Purchase and sale of litigation portfolios
Carbonia offers a comprehensive service for the purchase and sale of litigation portfolios from IBEX companies, structured as follows:
- Upfront payment on a non-refundable basis;
- Scheme for the distribution of recovered amounts;
- Active management and monitoring of litigation (although formal responsibility and legal representation remain with the seller’s legal counsel).
We support companies throughout the entire process, contributing our technical expertise, strategic oversight and management capabilities to maximise recovery and ensure the correct procedural execution.
In this regard, we are pioneers in Spain in advising on the synthetic acquisition of rights arising from litigation (gross proceeds), being a firm specialising in unique assets.
Investment in assets of this specific type can take various forms and structures, as well as offer a wide range of exposure and commitment levels for the parties involved.
We possess the market knowledge and unique human and technical capabilities to innovate and implement schemes ranging from acquisition, expert portfolio monitoring and asset financing structuring to potential securitisation or any combination of the above.
Our services also include the effective monitoring of assets by our team, which possess extensive experience in the litigation sector and is supported by a powerful IT platform developed exclusively by Carbonia.
Litigation financing
Carbonia also provides advice on litigation funding, a mechanism whereby an external investor contributes funds to cover the costs of legal or arbitration proceedings in exchange for a share of the financial outcome if the case is won.
This funding may cover lawyers’ fees, expert witness costs, procedural expenses, as well as disbursements from law firms and corporate legal departments requiring support to sustain complex or protracted litigation. Carbonia structures these transactions under a model in which the investment is recovered on a pure risk-and-reward basis, with no recourse against the financed company, thereby aligning incentives and enabling companies to litigate without straining their liquidity or incurring costs upfront.
Patents
Furthermore, in relation to the patent sector, in which Fortress possesses a high degree of specialisation, Carbonia advises on the sale, purchase and/or financing of companies with significant patent portfolios and/or those acquiring patent portfolios to monetise them appropriately.
Patent infringement financing involves the financing of legal proceedings initiated by the aggrieved party against the use, copying or sale of the aggrieved party’s invention.
In patent litigation financing, Carbonia can:
- Invest directly in cases using various structures, including an upfront payment, funding of litigation costs, and a cascade scheme to share the final outcome of the case.
- Provide law firms with the capital they need to maintain their operating and marketing expenses whilst handling intellectual property cases.
- Give law firms the opportunity to take on precedent-setting cases.
- Provide companies with the financial strength needed to secure the largest possible settlement.
Alternative financing for law firms and professional services firms
Similarly, Carbonia acts as a structuring agent for professional services firms that need to modernise and optimise their financial structures. Carbonia’s in-depth knowledge of the professional services sector enables us to tailor the transactions to the needs of individual organisations. Carbonia’s in-depth knowledge of the professional services sector enables us to tailor the transactions to the needs of individual organisations.
The alternatives are very diverse, and we have analysed an ample array of structures and transactions relating to capital injections, ordinary financing, working capital financing, financing for international expansion, financing for growth plans, mergers and acquisitions, the purchase of invoices or work in progress (WIP), risk hedging, etc.