1. Professional Litigation Funding Market & Models Geneva Bar Association/Association of International Business Lawyers Dr. Arndt Eversberg, CEO ROLAND ProzessFinanz AG 23 January 2014

2. Agenda 1.A short history 2.The market today 3.The different models to fund 4.The future of Litigation Funding 2

3. “In the law, the only thing certain is the expense“ Samuel Butler, engl. writer and satirist (1855 – 1902) 3

4. 1977 A bank‘s legal counsel meets a desperate client in Hamburg 1982The “first funded“ trial is successfully finished 199917 years later FORIS AG raises its money at the Frankfurt New (Stock) Market 2001Litigation Protection Insurers enter the market: DAS Prozessfinanzierung AG and ROLAND ProzessFinanz AG 2002A big carrier joins: Allianz ProzessFinanz GmbH 1.0A short history - Germany 4

5. 2001IMF (Australia) Ltd. starts professional litigation funding of mainly class actions down under and AdvoFin Prozessfinanzierung AG does the same in Austria 2002IM Litigation Funding Ltd. starts in UK 2007 Allianz funds in Austria, Switzerland (see BGE 131/223) and UK Juridica Investments Ltd., Commercial Litigation Funding, Calunius Capital LLP and Harbour Litigation Funding Ltd. start their (mainly) UK funding business 2009 Argentum Litigation Funding, Hong Kong Burford Capital, London/New York 2010 Woodsford Litigation Funding enters the market in London Source: George Mason University, Law and Economics Center, „Third Party Litigation Funding in Europe“, 2011 2008 Deminor International SCRL, Brussels, focuses more on Investment Recovery Services recentlyOmniBridgeway, Amsterdam, enlarges its services to Litigation Funding 1.1A short history – Europe & abroad (excl. US) 5

6. UK*: 8 Funders incl. Harbour Calunius Woodsford Burford Germany: ROLAND LEGIAL (formerly DAS) FORIS (cover approx. over 90% of the German market) Australia: 8 Funders incl. IMF (Australia) Hillcrest Litigation Services Austria: AdvoFin ROLAND Belgium: Deminor Cartel Damage Claims (CDC) Netherlands: OmniBridgeway Switzerland: JuraPlus, ProFina ROLAND (2014) * Source: Association of Litigation Funders of England & Wales 2.The market today 6

7. Preliminary mark:  Minimum claim amounts vary between the funders and differ from country to country  As a rule of thumb one can say  Funding below EUR 100.000 is inefficient  Germany is at the low end (100.000), Switzerland & UK are at the top end (500.000)  If arbitration is chosen, a minimum should be 1.000.000 or even higher  A class action below 10 million is probably improvident due to the bookbuilding process and handling 3.The different models 7

8. 3.1 The classic model:  Funder gets a percentage share of the proceeds, wich may vary from case to case  Usually it‘s a simple structure such as  20% pre-trial  30% in-trial up to EUR 500.000 and 20% of the amount above (if any)  Sometimes in decreasing steps as agreed such as  30% up to 1 million  25% between 1 and 10 million  10% above 10 million (and so forth if applicable) 3.The different models 8

9. 3.2 The advanced investment models:  Funder gets a multiple of its investment, usually x2 to x4 due to  the risk structure  the level of exposure (cost of defendants, ATE in UK)  the length of the proceedings/investment time  the actual results  Funder and claimant agree a minimum return (e.g. x1) and a cap (e.g. x3 or a specific amount) 3.The different models 9

10. 3.3 The advanced structure models:  Co-Funding structure with different funders (one leading, others behind)  Co-Funding structure with claimant (share of investment & risk, developed proceedings)  Funding of portfolios instead of single/individual case  Hybrid Funding including an interest provision (often the minimum profit) and a conditional share of the proceeds dependent on the outcome Base rule: all models are always contingent on success or failure! 3.The different models 10

11.  more common, more used (see BR report 03.07.2013)  more international cases  more cross border co-operations between funders  more different models of funding Overall a widely known used institution to allow access to justice and enforce justified claims of various sizes and structures of “Davids against Goliaths“. 4.The future of Litigation Funding 11

12. Dr. Arndt Eversberg CEO ROLAND ProzessFinanz AG Deutz-Kalker Straße 46 50679 KÖLN DEUTSCHLAND +49 221 8277-3000 arndt.eversberg@roland-prozessfinanz.de Thank you for listening 12