Erso SME Disputes Fund – Commitments of £500k or less

Erso Capital’s ‘SME Fund’ has been created in order to overcome all of the usual barriers to funding small to medium sized commercial disputes by providing a fast-tracked process for obtaining litigation funding for any combination of solicitor’s fees, barrister’s fees and disbursements between amounts of £100,000 and £500,000.

SME Funding returns

Funding returns are typically half the cost of normal litigation funding ensuring that funding returns do not become uneconomic against the proceeds of the litigation. This is achieved through:

1. Staged pricing based on amount of time the funds are needed

Staged multiples are used to keep the cost of funding proportionate to the value of money and proportionate to the risk associated with the investment.

2. Fairer Returns – based on amounts actually used

Unlike other funds designed for modest value cases, the competitive funding returns are charged on funds deployed (rather than reserved or ‘committed’) which is materially cheaper when cases settle quickly – which, statistically, smaller value claims do.

Eligible Cases

  • The funding required must not be anticipated to exceed £500k to reach a successful recovery.
  • The SME Fund is available for commercial disputes that are subject to the law and jurisdiction of England & Wales.
  • Funding is available for cases where damages are a minimum of 6x the level of funding required – considerably lower than the market standard of 10x.

Service Standards

Funding decisions are made within 7 days of receipt of a full proposal. Upon receipt of a Term Sheet a draft Litigation Funding Agreement (“LFA”) will be provided and funding transactions will typically be executed within 28 days of acceptance of the Term Sheet.

Adverse Costs (ATE Insurance)

The SME Fund will operate in conjunction with an exclusive partnership with TheJudge’s SME team who will complete a full market search to obtain to most competitive adverse costs insurance cover available to provide a complete funding and insurance solution.

SME Fund Overview

  • Funding commitments between £100k and £500k;
  • Funding available for solicitor’s fees, barrister’s fees and disbursements;
  • Minimum funding to realistic damages ratio of 1:6;
  • Decisions in principle made within 7 days
  • Adverse costs coverage included in the funding package via affiliated insurance broker, TheJudge –

To make an application for funding or to learn more about the SME Disputes Fund, please do not hesitate to contact us.