9 July 2020
Litigation Finance: Creating Capital for Portfolio Companies
Companies are often sitting on latent commercial legal claims which could produce significant capital or increase market share. Sophisticated investors can give their portfolio companies an advantage by identifying opportunities to unlock value and protect the business; Litigation financing can underwrite and de-risk exploitation of these claims by providing non-recourse capital to pay for legal fees and costs.
Legal claims are often incompletely considered liabilities by investors, and treated conservatively. But they can also be corporate assets. Some of these assets are highly valuable and might provide companies with non-dilutive operating capital, increased margins or market share. To take advantage of these assets however, a company, or board, needs to understand the types of claims that might exist and how to identify them. Once identified, companies need help figuring out which claims are worth pursuing and how to exploit these assets while minimizing distraction and risk to the company. Fortunately, there are outside partners that can help in this task.
You can read our whitepaper, Litigation Finance: Creating Capital for Portfolio Companies here.
For further information, please contact:
Steven Savage, WoodsFord Litigation Funding
ssavage@woodsfordlf.com