- Sharing risk
- Improving the bottom line and business operations
- Delivering service at competitive prices in the legal industry
- Smoothing law firm’s cash flow
- Increasing revenues
The law firm financing is secured by the firm’s potential fee income in three or more of the cases. It serves to cover a portion of the operating expenses in the cases, essentially converting the “full” contingency fee matters into “hybrid” matters in which the law firm earns a portion of the capital it would earn from the cases if it were handling them on an hourly fee basis.
Since our law firm financing is non-recourse capital, law firms retain the litigation funding even if the portfolio cases ultimately are unsuccessful. When contingency fees are collected from one or more of the cases, law firms pay a return to litigation funding firm Omni Bridgeway, with the amount depending on the terms of the litigation funding agreement.
This approach allows law firms to avail themselves of opportunities to earn more than they would earn in hourly-fee matters while lessening the risk of taking cases on contingency.