PRODUCT ILFA
Litigation Funding Agreement
Non-recourse capital for active claims.
Counterparty — Original claimant · represented
In Plain Terms
We pay your legal costs to pursue a serious claim. You repay only if you recover. There is no upfront fee.
HLC advances counsel fees, expert costs, court fees, and disbursements throughout the matter. Capital is deployed in tranches against an agreed budget. If the case fails, HLC absorbs the loss in full and the claimant owes nothing.
- —No upfront fee
- —Non-recourse — proceeds-only repayment
- —Tranched deployment against milestones
- —Return: greater of capital multiple or % of gross recovery
Proceeds Waterfall
- 01Adverse costs orders funded by HLC
- 02HLC capital repaid
- 03HLC return (greater of multiple or % of gross)
- 04Counsel contingency fee
- 05Balance — substantial majority — to claimant
PRODUCT IICPF
Claim Purchase Funding
Acquisition financing for qualified Purchasers.
Counterparty — Third-party investor / acquirer — not the original claimant
In Plain Terms
Capital provided to a qualified Purchaser to acquire a commercial claim from its current owner. The Purchaser then prosecutes the claim through a dedicated SPV with separately arranged litigation funding.
HLC takes a first-priority security interest in the acquired claim and all proceeds, recovering its capital plus a 2.0×–2.5× success multiple before any distribution to the Purchaser. Every transaction is preceded by a complete champerty and maintenance analysis.
- —3–5% upfront origination fee, paid by Purchaser pre-deployment
- —First-priority security interest in claim and proceeds
- —2.0×–2.5× success multiple to HLC before Purchaser distribution
- —Champerty and maintenance reviewed in every jurisdiction
If you are the original claimant seeking liquidity while retaining control of your matter, see Product III — Silent Partner.
PRODUCT IIISilent Partner
Direct Claim Acquisition
Liquidity today; control retained by claimant.
Counterparty — Original claimant · represented
In Plain Terms
HLC pays you an upfront Purchase Price for a defined economic interest in your claim. You keep full control of the litigation. Our involvement is not voluntarily disclosed to opposing parties.
HLC acquires an economic interest of up to 49% in the proceeds of the matter directly from the claimant. Strategy and counsel direction remain entirely with the claimant; HLC takes no consent rights over litigation conduct beyond standard institutional protections.
- —Up to 49% economic interest — claimant retains majority and control
- —3–5% non-refundable Upfront Fee paid to HLC at closing
- —Confidential — HLC involvement not voluntarily disclosed
- —Return: greater of capital multiple or % of gross recovery
PRODUCT IVHLCDC
Counterclaim Funding
Hudson Litigation Defense Capital — separate affiliate.
Counterparty — Corporate defendant holding a meritorious affirmative counterclaim
In Plain Terms
If your client has been sued and holds a counterclaim with credible recovery, HLCDC funds the prosecution of the counterclaim on a fully non-recourse basis. HLCDC does not fund defense costs.
HLCDC is constituted as a separate legal entity with its own capital pool, Investment Committee, and compliance function. A strict information barrier separates HLCDC from HLC. Counterclaim value band: $5M–$50M. Probability ≥60% post-Optimism Discount; Enforcement Score ≥3.
- —No upfront fees
- —Funds counterclaim prosecution only — never defense costs
- —Non-recourse — counterclaim proceeds only
- —Tranched drawdown direct to counsel or approved vendors
