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Let us be that Trusted Partner for your law firm

WHO WE ARE

Archetype Capital Partners lends working capital to law firms nationwide that handle mass tort claims, class actions, and single-event personal injury actions.

Loans range from $250k to $75 million-plus, and are used by borrowers to acquire new cases, hire more attorneys, case costs, and marketing to new clients, thereby increasing the pool of receivables that serves as collateral for the loan.

Loans are repaid over the course of 12-36 months, in most cases, pursuant to a ”waterfall” structure that allocates a constant percentage of firm revenue to Archetype as lender.

Interest rates on outstanding balances are ~19-25%, with fees charged to the borrower at origination; limited “bad boy” or partial personal guarantees are used to manage outlier risks.

  • Their clients are injured parties seeking compensation from mass tort offenders and accident insurers. Our loans facilitate these individuals’ access to counsel.
  • We perform all aspects of loan due diligence – including deep-dive reviews of existing case collateral, and the financial and operating history of the firm and its principals – applying the strictest underwriting standards in the industry.
  • Loans are highly-secured at 10-30% LTVs, and represent a return stream (recoveries by individual mass tort claimants and single- incident tort claimants) that is historically uncorrelated to economies or other markets.
  • Loan collateral includes the borrower law firms existing attorneys’ fees receivables and attorney’s fees from after-acquired cases.
Law firms have come to realize there is value in originating cases, arguably one of the most difficult and expensive services litigation funders provide. They understand that applying modern portfolio theory to a series of cases and cross-collateralizing the pool, benefit their law practice.
These firms seek to join the availability of large amounts of capital from alternative funders like Archetype with the value inherent in their incubated portfolios. That strategy is used to unlock significant portfolio financings at a reasonable cost of capital, thereby capturing some of the economics for themselves.

YOUR TURN TO MAKE A MOVE

We look forward to being that trusted partner you have been looking for.