Q&A
Resource Centre

Frequently Asked Questions

For more information or inquiries, contact our experienced team at Green Park Platinum.
What is Litigation Finance?
Litigation Finance is a Non-correlated asset class which produces strong and absolute returns.
What is the operating mechanism for Litigation Finance?
Value of litigation finance claims are not derived from or influenced by traditional asset pricing mechanisms like the stock markets and does not tend to move with fluctuations in the economy. This uniqueness therefore providing a more stable return on investment forecast.
If I invest how long will it be before I see a Return?

Commercial Litigation Finance tends to have a 1-3-year investment period, which an average duration of about 18 months per case (with duration differences relating to size, jurisdiction and case type). If you are looking for short and medium term investment opportunities Commercial Litigation Finance will provide you that platform.

Will I have any indication of how long the case will take?
Yes, as part of our member relations, and Terms and Conditions, you will receive updates as an investment programme progresses. This will be communicated through a secure platform to each member.
Are there any indicators that the claim will be a success?

a. Due to the high standard of proof required, the plaintiff will have to present to the court before a decision of viability is made. If the court agrees viability, this Is an indicator towards a successful claim.

b. In patent disputes, if the plaintiff passes through an “Inter-Parties” Review process, there is an increasing chance of settlement. This is due to the case being reviewed by Subject Matter Experts identifying the risks and potential of a successful claim.

If the viability of the claim is confirmed and subsequently successful, when will the principal and interest be distributed?
As soon as enough litigation/assertion proceeds are generated the portfolio settles to pay out all principal and interest owed to investors is paid down, and Event-based payments triggered are disbursed.
How is my investment secured?

A matrix of security measures is implemented prior to any investor’s participation. This security is via a suite of corporate and director pledges granting ALL investors a Senior Secured position to all assets and notable all proceeds generated.

Via a suite of corporate and personal guarantees, issued by both the Note Issuer and the patent holder, the assertion proceeds are assured of being disbursed to investors first.

Are my investments protected and how?

Yes, your Loan/investment participation is covered under a matrix of Guarantees that are designed to afford you protection of your principal. These Guarantees give you direct recourse to the Companies and Directors Assets in the unlikely event of default. You may if you choose to pursue any remedy of default via your own actions as opposed to that of say a Mutual Fund were investors merely become a number in a default proceeding. Greenpark Platinum provides short term safe investments.

Is this a Litigation Fund?
No, the programmes are not litigation funds.
Who is funding the Litigation Program?
The funding of the Litigation Program is provided by established Litigation Funders with years of experience and success with this type of asset class.
Why are they willing to fund litigation cases?
Litigation Funders are specialist in assessing the viability of legal actions and the potential windfall derived from awarded damages to the plaintiff. The funders provide non-recourse funds to the plaintiff to fund the litigation process on the basis that they will share in the damages awarded.
The Litigation Funders have deemed the Litigation Program will be successful?

Litigation funders have rigorous due diligence procedures that are carried out prior to deciding to invest in a case. They also engage an independent third-party to conduct a Quantum Report which indicates the potential damages awarded from the case so they can assess their ROI. Funders also seek After the Event (ATE) insurance to protect on the downside. The insurance provider also conducts their own due diligence before agreeing to insure the case.

This due diligence has been conducted and the funders have indicated their willingness to participate in the Litigation Program

Are my funds at risk of the Litigation Program?

No. The Litigation Funders provide the ‘At Risk’ capital for the Litigation Program.

Will my investment derive benefit from any successful Litigation proceedings?

Yes, that is the uniqueness. Although the invested funds are not at risk of the litigation program, they still benefit from favourable outcomes through the likely disbursements of dividends.

Where can I access further information on due diligence?
Please visit ‘Our Process’ area or ‘Contacts’ if you have further questions.
Will I be able to view progress of my investment and documentation for the programme.

Our Investor Control Console (ICC) provides an overview of the current state of and Investors’ portfolio with easy access to detailed up-to-date information on all investments. By accessing the ICC, Investors will be able to access important account snapshots in a secure environment such as.

Transaction Statements – advising of investment related transactions

Investor Relations – developments with your portfolio

Notifications - for the issuance of application receipts and all administrative matters

Once invested, can any changes be made to the investment.
No, Terms and Conditions after the issue will not change.
What is the application process and criteria for investment?
Please visit ‘Our Process’ area for investor criteria
How is this different from dividends?
Dividends are paid from declared profits of a Company after all operating expenses including salaries and wages are interest obligations are paid. Dividends are based on performance in relation to the cost-base of a Company, and subject to directors’ policy on dividend disbursement. Event-Based Payments are paid after the revenue has been realised and prior to operating expenses and other expenses are extracted.
What is the advantage of Event-Based Payments over traditional Dividends?

There are many advantages, however, the underlying principle is investor disbursements are prioritised, and not determined by overall company performance. Essentially, investors are first in the queue to be paid each quarter after eligible revenue has been received.

Traditional shareholders are required to wait for all company bills, salaries, and other outgoings to be paid before realising any benefit in the form of a dividend. The end dividend payment has no direct connection to the monetisation event and, due to the process, will generally be a lot less than the Event-Based Payment.

What and where will the investment monies be used for during a programme?

Monies will be used aligned to the context of the programme.

Due to the potential difference in strategy for each case, we present specific answers to each during our client proposition process.

Transaction Structures in Litigation Finance

Who are the parties to a transaction?
Generally, litigation finance companies transact directly with the claimholder. While the claimholder’s counsel is typically involved throughout the investment process—helping to answer due diligence questions and providing a case budget, for example—the investment contract is structured as a bilateral agreement directly with the claimholder. The attorney-client relationship remains exclusive to the claimholder and its attorney.
Can litigation finance provide capital for activities other than litigation?
Yes, the capital invested can be used for almost anything. Most frequently, funds are used to pay for litigation fees and expenses, but it is also quite common for claimholders to take additional capital to use toward operating costs such as R&D, payroll, or manufacturing.
If litigation finance can be used for operating activities, what differentiates it from other forms of financing?
One of the most significant features of litigation finance is that in most instances it involves non-recourse capital. That means the financier’s only recourse is to proceeds from the underlying litigation or arbitration, not to any of the claimholder’s other assets. In other words, if the underlying litigation or arbitration claim is not successful, the claimholder owes us nothing. Non-recourse capital not only minimizes or eliminates litigation risk; it also provides the company with a way to raise capital without diluting equity or creating burdensome debt.
What does the economic arrangement look like?

Generalizing the investment structure of a litigation finance deal can be difficult since each transaction is specifically tailored to meet the individual needs of a claimholder. One common structure:

  • If the arrangement includes covering operating expenses, the litigation financier (i) makes a non-recourse investment directly in the claimholder, and then (ii) establishes a capital facility to be drawn down to pay for fees and expenses related to litigation or arbitration.
  • Any proceeds from the litigation are used to repay the litigation financier for whatever capital has been disbursed. The remaining proceeds are allocated between the claimholder and the litigation financier according to their predetermined economic arrangement.

This basic structure can come in many different iterations. Sometimes a lawyer chooses to carry a contingent interest in the litigation; sometimes a claimholder prefers to pay a fixed dollar return rather than a percentage of the case