Our Approach
Third party litigation funding is the funding of a litigation claim by a party that is not a direct party in the litigation. One of the major benefits of third party litigation funding is that it enables litigation to proceed that would otherwise not have been pursued. Our litigation funding products are written on a bespoke basis, so they can be tailored to the Claimants’ case.
Historically, the litigation funding market has only funded cases where solicitors act on a Conditional Fee Agreement (CFA) or a Damages-Based Agreement (DBA). In a similar vein, many law firms will only run a limited number of cases on a CFA or DBA basis, so as to mitigate their own risk and ensure their businesses’ liquidity is maintained. This means many meritorious claims are not considered for litigation funding. Sparkle Capital can fund any claim which has strong legal merits, and will work with stakeholders to spread risk fairly, even if that means the solicitors do not operate on a contingent basis. Litigation is not only complex but expensive and risky. Our funding is typically only available for cases that have appropriate ATE Insurance (and where applicable Own Sides ATE).
Our Process
1.
Your application is reviewed
2.
We provide an indication of our interest within 3 working days
3.
If approved, further due diligence will be carried out
4.
If no other information is needed, formal terms will be offered
5.
Monies will be available for drawdown within 14 days
Case Size
Our funding is available for any case value, although the economics of ensuring all parties receive a fair return lend themselves to a minimum case value of £50k.
Pricing
Our funding is designed bespoke to each matter, but we prefer a fixed interest model, rather than damage share models. We believe this is preferable to Claimants to provide certainty of their funding outlay at any one moment, as well as being the most cost effective.
Geographical Limits
We prefer matters within the jurisdiction of England and Wales, but we will consider matters in Scotland, Northern Ireland and beyond.
Turnaround
Once the litigation funding documents have been executed, we commit to honouring drawdown requests within 1 week of receipt. However, in practice it’s rare for such drawdowns to take more than 24 hours to process.
Key Points
- Cost effective disbursement funding for court fees.
- We can fund specific disbursements in commercial litigation cases.
- Structural flexibility – We understand each case has different funding needs, so we apply flexibility to tailor to your needs.
Application Process
Our team who review the application includes fully qualified and highly experienced solicitors. All of our assessment team have spent many years in private practice, and it’s that experience that sets us apart from other Funders.
Once an application has been submitted, our team aim to give an in-principle decision within 5 working days. To read more about our application process, and to fill out a form, please follow the link below.
