What is litigation finance?
Litigation Finance at Sovereign Legal Partners
Litigation finance is a capital tool that allows companies and individuals to pursue high-value legal claims without tying up their own balance sheet. We approach litigation, arbitration, and judgment-enforcement opportunities as contingent assets with definable value and predictable risk. Funding lets claimants unlock that value, convert legal exposure into liquidity, and pursue meritorious claims at full strength.
SLP provides non-recourse financing to businesses, individuals, and law firms based on the expected economics of their cases. Because our capital is repaid only from a successful outcome, clients eliminate the cost and risk of complex commercial disputes while retaining full control of strategy.
What We Fund
SLP finances a broad range of mid- to large-scale commercial disputes, including:
- Commercial business torts and contract disputes
- Antitrust matters
- International and domestic arbitration
- Securities and shareholder claims
- Bankruptcy-related litigation and distressed-asset recovery
- Intellectual property disputes
- Asset tracing, judgment enforcement, and collection actions
- Law-firm and portfolio financing
- Whistleblower and similar statutory claims
Funding Structures
Our capital is structured to match the client’s objectives:
Single-Matter Funding
Financing for one claim or arbitration, covering litigation budgets and, when needed, working capital or debt obligations—repaid solely from that matter’s proceeds.
Portfolio Funding
Capital secured by multiple cases of a firm or company, with returns tied to any successful outcome within the portfolio. This structure lowers cost of capital and smooths risk.
Group / Multi-Party Actions
Financing for collective actions brought on behalf of a group with aligned claims (e.g., shareholder, environmental, product liability), enabling uniform, scalable pursuit against well-resourced defendants.
Why Clients Use Litigation Finance
Risk Transfer
Our capital is non-recourse. If the case loses, the client owes nothing. Unlike traditional credit, there is no repayment obligation, no interest rate exposure, and zero downside.
Liquidity and Accounting Advantages
Companies can take legal spend off the balance sheet, redeploy capital to core operations, and convert litigation from a cost center into a financial asset.
Strategic Leverage
Funding allows claimants to hire elite counsel, run a full litigation strategy, and reject discounted settlement offers—ensuring outcomes are driven by the merits, not relative financial strength.
Our Funding Process
1. Preliminary Evaluation
After executing a confidentiality agreement, SLP assesses the legal and economic merits of the opportunity. If the matter fits our investment criteria, we issue tailored terms for review.
2. Deep-Dive Diligence
We conduct a comprehensive analysis of liability, damages, collectability, budget, and legal strategy, as well as the track record and capacity of counsel.
3. Investment Committee Approval
Our committee of senior litigators and finance professionals evaluates the diligence findings and determines whether to proceed. Upon approval, a binding funding agreement is executed.
4. Active, Sophisticated Monitoring
We stay closely informed throughout the life of the case—providing strategic input when asked, assisting with enforcement and recovery efforts, and ensuring capital deployment aligns with the case plan. Decision-making authority always remains with counsel and the client.