Litigation Funding

Aligning Institutional Investors and Litigation Funds

Supported by a robust network of institutional investors, Summit Communication Group offers expansive access to substantial capital resources. Our keen understanding of the specific capital needs of businesses allows us to meticulously align General Partner (GP) managers’ strategies with our private equity interests, fostering enduring and mutually beneficial relationships.

Funding of Litigation Fund Companies

The capital partners of Summit Communication Group not only specializes in co-underwriting litigation capital alongside our co-investors on a case-by-case basis, but we also strategically deploy capital across diverse structures to litigation fund companies in the US, the UK, Australia and New Zealand. This approach effectively complements the internal and fund capital of General Partner (GP) fund managers. The trend of co-investments is on the rise as fund managers increasingly seek to tap into new capital sources. According to Pitchbook data, the total capital raised for co-investments with Private Equity (PE) investment managers surged from $6 billion in 2015 to $10.3 billion in 2022. This growth occurred despite a fundraising dip from 2021 to 2022, with the number of PE funds reducing significantly from 1,129 in 2021 to 597 in 2022. This shift reflects Limited Partners’ (LPs) strategic focus on more experienced managers amidst cautious capital deployment.

Co-Investment Opportunities

As the PE market expanded to an impressive $4.6 trillion in Assets Under Management (AUM) by the end of 2021, the competition intensified. The market is now replete with new funds and managers, making it increasingly challenging for new and emerging managers to establish credibility and stand out in the crowded LP market. Co-investment has emerged as a strategic tool for some GPs, enabling them to expand their capacity to fund litigation transactions.

Non-Recourse Litigation Capital: Transforming Law Firms into Profit Centers

Law firms aiming to transform their client relationships and evolve into profit centres can significantly benefit from pursuing meritorious legal claims while leveraging litigation finance to cover costs typically borne by clients. The key to this transformative strategy lies in utilizing non-recourse finance solutions. Under this model, the return to finance funders is contingent upon successful recovery in the underlying litigation, aligning the interests of all parties involved.

At Summit Communication Group, we specialize in underwriting cases in collaboration with attorneys and private equity firms. Our approach is particularly advantageous in providing liquidity for expansion capital based on IP underwriting, as well as financing legal expenses and working capital during the lifespan of litigation or arbitration. This strategy not only mitigates litigation risk but also offers balance sheet solutions to accelerate revenue recognition from contingent legal assets.

Benefits of Non-Recourse Case-by-Case Capital Litigation:

Enabling Meritorious Case Pursuit: Law firms can confidently pursue cases with strong merit, backed by financial support that doesn’t burden their clients.

• Mitigating Litigation Risk for Clients: Clients benefit from reduced litigation risk, as financial obligations are contingent on successful case outcomes.
• Improving Client Cash Flow: This approach aids clients in maintaining healthier cash flows by alleviating upfront legal costs.
• Transitioning from Cost to Profit Center: Law firms can shift their operational model from being cost-centric to profit-generating entities.

If your law firm is poised to redefine its client relationships and transition into a profit centre, non-recourse case-by-case capital litigation offers a strategic pathway. Contact Summit Communication Group today to explore how this solution can benefit your firm and your clients.