Third-party funding – a way to turn your legal department into a profit center

Nowadays, third-party funding is a normal way of financing disputes. Roschier has successfully helped clients to recover over EUR 250 million by the use of third-party funding.

“We thought long and hard about how to go about this dispute, as it was both complicated and included several jurisdictions. We worked with Roschier and a third-party funder and were very pleased with the outcome. Roschier’s lawyers listened carefully to what we needed and cooperated efficiently and smoothly on every level. Should a similar situation arise again, we would most definitely work with Roschier again,” says client Alex Genin, CEO of First National Petroleum Corporation, whose company was involved in a complex dispute.

Third-party funding is an arrangement whereby a financier agrees to fund your external lawyer’s fees when you bring a legal claim in exchange for a share of the damages recovered, typically between 15 and 30%. This way of funding a dispute enables your company to bring a claim without incurring any risk, whilst still being able to obtain a large proportion of the damages recovered.

Preliminary review helps secure funding

When you are considering filing a legal claim, but are unsure how to go about it or how to fund the dispute, Roschier can make an initial review of your claim for a small fixed fee, to help your company secure third-party funding. The method is often used by large companies, allowing legal departments to limit legal spending while pursuing valuable claims.

“We have helped clients to recover substantial sums of money already, and are of the opinion that the use of third-party funding is a relatively risk-free way for a client to pursue a legal claim. Using a third party to help with the funding of a complicated and potentially expensive dispute can free up a company’s possibly limited resources for other uses,” says Partner Johan Sidklev, Head of Roschier’s Dispute Resolution practice in Sweden.

Roschier co-operates with some of the world’s most established third-party funders, who have already committed billions of dollars to finance claims.

Our experts will be happy to answer questions.

Read more about the topic in Johan Sidklev’s and Carl Persson’s article in The Law Reviews, published by Law Business Research.

Main contacts

Johan Sidklev 
Partner
Stockholm
Carl Persson 
Principal Associate
Stockholm
Shirin Saif 
Partner
Stockholm