HLC
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Portfolio & Law Firm Capital
Where risk is spread across several matters or several obligors, capital can be structured against the pool. Diversification, documentation quality and the durability of the underlying economics carry more weight than any single outcome.
This family
- Family
- 03 of 04
- Published solutions
- 3
- Jurisdictional review
- Matter by matter
What this family covers
The published solutions.
Transaction context
How capital is used in this family.
A facility supported by several qualifying legal assets rather than a single matter, with capital drawn against the pool and returns supported by proceeds across it.
Facility capital for qualifying law firms, supported by a portfolio of the firm's contingent or partly contingent matters and the economics attaching to them.
Capital against receivables that have already been earned or have otherwise become sufficiently mature: billed and unpaid fees, awarded costs, and comparable entitlements.
Because risk is spread, the analysis is about the quality and correlation of the pool as much as about any individual case.
Where capital may be applied
- Costs across the qualifying matters in the pool.
- Case investment across the qualifying portfolio.
- Purchase or discount of eligible receivables.
- Defined working capital secured against pool proceeds, where approved.
- Working capital connected to the portfolio, where approved.
- A revolving advance against a defined borrowing base.
- Enforcement and recovery work within the pool, where approved.
- Defined expansion of the firm's case investment programme.
In each case as set out in the approved commitment and the transaction documents.
Relevant considerations
What Hudson examines.
Published considerations only. Internal underwriting methodology, pricing and return parameters are not published.
- 01Composition of the pool and how independent the outcomes really are.
- 02Portfolio composition, maturity and diversification.
- 03Whether the receivable is genuinely earned and properly documented.
- 04Concentration within the pool by matter, obligor, jurisdiction and counsel.
- 05The firm's track record, financial position and governance.
- 06Obligor quality, payment history and set-off exposure.
- 07Documentation quality and the enforceability of the security arrangements.
- 08Enforceability of the fee arrangements underpinning the portfolio.
Counterparties
Who this family is for.
- 01Corporates and groups holding several substantial claims or recoveries.
- 02Established firms carrying a portfolio of contingent or partly contingent commercial matters.
- 03Law firms carrying substantial earned but unpaid receivables.
- 04Claim aggregators and holders of a book of legal assets.
- 05Firms seeking to fund case investment, working capital or growth against portfolio economics.
- 06Corporates and service providers holding mature legal entitlements.
Independence and published limits
The firm's professional independence and its duties to its clients are unaffected. Hudson does not direct case strategy, staffing or settlement, and takes no part in the firm's professional judgment.
No capital band is published for the solutions in this family; those parameters are transaction-specific. Certain matters outside an applicable published band may be considered by exception.
Published parameters, by solution
- Portfolio Finance
- No published band. Facility sizing is transaction-specific and internal structuring thresholds are not published.
- Law Firm Finance
- No published band. Internal borrowing-base and concentration thresholds are not published.
- Legal Receivables Finance
- No published band. Advance ratios and pricing are transaction-specific and are not published.
The four families
01
Dispute Finance
Non-recourse capital for the prosecution of qualifying commercial disputes.
02
Claims & Recovery
Capital against, and for the acquisition of, claims, judgments, awards and recoveries.
03
Portfolio & Law Firm Capital
This page
04
Post-Outcome Capital
Liquidity and capital after a favourable outcome and before payment.
Submit a matter for initial institutional review.
Submission does not create a funding commitment, and no fee is payable on submission. Matters are acknowledged in writing, ordinarily within one to two business days.