Delta offers capital facilities to law firms to alleviate the unpredictability of monetizations from alternative fee portfolios. Firms may either seek to monetize their alternative fee portfolios, through Monetization Facilities, or they may seek to build a standing funding arrangement for future engagements, through Standby Facilities.
Delta provides Monetization Facilities for firms seeking to monetize their existing alternative fee portfolios by either selling a portion of the expected future upside therefrom, or borrowing against such expected upside. Monetization Facilities can be structured as either an equity or credit investment and allow firms to incubate engagements that are not yet ready for funding without losing bottom-line revenue. Monetization Facilities may also be used to fund (a) ongoing work on the engagements in alternative fee portfolios; (b) new engagements that the firm desires to pursue on an alternative-fee basis; (c) operating expenses; (d) growth; and (e) payroll or distributions to employees and partners.
Delta also offers Standby Facilities which are used by firms that do not have substantial existing alternative fee portfolios but seek to build a standing funding arrangement for future engagements that the firm desires to pursue on a funded basis. Standby Facilities can be structured to provide funding to all clients of a firm or only those whose matters are adjudicated in certain geographies and/or who have certain causes of action or types of litigation and arbitration. A Standby Facility presents several benefits for firms, including: (a) gaining greater certainty as to obtaining funding for clients’ engagements; (b) pre-negotiating certain terms for litigation finance to expedite the funding process; (c) obtaining funding for clients at a lower cost of capital vis-à-vis one-off funding arrangements; and (d) streamlined due diligence process resulting in less burden on the law firm and its attorneys.