Litigation financing has been gaining popularity in the U.S. in recent years, and a new venture is hoping that momentum will carry over into the field of bankruptcy. Burford Capital, one of the country’s biggest providers of litigation funding, has teamed up with Chilmark Partners, a bankruptcy and restructuring firm, to create Bankruptcy Litigation Funding LLC.
The joint venture, which was launched in July 2015, intends to “provide financing services for claims brought in connection with US bankruptcies, including providing funding and advisory services to litigation trusts,” according to the company’s website.
The current way in which these litigation trust operate creates inefficiencies and a “misalignment of interests” financiers hope to capitalize on, industry insiders told Bloomberg BNA.
