Claimants engaging in litigation and arbitration have traditionally had only two options: paying outside counsel hourly fees or negotiating alternative fee arrangements such as contingencies to align interests and lower the cost of a transaction. Both carry several layers of risk, including uncertain legal fees in cases that can draw out over several years.
For law firms, contingency arrangements present major cash flow challenges and significant exposure in the event of an unfavorable ruling. Because they have limited access to capital markets due to ethics rules and the limitations of the traditional law firm business models, their opportunities for financing and risk mitigation are constrained.
BKAM provides capital to claimants who lack necessary funding, and to corporations and law firms to support them in making more efficient use of working capital towards their core business, rather than litigation. We structure each deal specifically to the client with the goals of enhancing cash flow and effectively managing risk throughout the claim cycle.
BKAM provides capital to claimants who lack necessary funding, allowing them to deploy capital on their core business, rather than litigation. BKAM also invests against quality contingent portfolios, providing law firms with off-balance sheet, non-recourse capital to use as they see fit – expansion, early bonus payments, retirement of recourse or higher cost debt, etc. We structure each deal to meet the specific needs and opportunities, with the goals of enhancing cash flow and effectively managing risk throughout the claim cycle.