Tabellab
Corporate Finance & Valuation Intermediate

Litigation Funding by the Numbers: Case Budgets, Stage Probabilities, Expected Recoveries, Funder Return Structures, Proceeds Waterfalls, Duration & IRR and Case Portfolios

Look at a legal claim the way a third-party funder does. You will budget a case by stage, turn given stage probabilities into outcome odds, value expected recoveries after collection risk, compare multiple-based and percentage-based returns, split proceeds in a waterfall, measure IRR and multiples by outcome and build a small case portfolio, with every cell checked as you go.

8 lessons 8 labs 2.3 h Certificate

One-time payment · lifetime access · lessons, labs, exam and certificate included · no subscription.

About this course

This course looks at a fictional legal claim the way a third-party funder does, step by step in a spreadsheet. You build a case budget by stage with cumulative commitment and drawdowns, chain given stage probabilities into settled, lost and won endings and calculate the expected spend. You value expected recoveries after a collection haircut, compare multiple-based, percentage-based, greater-of and time-ratchet payouts, and run a proceeds waterfall with a lawyer uplift and a claimant floor. You measure IRR and MOIC on half-year cash flows, price adverse-costs cover and finish with a 12-case portfolio. All cases and numbers are fictional; not legal or investment advice.

Lessons

  1. The Case Budget: Costs by Stage, Commitment and DrawdownsLab15 min Pro
  2. Stage Probabilities: From Given Stage Probabilities to End Outcomes and Expected SpendLab16 min Pro
  3. Expected Recovery: Claim Value, Collection Haircuts and the Outcome TableLab15 min Pro
  4. Funder Return Structures: Multiples, Percentages, the Greater-of Rule and Time RatchetsLab17 min Pro
  5. The Proceeds Waterfall: Capital Back, Lawyer Uplift, Funder Profit and the Claimant FloorLab18 min Pro
  6. Duration, IRR and MOIC: Same Case, Different ClocksLab17 min Pro
  7. Adverse Costs and Cover: Loser-Pays Exposure, Deferred and Upfront PremiumsLab17 min Pro
  8. Capstone – A Portfolio of 12 Cases: Expected MOIC, Concentration, Loss Rate and Cross-CollateralisationLab22 min Pro