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Professional Litigation Financers bring more than money

2021, Thought Leadership / By

The primary expectation that a funding applicant has from a funder is that it provides sufficient financial needs to pursue its case. However, this is only part of the value add.  In addition to financial resources, professional litigation financers also:

1) have a deeper understanding of the asset class than traditional non-recourse financers or banks and thus provide terms that reflect the merits of the dispute rather than an imperfect understanding of the litigation process.  A professional litigation financer brings a sense of proportionality to their assessment meaning that the funder and the claimant are more closely aligned.

2) In addition to their experience in disputes, they invest time in knowing the legal community in order to ensure that the funding applicant has the best team to reach the finish line and does so following a transparent calendar.
 
3) Financially and legally speaking, funders do not provide loans. They are often prevented to do so by local regulators and the typical financial model of non-recourse funding doesn’t have much to do with a loan. Funders invest in relationships with client and law firms as much as in the case themselves. Their remuneration is not an interest rate paid by their client, but is rather more akin to a success fee.

Professional and regulated funders bring stability and oversight at difficult times for the funding applicant, and in a relationship that is about much more than just funding.

Vincent Boca, Senior Counsel at Profile Investment

If you have any questions about intra-E disputes, or any other query, please reach out to Vincent on vboca@profileinvestment.com

Vincent is a key member of our legal analysis team. Vincent is a qualified attorney having worked in international arbitration in both Paris and Geneva.