Experts in arranging litigation funding for arbitration and insolvency claims
WHAT IS LITIGATION FUNDING?
Litigation Funding or Third Party Funding (TPF) is a non-recourse funding mechanism of litigation finance whereby an investor funds all or a portion of the costs associated with pursuing a legal claim in exchange for a share in the proceeds of the potential judgement or settlement fees.
Simply put, litigation funding is a process whereby a party not related to the litigation (third party) provides capital to fight the claim with the aim of making a profit by taking a share of the potential recovery.
For litigants, this helps externalize risk associated with the outcome of litigation and maintain liquidity by preventing tying up working capital in litigation. It also allows impecunious litigants pursue meritorious claims.
For financiers, litigation funding is a high risk-high return investment in which the financier aims to make a profit which is typically a multiple of the investment. The decision to invest in a case is made after sufficient expert vetting and due diligence of the merits of the case.
Our team along with experts from the industry evaluates the claims by analysing the following three core parameters which primarily govern the assessment for any possible investment:
Legal Merits of the Case
Only once our process is complete and we are satisfied that a matter is a worthy contender for investment, we present the claim to the third party funder for further consideration.
We guide and advise our clients on available options for litigation funding, identify, negotiate and help structure the funding agreement, and help secure suitable counsel where required.
Quantum/Damage Analysis is the process by which an expert determines the accuracy of the quantum of a claim by performing an audit of the Claimant’s accounts, analysing market conditions, factoring in the Claimant’s efforts to mitigate damages, cost accounting system used, loss of future profits, loss of alternate earning opportunities, and the method used to calculate damages.
Based on the claim analysis and auditing, we along with leading experts from the industry prepare an estimate of the damages the Claimant may be entitled to recover. Where required, the said expert will also be able to present his report as an expert witness in the proceedings.
For an investor, it is extremely important that, if successful, they will be able to recover their capital cost as well as the agreed return on investment.
Such recovery frequently depends on the successful tracing of assets. The location and ownership of the assets are often obscured through complex corporate, nominee or trust structures, and disbursed across multiple jurisdictions.
In order to ensure that the other party has enough assets in jurisdictions where enforcing against those assets will be relatively hassle-free, we along with industry experts conduct a preliminary investigation into the assets of the respondent.
Legal Merits of the case can be defined as the collective assessment of the facts of a case, the substantive law applicable, evidence and supporting documents available in support of a claim in order to determine the veracity of the claim.
Our team along with independent barristers and arbitrators analyse the legal merits of the claim and proceed only if we feel there are more than 65% chances of success in front of the tribunal or court.