In today’s increasingly complex global landscape, asset recovery cases remain one of the most challenging aspects of litigation and arbitration. Whether in commercial disputes, fraud, or insolvency proceedings, the ability to not only secure a judgement but also enforce it effectively across jurisdictions is critical. Yet many claimants continue to pursue these actions using their own resources, often unknowingly limiting their own prospects of recovery.

At Annecto Legal, we help clients turn high-value claims into strategic opportunities, not financial burdens, by unlocking the power of litigation finance.

The issue with self-funding asset recovery

Despite strong evidence that litigation funding enhances outcomes, most parties still fund the asset recovery process and legal action using internal budgets. In doing so, the party that has already suffered financial harm is forced to shoulder the full cost and risk of pursuing the dispute.

But this isn’t just about legal spend. Self-funding often means litigation strategies are driven by internal budget cycles, not by the merits of the case. A company may allocate a litigation budget of x million over three years, committing one third of this budget per year on a straight-line basis. This approach may offer financial predictability, but it can severely limit the ability to act decisively and strategically at critical points in the case.

Front-loading the budget – for example, to pursue early injunctions, trace assets, or bring simultaneous claims in multiple jurisdictions – is rarely feasible under these constraints. Instead, claimants risk delays, prolonged litigation, and increased management burden. Perhaps most critically, defendants are given time to restructure, conceal, or dissipate assets, ultimately frustrating enforcement efforts.

Jurisdictional complexity increases risk

Asset recovery is rarely confined to one jurisdiction. In cross-border disputes, including those involving offshore structures, the challenges are even more acute. While offshore jurisdictions often have robust legal systems and commercial judiciaries, they also present fertile grounds for asset concealment.

Without swift and coordinated legal action from the outset, claimants may spend years pursuing assets that have already been moved beyond reach. Traditional “wait and see” approaches – starting proceedings in one jurisdiction and delaying enforcement in others – simply do not keep pace with how quickly defendants can act.

Litigation finance: Turning risk into strategy

Third-party litigation funding changes the dynamic entirely. At Annecto Legal, we align strategy with merit – not budget. When a strong claim exists, we assess its potential and structure funding that enables the claimant to pursue the most effective strategy from day one.

Listed below are some of the options typically available for funding:

• Third party litigation funding – Asset recovery projects can be enhanced using non-recourse third party litigation finance to deploy funds strategically and tactically to ensure a swift recovery. By having the right budget to support the enforcement team, all options can be explored to maximise the chances of a successful early resolution, before assets are put out of reach. Some clients may also choose to draw down funds against a judgment, to repay incurred legal costs, or invest in their ongoing business. This is particularly useful when traditional funding lines are closed, perhaps as a direct result of the recent or ongoing litigation.
• Legal expenses insurance and judgment preservation insurance – After the event (ATE) insurance can be used post-judgment to protect the work in progress of the legal team and cover disbursement costs. This can be a cost-effective alternative to non-recourse funding, and allow clients to mitigate risk, particularly on lower-value projects. Judgment preservation insurance serves as a safety net for claimants who have secured a favourable ruling in court, shielding clients from the risk of reversal or reduction in damages at appeal.
• Contingency fee agreement – Some lawyers and investigators may pursue asset recovery projects on a contingency fee basis, which means that they will only charge a fee if they are successful in securing a financial recovery. The fee payable is usually a percentage of the amount recovered, and if the case is unsuccessful, there will be no charge.

How can Annecto Legal assist?

Annecto Legal helps clients turn complex asset recovery claims into successful outcomes by providing strategic guidance and funding solutions. We assist clients in building coordinated, multi-jurisdictional recovery strategies – especially where there is a risk of assets being concealed or dissipated. By unlocking third party funding and structuring flexible finance arrangements, Annecto enables clients to act decisively without relying on internal budgets.

With the right legal team, it is possible to put in place the appropriate litigation funding and insurance to take the case all the way to court proceedings, if necessary. Of course, the preference is always to find a suitable settlement in a reasonable timeframe, but the best way to achieve this is to negotiate from a position of strength. Having the best solicitors and being fully funded gives you that strength and forces your opponent to the negotiating table.

If you are thinking about bringing a claim, contact us today. We can help find you the right representation, as well as managing your financial risks and sourcing funding for your legal fees.