Litigation finance

A securitisation SPV can acquire risks linked to the outcome of litigation. In such case, the Investors subscribe notes issued by the SPV and the proceed of such notes serves to fund the costs of the litigation. (lawyer fees, researches, payment of experts, valuer, auditor, etc).

Such securitisation may be put in place at any time of the legal procedure.

The issuance of securities will be linked directly or indirectly, partly or wholly, with the outcome of the litigation.

In other cases, the risks of payment of the outcome of such litigation may also securitised and cover the potential future debtor in case the litigation outcome does not end in his favour.

The SPV will receive a return on their investment which will depend on the outcome of the litigation, sometimes with a fixed yield but more generally as a portion of the award granted a court or an arbitration to the winner of the legal case.