What does BKAM do?
A: Our primary target investment market includes contingent case portfolios for AmLaw 200 firms and qualified litigation boutiques. Undertaking a rigorous underwriting process forged from decades of collective experience, our typical loans range from US $10M to $30M.
What is the typical size of the investment BKAM makes?
A: Between US$10 million and US$25 million, and more for portfolios of cases.
What can the capital be used for?
A: We typically finance legal services including attorney fees, expert testimony and other litigation costs. In some cases we also finance business activities during the prosecution of the claim.
What types of claims does BKAM consider?
A: Antitrust and competition law, including monopoly, price fixing and opt-out claims by businesses in the US and Europe.
Arbitration. We arrange financing for both domestic and international commercial arbitrations.
Bankruptcy and insolvency, including commercial claims held by trustees and liquidators.
Contracts. BKAM provides funding for various commercial and contract disputes ranging from defaulted debt collection, investment contracts and agreements regarding distribution, joint ventures and franchises.
Environmental. We work with clients on financing for environmental claims including those for clean up and indemnification, excluding Superfund and other claims against governments.
Finance and securities, including mergers disputes, shareholder disputes and fraud claims.
Intellectual property, including patent, trademark, trade secrets and copyright infringement, licensing and enforcement activities. In some circumstances, BKAM will arrange investments in the underlying intellectual property rights and work with patent owners to optimize the revenues accorded by those rights.
Insurance coverage, commercial insurance and subrogation, including both commercial liability and first-party insurance and reinsurance claims, and complex multi-carrier coverage disputes.
How much interest will BKAM seek in our claim or portfolio of claims?
A: The interest we negotiate in a claim is dependent upon its size, the variables associated with its success and the time we anticipate for recovery.
What criteria will BKAM look for when evaluating our claim?
A: We consider both the specific claim and the contextual variables when evaluating an investment opportunity. Our underwriting process is rigorous and highly structured and takes into account a number of considerations, including:
- Strong merits
- Causally related damages
- The claimant’s experience and commitment
- The relative risk tolerance of the parties
- The timing of the claim in the context of legal, regulatory and market trends
- Counsel’s experience and track record
- The probability of settlement
- Exposure of the claim to media coverage and political risks
BKAM provides claimants financing and risk transfer solutions to fund litigation and monetize the value of claims. We establish exposure to your claim in the following forms:
- Funding direct claim lending by extending partial recourse loan facilities against an arbitration or litigation.
- Guaranteeing minimum returns from uncollected judgments or appeals to judgment creditors and law firms entitled to contingent or conditional fees.
- Purchasing an equity stake in potential proceeds of a corporate claim.
Law firms have limited access to capital markets due to ethics rules, annual distribution of cash flow to partners, a lack of tangible assets and understandable reluctance to sign personal guarantees. Yet their portfolios of contingent legal claims represent one of the largest unencumbered asset pools in the world.
Most of the portfolios BKAM purchases and loans we extend are the result of direct association with AmLaw 200 firms and vetted litigation boutiques. We focus on developing long-term relationships and work with firms to enhance their competitive advantage, increase their profits per partner, manage cash flow and hedge risk. In this way, we provide firms with a competitive advantage over other firms by allowing them to provide litigation financing as yet another service they offer clients.