Yesterday the Wall Street Journal reported that the founders of BlackRobe Capital Partners LLC were closing up shop. The fund, which launched in 2011, had apparently failed to attract sufficient capital. The litigation finance industry has grown significantly in the past five years, but remains fragmented and difficult to analyze. Some investors like the uncorrelated nature of this emerging asset class, but others find the returns too irregular and of a uncertain duration. Binary risks are not for everyone.
Structured Settlements, the Secondary Market and ELNY
Structured SettlementsWhat does the Executive Life (ELNY) liquidation and the payment cuts that went into effect after the August closing of the restructuring and transfer to GABC mean for the secondary market? Of the almost 10,000 ELNY payees remaining after 21 years of a failed “rehabilitation” over 1500 payees were notified that they would see cuts to their structured settlement payments of up to 66%. Many of these payment streams were sold into the secondary market in factoring transactions. The factored payments were then “packaged” and offered to investors using a variety of structures. The one sure answer is that someone isn’t going to get what they bargained for. Edward Stone will be speaking on this topic at the 2013 NASP Annual Conference in Las Vegas from November 5-7, 2013.
BlackRobe Litigation Finance Firm Shuts Down
Litigation FinanceYesterday the Wall Street Journal reported that the founders of BlackRobe Capital Partners LLC were closing up shop. The fund, which launched in 2011, had apparently failed to attract sufficient capital. The litigation finance industry has grown significantly in the past five years, but remains fragmented and difficult to analyze. Some investors like the uncorrelated nature of this emerging asset class, but others find the returns too irregular and of a uncertain duration. Binary risks are not for everyone.
Ripple Effect of Executive Life
Annuities, Structured SettlementsThe insurance industry is based on trust and the ripple effect of the Executive Life liquidation and the cuts facing 1500 annuitants will be felt throughout the industry. Can this failure teach us anything? Edward Stone makes a few suggestions in an interview with the Pittsburgh Post-Gazette. Read the full article here.
Are Life Settlements Still a Mystery?
Life SettlementsA recent article in LifeHealthPro’s April 12, 2013 online edition by Robin S. Weinberger and Peter N. Katz points out that “many accountants remain unaware of life settlements as an alternative to the lapse or surrender of a policy”. A quick internet search reveals dozens of blogs by many advisors with “advice” about insurance policies that neglect the alternative of life settlements. Life insurance policyholders should know their options – and the sale of a life insurance policy is a viable option for policyholders over the age of 65 with some health issues. Know your options before you surrender your policy or allow it to lapse! Read full article here.
2013 NASP Annual Conference
Speaking Engagements, Structured SettlementsEddie Stone will be speaking at the 2013 NASP Annual Conference in Las Vegas from November 5-7, 2013. Registration for the conference is now open.
IP Monetization 2012
Litigation Finance, Speaking EngagementsEdward Stone and Steve Huttler of Sadis & Goldberg LLP collaborated on and contributed a chapter entitled “Litigation Finance Meets Intellectual Property” for the Practicing Law Institute’s IP Monetization 2012 seminar course book.