Our funding process
When a case clears our conflicts check, we request detailed information usually in the form of a memorandum which explains the following:
- Lawyers’ track record: We seek to gain insight into the lawyers’ expertise and experience in the field of the dispute.
- Parties’ solvency: We consider the financial position of the parties, in particular the respondent. Our focus is to ensure that the debtor can satisfy an order from the arbitral tribunal or the court.
- Claim size, budget and timeframe: We consider the likely realistic amount to be recovered, as well as the legal budget for the case and the timeframe of the proceedings. This information enables us to tailor-make commercial terms for the particular case.
- Merits: We assess the merits of the case to see whether we are satisfied there are reasonable to strong prospects of success. This includes e.g. ensuring that the key arguments in dispute are based on strong evidence.
- Exclusivity / Due Diligence: If the case meets our investment criteria at an initial stage, we provide a term sheet which sets out the funding conditions subject to our further due diligence. If the party accepts the term sheet, we request in exchange a period of exclusivity during which we conduct further due diligence. If at the end of our due diligence we decide to fund the case, we enter into a funding agreement with the client.
Monitoring of funded cases: hands-off approach
Thanks to our rigorous due diligence, there is no need for us to control the proceedings. The client through its lawyers retains day-to-day and overall control and conduct of the claim. We request to be informed of settlement discussions and ask the client not to make or reject a settlement offer without prior consultation with us. However, if the lawyers advise their client that it is reasonable to make, accept or reject a settlement offer, we generally follow this advice.
Nivalion’s exclusive solution for adverse costs insurance
After-The-Event (ATE) insurance protects against the downside risk of having to pay an adverse costs order if the funded party loses its claim.
Our tailor-made ATE insurance is provided by a leading global insurer exclusively for Nivalion. This is a competitive advantage as it saves parties from separate negotiations with insurers, many of whom undertake their own due diligence, which usually results in further delay before concluding a funding arrangement. With Nivalion as funding partner, parties benefit from a one-stop-shop for a full funding package.