Litigation Finance 101

What are Legal Assets & Litigation Finance?

In the regular course of business firms can accrue substantial legal claim value that they may or may not be aware of.

These matters may stem from any number of sources including commercial or contract disputes with suppliers, antitrust claims against competitors or disputes with insurers, as well as intellectual property and patent claims.

Such claims can amount to very meaningful value that require substantial resource and capital to pursue fully, which firms may either not have access to or simply cannot afford.

Litigation Finance helps business and law firms maximise the value of the legal assets by using external finance to fund the costs of litigation, as well as monetise upfront accrued claim or work-in-progress value.

  • Antitrust / Competition

  • Commercial Litigation

  • Mass Tort / Product Liability

  • International Arbitration

  • Insurance Claims

  • Patent / IP Claims

  • Securities & Investment Claims

  • Insolvencies & Special Situations

 

Who is Litigation Finance For & How Does It Work?

Global Restitution Partners (“GRP”) works with both corporate plaintiffs and law firms with a focus on building long-term trusted partnerships that place client needs at the centre of everything it does.

GRP also works closely with professional service providers and insolvency practitioners to offer funding solutions to firms that require immediate access to liquidity and legal asset monetisation.

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GRP secures an interest in client’s legal assets

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Client receives non-recourse monetisation and / or funding for costs of litigation

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Client pursues legal claims as per normal course of business with complete autonomy over case strategy

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Upon successful resolution GRP receives a portion of the proceeds as per an agreed formula

All finance is non-recourse meaning that if a claim is unsuccessful GRP receives nothing and the client bears no obligation or liability

 

How Can Litigation Finance Benefit My Business?

Risk-Free / Non-Course Finance

  • Immediate access to liquidity

  • Off-balance sheet finance with no attached obligation / liability

Risk Management / Mitigation

  • Legal risk

  • Duration risk

  • Quantum risk

  • Recovery / Credit risk

Cash & Balance Sheet Management

  • Reduce financial exposure / concentration risk

  • Pull-forward fee income

  • Unlock accrued legal asset value

  • Smooth out cash flow cycle

  • Enable business investment & pursuit of growth opportunities

  • Avoid “bet the ranch” litigation scenarios

Favourable Accounting Treatment

  • Litigation expenses are traditionally included as costs above the line, reducing net income, however, settlement or award proceeds are treated as other income below the line

  • Litigation finance removes legal costs and is also treated itself as revenue because it is non-recourse boosting income

GRP Approach

Key Values

  • Client Focused – Client-led solutions that align interests and build trust

  • Tailored Solutions – Collaborative approach to designing funding solutions

  • Innovative Pricing – Providing greater price discovery & transparency

  • Access to Capital – Access to competitive institutional level capital

Solutions Overview

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GRP Value Add

Network

GRP has established an excellent network of corporates and lawyers helping you access not just capital but also best-in-class legal services and top-tier clients for your firm.

Advisory

Beyond investing its own capital GRP works extensively alongside clients to offer candid and impartial advice on their legal assets to help them prepare for raising litigation finance.