Many clients are demanding alternative fee arrangements ("AFAs") and litigation finance allows law firms to offer those AFAs to clients, while at the same time retaining the traditional billable hour.
The ability to present different fee structures to clients can expand a firm's relationships.
Litigation finance can smooth out the lumpy payment streams created by contingent fee work.
Taking on additional clients with at-risk work allows law firms to grow their business. With a third-party financing partner, law firms can choose a comfortable level of risk with those added revenue sources.
Litigation finance can allow law firms to participate in the upside results of their teams' efforts.
With Permentum's strong preference for equity-like sharing of proceeds, contentious negotiations over complicated return entitlement formulas are not necessary.
When representing clients, law firms may not want another group of lawyers at a litigation-finance firm second-guessing their handling of the case.
At Permentum, we see our role as financial partners that will refrain from micromanaging legal strategy.