Litigation funding
A strong claim still needs a credible funding proposition
Legal merits are essential. They do not answer every question a capital provider must consider.
Litigation funding is capital from a third party for agreed costs of pursuing a claim, in exchange for an agreed return from recoveries. It can help a claimant meet legal expenditure or preserve capital for other priorities. The commitment, costs covered and return are set out in the funding agreement.
Single-case litigation funding is commonly non-recourse: if the matter produces no recovery, the funder bears the loss of its invested capital, subject to the agreement and exceptions such as breach or misconduct. Adverse costs and other liabilities require separate consideration.
Is your matter suitable?
We focus on commercial disputes, arbitration, class and group actions, insolvency claims and suitable portfolios. A matter needs a realistic recoverable value that can support the legal budget and funding costs while leaving a worthwhile outcome for the claimant.
Start with the approximate claim value, required budget, legal team and likely source of recovery. Single matters, portfolios and receivables require different assessments; insurance needs are considered separately. If preparation is incomplete, an initial discussion can identify what is needed before a provider approach.
The evidence supporting the claim, the amount that can realistically be established, the budget required to pursue it and the route to payment must form a coherent proposition. Where one element is incomplete, presenting the matter more enthusiastically will not resolve the gap.
Wild Dog helps claimants and legal teams examine that proposition, identify what needs further preparation and engage with capital providers whose requirements may fit the opportunity.
What can the funding pay for?
The agreed budget may include:
- Legal fees and counsel’s fees.
- Expert evidence, document review and other disbursements.
- Court or tribunal fees and agreed procedural costs.
- Appeals, asset tracing and enforcement where expressly included.
If a law firm defers some or all of its fees, the immediate need may be funding for disbursements. Working capital or reimbursement of earlier expenditure requires a specific arrangement; neither should be assumed to form part of a litigation budget.
Wild Dog helps define the requirement, prepare for provider diligence and compare the scope, conditions and economics of proposed commitments. Adverse-costs protection and insurance should be considered separately.
A single case and a portfolio are different propositions
A single-case arrangement funds agreed expenditure on one dispute. A portfolio facility may finance several matters through agreed drawdowns, with returns linked to the recoveries covered by that facility. These structures can suit different capital needs.
A portfolio also requires attention to how the matters interact. Common defendants, common issues or dependence on the same payment source can concentrate risk. If recoveries from one matter support costs or losses elsewhere in the portfolio, understand the effect on each participant’s share. A larger pool does not automatically mean cheaper or more suitable funding.
Recoveries for an insolvent estate
A potential recovery may justify investigation or proceedings even when the estate has limited cash. The assessment should connect the evidence, the authority to pursue the claim, the funding required and a credible route to collection.
The practical question is what may remain for the estate after funding and other costs, compared with the available alternatives. The practitioner and legal team must address the required powers, approvals and duties; Wild Dog helps assess the commercial funding proposition.
What to bring to the first conversation
Begin with the jurisdiction, parties, legal team, stage of proceedings, approximate funding requirement and the nature of the claim. Identify urgent dates and any previous funding approaches or commitments. Detailed evidence and privileged material should follow only under appropriate arrangements.
Managing Quantum Expectations with Claimants in Litigation Funding
The role of specialist advice
Wild Dog’s commercial review supports the funding discussion. Counsel’s legal advice, expert evidence and the funder’s own due diligence remain distinct parts of the process.
Discuss a funding requirement
Begin with a brief, non-confidential overview of the matter and the decision you need to make.