Okay, let's break down how to prepare for a litigation finance pitch. A strong pitch will address key questions, demonstrate a deep understanding of the case, and inspire confidence in your team's abilities. Here's a structured approach, covering the essential elements:

I. Understanding Your Audience (the Funders)

• Fund's Investment Thesis: Research the fund's historical investments. What types of cases do they typically fund (e.g., breach of contract, IP, antitrust, international arbitration)? What jurisdictions? What are their typical investment sizes? What returns do they expect?


• Fund's Risk Appetite: Are they risk-averse or more willing to take on higher-risk, higher-reward cases?


• Decision-Making Process: Who are the key decision-makers? Who will be in the room? What is their background? Understanding their experience will allow you to tailor your communication style.


• Previous Investments: Research their portfolio. What are some of their successes and (if possible to determine) failures? This will allow you to compare your case to their past investments and differentiate it in key ways.

II. Core Elements of the Pitch Deck

Your pitch deck should be clear, concise, and visually appealing. Here's a suggested structure:

• Executive Summary (The Hook):


• Case Overview: A one-sentence summary of the case.


• Opportunity: The specific amount of funding you are seeking and its purpose.


• Strengths: A few bullet points highlighting the key strengths of the case.


• Expected Return: A preliminary estimate of the expected recovery and the anticipated return for the funder.


• Team: Introduce the key players.


• Ask: Clearly state what you are seeking from the funder.


• Case Background:


• Parties Involved: Clearly identify the plaintiff(s) and defendant(s). Include information about their financial strength, insurance coverage (if applicable), and litigation history.


• Factual Summary: Provide a concise but compelling narrative of the underlying facts giving rise to the dispute. Focus on the key events and critical documents. Avoid unnecessary legal jargon.


• Legal Claims: Clearly state the legal claims being asserted. Identify the relevant causes of action and the legal standards that apply.


• Jurisdiction and Venue: Confirm jurisdiction and venue are proper and explain why.


• Stage of Litigation: Specify where the case is in the litigation process (e.g., pre-filing investigation, discovery, motion practice, trial). This is critical for assessing risk.


• Timeline: Outline the expected timeline for key milestones in the litigation (e.g., discovery deadlines, motion hearings, trial date). Be realistic.


• Merits of the Case (Why You Will Win):


• Key Evidence: Present the strongest pieces of evidence supporting your claims (e.g., key documents, witness testimony, expert reports). Highlight the evidence that is most persuasive and damaging to the opposing party.


• Legal Analysis: Provide a concise legal analysis supporting your claims. Cite relevant case law and statutes. Explain why the law favors your position.


• Anticipated Defenses: Identify the likely defenses that the defendant will raise. Explain why those defenses are weak and unlikely to succeed. Be prepared to discuss potential counterclaims.


• Expert Analysis: Describe the role of any expert witnesses and the substance of their opinions. Include information about the expert's qualifications and experience.


• Financials and Damages:


• Damages Model: Present a detailed damages model that is well-supported by evidence and legal precedent. Include a range of potential outcomes (e.g., best-case, worst-case, most likely scenario). Clearly identify the assumptions underlying the damages model.


• Costs to Litigate: Provide a realistic budget for the costs to litigate the case through trial and appeal (if necessary). Break down the costs by category (e.g., expert fees, discovery expenses, attorney fees).


• Collection Prospects: Assess the likelihood of collecting on a judgment. Consider the defendant's assets, financial condition, and potential bankruptcy risks.


• Settlement Value: Estimate the potential settlement value of the case based on the strengths of your claims, the weaknesses of the defenses, and the potential damages.


• Return on Investment (ROI): Clearly illustrate the potential ROI for the funder based on different settlement or judgment scenarios. Show the funder's share of the recovery.


• Litigation Strategy & Team:


• Litigation Plan: Outline the key steps in the litigation plan (e.g., discovery strategy, motion practice, trial preparation). Explain how you will manage the litigation effectively.


• Settlement Strategy: Describe your approach to settlement negotiations. When do you anticipate engaging in settlement discussions? What are your settlement goals?


• Team Expertise: Highlight the experience and expertise of the litigation team. Include information about the attorneys, experts, and other professionals involved in the case. Emphasize relevant experience and successful track record.


• Team Alignment: Demonstrate that your team is fully aligned with the goals of the funder and committed to maximizing the recovery in the case.


• Risk Assessment:


• Key Risks: Identify the key risks that could impact the outcome of the case (e.g., adverse court rulings, unexpected witness testimony, changes in the law).


• Mitigation Strategies: Explain how you will mitigate these risks. What steps will you take to minimize the potential for adverse outcomes?


• Adverse Events: Discuss any potential adverse events that could negatively impact the case. Be transparent about the challenges and uncertainties.


• Funding Request & Deal Structure:


• Funding Amount: Specify the exact amount of funding you are requesting.


• Use of Funds: Explain how the funds will be used (e.g., expert fees, discovery expenses, attorney fees).


• Proposed Deal Structure: Clearly outline the proposed deal structure, including the funder's share of the recovery, repayment terms, and any other relevant terms.


• Security: Discuss any potential security that can be offered to the funder (e.g., lien on the judgment).


• Due Diligence Materials:


• Be prepared to provide the funder with access to key documents and information to conduct their own due diligence.


• This may include pleadings, key contracts, witness statements, expert reports, and financial records.


• Appendix:


• Include any supporting documents that are not essential to the main presentation but may be helpful for the funder's due diligence.


• Examples: Key contracts, expert resumes, relevant court orders.

III. Preparing for the Pitch Meeting

• Practice, Practice, Practice: Rehearse your presentation thoroughly. Anticipate questions from the funders and prepare clear and concise answers. Practice delivering the presentation smoothly and confidently.


• Know Your Numbers: Be prepared to discuss the damages model and the costs to litigate in detail. Understand the assumptions underlying the financial projections.


• Master the Facts: Know the key facts of the case inside and out. Be able to answer questions about the evidence and the legal issues without hesitation.


• Anticipate Questions: Brainstorm potential questions from the funders and prepare detailed answers. Consider questions about the strengths and weaknesses of the case, the litigation strategy, the damages model, and the risks involved.


• Prepare for Negotiation: Be prepared to negotiate the terms of the funding agreement. Understand your bottom line and be willing to make concessions on certain points.


• Professionalism: Dress professionally and arrive on time. Be respectful of the funders' time and attention. Be prepared to answer questions thoroughly and thoughtfully.


• Team Coordination: If multiple people are presenting, clearly define roles and responsibilities. Ensure that everyone is on the same page and speaks with one voice.


• Leave-Behind Materials: Provide the funders with a copy of your presentation deck and any other relevant materials.


• Follow Up: Send a thank-you note to the funders after the meeting. Follow up with them promptly to answer any questions and provide any additional information they may need.

IV. Key Considerations for Different Case Types

• Breach of Contract: Focus on the clarity of the contract, the evidence of breach, and the calculation of damages.


• Intellectual Property: Emphasize the strength of the IP rights, the evidence of infringement, and the potential for injunctive relief.


• Antitrust: Highlight the market definition, the evidence of anticompetitive conduct, and the potential for treble damages.


• International Arbitration: Address the enforceability of the arbitration agreement, the applicable law, and the potential for recognition and enforcement of the award.


• Personal Injury/Mass Tort: Focus on liability, damages, and the availability of insurance coverage. Medical evidence is crucial.

V. Key Questions Funders Will Ask

Be prepared to answer questions like:

• "What are the biggest risks to this case?"


• "What happens if you lose on summary judgment?"


• "What is your settlement strategy?"


• "How strong is the defendant's balance sheet?"


• "What is your Plan B if your initial strategy doesn't work?"


• "Why haven't you settled yet?"


• "Have you sought funding from other sources?" If so, what were the results?


• "How does this case compare to your previous successes?"


• "What are the potential reputational risks?"


• "What is the lawyer/client's financial situation? Why can't they fund this themselves?"

VI. Deal Structure Considerations

• Funding Amount: The amount of capital the funder will provide.


• Return Multiple: The multiple of the funding amount that the funder will receive if the case is successful (e.g., 2x, 3x, 4x).


• Hurdle Rate: A minimum return that must be achieved before the funder receives any additional return.


• Profit Share: The percentage of the net recovery that the funder will receive after recouping their investment and any applicable hurdle.


• Control Rights: The extent to which the funder will have control over the litigation strategy and settlement decisions.


• Security: Whether the funder will have a security interest in the judgment or settlement proceeds.


• Termination Rights: The circumstances under which the funder can terminate the funding agreement.


• Reporting Requirements: The frequency and type of information that the law firm will be required to provide to the funder.

VII. Common Mistakes to Avoid

• Overpromising: Don't exaggerate the strengths of the case or the potential damages. Be realistic and transparent.


• Underestimating Risks: Acknowledge and address the risks involved in the litigation.


• Lack of Due Diligence: Don't present a case without thoroughly investigating the facts and the law.


• Poor Presentation Skills: Practice your presentation and be prepared to answer questions confidently.


• Ignoring the Funder's Perspective: Understand the funder's investment criteria and tailor your presentation to their interests.


• Being Unprepared to Negotiate: Know your bottom line and be willing to make concessions.

By following these guidelines, you can create a compelling litigation finance pitch that will increase your chances of securing the funding you need to pursue your case successfully. Good luck! Remember to tailor this template to the specifics of your case and the particular funder you are pitching.