Portfolio finance allows law firms and businesses to bundle multiple cases into a single financing agreement. The cases in the portfolio typically are cross-collateralized, which means that Curiam’s return is based on the performance of the portfolio in the aggregate.
The Benefits of Portfolio Financing
Portfolio financing can have significant benefits:
- Cross-collateralization limits risk and allows for more competitive financing terms. Packaging multiple cases in one financing arrangement reduces the risk to Curiam, which in turn allows Curiam to offer more favorable financing terms to funding recipients. Portfolio finance reduces risk because more successful outcomes in some cases compensate for less successful outcomes in other cases. And if the cases in the portfolio are diverse (i.e., not correlated), that reduces the risk even more.
- Portfolio financing is inherently flexible. Recipients of funding are not required to use proceeds solely to fund the costs and expenses of litigating the cases in the portfolio. For example, a firm might use proceeds to hire new talent, expand into a new area, finance the cost of defending a litigation, open a new office, or pay off an existing facility.
- Portfolio financing can help a new law firm get up and running. It can take a new law firm three-to-five years to become profitable. The same can be true of a new practice area within an established law firm. Early-stage financing can alleviate many of the operational challenges that new firms or practices face as they wait to see the results of their efforts.
Curiam’s Investment Guidelines
Curiam will consider investment in litigation portfolios that satisfy the following criteria:
- The portfolio must include three or more cases.
- The portfolio must have a strong chance of success and the potential damages need to be significant enough to make it a sensible investment for both parties involved.
- The minimum investment for portfolio funding is $3 million; there is no upper limit on the size of the investment.
The process for seeking funding is straightforward. The party seeking funding signs a nondisclosure agreement with Curiam. Curiam then does legal and financial due diligence on the potential investment, with particular emphasis on the largest cases in the portfolio.
If we choose to move forward, we work with the recipient to agree on terms, prepare the necessary investment documents, and then deploy capital. As the cases in the portfolio progress, our team monitors the investment to assess progress and understand any adjustments to expectations for recovery. As with all financing agreements, Curiam does not control litigation strategy or settlement.
Why Choose Curiam?
Curiam’s team has decades of experience working on some of the largest and most complex litigations in United States history. Curiam also has a streamlined investment process that allows it to make decisions more quickly than many litigation funders. Finally, Curiam has a reliable and transparent source of capital.