Litigation finance · Lower middle market
LOFFCO finances commercial litigation, arbitration, insolvency claims and award enforcement on a nonrecourse basis. Every matter is underwritten to a defensible recovery range and a practical path to collection.
Confidential and nonbinding. The first step is a nonprivileged overview.
The position
A $30 million claim takes about as much work to underwrite as a $300 million one. Most funders answer that by setting a minimum above it. We went the other way and built the process around this size of matter: smaller commitments, quicker answers, and a decision made by people you have met.
The claimholder keeps the cash in the business and counsel gets a budget that holds. We are repaid out of the recovery.
Single-case and portfolio capital for fees and expenses. We can also take a share of the contingency risk.
Funding for affirmative claims, so the cost stays off the operating budget. Claims already under way can be monetized.
Budget for trustees, liquidators and receivers to chase estate claims on behalf of creditors.
Liquidity now, or capital to run the enforcement campaign, where a judgment or award is going unpaid.
Litigation finance
Contract, business tort, fiduciary duty and securities claims between sophisticated parties.
Explore 02Patent infringement, trade secret and licensing disputes with defensible rights and measurable value.
Explore 03Commercial and investment treaty arbitration where enforcement can be mapped before capital is committed.
Explore 04Estate claims for trustees, liquidators, receivers and creditor trusts that lack the budget to pursue them.
Explore 05Asset recovery, investor fraud and qui tam matters where public records support a recovery thesis.
Explore 06Liquidity and enforcement capital for holders of court judgments and arbitral awards.
ExploreUnderwriting
A strong legal theory is the easy part. Every matter gets read twice, once as a case and once as an investment.
We do not underwrite to headline damages. We underwrite to what can be proven, awarded and collected.
Theory, evidence, procedural posture, precedent, defenses and a realistic path to resolution.
Causation, valuation method, counterfactual assumptions and a defensible range of recoverable amounts.
Defendant resources, insurance, asset location, insolvency risk and available enforcement tools.
Legal spend, expert requirements, milestones, timing risk and contingent capital needs.
Relevant experience, staffing, strategy, budget discipline and alignment of economics.
Priority of proceeds, return mechanics, downside protection and fit within the portfolio.
Case record
U.S. Attorney, S.D.N.Y.
$120M+
Criminal conviction · Sentenced April 2022The managing partner of a Manhattan investment adviser was sentenced to 12 years for a decade-long scheme that mismarked loan assets and used new sales to pay earlier investors.
Read the case studySEC Litigation Release 25558
$600M
SEC civil action · AllegationsThe SEC charged a New Jersey real estate sponsor and four executives with operating a Ponzi-like scheme that raised about $600 million from roughly 2,000 investors.
Read the case studySEC Litigation Release 26413
$112M
SEC civil action · AllegationsThe SEC charged the co-founders and COO of an online retail brand holding company with misleading investors in eight note offerings that raised about $112 million.
Read the case studyLOFFCO had a documented role in each matter shown. Figures, status and descriptions come from the cited government releases; SEC matters described as allegations have not been adjudicated. Past matters do not indicate future results.
Our process
A short, nonprivileged summary to test fit with the mandate.
NDA or common-interest agreement before any materials change hands.
Merits, damages, budget, collectability and counsel, reviewed together.
Proposed structure, pricing and conditions for approved matters.
Definitive agreements, closing and disciplined monitoring.
Discretion
Litigation strategy loses value the moment it leaks. So we ask for less, we ask later, and fewer people see it.
The initial review needs no privileged or confidential material.
Materials move only under an NDA or common-interest agreement.
Access is limited to the people and advisers evaluating the matter.
Diligence documents move through a controlled data room.
Insights
A strong claim against a defendant with no reachable assets is a legal victory and an investment loss. Why the first question should be who pays.
The first submission to a funder should be short, factual and free of privileged analysis. A checklist for counsel and claimholders.
Insolvent estates often hold their most valuable assets in claims they cannot afford to pursue. How third-party capital fits within a court-supervised process.
Two ways to work with LOFFCO
Claimholders and counsel can submit a matter for confidential review. Eligible institutions can request an introductory discussion about the investment program.