Litigation Finance

Litigation Finance.

At MTCM, we offer innovative securitization solutions for litigation finance through a Special Purpose Vehicle (SPV). This allows investors to gain exposure to the financial outcomes of legal proceedings by subscribing to notes issued by the SPV. The proceeds from these notes are used to fund litigation costs, including lawyer fees, research, payment of experts, valuers, auditors, and other related expenses.

Key Aspects of Litigation Finance Securitization.

Our SPV can handle a wide range of litigation finance securitization, including:

Funding Litigation Costs

Investors’ funds are used to cover various litigation expenses, enabling the pursuit of legal claims without upfront costs.

Flexible Timing

Securitization can be implemented at any stage of the legal procedure, offering flexibility in financing.

Outcome-Linked Securities

The issued securities are linked, directly or indirectly, to the outcome of the litigation. This can be done either partially or wholly, depending on the structure of the deal.

Risk Coverage

In some cases, the SPV can securitize the risk of payment associated with the litigation outcome, providing coverage for potential future debtors if the litigation does not end in their favor.

Portfolio Diversification

The SPV can manage a diversified portfolio of litigation cases, spreading risk across multiple claims and increasing potential returns.

Legal Expertise

Partnerships with legal experts are often established to assess the merits of claims and the likelihood of successful outcomes, ensuring informed investment decisions.

Return on Investment

Investors receive returns based on the successful resolution of litigation cases, which can include settlement proceeds or court awards.

Transparent Reporting

Regular updates and detailed reports are provided to investors, offering transparency into the progress and financial performance of the funded litigation cases.

Structuring Flexibility

Securitization structures can be tailored to accommodate different legal scenarios and investor preferences, such as equity stakes or fixed-income returns.

Enhanced Access to Capital

Litigation finance securitization provides access to capital for claimants who may otherwise lack the resources to pursue their cases, facilitating broader access to justice.

Investment and Returns:

Investors receive returns based on the outcome of the litigation. These returns can vary:

Fixed Yield:

In some instances, a fixed yield is provided.

Portion of Award:

More commonly, investors receive a portion of the award granted by a court or arbitration to the winner of the legal case.

Litigation Finance Securitization Structure:

Asset Acquisition:

The SPV acquires the financial interests linked to the litigation.

Security Issuance:

The SPV issues notes to investors, with returns tied to the litigation outcome.

Funding Litigation:

Proceeds from the notes are used to cover litigation costs.

Yield Generation:

Investors receive returns based on the outcome of the litigation, either as a fixed yield or a portion of the awarded amount.

Unlocking Justice: Exploring Types of Litigation Finance:

Litigation finance encompasses a variety of mechanisms designed to fund legal claims and provide capital for litigation without the need for upfront expenses from claimants. This includes covering litigation costs through investor funding, offering flexible financing options at different stages of the legal process, and issuing securities linked to the outcomes of legal proceedings. The types of litigation finance also involve diversifying across multiple cases to spread risk, collaborating with legal experts for informed decision-making, and ensuring transparent reporting on investment performance. Additionally, customized securitization structures can adapt to various legal scenarios, enhancing access to justice by providing necessary resources to pursue claims effectively.

Key Benefits of Litigation Finance Securitization with MTCM:

Access to Legal Finance:

Enables access to necessary funds to pursue litigation, removing financial barriers for claimants.

Potential for High Returns:

Offers the potential for significant returns based on successful litigation outcomes.

Risk Management:

Provides a mechanism to manage and mitigate financial risks associated with litigation.

Professional Oversight:

Investments are managed by experienced professionals, ensuring optimal use of funds and strategic management of litigation risks.

Customized Solutions:

Tailored to meet the specific needs and preferences of investors and litigants.