Market Constituents
Constituents Benefits
Lawyers
Revenue & Profit Generation – tool for law firms to increase revenue / profit
Client Service – incremental solution for funding their client’s litigation
Client Optionality – option of hedging their investment and/or having a third party invest
Portfolio financings – generate more revenue and profit by leveraging the risk reduction related to financing a portfolio of cases by attracting a lower cost of capital
Litigation Funders
Capital Deployment – deploy capital into a previously non-existent intangible asset
Return generation – derive strong absolute returns across a portfolio
Resurrecting meritorious claims – creating an investment opportunity out of an otherwise abandoned case
Plaintiffs
Access to Justice – allows the plaintiff to ‘have their day’ in court on a fully funded and equitable basis
Levelling the Playing Field – allows parties to a litigation to take financial leverage off the table so both parties focus on the merits of the case
Financial Hedge – allows the plaintiff to risk share with professional investors who can also add strategic value to the litigation/settlement process
Off Balance Sheet Financing – moves the financial cost of litigation “off of the books” of the plaintiff, thereby benefiting cashflow and equity value
Justice Systems
Access to Justice – allows justice systems to achieve one of their main objectives
Fair and Equitable System – financial lifeline to those who cannot afford litigation
Investors
Non-correlated Returns
Strong Absolute Return Profile
Variety of Risk/Reward Opportunities –industry involvement based on your specific risk/reward target
Socially Responsible/Impact Investing – contributing to positive social change