Managing Risk in Litigation Funding: How 3Pay Global Protects Your Capital

When it comes to funding legal claims, one of the most crucial factors is understanding and managing risk. Whether you’re placing your money into stocks, property, or alternative assets like litigation funding, risk is inevitable. But how you manage it can make all the difference. At 3Pay Global, we understand that while litigation funding offers high returns, it’s essential to minimise risk at every stage of the process.

In this blog, we’ll explore the strategies we use to manage and mitigate risk, ensuring that our co-funders are confident in the stability of their funds. 3Pay Global rigorously vets and works with top-tier legal professionals to protect your capital while maximising potential returns.

1. Rigorous Case Selection: The First Line of Defence

At 3Pay Global, our approach to litigation funding begins with thorough case vetting. We understand that not every case will result in a successful settlement or judgment. This is precisely why we carefully select only those with the highest chance of success.

Key Factors We Consider:

• Meritorious Claims: We focus on claims backed by compelling evidence and a clear legal path to success. Weak or frivolous cases never make it past our initial review.
• Experienced Legal Teams: The strength of the legal team is crucial to a case’s success. We only work with seasoned solicitors, barristers, and experts with proven track records in their respective fields.
• Clear Liability: We assess the clarity of liability in every case we fund. The more straightforward the facts and legal issues, the lower the risk involved.

By funding only the most promising cases, we significantly reduce the overall risk to our co-funders. This diligent approach is the cornerstone of our risk management strategy.

2. Collaborative Approach with Top Legal Professionals

We believe in working alongside the best legal minds to ensure that every funded claim has the greatest chance of success. Working with top-tier solicitors, barristers, and experts allows us to leverage their knowledge and expertise. This further reduces the risks for our co-funders.

Why the Right Legal Team Matters:

• Proven Success Rates: The legal teams we work with have a history of achieving favourable settlements, often before a case ever reaches the courtroom. Their track records provide reassurance that the claims we fund have strong prospects for success.
• Expert Witnesses: We only back cases where expert witnesses support the claims. The strength of their testimony plays a vital role in winning settlements or judgments. Additionally, we make sure every claim we back is supported by credible experts.

Insured for Success: At 3Pay Global, we work with trusted After-the-Event (ATE) insurers to provide essential protection for all our funded claims. ATE insurance acts as a safety net, covering potential losses in the event we have to pay our opponents costs. Insurers rigorously assess a case’s viability before offering it for co-funding, only backing those with strong prospects. Moreover, this thorough vetting process ensures that co-funders can confidently fund claims that have been carefully evaluated by legal and insurance experts.

By aligning ourselves with highly experienced legal teams, we significantly reduce the risk to your funded claims while ensuring that the pursuit of justice remains the priority.

3. How We Manage Settlement Risk:

• Structured Payouts: In all cases, settlements are structured to ensure that all stakeholders receive fair compensation. Specifically, at 3Pay Global, we are the first to receive a return on our funding, followed by solicitors and claimants, ensuring that financial commitments are met efficiently.

This structured approach to settlements reduces the risk of prolonged legal battles. It also ensures that our co-funders see returns as quickly as possible.

4. Transparent Communication and Continuous Monitoring

One of the key ways we manage risk is through transparent and ongoing communication with our co-funders. In fact, we believe that you should always be aware of where your funded claims stand, how cases are progressing, and what you can expect next. By keeping you informed at every stage, we ensure you have full visibility and confidence in the process.

What We Offer:

• Regular Updates: Co-funders receive timely updates on case progress, key legal developments, and potential settlement timelines.
• Expert Advice: Our team is always on hand to answer questions, address concerns. This way, we ensure that our co-funders have the information they need to feel confident in their funding decisions.

In the world of litigation funding, risk is always a factor—but it’s how that risk is managed that determines success. Furthermore, at 3Pay Global, we go above and beyond to ensure that your funded claims are protected, from our meticulous case selection process to our collaboration with the best legal professionals in the field.

By diversifying across cases and maintaining transparent communication, we provide an approach to risk management that puts your financial interests first. As a result, we are able to obtain up to 75% returns for our co-funders. So, if you’re ready to explore the world of litigation funding with the confidence that your claims are in expert hands, come on board. Get in touch now at info@3payglobal.com.