Third Party Funding is an arrangement between a specialist funding company and a client (typically the claimant in the litigation), whereby the funder will agree to finance some or all of the client’s legal fees in exchange for a share of the ‘case proceeds’ (usually the recovered damages).
We are experts in arranging non-recourse litigation and arbitration funding for corporates and investors involved in legal disputes.
Third party funders view legal claims as financial assets, in which they may invest in exchange for a return based upon the success of the funded litigation or arbitration. Litigation funding providers are able to offer a wide variety of financing options for parties seeking off-balance sheet solutions.
At its most straightforward, the third party funder will finance the legal fees and expenses involved in pursuing the claim on a non-recourse basis, in exchange for what is essentially an equity interest in the claim. If the case is successful, the litigation finance provider recovers its capital invested plus a success fee. If the case is unsuccessful, the funder loses its investment, receives no success fee and has no recourse against the funded party.
At TheJudge, we routinely arrange funding for legal costs, including:
In addition to financing for legal costs, we also regularly put in place other forms of financing where the legal claim is used as collateral, including:
Whilst third party funding may often be the obvious starting point for lawyers and their clients considering alternative litigation finance, litigation insurance should not be overlooked as a complimentary or potentially alternative way to hedge litigation risk. When used creatively, litigation insurance can significantly improve the overall litigation finance deal cost and maximise the claimant’s net recovery from successful litigation. In fact, although less well-publicised than third party funding, insurance features in over 95% of the eventual litigation finance arrangements brokered by TheJudge.
What we do:
Established in 2000, TheJudge has the largest dedicated broking team in the commercial litigation funding market, with offices in London, Manchester, California and Toronto.
We arrange third-party funding, litigation risk sharing insurance and other finance and risk management solutions for clients involved in litigation or arbitration.
Our model is simple – we are a broker with access to a range a of specialist products, whether litigation finance or insurance products, which enables us to meet the financial and or risk management objectives of our clients. We work with other 20 different companies to ensure we can deliver the right solution.
We specialize in arranging:
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