3.7: Championing Justice: How Capital is Changing the Legal Landscape

Step into the dynamic realm of litigation finance, where the heartbeat of law intersects with financial ingenuity. In this revealing episode of "The Heart of Law," our adept host, Mirena Umizaj, collaborates with expert strategist Jacob Cantrell, Co-founder, and Chief Risk Officer of Rocade Capital, to explore the intricacies of strategic legal financing. Drawing from their respective expertise, they clarify misconceptions surrounding litigation financing, explore optimal client structures, and distinguish between various business models in the legal sector.

 With over 17 years of experience in financial services and the energy trading market, Jacob Cantrell has left an indelible mark on the industries he's been a part of. Having served in key executive positions at the Commission Exchange and EDF Trading, he has consistently been at the forefront of innovative strategies, particularly developing new asset classes in deregulated power and gas markets. Moreover, Jacob Cantrell has served as the vice president of the Community National Bank in Texas, where he spearheaded the creation of a loan review department and collaborated closely with the board to maintain outstanding asset quality. Guided by his visionary leadership, Rocade Capital has achieved remarkable growth, managing asset quality risks, optimizing returns, and providing an impressive $900M+ in funding since 2014 to law firms pursuing complex litigation growth capital.

 As the conversation unfolds, Jacob Cantrell presents an encompassing view of litigation finance, from conventional commercial litigation finance to loans tailored specifically for law firms. Intrigued by his expertise, Mirena delves deeper into Jacob's transition from a community-focused banking role to navigating the intricacies of energy trading. However, it wasn't until he encountered litigation finance that he discovered the "missing piece" that enabled him to effectively merge his skills with his deep-rooted desire to assist individuals in accessing justice. Prompted by Mirena's curiosity about potential misunderstandings, Jacob addresses the prevailing misconceptions surrounding litigation finance and underscores the critical role of trust between capital providers and law firms. He candidly points out that while barriers to entry are low, true long-term success demands a deep understanding of the law firm's operations, from case acquisition to settlement processes, fostering genuine partnerships where both parties prosper mutually.

 Drawing from his experience, Jacob sheds light on Rocade Capital's flexible loan structure, emphasizing a commitment to backing law firms embodying a growth mindset, client focus, and a data-driven approach. For him, it's not merely about amassing cases; it's about law firms envisioning leadership roles within their legal sector, fueled by strategic investments in their people, processes, and technology. Mirena extends the dialogue by discussing the evolving business mindset within the legal profession, noting the challenges firms face in predicting their performance. She emphasizes the transformative impact of litigation finance in addressing "growth pains" and enabling firms to sustain and predict their trajectory. Concurrently, Jacob underscores its pivotal role in ensuring access to justice for the average American, allowing law firms to take on cases without upfront costs and challenging the notion that legal representation is exclusively for those who emerge victorious.

The conversation effortlessly transitions into the details of litigation finance, encompassing liability assessment, diverse evaluation processes, and various business models. Elaborating on this, Mirena presents the concept of a sustainable business model, prompting law firms to measure their value proposition against the overarching goals of the legal industry. Moreover, as the conversation comes to a close, the focus shifts to the emerging equity structures and evolving landscape in Arizona, where Mirena and Jacob express a cautious yet observant stance, recognizing the potential for a more robust equity structure that incorporates legal and financial aspects.