March 7, 2025

“Show Me the Money” – Diverse Teams are a Revenue Driver and Not Just the Right Thing to Do

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Kirstine Rogers

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March 7, 2025

Certum’s Legal Director, Kirstine Rogers, co-authored an article with Molly Pease of Curiam Capital, an important article for the Legal Funding Journal to recognize International Women’s Day.

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As our country continues to debate the pros and cons of diversity, equity, and inclusion programs in the government and private sectors, the litigation finance industry would be well served by remembering that diverse teams make companies better.  Indeed, several studies have explored the link between diversity initiatives and increased profitability in organizations and found that a more diverse workforce can positively impact business performance, innovation, and profitability.

There are many reasons for this.  First, representation matters.  Whether it is getting a phone call for a potential new investment opportunity from a female general counsel who wants to see diversity in the team she might be working with or being able to hire top talent who want to work with a diverse team, better opportunities present themselves to litigation finance market participants when those firms present a diverse and capable team.  Second, a diverse team allows for more diverse networking opportunities, which encourages investment opportunities from a wide variety of sources.  And finally, and potentially most importantly, diversity of backgrounds, skills, and expertise allows for a risk assessment in underwriting investment opportunities that is less likely to miss potential risks or pitfalls that a more narrow-minded team might not see.  Better underwriting decisions result in better investments, which results in more revenue for the company.

Diversity need not be a mandate for it to be an intentional and profitable choice.

“If you build it, they will come.” 

Does your company reflect the world of your counterparty or their counsel?  

Research has shown that consumers are more likely to buy from or engage with businesses that appear to understand their specific needs, often through shared demographic traits like race, gender, or age.  Businesses that reflect their target consumers’ characteristics and values are more likely to foster trust and client loyalty.   The same is true in commercial transactions with counterparties and their counsel.  In entering into a funding agreement, you are forming a potentially long-term partnership.  Communication and trust are essential to the success of that relationship.  You only maximize the likelihood of that success with the diversity of the decision makers on your team.   

Companies with inclusive environments are also more likely to attract top talent and retain employees.  Why wouldn’t a firm cast the widest net possible?

“Nobody puts baby in a corner.” 

Having a diverse workforce also increases opportunities for connection and visibility in the market.  It provides a vehicle for commonality – a shared experience, history, or perspective.  This is because similar backgrounds make it easier to communicate, share common goals, and find mutual interests, which in turn can lead to individual career opportunities and company-wide growth.

Diversity-based industry groups like the Women of Litigation Finance (WOLF) facilitate interaction between market peers, provide leadership and speaking opportunities, and lead to collaboration between companies seeking to work together.  Bar associations also frequently have smaller diversity-based committees that provide a smaller community from which to network and form connections.  Bigger fish. Smaller pond.  Stronger bond.  And these genuine connections formed on shared experiences can lead to exponential networking growth.  A familiar face at one industry event only leads to more familiar faces at the next one.  

This is true for thought leadership too.  If every member of a panel of speakers looks the same and does not reflect the different faces in the audience, there are people in that audience your panel is not reaching.  If every article is written from the same perspective, there are readers who are not listening.  

“You’re gonna need a bigger boat.”  

At its core, the litigation finance industry assesses risk.  The better a firm can do that – whether it is a funder, a broker, or an insurer – the more profitable it will be.  Risk assessment involves seeing things that others might miss and making sure no stone gets left unturned.  

There are many components of a due diligence risk assessment, including reviewing the strength of the legal merits of the claims, assessing the credibility and testifying potential of key witnesses, and predicting what arguments or defenses will be presented by opposing counsel.  A diligence team with diverse backgrounds, experiences, and perspectives will be better at identifying risks and assessing the value of potential claims.  For example, a funder will often speak extensively with key witnesses to assess how they would present testimony at trial and whether a jury would find that testimony credible and persuasive.  If a trial team were conducting a mock jury to test these points, it would assemble a diverse panel of men and women from different ages and backgrounds to get various views on the testimony.  Similarly, a funder trying to make its own internal assessment will be better served by a diverse team with a variety of perspectives.  If everyone in the room has the same basic background, characteristics, and experiences, they are likely to see things similarly and thus miss key factors that could be important in determining the impact of the testimony.  And this is only one aspect of a risk assessment.  Each step of the diligence and risk assessment process would benefit from analysis by a diverse team.  The biggest concern in the litigation finance industry is that a funder, broker, or insurer misses a significant risk in their assessment of a legal asset and finds themselves funding an investment that has a low chance of success in hindsight.  A diverse team will protect against this outcome and therefore drive revenue for industry participants.

“You talkin’ to me?” 

At the end of the day, the value of meaningfully implemented diversity initiatives is clear.  Having the benefit of differing experiences and perspectives makes companies better.  And, as to litigation finance in particular, diversity without question strengthens the return on investments. 

But just having a diverse workforce does not necessarily result in a better company or improved profitability.  The company needs to foster an inclusive environment where diverse perspectives are valued and integrated into decision-making processes and where those selected as thought leaders demonstrate how diversity is implemented, prioritized, and integrated into company culture.

In honor of International Women’s Day, make this a call to action – what can you do at your company to ensure you have the broadest perspectives represented?  Ask yourself, does the panel you are sponsoring completely reflect your target client base?  Does your leadership team include those with different perspectives?  Does your company provide women with networking and mentoring opportunities? 

After all, diversity presents an opportunity for someone at your company to collaborate with other market participants to write an article just like this.  

Certum Group Can Help

Get in touch to start discussing options.

Recent Content

By Ross Weiner • November 5, 2026
On November 3, 2026, the Second Circuit reversed the dismissal of a Defend Trade Secrets Act claim in SS&C Technologies Holdings, Inc. v. Arcesium LLC, No. 25-2049 (2d Cir. Nov. 3, 2026) (Sack, J., joined by Livingston and Carney, JJ.). It is a very plaintiff-friendly DTSA decision; anyone who underwrites or litigates trade secret cases in this Circuit should read it. The facts are familiar. SS&C owns Geneva, a portfolio accounting platform built over decades. Arcesium licensed Geneva under a reseller agreement that barred it from using Geneva to build a competing product. While it had access, Arcesium built its own platform, Trinity, in under three years (Geneva took decades!), pitched Geneva customers on Trinity having “the same” functionality, and built a second tool, Nautilus, to keep connecting to Geneva after the license expired. Internal emails showed employees acknowledging the “IP constraints” and being told not to describe Trinity’s requirements by reference to “what Geneva does.” The Southern District of New York found that SS&C had pleaded trade secrets but not misappropriation, and dismissed. The Second Circuit reversed. The Crux: Courts Shouldn’t Pick Between Competing Readings on a 12(b)(6) Motion The most important part of the opinion is its rebuke of how the district court used certain documents attached to the complaint. Prior to filing an amended complaint, the district court had ordered Arcesium to produce 23 documents that SS&C identified as integral to its case. SS&C quoted those documents in its complaint. Arcesium then attached the same emails, plus a declaration from its Head of Technology, to its motion to dismiss and offered its own innocent explanation of what they meant. The district court accepted that explanation. The Second Circuit identified two errors: Self-serving defendant documents shouldn’t be taken as true. Citing Pearson v. Gesner, the court said that when a plaintiff incorporates a defendant’s “unilateral writing,” the court must ask why the plaintiff relied on it, not accept “every word” as true. Arcesium’s internal emails were exactly that kind of document. No fact-finding on a motion to dismiss. The “more fundamental error” was that the court weighed Arcesium’s explanation against SS&C’s allegations and decided Arcesium had “the better interpretation.” That is fact-finding. The district court relied on the rule that when an incorporated document contradicts the complaint, the document controls. The Second Circuit answered: “Perhaps.” But the documents did not contradict SS&C. The parties simply read them differently, which “is, of course, to be expected in any litigation.” Courts may look at incorporated documents, but they may not “take on the role of the jury when doing so.” This matters well beyond software. In trade secret cases, the plaintiff’s best early evidence is often the defendant’s own emails, obtained through pre-suit discovery, a related case, or a whistleblower. Defendants routinely attach those emails to a motion to dismiss and argue an innocent reading. SS&C shuts that down at the pleading stage. Sharing With Customers Under NDA Is Permissible Arcesium argued that Geneva could not be a trade secret because every licensed user had access to the executable software, the integration layer, and the data model. 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Thanoo, it held that a plaintiff “need not spell out the details of the trade secret to avoid dismissal.” The complaint only needs to identify the secret with enough specificity to “place a defendant on notice of the bases for the claim” and let it “ascertain at least the boundaries within which the secret lies.” SS&C met that standard by doing more than listing categories. It described what each component does (for example, the database that stores portfolio, price, and transaction data) and how it is used (for example, the integration layer that lets developers run Geneva functions and move data in and out). The court contrasted that with a complaint that claimed only a “core brand and marketing plan strategy.” The lesson is to describe what the secret does and why it matters, not to disclose the secret itself in a public pleading. “Use” Is Very Broad The Second Circuit had never defined “use” under the DTSA. It now has, and the definition is expansive: “any exploitation of the trade secret that is likely to result in injury to the trade secret owner or enrichment to the defendant.” That includes marketing goods that embody the secret, relying on it to speed up research and development, and soliciting customers with it. Trade secrets “need not be exactly copied,” a product that is merely “similar” can be enough, and the court cited with approval district court cases finding use where a defendant studied the information to “increase his knowledge base.” SS&C’s allegations fit easily: Trinity was built in under three years against Geneva’s decades, Arcesium went live eight months after its CEO said a transition would take at least twelve, and it sold Trinity to Geneva customers as able to mimic Geneva’s functionality. Taken together and against the license restrictions, that stated a claim. 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A confidential conversation with Certum is free and carries no obligation, whether or not you ultimately seek funding. Reach us at certumgroup.com/contact-us .
By Certum Group Team • November 3, 2026
Certum’s Will Marra published an op-ed in yesterday’s Wall Street Journal drawing lessons from the recent collapse of Weil Gotshal for broader debates about third-party litigation funding and outside investment in law firms. Marra builds on scholarship by John Morley of Yale Law School, who has demonstrated that two legal ethics rules can contribute to the swift collapse of law firms. Those rules are Rule 5.4, which bars non-lawyer investment in law firms, and Rule 5.6, which bars non-competes for lawyers. Marra argues that these two rules affect every firm every day, by making it harder for them to make long-term investments that could reduce the cost of legal services, improve client service, and benefit the civil justice system. Marra suggests that reforming Rules 5.4 and 5.6 could not only help prevent the sudden collapse of the Weils of tomorrow but also improve the legal system writ large. The article is available at this link . For some of Will’s other commentary on litigation finance and the civil justice system, please see the article Litigation Finance in the Market Square , which was co-authored with Certum’s Scholar in Residence, Suneal Bedi , and was published last year by the Southern California Law Review.
By Patrick Dempsey • October 27, 2026
This is the fifth post in Certum Group's seven-part series bringing our Trade Secret Litigation Playbook to the blog. It draws on Part V of the Playbook, Choosing Counsel and Structuring the Economics. Read or download the full Playbook here . The most common mistake I see claim holders make is also the most understandable one: they sign a law firm to a full contingency before they ever talk to a funder. A firm offering to take the whole case on contingency feels like a gift. You spend nothing, the firm carries the risk, and you share the upside only if you win. What could be wrong with that? When you look at cases side by side, quite a lot. A claim holder who engages a funder first and then hires counsel on a hybrid structure typically keeps substantially more of the recovery. To see why, start with the three ways to pay for a case. The three fee structures Hourly is the traditional model: you pay standard rates as the work is done, you own the outcome, and you bear 100% of the cost, win or lose. It fits deep-pocketed companies that want complete control, and smaller matters where alternative structures are hard to price. Full contingency puts the firm's fees entirely at risk, paid only from the recovery, usually at 33% to 40% of whatever comes in. It is attractive when you have limited capital, and the willingness of a good firm to take it is a genuine signal of merit. But it carries a real cost: that 30-to-40-percent-plus is meaningfully more than the combined economics of a hybrid or funded structure. Hybrid — shared risk — is the sweet spot for most matters between roughly $10 million and $250 million. The firm discounts its hourly rate, often steeply, in exchange for a smaller contingent premium on success. It preserves alignment while avoiding the full-contingency tax, and it becomes especially powerful when a funder pays the discounted fees, the claim holder pays nothing out of pocket, and counsel keeps meaningful upside. Why sequence changes the outcome Here is the part that sounds counterintuitive until you run the math. A 33-to-40-percent contingency leaves you with 60 to 67 cents of every recovery dollar. A hybrid structure — where counsel takes a smaller contingency, often 15 to 25 percent, layered on a discounted hourly fee that a funder pays — frequently leaves the claim holder with 50 to 65 percent after the funder's return, and sometimes more. The precise economics depend on the size and shape of the case, but the direction is robust: full contingency is rarely the cheapest path for a strong claim. Sequence matters because leverage is perishable. Once you sign a full-contingency engagement letter, the firm has effectively "bought" the case for its own investment committee, and switching firms afterward is expensive and awkward. With a funder in place and a hybrid structure available, you keep your optionality — you can hire the very best trial firm for your matter, rather than the best firm that happened to be willing to shoulder full risk. A funder's "no" is also valuable There is a quieter benefit, too. When a sophisticated institutional investor is willing to deploy non-recourse capital against your claim, that is one of the strongest external validations of case quality you can get, and counsel reads it that way. But even a decline is useful: it tells you where the weaknesses are — thin damages, a collectability problem, an identification gap — while you can still fix them, and before you have committed to a firm. Either way, you learn something you would rather know now than a year in. The sequence to consider In practice it looks like this. Retain trade secret counsel on a focused, limited-scope engagement to run an initial case assessment under privilege. While that is underway, open a confidential conversation with one or more funders, sharing the same materials. Use the funder's view — its willingness to fund, its read on damages, its suggested economics — to inform your choice of trial counsel. Then interview firms with that information in hand and propose a hybrid structure supported by the funder. Done well, the engagement letter, the funding agreement, and your preservation protocols can all be signed within the same week. None of this is a knock on contingency counsel, many of whom are excellent. It is simply a reminder that the cheapest-looking option at signing is often the most expensive one at resolution — and that a short conversation, before you sign anything, can be worth a large share of the recovery. Go deeper with the Playbook. This post covers one piece of a much larger picture. For the full framework — what the law requires, what a strong pre-filing case looks like, how damages experts value these matters, how counsel fee structures change your economics, and how litigation finance fits in — read Certum Group's Trade Secret Litigation Playbook , our field guide for business owners and the counsel who advise them: certumgroup.com/the-trade-secret-playbook . And if you are evaluating a live dispute — or simply want to pressure-test what a matter is worth and how it might be funded — get in touch. A confidential conversation with Certum is free and carries no obligation, whether or not you ultimately seek funding. Reach us at certumgroup.com/contact-us .