How Litigation Finance Can Increase Rack Rate Realization for Law Firms
Updated: May 22, 2018
A recent Citi Private Bank and Hildebrandt Consulting survey shed light on a reality many are all too aware of: The business of Law is a tough business. “Demand has been flat for nearly a decade as alternative service providers crowd the market and more corporate legal departments bring work in-house,” says Ross Wallin, Co-Founder of Curiam Capital, an NYC-based litigation funding firm.
Add to that the fact that realization percentages – that is, the percentage of rack rates a law firm is actually able to collect from clients – have been steadily dropping over that same time period, and one can see why so many law firms are turning to alternative fee arrangements as a means of increasing their bottom line. But while law firms are amenable to increasing their risk appetite in order to boost their bottom line, many are unwilling or unable to assume the undue risk of full contingency.
Fortunately, Litigation Finance offers an attractive middle-ground.
Litigation Finance Journal (https://litigationfinancejournal.com/litigation-finance-can-increase-rack-rate-realization-law-firms/)