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Parabellum Capital joins the litigation funding game
New York-based Parabellum Capital LLC launched last week to enter the field of litigation finance. The firm is a spinoff of the 5-year-old legal finance group from investment bank Credit Suisse.
Litigation finance is seen as an increasingly attractive investment in the US as firms look to make investments that depend upon judgments and settlements rather than upon market forces.
Parabellum principal Aaron Katz says that the firm will focus on providing corporate clients with funding for a range of legal costs. Big-ticket litigation will be the main business of the firm, but it may also provide loans or investments to underwrite enforcement of intellectual property and other legal services.
“Law departments, whether they see themselves this way or not, they’re stewards of capital,” Katz says. “Taking on a risky litigation campaign, and bearing all the risks themselves, may not be the best way to manage their company’s capital.”