LOFFCORisk Management

Portfolio finance

Facilities for firms and legal departments with repeatable claims

Capital supported by a group of matters, priced for diversification and structured to fund both existing cases and new origination.

Executive overview

Cross-collateralizing several matters reduces the risk carried by any one case. That lowers pricing, allows larger commitments and gives law firms and legal departments a predictable source of capital for growth.

LOFFCO structures portfolio facilities for contingency and hybrid-fee practices and for companies with a pipeline of affirmative claims.

At a glance
BorrowersLaw firms, corporate legal departments, claim-holding entities
CollateralA group of matters, existing and future, meeting agreed criteria
Capital useFees, case costs, working capital, practice growth
DrawdownCommitted facility drawn as matters are approved
RecourseLimited to portfolio proceeds, subject to terms

Structures

Structures that fit how you practice

Contingency practice facility

Working capital and case costs for a firm's contingency docket.

Forward-flow commitment

Pre-agreed criteria for new matters, funded as they are approved.

Existing docket monetization

Liquidity against fee interests in cases already under way.

Corporate claims program

Funding for a company's affirmative claims as a single program.

Underwriting

What we review in a portfolio

  • Track record and case selection discipline
  • Diversification by claim type, forum, defendant and stage
  • Budget management and staffing
  • Expected timing of resolutions
  • Correlation between matters
  • Firm economics and existing financing

Questions

Frequently asked

How many matters make a portfolio?

Most portfolios combine three or more matters, which allows proceeds from successful cases to offset losses on others and lowers the cost of capital compared with single-case funding.

Can a portfolio include cases already under way?

Yes. Portfolios often combine existing matters with a commitment to fund new ones that meet agreed criteria.

Is portfolio finance available to corporate legal departments?

Yes. Companies with several affirmative claims can fund them together and keep the cost off the operating budget.

What reporting is required?

Reporting terms are set out in the facility agreement. They typically cover case status, budget and material developments, without requiring disclosure of privileged strategy.

Confidential case review

Discuss a portfolio facility

Send a short summary of the dispute, the parties and the capital need. We answer every submission within five business days. Substantive materials come later, once a confidentiality framework is in place.

Submit a matterInvestors