Introduction

This paper develops some of the themes from the author’s Guest Series on Third Party Funding on OGEMID. During that discussion, particularly on the use cost of capital in quantification of damages, it became clear that many of the concerns that legal practitioners exhibit about Third Party Funding stem from misconceptions about how to apply the cost of capital in general. During the OGEMID exchanges the discussants appeared familiar with the concept of the cost of capital, but for present purposes we adopt the following as a definition: the cost of capital is the expected ...