Law firm capital is financing provided to a law firm, secured on its case inventory or fee receivables, to cover case costs, working capital and growth. It lets a contingency practice carry matters through to resolution without waiting for fees.
A contingency practice spends before it earns. Costs, staff and marketing are paid up front, and fees arrive when matters resolve, months or years later. Law firm capital bridges that gap through lines of credit, case-cost advances and receivable financing.
The lender's analysis is of the firm's book as much as its balance sheet: the mix of case types, the stage and age of matters, the concentration in a few cases or a few venues and the firm's history of converting inventory into fees.
Law firm capital is not equity in the firm. Where ownership structures such as alternative business structures are available they change the economics, and that is a separate question from lending against the book.
Working a file that turns on this term?
Working through a diligence process?
Institutional partners evaluating a position against this platform's outcome and duration models are welcome to reach out directly.