The litigation finance industry is booming, insiders say, even as courts are closing or going online to mitigate the spread of coronavirus.
As for court closures causing problems for the industry? Insiders say they’re not worried.
“It extends the timeline of cases, but I actually don’t think it will affect returns a lot,” Shang said. “Court dates get pushed back for any number of reasons.”
According to Perla, the investments Burford makes take about two years on average to resolve. This doesn’t include the time spent researching or doing due diligence on the case.
Chin Feman added that for some, it may even result in settlements.
“I think that some cases will settle that otherwise wouldn’t,” Chin Feman said. “Settlements are good for litigation finance. It takes risk off the table.”
