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Portfolio Funding for Legal Departments

Portfolio finance gathers multiple matters in a single funding vehicle. Capital can be used to fund legal costs associated with the underlying matters or for operating capital for the company. Capital is typically provided on a non-recourse basis, meaning that the funder assumes downside risk and earns its investment back and a return only in the event of the successful resolution of the disputes. The matters within the portfolio can be a mix of claims and defence matters, and cross-collateralisation generally lowers the cost of capital.

Portfolio-based capital facilities equip companies to fund high-value recovery programs.

Monetisation portfolio
Monetisation portfolios provide substantial upfront capital that can be used either for legal fees and expenses or for other operating purposes, collateralised by substantial existing books of litigation at a variety of stages in the litigation process, with additional cases of varying sizes and profiles. Monetisation portfolios are built around “anchor cases” that are large or close to maturation.

Risk-share portfolio
Risk-share portfolios are suited to companies that wish to pursue additional recoveries without exceeding their optimal risk profiles. Risk-share portfolios typically consist of at least four or five large cases which can either be all identified at the outset or added on a going-forward basis, with capital being used to pay a portion of fees or expenses as they are incurred.

How we help

  • Create significant capital facilities
  • Provide more flexible and lower-cost capital than single-case finance
  • Fund recovery programmes

DOWNLOAD OUR BROCHURE “Portfolio Funding for Legal Departments” BELOW:

CDC Brochure LD