Alternative Funding Agreement Advice Service

The pricing and terms of litigation funding agreements vary enormously. Consequently, the choice of funder is crucial. As demonstrated by our statistics, we have a wealth of experience in assisting clients to secure the best funding terms to meet their needs in relation to their high-value and complex claims.

Unlike other firms, we are not tied to working with just one or two funders. Rather, we regularly review and update a panel of funders with the best credentials to suit our clients’ needs. Our due diligence process also probes each prospective funder’s capital adequacy and ability to meet security for costs requirements.

If a client has a high-value commercial dispute with attractive merits, economics and duration, it is likely they will be able to secure litigation funding. However, the financial and other terms of litigation funding agreements can vary in several important ways. The termination provisions and priorities agreement for the order of the distribution of the proceeds are particularly important. This can significantly impact the control of the litigation, the flexibility to respond to developments and, ultimately, the balance of the proceeds left for the client.

We have a strong track record of securing innovative funding terms for our clients through our experience in assessing, modelling and advising on one-off and portfolio funding arrangements for institutional clients and law firms. The earlier we are engaged to assist with this process, the greater the value we can add. Conversely, if instructed later, we may have to advise within the limitations of decisions already made and terms already agreed.

Components of our AFA Advice Service

• Initial scoping/triage of potential for AFAs
• Negotiating the terms and rates of solicitors
• Negotiating the terms and rates of counsel
• Assisting clients and law firms to prepare the AFA pack for sharing with funders and insurers
• Advising clients on what is a realistic cost budget
• Advising on adverse/security costs risk and securing after-the-event (ATE) insurance
• Exploring and advising on litigation funding, including due diligence, selecting potential funders, beauty parades, negotiating key terms, negotiating the terms of the litigation funding agreement (LFA)