Investment structures
We operate through investment structures flexible and capable of being adjusted depending on the:
- clients’ needs (litigation funding and/or litigation risk management, early monetization of the expected results, enhancing the chances of success, participation in class/collective actions, access to the best lawyers and advisors)
- specific characteristics of the investment (area of law, competent court, single or multi-claim, action to be commenced or already pending, actions for damage or private enforcement, before Courts or Arbitration Panel)
Our deep knowledge of the legal industry and an established network of relationships with top professionals ensures the ability to offer plurality of solutions.
Possible structures of the investment
- with assumption of litigation costs only
- with assumption of litigation costs and partial monetization of the claim
Purchase of the claim (so-called monetization)
- at fixed price
- at fixed price plus variable consideration (earn out)
The claim purchase may involve taking over the plaintiff’s procedural position
Non-recourse investment
Phase Investment
BE CAUSE provides the claim holder with funds in order to:
- support the costs and risks of the litigation such as lawyers’ fees, costs for expert opinions and technical consultancies, court fees, out-of-pocket expenses and any other expense strictly functional to the successful outcome of the litigation
- fund the payment of the defendant’s legal costs in case of unsuccessful outcome of the litigation with a court order to pay the costs of the counterparty
This investment structure might also envisage the payment of a lump sum as advanced monetization of the expected result of the claim.
Non-recourse investment
Phase Exit
In case of a successful outcome (following a final judgment or settlement) BE CAUSE is entitled to receive:
- the repayment of its investment; and
- a percentage of the proceeds
In the event of an unsuccessful outcome, BE CAUSE retains both the costs advanced and those still to be paid.
Purchase of the claim
Phase Investment
BE CAUSE may invest through the purchase from the claim holder of the entire credit to be paid in the event of a positive outcome of the litigation.
The consideration to be paid to the claim holder may be structured:
- as a fixed amount (in one or more tranches) plus the payment of the litigation costs; or
- with a variable component (earn out) contingent upon the outcome of the dispute
Purchase of the claim
Phase Exit
In case of a successful outcome (following a final judgment or settlement) BE CAUSE is entitled to receive:
- the repayment of its investment; and
- all the proceeds (net of the earn-out, if any)
In the event of an unsuccessful outcome, BE CAUSE retains both the costs advanced and those still to be paid.
"Litigation funding allows lawsuits to be decided on their merits, and not based on which party has deeper pockets or stronger appetite for protracted litigation"
Eileen Bransten
Justice for the New York County Supreme Court