Working With An Advisor
The Benefits of Working with an Experienced Broker or Advisor in Litigation Finance
Securing litigation financing is a complex process that requires an understanding of legal risk, financial structuring, and market dynamics. Whether you’re a law firm, corporate legal department, or claimant, working with an experienced broker or advisor can make a significant difference in obtaining the right funding on the best terms. Here’s why:
1. Market Access & Competitive Bidding
Litigation finance is a niche industry with a range of funders, each with distinct investment criteria. An experienced broker or advisor will have established relationships with multiple financiers, allowing them to identify the most suitable funders for your case. They can also create a competitive bidding process, driving better pricing and more favorable terms.
2. Expert Case Assessment & Presentation
Funders meticulously evaluate claims to assess their strength, potential damages, and enforceability. An advisor understands what funders look for and can position your case effectively, preparing and organizing materials that highlight the key merits and risks in a way that aligns with investor expectations.
3. Structuring the Best Deal
Beyond just securing financing, an advisor ensures that the deal is structured in a way that aligns with your needs—whether that’s reducing dilution, optimizing repayment terms, or ensuring flexibility in case strategy. They know what is “market,” and can help negotiate key provisions, including waterfall distributions, control rights, and exit options.
4. Saving Time & Resources
Navigating the litigation funding process can be time-consuming, requiring extensive due diligence, financial modeling, and legal analysis. By working with an expert, claimants and law firms can stay focused on the underlying litigation while the advisor handles the financing process.
5. Risk Mitigation & Avoiding Pitfalls
Not all litigation finance agreements are created equal. Hidden fees, overly restrictive covenants, and unfavorable exit terms can create long-term issues. A seasoned advisor helps identify potential pitfalls and ensures that the funding arrangement protects your interests.
6. Strategic Advisory Beyond Funding
An experienced advisor brings more than just access to capital—they provide strategic insights on case valuation, monetization opportunities, and secondary market sales. This broader expertise can enhance litigation strategy and maximize recovery potential.
Summary
Securing the right funding on the right terms requires expertise. Working with a knowledgeable broker or advisor streamlines the process, mitigates risk, and ensures optimal outcomes. If you're exploring litigation funding options, partnering with an expert can be a game-changer.