Tutorvo

Adverse Costs and Cover: Loser-Pays Exposure, Deferred and Upfront Premiums

Lesson 7 of 817 minLab

This lesson is part of the course

In this lesson

You 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.

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Lessons in this course

  1. The Case Budget: Costs by Stage, Commitment and DrawdownsLab15 min Locked
  2. Stage Probabilities: From Given Stage Probabilities to End Outcomes and Expected SpendLab16 min Locked
  3. Expected Recovery: Claim Value, Collection Haircuts and the Outcome TableLab15 min Locked
  4. Funder Return Structures: Multiples, Percentages, the Greater-of Rule and Time RatchetsLab17 min Locked
  5. The Proceeds Waterfall: Capital Back, Lawyer Uplift, Funder Profit and the Claimant FloorLab18 min Locked
  6. Duration, IRR and MOIC: Same Case, Different ClocksLab17 min Locked
  7. Adverse Costs and Cover: Loser-Pays Exposure, Deferred and Upfront PremiumsLab17 min Locked
  8. Capstone – A Portfolio of 12 Cases: Expected MOIC, Concentration, Loss Rate and Cross-CollateralisationLab22 min Locked