LCM has a varied product suite that can be used by:
- Individual claimants who are unwilling or unable to pursue claims due to risk factors or lack of resources.
- Companies looking to minimise risk and release cash flow to focus on core business areas.
- Insolvency practitioners looking to recover assets and revenue arising from insolvency.
- Law firms looking to monetise their work-in-progress balances, leverage balance sheets, fund portfolios of cases or to provide cash to be deployed in key business building activities.
PRODUCTS AND SERVICES OVERVIEW
Disputes finance products ordinarily see a funder assuming some or all of the financial risk of a legal claim in exchange for a share of the amount recovered from that proceeding. Although every LCM product is bespoke to meet the particular needs of our clients, common features of our disputes finance offering are that:
- LCM agrees to take on all costs associated with the dispute, such as solicitors’ fees, barristers’ fees, independent expert fees and court fees
- LCM provides an indemnity to cover any adverse cost exposure should the claim be unsuccessful
- If the claim succeeds, LCM will receive a pre-agreed premium plus a reimbursement of all costs
- The finance provided by LCM is ‘non-recourse’ to the claimant’s assets, meaning LCM has no right to be repaid its investment if the claim does not result in recovery.
Disputes finance for companies
By recognising the inherent value of a company’s claims and treating meritorious claims as assets that can be financed against, LCM works with companies to minimise or eliminate the company’s risk associated with its disputes, and to free up capital for the business by financing the disputes’ up-front costs.
Accessing disputes finance can allow companies to:
- Preserve or release capital to focus on core business activities and to invest in growth for the business
- Leverage pending disputes to access additional capital on a ‘non- recourse’ basis, meaning LCM’s finance is only secured against the proceeds of the dispute and not against any of the company’s core assets
- Move forward with meritorious claims that may not have otherwise been pursued due to the likely risk and strain on the company’s cash-flow
Disputes finance for international arbitration
Disputes finance is perfectly suited to the funding of international arbitrations, which are often complex, risky, long-running and costly. LCM can provide a range of arbitration funding solutions including:
- Full finance for all costs and risks associated with the arbitration
- Funding for disbursements
- Providing an indemnity for adverse costs
- Funding any security for costs
- Funding of award enforcement or purchase of arbitral awards
Disputes finance for law firms
Law firms can use disputes finance as a valuable business tool to monetise current work-in-progress, to generate revenue, to allow the firm to risk-share with its clients and to otherwise pursue growth and new opportunities.
Disputes finance can be utilised to:
- Assist law firms with securing new work, including cases where the claimant would benefit from a disputes finance solution and may otherwise choose not to pursue its claims
- Assist the firm to grow its client base
- Provide an ongoing revenue stream for the firm, secured only against the contingency fee interest that the firm may have in a case or portfolio of cases
- Free up cashflow for investment in core business activities, business development and expansion strategies
Not all of our clients require a complete funding solution for their claims. As an example of our bespoke partial funding offering, clients wishing to pursue claims can take advantage of disbursement funding to finance only the out-of-pocket expenses incurred in bringing a case to trial. This commonly includes the fees of barristers, experts, courts and tribunals.
Adverse costs and security for costs
Not all of our clients require a complete funding solution for their claims. As an example of our bespoke partial funding offering, some of our clients are comfortable with financing their own legal costs but use disputes finance to eliminate their adverse costs risk and to satisfy orders for security for costs. In such cases, LCM provides an indemnity for any adverse costs exposure, and offers security for costs in a variety of forms, including by payment into court, a bank guarantee, or a deed of indemnity from LCM or an adverse cost insurer.
Enforcement funding / purchase of awards
Sometimes, securing a judgment or an award does not mean immediate payment. One of the challenges faced by companies, individuals and lawyers is the need to pursue or enforce a successful judgment or arbitral award in circumstances where a defendant refuses to comply. This process can be particularly complex, time consuming and risky if the defendant does not have readily identifiable assets in jurisdictions with clear enforcement processes.
Working with LCM can provide the claimant with finance to identify and secure assets both locally and internationally. Alternatively, LCM may purchase the judgment debt or award from the claimant, such that the burden of enforcement shifts to LCM and the claimant is able to secure a prompt and certain monetary outcome.