Litigation funding makes use of various funding structures to fulfil the needs of clients and investors alike. These include litigation funding, arbitration funding, class actions, de-risking and monetising judgements, awards, and claims, and creating portfolio funding with law firms. We’re going to look at portfolio litigation funding arrangements and how they are formed.
The Growth of Portfolio Financing
Litigation portfolio arrangements allow for multiple cases to be funded under a single facility. This streamlined process accounts for a firm’s caseload, its client base, and the investors’ risk appetite. These factors can all be tailored to create portfolios for litigation funding that appeal to various investors further increasing the chance for litigants to gain access to vital funding and support.
With that being said managing and bundling cases can be a difficult process without expertise or experience. Generally speaking, the more homogenous the cases, the easier it is to bundle these cases into a portfolio offering. Furthermore, it also allows the fund to rely on several legal cases as opposed to one. While this may dilute the payout it can significantly reduce the risk for investors, making litigation financing more attractive to conservative investors.
These reasons make portfolio financing an attractive option when compared to alternatives like bank loans or partner equity, and being non-recourse, means that we only get a return on successful outcomes.
The Interest for Investors
So what is in it for investors? As we have seen above, investors can find attractive portfolios that not only support claimants but can result in large gains in the event of a positive verdict. Ed Truant of Slingshot Capital estimated, in the Litigation Finance Journal; that the implied annual commitments across Australia, the UK, and the USA were worth AUS$ 333M, £667M, and US £3.3B and with our teams working across five continents, we are perfectly placed to help you tap into these burgeoning markets.
Therium litigation models are developed to provide specialised litigation finance designed to assist in cases across all sectors. We are well versed and have clients from all walks of life including companies, institutions, private individuals and groups, law firms, barristers, accountants, patent attorneys, trustees, public bodies, and charities.
The Benefits for Claimants
The benefits for claimants are the same in portfolio scenarios as in single cases. Our funds allow claimants the ability to pursue their claim to its completion with the expertise, manpower, and capital required. Our role is to connect claimants with funds and provide expert guidance.
As a founding member of the litigation funding sector in the UK, we have helped raise billions in funding successfully pursued claims across the globe. By adding your case to a portfolio we can make the portfolio more attractive and potentially connect claimants to investors quickly and efficiently.
How Therium can Assist in Portfolio Litigation Funding
By and large, portfolios are the inverse of single-case funding. Where single case funding offers large payouts for greater risk, a litigation funding portfolio allows you to reduce the risk for a smaller payout. If you’re interested in finding out more about our litigation models and the financing available contact us now. Alternatively, you can keep up to date with the latest litigation news by signing up for The Brief.