If you have a client with a claim that may be suitable for third party funding you are in the right place – Vannin funds litigation and arbitration matters on a global basis. Our investment criteria is straightforward: we look at commercial disputes with minimum claimed damages of £3m (or local equivalent) and good prospects of success (60% or more).
To increase the chances of your client receiving an offer of funding from us, and to make the review process smoother, we’d recommend trying to avoid the common traps below:
We often see cases that have huge quantum attached to them - £100m, £500m, £1bn and more. Whilst some cases really will have damages in this order of magnitude, we often find that the quantum has been assessed on a best case (or, frankly, over optimistic) basis. Coming to us with a sensible estimate of quantum – or base/middle/best options – will help us start our review and underwriting process with solid assumptions.
Lawyers are generally excellent at assessing liability and in the vast majority of cases we see there is a case to answer on the part of the defendant/respondent. However, it is also true that in a large number of cases the chances of actually recovering against the defendant/respondent is very low; they are bankrupt/insolvent, the only recourse is against a corporate shell (either with no assets or with assets that can be siphoned off), there is insurance in place but there are questions over the validity of the policy, etc. As a funder, we need to have clear visibility on both liability and enforcement.
Our funding agreement will contain a costs budget for the claim which will be broken down into a number of stages (typically 4 or 5). It is, therefore, helpful to receive a full breakdown of costs through the complete lifecycle of the claim with contingencies built in where there is any uncertainty. We have a great deal of experience dealing with costs budgeting and so if you need any assistance during the process feel free to speak to us.
Some cases just aren’t suitable for funding. Consider the costs to damages ratio and whether, after taking that into account, there is room for the funder to make a return.
Some funders will require your client to enter exclusivity within 24-48 hours. We would caution against that. The danger is that a funder will offer attractive terms upfront which, following their due diligence, will be substantially revised or not ultimately offered at all, potentially wasting a lot of time and effort. We will expect a period of exclusivity, but only after we have a carried out an initial review allowing us to offer provisional terms which we will endeavour to stick to.
If you are in the process of preparing an application for funding and have any questions, please do not hesitate to Contact Us.
For more information on Vannin Capital, please contact: Meika Aysal, Marketing at Vannin Capital, T: +44 207 099 5180, E: firstname.lastname@example.org