I
Litigation Funding Agreement (LFA)
Non-recourse capital for legal fees, expert costs, and disbursements. Repayment occurs only on recovery. HLC bears the loss if the claim fails.
Institutional Litigation Finance · New York
Global Legal Capital,
Secured.
Institutional Monetisation of Legal Assets.
A privately capitalised litigation and arbitration finance platform for principals and the firms that represent them. We deploy proprietary capital into meritorious commercial disputes — non-recourse to the claimant, structurally aligned with counsel, and operated with deliberate institutional quietness.
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Delaware LLC
Direct Capital Vehicle
Proprietary
No External LP Capital
IC Authority
Supreme, Non-Delegable
SPV Structure
Segregated Single-Matter
Permanent
No Redemption Cycles
Forums Under Active Mandate
- NY Supreme·
- SDNY·
- London Commercial·
- LCIA·
- SIAC·
- ICC·
- NAI
Two Doors. One Discipline.
HLC engages with both principals and counsel.
Whether you are the company pursuing a serious dispute, or the firm representing one, the standard of underwriting is the same. The path in is different.
FOR CLAIMANTS
If the dispute is yours.
For principals — companies, founders, estates, trustees — pursuing a meritorious commercial claim. Plain language, undemanding first contact, and capital that is non-recourse to you.
Enter Claimants Portal →
FOR COUNSEL
If the matter is yours to lead.
For retained law firms approaching HLC on behalf of a client. A standardised six-item submission protocol and a written preliminary view within ten business days.
Enter Counsel Portal →
§ Founding Doctrine
Five pillars, set down at founding.
The doctrinal commitments from which every HLC decision derives. They are not aspirations. They are the operating constraints under which the Investment Committee deliberates.
I
Capital Preservation
The first duty of patient capital is to be returned. Principal protection precedes return on principal in every IC deliberation.
II
Structural Discipline
Single-matter SPVs, defined waterfalls, no side letters. The structure does the work the prose cannot.
III
Jurisdictional Discernment
We commit only where enforcement is credible and procedure is institutional. Other fora are evaluated case by case, not assumed.
IV
Counsel Alignment
We do not direct litigation strategy. The authority of counsel and claimant over the conduct of the matter is absolute.
V
Discretion as Practice
Quietness is not a courtesy extended to clients. It is the operating principle from which our other commitments follow.
§ Visible Doctrine
Four images, one posture.
Discretion
as Practice
Jurisdictional
Discernment
Capital
Under Seal
Doctrine,
Codified
Authorised Product Lines
Four Ways We Deploy Capital
Each instrument is structured to preserve principal, align incentives, and respect the absolute authority of counsel and claimant.
II
Claim Purchase Funding (CPF)
A facility through which a third-party investor or Purchaser acquires an existing legal claim. HLC structures and intermediates the transaction; HLC is not itself the Purchaser. A 3–5% upfront fee applies. Security interest taken at closing; full champerty and maintenance analysis precedes commitment.
III
Silent Partner — Liquidity Release
Up to 49% economic interest in the claim in exchange for immediate claimant liquidity, subject to a 3–5% upfront fee. The claimant retains full control. Non-disclosed to opposing parties.
IV
HLCDC — Counterclaim Funding
Non-recourse funding of affirmative counterclaims held by corporate defendants, deployed through Hudson Litigation Defense Capital — a separately constituted affiliate with its own Investment Committee and a strict §8.4 information barrier from HLC.
Underwriting Standards
The Five Pillars
Every commitment is measured against five non-negotiable criteria. A matter must satisfy all five before the Investment Committee will deliberate.
- 01
Merits
Identifiable legal merit grounded in facts, law, and binding precedent.
- 02
Quantum
Reasonably quantifiable damages representing a sufficient multiple of capital deployed.
- 03
Recoverability
A credible enforcement path against a solvent and reachable defendant.
- 04
Counsel Quality
Demonstrated competence in the relevant jurisdiction and subject matter.
- 05
Timeline & Budget
Realistic, stress-tested, with no anticipated additional capital calls.
Stress Test Protocol
"Every IC memorandum must include three scenarios: base case, fifty percent reduced, zero recovery. No commitment is made without this analysis."
§ Capital Discipline
Concentration limits, codified.
The structural constraints under which the deployed book is held. They are constitutional rather than discretionary; the Investment Committee may not waive them.
20%
Capital Reserve
Held permanently against the deployed book. Not redeployable. Not pledged.
12%
Per-Matter Cap
No single matter may exceed 12% of deployed capital at commitment.
25%
Single-Jurisdiction Limit
No single forum may concentrate more than 25% of the deployed book.
8%
IC Override Cap
The Investment Committee may not override concentration limits beyond 8% relief.
§ Underwriting Discipline
The named tools of the Investment Committee.
Beyond the Five Pillars, the IC applies a small set of named instruments. Each is doctrinal — that is, applied uniformly, not at discretion.
§ Doctrine
Seriousness Test
A mandatory pre-IC gate. Counsel must be retained, the matter substantially worked-up, and the claimant institutionally serious about prosecution. Speculative inquiries do not pass.
§ Doctrine
Optimism Discount
Every probability assessment from counsel is reduced by 10–20 percentage points before IC modelling. We do not fund a base case we have not first stress-discounted.
§ Doctrine
Enforcement Score (0–5)
Recoverability is scored against the defendant's solvency, asset reachability, and forum-of-enforcement quality. A score below 3 is presumptively non-fundable.
§ Doctrine
Non-Interference Doctrine
Once committed, HLC does not direct strategy, settlement, or counsel selection. The authority of claimant and counsel is absolute and contractually preserved.
§ Doctrine
Capital Retrenchment
A standing crisis protocol: in adverse market conditions, deployment slows before reserves are touched. Existing commitments are honoured in full; new commitments pause.
Six Commitments
What You Can Expect From Us
“
We deploy our own capital — our interests are structurally aligned with yours.
“
We do not direct litigation strategy. Counsel and claimant retain full authority.
“
We operate quietly. Our involvement is confidential unless legally required.
“
We are transparent about our process, our timeline, and our assessment.
“
We are patient. Our capital is permanent, governed by litigation timelines.
“
We are disciplined. We only fund what is genuinely meritorious and recoverable.
§ Process
From first contact to funded SPV.
A six-stage protocol. The pathway is the same whether the matter is brought by claimant or counsel; only the entry document differs.
I
First Contact
Brief written enquiry from claimant or counsel. No NDA at this stage.
II
Preliminary View
Within ten business days, a written preliminary view: pursue, decline, or seek further material.
III
Documented Diligence
Under NDA. Pleadings, expert reports, counsel's strategy memorandum, defendant solvency.
IV
IC Memorandum
Internal underwriting memorandum with Optimism Discount, Enforcement Score, three-scenario stress test.
V
Investment Committee
Supreme, non-delegable. Approve, decline, or remit for further work. Decisions in writing.
VI
Documentation & Funding
SPV established. Facility executed. Capital deployed direct to counsel and approved vendors.
Indicative Timeline
"Eight to eighteen weeks from documented submission to funded SPV — varying with the complexity of the matter and the maturity of the documentary record."
§ Indicative Return Floors
Duration-banded, non-negotiable floors.
Indicative thresholds against which a matter's quantum is measured. A claim must clear both the multiple and the implied yield within the projected duration band — or it does not present economically.
Projected Duration
Minimum Multiple
Implied Yield (p.a.)
0 – 18 months
2.5×
45%
19 – 36 months
3.0×
40%
37 – 60 months
3.5×
35%
60+ months
4.0×
30%
Floors are stated against base-case quantum after the Optimism Discount has been applied. Specific commitments are documented per facility.
§ Unrepresented Claimant Protocol
If you have no lawyer yet.
HLC does not refer counsel and does not fund matters before counsel is engaged. We will, however, accept a brief written enquiry from an unrepresented claimant and provide a preliminary view as to whether the matter — on its face — would meet our underwriting thresholds were qualified counsel retained.
That preliminary view is not legal advice. It is a candid statement as to whether engaging counsel is worth the claimant's time. The Conditional Hold (thirty days) governs the period during which we hold a matter open while the claimant secures representation.
§ Frequently Asked
Six questions, answered plainly.
- Is the capital truly non-recourse?
- Yes. If the matter does not recover, HLC bears the loss. The claimant owes nothing. This is contractually fixed at facility execution and is not waivable.
- Will HLC direct the litigation?
- No. The Non-Interference Doctrine is constitutional, not procedural. Counsel and claimant retain full authority over strategy, settlement posture, and conduct of the matter.
- How long does the underwriting process take?
- Typically eight to eighteen weeks from documented submission to funded SPV, depending on matter complexity and the maturity of the documentary record.
- Is HLC's involvement disclosed to the opposing party?
- Not voluntarily. Disclosure is made only where the procedural rules of the relevant forum require it, and then only to the minimum extent required.
- What if the claimant has not yet retained counsel?
- HLC does not refer counsel and does not fund matters before counsel is engaged. The Unrepresented Claimant Protocol governs how we engage with claimants in this position — see below.
- What are the minimum thresholds?
- Quantum representing a sufficient multiple of capital deployed, a credible enforcement path, and meritorious facts. Indicative return floors are duration-banded — see the table above.
§ Direct Contact
By appointment, on the record.
- Email · inquiries@hudlitcap.com
- Telephone · +1 (332) 291-2684
- Office · New York · By Appointment
§ What We Do Not Fund
Stated without exception.
The exclusion list is exhaustive and strictly enforced. Submissions in these categories are returned, with thanks, within forty-eight hours.
Consumer litigation
Personal injury
Mass torts & class actions
Family law
Criminal defence
Regulatory defence
Business operations financing
Pre-merits IP assertions
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