Chicago Litigation Funder Now Largest In World
From the Chicago Daily Law Bulletin
Litigation finance firm Gerchen Keller Capital LLC said Tuesday it raised $475 million for its latest private fund, hiking its assets to more than $800 million and making the nearly 2-year-old investment firm the world’s largest focused on legal and regulatory risk.
And as big as it is, GKC is also nimble.
In a sign of the growth and evolution of litigation finance, which has typically been described as providing non-recourse loans in exchange for a share in litigation awards, GKC’s latest and largest investment fund will offer a different, less-risky type of product.
Rather than investing in lawsuits at early stages, the money will be used to purchase the rights to collect legal fees, judgments and settlements that have largely been resolved. The financing allows companies and law firms to immediately collect awards that, for example, may be waiting on court approval.
The firm has already invested more than $100 million in post-judgment or post-settlement cases where the “legal risk” has largely been eliminated.
“This really grew out of the market demand from our clients, companies and law firms,” said CEO Adam R. Gerchen.
“These opportunities were already coming to us without us necessarily looking for it. It was a product that the market told us was in heavy demand that wasn’t necessarily out there for law firms and companies.”
The new investment fund is just one sign of the growth at GKC.
Read more in our daily News Update...
From the Chicago Daily Law Bulletin
Litigation finance firm Gerchen Keller Capital LLC said Tuesday it raised $475 million for its latest private fund, hiking its assets to more than $800 million and making the nearly 2-year-old investment firm the world’s largest focused on legal and regulatory risk.
And as big as it is, GKC is also nimble.
In a sign of the growth and evolution of litigation finance, which has typically been described as providing non-recourse loans in exchange for a share in litigation awards, GKC’s latest and largest investment fund will offer a different, less-risky type of product.
Rather than investing in lawsuits at early stages, the money will be used to purchase the rights to collect legal fees, judgments and settlements that have largely been resolved. The financing allows companies and law firms to immediately collect awards that, for example, may be waiting on court approval.
The firm has already invested more than $100 million in post-judgment or post-settlement cases where the “legal risk” has largely been eliminated.
“This really grew out of the market demand from our clients, companies and law firms,” said CEO Adam R. Gerchen.
“These opportunities were already coming to us without us necessarily looking for it. It was a product that the market told us was in heavy demand that wasn’t necessarily out there for law firms and companies.”
The new investment fund is just one sign of the growth at GKC.
Read more in our daily News Update...