The JBSL Legal Funding team specializes in law firm and corporate legal asset lending: Law firms ranging from traditional contingency firms to AmLaw 100 now turn to litigation financing including more than 75% of AmLaw firms.
Services for Law Firms, Corporate Plaintiffs and Claim Owners
JBSL helps with the following types of litigation financing:
- Single case – when the funder pays a firm’s legal fees and is collateralized by proceeds from litigation.
- Portfolio finance – when a firm shares risk across a pool of cases and the funder is cross-collateralized in its return.
- Receivable monetization – when a law firm sells a portion of its legal fee receivable at the outset of case representation or after settlement / judgement, but before payment.
- Investigatory funding – when capital is used to investigate claims and fund ultimate litigation.
Firms are turning to litigation financing for several reasons, including:
- Increased competitiveness by providing alternative fees, synthetic contingency, as opposed to hourly rates
- Accelerated firm returns
- Spreading risk to allow for growth of practice areas
- Managed cash flow
In addition, the JBSL Legal Funding team specializes in the corporate use of litigation financing, including corporations ranging from Fortune 100 and FTSE 10 companies to bankruptcy estates, and receivers.
JBSL helps with the following types of litigation financing:
- Monetization of legal claims prior to judgement
- Single case – obtaining drip funding of legal fees in exchange for synthetic contingency
- Portfolio funding of legal fees cross collateralized by pool of varying topics and jurisdictions
- Judgement enforcement financing – where corporations have obtained judgement but desires need capital to chase recovery in other jurisdictions (usually in international arbitrations against sovereigns)
- Sale of judgements
Corporations are turning to litigation financing for several benefits, including:
- Improves operating cash flow by removing litigation costs from above-the-line expenses
- Tapping into non-recourse capital against dormant assets
- Ensuring working capital for operations
- Turning the legal department into a profit center
The JBSL Advisory team assists law firms and corporate clients in all aspects of legal asset finance and monetization, including:
Valuation and outside underwriting of dockets or case portfolios. Often, times corporate clients have valuable legal assets sitting on their balance sheets at $0 valuation. We JBSL advises companies how to monetize these assets and how to unlock value through legal finance.
JBSL also advises law firms on how to best maximize their value through restructuring their legal assets and selling their dockets. JBSL also provides advice relating to insurance coverage for awards, docket acquisition, and succession planning through the sale or purchase of law firms.
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