware of in the litigation funding space?  How do you see this sector evolving over the coming years? The trends we see are more ominous than interesting. First, there are seemingly more and more defendants that disregard the “rule of law.”  They commit clear wrongs with the knowledge that the wronged party has little ability to pursue the claim and/or “remain in the fight” as they unnecessarily prolong and add expenses to the proceedings. Second, as smaller law firms and sole practitioners become more comfortable with commercial litigation funding, we see an improvement in civil justice.  Unfortunately, we also see the potential for an economic downturn like 2008.  That will increase the demand for commercial litigation funding, and we will be there to help our “Davids.”

Montauk Metals Inc. (TSX-V: MTK) (the “Company” or “Montauk”) is pleased to announce that it has secured litigation funding for its arbitration proceedings (the “Arbitration”) brought by the Company against the Republic of Colombia (“Colombia”) to enforce the Company’s rights to compensation under the Canada-Colombia Free Trade Agreement (the “FTA”), as previously described in its news releases of March 27, 2018, February 25, 2019, February 10, 2020, November 23, 2021, September 1, 2023 and October 5, 2023, and subject to certain conditions and approvals as noted below. Background of the Claim Montauk contends that Colombia breached its obligations owed to the Company, including specific obligations under the FTA. The claims include Colombia’s refusal or failure to compensate the Company for the losses incurred as a consequence of Colombia’s prohibition of mining in the páramos (high altitude eco-systems). On March 21, 2018, Montauk filed a Request for Arbitration against the Republic of Colombia before the International Centre for Settlement of Investment Disputes (“ICSID”). The Arbitration is being conducted in two phases. Phase One will determine whether the ICSID Tribunal adjudicating Montauk’s claims (the “Tribunal”) under the FTA has jurisdiction over this case and whether Colombia has breached its obligations under the FTA and is liable for compensation to the Company. Assuming that ICSID decides in favour of Montauk in Phase 1 (the “Phase 1 Decision”), Phase 2 will involve determining the quantum of damages awarded to Montauk to compensate it for losses incurred. The Company estimates it has suffered more than USD $16 million in sunk costs and total loss of the value of up to USD $180 million in the Reina de Oro project, as well as legal and arbitration fees. Typically, an arbitral award will include an award of costs payable by the unsuccessful party to the successful party to reimburse it for its legal and arbitration fees. Certain costs of the proceedings, including arbitration fees and disbursements, have exceeded the Company’s original estimates as the Company was also required to pay Colombia’s 50% share of the arbitration fees. The Company must make an additional payment of US$200,000 to ICSID (the “ICSID Payment”) before a ruling on Phase 1 is rendered. If the Company fails to pay the required amount of US$ 200,000 to obtain a ruling on or before November 9, 2023 (the “Payment Deadline”), the ICSID Acting Secretary-General may exercise its discretion to discontinue the Arbitration. The ICSID Payment is expected to result in the issuance of a decision on jurisdiction and liability. Extension of the Payment Deadline The Company expects to apply today to ICSID to request an extension to the Payment Deadline (the “Extension”). The Company refrained from submitting an Extension application until it had received a litigation funding commitment, with such commitment being received today following the approval of the Omni’s (as defined below) investment committee. The Company strongly believes in the merits of its case and has obtained litigation funding to fund the ICSID Payment, subject to certain conditions as noted below. The Company is optimistic that ICSID will consider the Extension request. Litigation Funding Montauk has entered into a loan and option agreement (the “Loan Agreement”) with Omni Bridgeway (Fund 5) Canada Investments Ltd. (“Omni”), pursuant to which Omni has agreed to lend the Company US$200,000 (the “Loan Amount”) to fund the ICSID Payment in order for the Tribunal to render a ruling on Phase One. The Loan Amount will accrue interest at a rate of twenty percent (20%), compounded annually. In the event the Tribunal in the Arbitration finds that it does not have jurisdiction over the dispute and/or that Colombia did not breach its duties to the Company and/or any outcome which otherwise renders a Phase 2 Election (as defined below) non-viable in the sole view of Omni, the Loan Amount and any and all accrued interest must be repaid by the Company within sixty (60) days after Omni notifies the Company that Omni will not make the Phase 2 Election. The repayment of the Loan Amount and any such accrued interest shall be payable regardless of whether the Arbitration is successful and is a recourse obligation of the Company, payable from any and all assets of the Company. In connection with the Loan Agreement, the Company will deliver a promissory note (the “Note”) to Omni evidencing its obligation to repay Omni the Loan Amount and any accrued interest. In addition, the Company has granted Omni an option, exercisable in the sole discretion of Omni (the “Phase 2 Election”) to provide litigation funding to the Company pursuant to a litigation funding agreement (the “LFA”). The LFA is expected to provide an initial amount of up to US$2,325,000 (the “Non-Recourse Funding Amount”) subject to certain conditions. The Non-Recourse Funding Amount may be increased in certain circumstances as may be agreed upon between the Corporation and Omni. If Omni elects to provide the Non-Recourse Funding Amount for Phase 2 and the enforcement of any award obtained by the Company in the Arbitration, the Loan Amount and interest shall be repaid through proceeds recovered in the litigation (and in the event there are no proceeds recovered in the litigation, such amount inclusive of such interest shall be payable by the Company at the conclusion of the litigation). Omni’s return on the Non-Recourse Funding Amount (the “Omni Return”) will be limited solely to recovery from the amount of money for which the Arbitration is settled, or for which a final, non- appealable award is given in favour of the Corporation (the “Litigation Proceeds”). The Omni Return shall be an amount calculated as the sum of (i) a multiple of the amounts actually incurred of the Non-Recourse Litigation Funding Amount and (ii) a percentage of the gross recovery proceeds, both calculated when the recovery proceeds are received, as set out in the table below:

Months	Multiple	Percentage
0-12	2.0x	12%
12-24	3.0x	14%
24+	3.5x	16%

The Litigation Proceeds, if received, will be disbursed in the following order of priority: (a) Omni shall be reimbursed the Recourse Loan and the amounts actually incurred of the Non-Recourse Funding Amount; (b) Omni shall be paid the Omni Return and legal counsel shall be paid their legal fees; and (c) the balance shall be paid to the Corporation. In connection with the Loan Agreement, Note and LFA, the Company has agreed to grant Omni a continuing first priority security interest over any and all assets of the Company (whether presently held or acquired after the date hereof), including the Company’s interest in any Litigation Proceeds. The Loan Agreement is subject to certain conditions and the receipt of all necessary approvals and regulatory approvals, including the approval of the TSX Venture Exchange and the approval of the shareholders of the Company. The LFA is subject to the foregoing conditions and approvals and is subject to the settlement of the definitive LFA. The principal terms and conditions and the LFA have been agreed upon in the Loan Agreement. The Company has scheduled a special meeting of shareholders to be held on December 14, 2023 (the “Meeting”) at which shareholders of the Company will vote to ratify the Loan Agreement and approve the LFA. Additional information pertaining to the Loan Agreement and LFA may be found in the management information circular pertaining to the Meeting that is expected to be available on the Company’s profile on SEDAR+ on or around November 22, 2023. The Company cannot guarantee that it will be successful at the Arbitration, or that the estimated amounts disclosed herein will not be revised as the Arbitration proceeds. The Company also cannot guarantee that it will be able to recover all or part of its legal and arbitration costs from Colombia even if it is successful at the Arbitration. Assuming the Extension is granted and the Arbitration proceeds, the ruling from the Tribunal would be expected to be on or about the first quarter of 2024. Management of the Company will continue to provide updates on material developments of the status of the Arbitration. RISK DISCLOSURE STATEMENT: At the present time, the Company’s payment obligations are substantially in excess of its cash balances and it has no other assets. The Company is not solvent and cannot continue as a going concern.   Trading in shares of the Company and any investment in the Company is highly speculative. No trading in securities of the Company or investment should be made without being able to lose the entire amount of such funds. See below, “Cautionary Note Regarding Forward-Looking Statements”. Investors are advised to seek professional advice before making any decision to trade in or invest in the securities of the Company.

Byron Sumner is the CEO and Co-founder of Ignite, a specialist litigation insurer built on its founding members' significant litigation and reinsurance expertise. Ignite offers large capacity limits on 'A' rated paper across various case types, along with an extensive product suite tailored to each stakeholder's unique needs. Their solutions range from straightforward contract disputes up to multi-billion pound international arbitrations. Ignite's mission is to transform the legal expenses insurance experience by providing swift and simplified solutions, transparent communication, tailored problem-solving, and unwavering support to help clients achieve their desired outcomes. Byron’s experience over the past decade includes a plethora of cross-class responsibilities within the (Re)Insurance industry, having held both analytical and transactional roles at several leading insurance organisations, including Argo Syndicate 1200, Chubb, and Aon. As well as founding an analytics and targeted client acquisition business, Byron has supported the capacity acquisition, product development, and growth strategies of several market leading MGAs. Byron’s commitment in the co-founding of Ignite is driven by a strong appetite to further develop the harmonisation of Insurance and Commercial Litigation. Below is our LFJ Conversation with Byron Sumner: Can you please provide the basics on Capital Protection Insurance (CPI)? At its most basic level, how does it work, whom does it protect, and what are the benefits?  At its core, a CPI policy safeguards an agreed portion of a funder’s outlay. A CPI policy can be purchased for a single piece of litigation, or across several litigation assets that form a portfolio of investments. Simply put, if the agreed portion of capital is not generated by a specified date outlined in the policy wording, the insurer is obligated to pay a claim in line with the deficit between the funder’s return and the policy’s limit of indemnity. The benefits of CPI go beyond the scope of most conventional insurance products, which primarily focus on the provision of ‘sleep easy’ downside protection. When leveraged efficiently, CPI offers litigation funders the opportunity to unlock a wider pool of potential investment partners and more attractively priced debt capital. How does the rise of CPI within the legal services landscape impact litigation funders when it comes to their case selection and underwriting approach?  The CPI policy does not intend to allow funders to dilute their DD approach to cases. Ignite collaborates with top-tier litigation funders who are not only expected to maintain the same high level of DD, whether insured or not, but are also obligated to adhere to specific case selection criteria and other underwriting processes to satisfy the policy’s requirements. Eligible only for discerning customers, Ignite’s CPI policy is designed to be a highly utilisable safety net in the event of an unexpected loss rather than an instrument employed to eliminate legitimate litigation risk in its entirety. What would you say the interest level is from litigation funders around your CPI product? What sorts of questions are they asking you / what concerns do they have - and how do you allay those concerns?  Interest in CPI products has steadily increased over the past three to five years. While most prospective insured partners encountered by Ignite are funders seeking to protect a portion of their capital, we now see requests for additional cover such as insured premiums and ‘upside protection’, which involves ensuring the return of a portion of capital in excess of the principal investment (>1X MOIC). The primary concern of litigation funders and their LPs/financiers regarding CPI revolves around the insurer’s ability to pay a claim in the event of a large loss. This concern is largely mitigated by Ignite’s capacity partners’ A- rating and market-leading internal underwriting team. Through adept policy structuring and procedural stipulation, we reduce the risk of a lost case to a minimum. When Ignite partners with litigation funders, what criteria are you looking for in your diligence? Ignite’s DD is extensive, and underwriting portfolio CPI ‘wrappers’ is a more complex, bespoke process when compared to single case, open market policies. Transparency is critical to the process; working in partnership with its prospective customers, Ignite’s underwriting team will initially explore a fund manager’s historical track record, as well as their internal experience and expertise, including that of their investment committee. To gain an early understanding of viability, Ignite’s team also evaluates a funder’s IRR and MOIC expectations underpinned by their assumptions around case success rate and associated recoverability. How do you see the continuing emergence of insurance products within the litigation funding sector contributing to the evolution of litigation finance over the coming years, and how will Ignite play a role in that ongoing story?  Utilisation of insurance is still a relatively new concept to many funders, particularly in the context of CPI over more traditional ATE products such as adverse costs cover. I am confident that insurance products will play a significant role in the future of litigation funding and Ignite’s increased receipt of insurance applications unequivocally attests to this upward trend. A CPI policy can not only facilitate a reduced cost of capital for funders, but also unlock the litigation asset class through the utilisation of an investment grade rating for traditionally risk-averse investors such as pension funds and insurance companies. As a result of the growing harmonisation of insurance and commercial litigation, I anticipate a greater influx of appropriately priced capital and access to justice for those claimants/plaintiffs with meritorious claims. Ignite will continue to play a leading role in this evolution by providing specialist insurance products that fulfil the needs of our customers. Ignite’s offering, which itself is always evolving, aims to work back-to-back with funders on baskets of cases which are cross collateralised, allowing insurers to benefit from the familiar benefits of diversification. As litigation funders explore new avenues to mitigate risk, the role of insurance products like CPI becomes increasingly significant. Could you share some insights into how Ignite caters to the needs and expectations of litigation funders in this changing environment? Ignite dedicates a significant amount of time and resources to developing a profound understanding of its target market. The company collaborates closely with some of the world’s premier funders to explore innovative and well-established strategies to assist in the management of their portfolios to utilise their capital more efficiently to drive better returns for all stakeholders. Ignite’s success is intricately linked to the success of its insureds, and this dynamic serves as a solid foundation for future collaborations. For example, this strong working relationship typically manifests in the seamless adaptation of standard policy documentation to cater to the specific individual needs of the funder client. Ignite consistently maintains a sharp focus on delivering a catalyst for an increase in successful case outcomes, which, ultimately benefits plaintiffs and claimants.

Blake's entrepreneurial spirit led him to co-found and manage a Florida-based law firm, specializing in representing claimants in personal injury, discrimination, and commercial claims. His practice has catered to both individuals and businesses seeking just compensation. Beyond his legal expertise, Blake has earned the trust of entrepreneurs, Native American tribes, and media personalities. His insightful commentary on topics like litigation finance and Tribal economic development has solidified his reputation as a thought leader. Born in the Midwest and raised in Florida, Blake now splits his time between Washington, D.C., and Fort Lauderdale, where he has a home with his significant other Maria, their daughter Amber,  and his dog Bella, a chihuahua-beagle mix. As an enrolled member of the Choctaw Nation of Oklahoma, Blake is deeply connected to Native American culture and its economic development initiatives. In his free time, he's an avid hiker, runner, and Brazilian Jiu-Jitsu practitioner, holding a black belt since 2015, with a second-degree earned in 2021. Company Name & Description: Invenio LLP is a leading provider of legal services for those navigating the complexities of the litigation finance industry. Our founding partners have extensive experience in claimant funding, law firm lending, and litigation supported by third-party funding. We serve claimants, the law firms who advocate on their behalf, and the lenders and funders that provide the capital necessary to see justice through. Our lawyers bring a wealth of experience to the rapidly evolving litigation finance landscape. We’ve represented both plaintiffs and defendants in litigation, and immersed ourselves in venture start-ups and private equity ventures catering to plaintiffs, law firms, and claims development experts, giving us a unique blend of expertise suited to untangle the complexities of the litigation finance space and find solutions. Invenio is committed to increasing access to civil justice by helping plaintiffs of all types access courts and level the playing field against well-resourced defendants.  We believe litigation finance can be a force multiplier for plaintiffs and the firms that represent them. We aim to make the process of exploring and obtaining litigation finance clear, fair, and straightforward. Company Website: inveniolaw.com Year Founded: 2022 Headquarters: Invenio has joint headquarters in Washington, D.C. and Fort Lauderdale. Area of Focus: Invenio LLP is fully engaged in all aspects of the rapidly emerging litigation finance industry. The firm’s founding partners have each worked on multiple claimant funding and law firm loan transactions and have themselves litigated cases where law firm portfolio funding or third-party case funding was used. Our clients are law firms borrowing for their cases or portfolios, claimants seeking traditional third-party funding, lenders seeking assistance with underwriting and servicing of cases or portfolios of cases, and parties to disputes or workouts. We focus on Case & Portfolio Underwriting; Borrower & Claimant Side Representation; and Pre-Settlement, Post-Settlement & Medical Lien Funding. Member Quote: "We believe that litigation finance levels the playing field in the fight for access to justice, both for claimants and the attorneys and law firms that represent them on the front lines. Invenio LLP was founded on that principle, and we focus our efforts each day on ensuring that plaintiffs, their advocates, and the investors who fund their efforts get the guidance they need to navigate this complex industry."

Reid is the CEO of Gain, the fastest-growing SaaS-based, AI enhanced, medical lien servicing and legal funding company in the United States. He is an industry expert on optimizing the utilization of technology in personal injury cases and in maximizing reimbursements in a challenging environment. Reid has been featured on national and local media outlets throughout his career, including Inc. and Becker’s Hospital Review. He was named the 2022 Ernst and Young Entrepreneur of the year in the Southeast Region, an award given for his entrepreneurial spirit, purpose, growth and impact. Reid is passionate about making a difference by connecting, mentoring, opening doors and leading people.

1. Why the recent rebrand to Gain? What was the motivation for this change?

The recent rebrand from Cherokee Legal Holdings to Gain was driven by the need for clarity and unification of our various brands under a single, cohesive go-to-market identity. This change aims to unite our entire organization under a shared mission: to facilitate access to quality medical care for individuals who have suffered injuries through no fault of their own, regardless of their financial or insurance situation. In 2011, I founded Cherokee with the aim of offering financial options to personal injury victims awaiting settlement. Over time, that mission has expanded to include innovating and transforming the personal injury space to truly level the playing field for personal injury plaintiffs as they battle big insurance companies. Gain Servicing, a subsidiary of Cherokee Legal Holdings, was established as an AI-enabled platform to do exactly that and to provide Letter of Protection (LOP) servicing and collections to doctors. Our technology simplifies the process for doctors to accept LOPs as payment, allowing them to focus on delivering quality medical care to individuals in need, particularly those who lack health insurance or sufficient savings. In 2022, Gain Servicing accounted for a significant portion of Gain's total revenue, and this is expected to grow even further in the future, highlighting the need for the innovations we are prioritizing. By consolidating all of our capabilities under one unified brand, we now provide comprehensive solutions for every facet of personal injury, with a steadfast focus on the plaintiff at the heart of all of our endeavors. In essence, the rebrand to Gain represents the company's dedication to supporting personal injury victims – by providing resources to access quality medical care, and by making it more accessible to those who would otherwise be limited by financial or insurance challenges. It reflects Gain's mission to create a fairer insurance system and a more equitable healthcare model for all Americans.

2. Gain is seeking to streamline the medical lien process for healthcare providers. What are the challenges at play here, and how does Gain address those issues?

Treating personal injury patients who may not have the financial means to pay upfront can make it a challenging process for healthcare providers. The main challenges in this context are:

1. Delayed payment: Healthcare providers often have to wait for an extended period of time to receive payment for their services, which can strain their cash flow.
2. Administrative complexity: Managing a portfolio of liens and receivables associated with legal cases can be administratively burdensome, diverting resources from patient care.
3. Collection efforts: Collecting on these liens and receivables can be time-consuming and challenging, leading to potential write-offs.
4. Risk management: Healthcare providers may also face the risk of not being compensated if the legal case does not result in a settlement or judgment in their favor.

Gain has developed solutions to address these specific lien challenges: Lien Management Services: Our team of experts takes on the responsibility for full revenue cycle management services, including negotiation and collection of medical liens associated with Letters of Protection (LOP). Leveraging data from our AI-enhanced LOP servicing platform and industry experience, we help practices reduce write-offs and enhance collections. On average, our approach yields approximately 900 basis points more than practices that self-manage lien receivables. Medical Billing Partial Advance: We offer healthcare providers the option to receive partial payment at or near the time of treatment for personal injury patients with pending legal cases. By blending a partial advance of future cash flows, combined with additional payments at the time of collection, we increase healthcare providers cash flows while improving reimbursements over selling these liens outright. Bulk Lien Purchase: For healthcare providers with outstanding liens, we offer a bulk purchase program. This allows them to receive cash immediately, eliminating the time and stress associated with managing and collecting lien receivables. Gain is dedicated to simplifying and expediting the medical lien process, empowering healthcare providers to focus on providing quality patient care while ensuring they receive timely and fair compensation for their services. We understand the unique challenges faced by providers in this space, and our solutions are designed to alleviate those challenges and improve their financial stability.

3. How does Gain's AI technology help attorneys and healthcare providers? Can you give us an example of how Gain's AI can be used for enhanced efficiency or business intelligence?

Gain's AI technology plays a pivotal role in assisting both attorneys and healthcare providers by revolutionizing the management of complex medical claims. Here's how our AI technology enhances efficiency and provides valuable business intelligence: Efficiency Enhancement

• Imagine a personal injury case where various parties, including attorneys and healthcare providers, need to collaborate seamlessly to ensure the best outcome for the injured patient. Our AI-powered platform streamlines this process. For instance, it offers a patient record center, simplifying the updating and retrieval of information and documents. This feature alone saves valuable administrative time, ensuring that nothing gets missed in the case.
• Our AI-enhanced dashboard and reporting capabilities provide real-time insights into case status and financials. This means better monitoring, quicker decision-making and enhanced efficiency in managing personal injury cases. The messaging and notifications feature further streamlines communication among all stakeholders involved.

Business Intelligence

• Our AI technology equips attorneys and healthcare providers with predictive analytics capabilities, which provide invaluable business intelligence. AI-enhanced reports shed light on payor sources, case characteristics, jurisdictions, third-party liability carriers, financial outcomes and other vital decision-making factors.
• For instance, attorneys and healthcare providers can gain insights into case volumes, treatment costs, reimbursement rates, duration and more. They can drill down to obtain detailed information on cases, attorneys, healthcare providers or individual patients. Moreover, Gain's database of similar cases helps in understanding standard treatment costs, reductions and reimbursement rates. All of this information empowers those providing services to personal injury plaintiffs to make better decisions and optimize their approach to specific cases.

Collaboration and Communication

• Effective collaboration and communication are vital in personal injury cases. Gain's secure document storage and messaging system make it incredibly easy to share important documents and updates related to cases securely. This not only saves administrative time but also ensures that critical information is readily accessible.
• Real-time notifications and status updates keep medical and legal teams in sync as cases progress, enabling them to take timely actions and prioritize tasks efficiently.

Gain's AI technology is a powerful platform that brings attorneys and healthcare providers together, simplifying the management of personal injury cases. It enhances efficiency by providing tools for streamlined collaboration, offers valuable business intelligence for informed decision-making, and ensures that all stakeholders are well-informed throughout the process. We're proud to be recognized for our commitment to innovation and our mission to provide access to care and financial solutions to those in need.

4. How is Gain pursuing fairness and equity in the Consumer Legal Finance and Medical Lien spaces?

Gain is committed to pursuing fairness and equity in the Consumer Legal Finance and Medical Lien spaces by addressing the challenges faced by both personal injury plaintiffs and healthcare providers. Our goal is to create a more balanced and efficient system for all stakeholders involved.

• Supporting personal injury plaintiffs – and those who support them: For personal injury plaintiffs who lack the financial means to pay for essential bills and necessary medical treatment, navigating the insurance system can be incredibly challenging. This is where Gain steps in to offer assistance. We specialize in managing Letters of Protection (LOP), collections and funding, providing the support needed to ensure plaintiffs receive the care they deserve. Our AI-enhanced platform simplifies the handling of LOP agreements, personal injury receivables and medical liens. It facilitates better communication between personal injury attorneys and healthcare providers, streamlining document sharing, case updates and financial transactions. Through the platform, we also compare reimbursement amounts to thousands of similar lawsuits, ensuring fair payment for services provided.
• Enhancing efficiency with AI: Our AI technology plays a crucial role in achieving fairness and healthcare equity. It empowers healthcare providers and attorneys with predictive analytics capabilities, providing valuable business intelligence. Attorneys and healthcare providers can access AI-enhanced reports that offer insights into payor sources, case characteristics, jurisdictions, third-party liability carriers, financial outcomes, duration and more. This data equips professionals with the information they need to make informed decisions, ultimately leading to better patient care and fairer financial outcomes.
• Fighting back with a wholistic team approach – Managed Services: Gain's Managed Services team is dedicated to managing personal injury receivables and medical liens. They work closely with healthcare providers to monitor progress, follow up on key items and ensure that cases are advancing toward settlement. This partnership helps push back on reductions, reduce write-offs and increase collection amounts. Leveraging our third-party status also helps minimize the risk of being targeted in legal proceedings.

Gain is fiercely committed to creating a fairer and more equitable system in the Consumer Legal Finance and Medical Lien spaces. Our suite of services, including our AI technology, managed services and funding solutions, coupled with our commitment to transparency and efficiency all contribute to this mission. We believe that everyone deserves access to quality care and fair financial outcomes, and we are actively working to make this a reality in the personal injury space.

5. Gain is leaning into AI and Legal Technology heavily. What has the response been from claimants, attorneys and healthcare providers? Do you plan to continue making investments in Legal Tech initiatives going forward?

The response to Gain's heavy investment in AI and legal technology has been incredibly positive from claimants, attorneys and healthcare providers. Our innovative approach to managing complex medical claims through advanced AI solutions has garnered recognition and appreciation within the legal and healthcare industries. Just within the last few months, our AI platform has been recognized by the Technology Association of Georgia as a most innovative company of 2023 and by the Software & Information Industry Association as a Best Healthcare Technology Solution. This recognition further validates our dedication to helping injured patients by revolutionizing the management of medical claims. Attorneys have found tremendous value in our AI platform, which accurately assesses case values and informs them of available funds for reimbursements. This empowers attorneys to collaborate more effectively with healthcare providers, resulting in higher reimbursements and improved outcomes for their clients. Our technology has also been welcomed by healthcare providers. Gain's platform streamlines the process of accepting LOPs as a form of payment, allowing providers to focus on delivering superior clinical outcomes and ensuring access to high-quality medical care for everyone, regardless of their payor source. This has made a significant difference in the efficiency of their practices and their ability to provide care to those in need. As for our future plans, we are fully committed to continuing our investments in legal tech initiatives. We believe that technology is the key to driving meaningful change in the legal and healthcare sectors. Our goal is to further enhance and evolve our technology, making it even more efficient and effective in serving the needs of claimants, attorneys and healthcare providers. We are dedicated to advancing our mission and ensuring that everyone receives the care and support they deserve.

Just over four years since its launch, Apex Litigation Finance, a UK-based company providing litigation funding solutions, is thrilled to report that they have secured £20million funding from Crestline Investors Inc, an established provider of alternative investment solutions to support its growth and provide access to justice to more UK Claimants. With their concentration on investing in small to mid-sized commercial claims in the UK, Apex is dedicated to assisting claimants in accessing justice where they either lack the funds to proceed or are concerned about the financial risk of an unsuccessful lawsuit. With the number of applications for litigation funding rising and the solutions provided by litigation funding becoming widely accepted, Apex is rapidly becoming the litigation funder of choice, for companies, insolvency practitioners and individuals with small/midsize commercial claims. As part of their growth strategy, Apex has now embarked on a swift expansion that involves recruiting additional team members. Maintaining their flexible approach to recruitment, the company is highly focused on finding suitable candidates. The company is eager to connect with people who have a strong enthusiasm for its growth and ambitions, regardless of whether they are familiar with litigation funding, ATE, business development or have an extensive legal background. Speaking about the relationship with Crestline, CEO Maurice Power says: “I am thrilled to announce the funding facility with Crestline, which allows us to further establish Apex’s position as the litigation funder of choice for claimants with small/mid-size commercial claims in the UK. The Crestline facility will enable Apex to provide funding solutions, and access to justice, to claimants with meritorious matters that are deemed too small for other litigation funders.” Michael Guy, CIO Europe from Crestline Investors added “We are very supportive of “access to justice” agenda for less well funded claimants which is at the heart of Apex’s solutions and delighted to support Apex through its ramp-up and growth phase. Prospective applicants wishing to apply for a role are invited to contact Apex and send their most up-to-date C.V. and explain why they would be a great fit. enquiries@apexlitigationfinance.com. Crestline were advised by Emissary Partners and Reed Smith and Apex by KingsRock Namier Limited, a specialist advisor in the Litigation Finance sector. Apex Litigation Finance Limited Apex Litigation Finance Limited is a company which brings together experienced individuals from the litigation funding, legal and finance sectors to provide third party litigation funding to litigants (corporates, liquidators, and individuals) who are unable to pursue a claim due to the prohibitive cost of litigation. Although the litigant’s case may have merits, uncertainty over the total costs and the potential risk of being ordered to pay the defendant’s costs, should they lose the case, prohibits access to justice for many claimants. Following an assessment of the merits of the litigant’s case, Apex will commit funds to pay legal and other costs associated with the case in return for an agreed share of any award upon a successful conclusion. If there is no recovery, or if the case is lost, there is no debt for the litigant to repay. Email: enquiries@apexlitigationfinance.com Phone: 0208 012 7944 Website: www.apexlitigationfinance.com Crestline Investors Inc. Crestline Investors, Inc., founded in 1997, is a global institutional alternative investment management firm with approximately $17 billion in assets under management. Crestline is headquartered in Fort Worth, Texas, and maintains affiliate offices in New York, London, Toronto and Tokyo. The firm’s London-based affiliate Crestline Europe, LLP specializes in private capital investments in lower mid-market and mid-market companies, and asset platforms in developed markets of Western Europe, focusing on resilient industry sectors and asset backed investments. In respect of this investment please contact.

Global legal finance company Burford Capital announces the release of a new book providing an indispensable overview of the industry and practical introductions to the use of commercial litigation and arbitration finance in key jurisdictions worldwide. Published by PLI Press, a division of Practising Law Institute, Commercial Legal Finance addresses key questions about legal finance structures, pricing, and mechanics, providing a step-by-step overview of the process for obtaining legal finance. Covering key jurisdictions including the US, England & Wales, Europe, Asia, and Australia, the book addresses ethical considerations for litigants and lawyers, key considerations for commercial litigation, patent litigation and arbitration financing, and a legal finance glossary of terms. “In-house counsel with responsibility for litigation and arbitration, as well as law firm practitioners advising clients in this area, can benefit from a comprehensive reference to the commercial legal finance industry that offers practical guidance on the mechanics of litigation and arbitration finance in key jurisdictions and practice areas around the world,” says David Perla, Co-Chief Operating Officer at Burford Capital, who co-edited the treatise with Co-Chief Operating Officer Aviva Will and Burford’s Suzanne Butters. For more information and to order, visit pli.edu. About the Author Burford Capital is a leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in New York, London, Chicago, Washington, DC, Singapore, Dubai, Sydney, and Hong Kong. About Practising Law Institute (PLI) Founded in 1933, Practising Law Institute is a nonprofit learning organization dedicated to keeping attorneys and other professionals at the forefront of knowledge and expertise. PLI provides accredited, continuing legal and professional education programs delivered by more than 4,000 volunteer faculty, including top experts across practice areas. Additionally, PLI publishes a comprehensive library of treatises, course handbooks, answer books, and journals, also available through the PLI PLUS online platform and app. The essence of PLI’s mission is a commitment to the pro bono community. Based in New York, PLI also has an office and Conference Center in San Francisco. Visit www.pli.edu to learn more.