Funding Model
To best serve plaintiff firms, American Law Firm Capital has developed a Bridge Exchange Funding model which provides a diverse stable of capital providers. These ALFC capital resources that we orchestrate include banks, private equity groups, family offices, hedge funds and law firms. ALFC may or may not have an economic interest in the Lender platforms. Below find typical terms and lending attributes of each capital source generally offered with governing terms reflected in final lender agreements.
BANK LOANS
Most Loans less than $20MM
- Rates Often Single Digit
- Secured By Firm & Often, Lawyers’ Personal Assets
- Insurance May Be Utilized
- Timeline To Fund 45–60 Days
PRIVATE EQUITY – FAMILY OFFICE & HEDGE FUNDS
Debt or Equity Most Loans $10MM to $250MM+
- Most Rates In The Teens
- Secured By Firms’ Future Legal Fees And Costs
- Generally, No Partner PGs
- Timeline To Fund 60–90 Days, Driven By Loan Size, Collateral, Clean Data & Firm Responsiveness
LAW FIRM, EQUITY
& PREPAID FORWARD INVESTMENTS
Amount “Open”
- Ability for ALFC Team
Scaling Of Law Firm Through Fee Sharing (ABS, DC, MSO) - May Require Modification Of Co-Counsel Or Other Business Agreements
62% of Plaintiff Law Firms have some experience using litigation Funding and more than 80% said they would consider it.
ALFC Success Rate over 90% – ALFC underwriting team has over a 90% historic success rate in underwriting individual mass tort outcomes and roughly 95% or better of all personal injury cases settle before going to trial resulting in predictable financial outcomes to support scaling.
Law Firm ROI 300%-400% or Greater– With strategic planning, law firms should expect a minimum return of 3X on their capital, with even larger returns in mass torts, class actions and many other non-auto, personal injury case types.
ALFC Compliance
ALFC has been vetted as a trusted and compliant vendor by the National Legal Vendor Association. ALFC’s platform is also 100% HIPPA compliant and secure.