No, third-party litigation funding can be used for various types of legal cases, including commercial litigation, personal injury, class actions, and intellectual property disputes. The eligibility is based on the strength of the case and its potential for success.

In exchange for their investment, the funder typically receives a percentage of the final settlement or judgment award. This percentage is negotiated upfront and typically ranges from 20% to 30%, depending on the case's complexity and the amount of funding required. If the case is unsuccessful, the funder receives no repayment.

The percentage is based on the risk involved in funding the case and the likelihood of success. It is negotiated between the party and the funder, typically ranging from 20% to 30% of the final award.

The evaluation process for determining suitability of a litigation/proposed litigation for litigation finance through NLP involves assessing cases to determine their viability for funding. While the exact markers/thresholds for determining such suitability are confidential, below is ageneric summary of the same:

1. Preliminary Screening – Stage 1
   • Case Type: NLP only accepts disputes falling within certain categories. If not, the case will not be considered.
   • Jurisdiction: NLP accepts disputes pertaining only to certain jurisdictions within India.
   • Claimant & Defendant Profile: Assess credibility, financial standing, and background of parties involved.
2. Merit Screening – Stage 2
   • Legal Strength: NLP analyses the foundation, precedents, and probability of success. Cases below threshold are not accepted.
   • Adequacy of Documentation/Evidence: Case must be well supported by contracts, communications, and strong evidence.
   • Legal Representation: Experience and track record of the lawyer/legal team are assessed. Weak representation disqualifies the case.
3. Financial Assessment – Stage 3
   • Claim Value: Expected damages or settlement must cross a minimum threshold.
   • Defendant’s Ability to Pay: Defendant must have assets/insurance to cover potential decretal/settlement amount.
   • Costs & ROI: NLP calculates legal costs, litigation duration, and expected ROI. If ROI falls below threshold, funding is not considered.
4. Risk Assessment – Stage 4
   • Legal Risks: Procedural issues, jurisdictional risks, counterclaims, and appeals are considered.
   • Reputation Risks: Any ethical or reputational concerns may disqualify the case.
5. Investment Decision – Stage 5
   • Approval Committee Review: A team of legal and financial experts makes the final decision.
   • Funding Agreement Structuring: Define amount, repayment terms, ROI %, and withdrawal/termination conditions.

We reviews all cases within 5 working days. If accepted, your team may be contacted for additional information. Once the terms are agreed upon, capital will be deployed as per the pre-agreed thesis.