Case Study 1
In January 2020 GRP successfully completed a large multi-million-dollar monetisation deal with a US-based law firm.
The client, a mid-size firm with a growing products liability practice, sought first-time non-recourse funding to unlock accredited case pipeline value, de-risk exposure to a headline case and allow for re-investment into other growth areas of the business.
“Taking the time and making the effort to get it right”
To achieve these aims the client sought to secure funding against their position in an advanced stage high-profile multi-district products liability lawsuit. As a first-time funding recipient, GRP worked collaboratively with the firm’s management from the outset, developing a deep understanding of their needs and aspirations. This allowed GRP to advise the client on how various funding structures could work and which most suited the client’s position and case set. Key conditions for the client and GRP were to ensure that any agreement allowed for the firm to retain operational flexibility and advance case strategy without the risk of delay from funding or budget constraints.
Despite being an advanced stage case, both the client and GRP were conscious of the unpredictable nature of such complex litigation and the duration uncertainties that can ensue. Therefore, a custom risk-sharing deal structure was engineered that allowed both parties to retain protection, from longer than expected proceedings and quantum risks. This allowed the client to receive adequate downside protection whilst maintaining significant blue-sky exposure ensuring incentives between funder and client were aligned throughout.
To close this deal GRP conducted a detailed bottom-up diligence process. This started with a granular assessment of each underlying individual claim within the client’s case set, along with the client's track record and precedent case analysis. This allowed GRP to gauge and model trial and settlement outcomes across a variety of duration and quantum outcomes. This approach was essential in underwriting such structure enabling GRP to meet the client’s needs without compromising the overall investment quality for a funder.
Ultimately, the deal has proven very successful allowing the client to recapitalise the firm, retain key talent and take on more cases whilst removing associated operational cash flow concerns.