Litigation Funding by the Numbers: Case Budgets, Stage Probabilities, Expected Recoveries, Funder Return Structures, Proceeds Waterfalls, Duration & IRR and Case Portfolios

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Add up a fictional case budget stage by stage, build the cumulative commitment, compare it with the money already drawn and round a commitment with a contingency.
• Chain given stage probabilities into the chance of reaching each stage, split every stage into settled, lost and won endings and calculate the cost the funder can expect to spend.
• Turn a claim value into gross and collected amounts per outcome, weight them with given probabilities, subtract the expected cost and chart what each outcome brings in.
• Calculate the funder's payout under a multiple of capital, a share of proceeds, the greater of both and a time-based ratchet, always capped at the proceeds, and compare them across five fictional scenarios.
• Pay out a high and a low settlement step by step – capital back, lawyers' deferred fees with a fictional uplift, the funder's greater-of profit and the claimant's rest – and see how a fictional minimum share protects the claimant.
• Measure the funder's return per outcome with IRR on half-year cash flows, annualise it, compare it with the multiple on invested capital (MOIC) and put a number on what a one-year delay costs.
• Add a fictional loser-pays exposure to the funder's outcomes, compare it with a deferred-and-contingent and an upfront cover premium and see how each option changes the expected value and the worst case.
• Value a fictional portfolio of 12 funded cases: expected MOIC from given success probabilities, concentration by case and type, the loss rate of a test scenario, single-case vs cross-collateralised returns, and a chart of where the capital sits.