While litigation finance is increasingly popular, transactions in this sector can sometimes fall through. Understanding the primary “deal-killers” can significantly mitigate risks for investors and plaintiffs alike. Experts Rebecca Berrebi of Avenue 33 and Boris Ziser of Schulte Roth highlight that the fundamental reasons for failed deals include misunderstandings of deal terms and a lack of trust between parties. Addressing these issues up front can smooth the path to successful financing.
These insights are extracted from an article highlighting the prevalent causes of litigation finance deal breakdowns, which are outlined in more detail on Law360. As the sector continues to grow, fueled partly by new capital from established hedge funds, understanding these dynamics is crucial for those engaged in the field.