Tool 03 — Fund Capital Sizing

Right-size your capital facility.

For litigation finance funds: input your portfolio parameters and get a recommended warehouse facility size, NAV lending capacity, and quarterly draw schedule — before you walk into the first lender meeting.

Fund Parameters
Fund AUM
$50M
$10M$500M
Annual Deployment Rate% of AUM deployed per year
30%
10%60%
Target Leveragedebt-to-equity on deployed capital
1.50×
0.50×3.00×
Average Case Durationmonths — weighted by capital
30 mo
12 mo60 mo
Leverage Sensitivity
Conservative (0.5× offset)$37.5M
Recommended (1.50× target)$56.3M
Aggressive (0.5× above)$75.0M
Recommended Warehouse Facility
$37.5M – $75.0M
revolving credit · conservative to aggressive range
Annual deployment ($)$15.0M
Avg portfolio outstanding$37.5M
Recommended facility$56.3M
NAV lending capacity$22.5M
conservative 65% of avg outstanding
Quarterly draw capacity$14.1M
Est. Annual Carry
$5.6M
at 10% blended rate
Est. Coverage Ratio
1.2×
fee income / interest carry

Coverage ratio below 1.5× is typically thin for warehouse lenders. Consider reducing facility size or extending average duration assumptions.

Illustrative only. Actual facility terms depend on portfolio composition, track record, and lender underwriting criteria. Coverage ratio uses estimated 17.5% blended portfolio return.

How Fund Facilities Are Structured
Proceeds-linked repayment

A well-built facility ties repayment to settlement proceeds rather than calendar-based installments, so draws align with case fundings and repayments align with recoveries. Terms are set by the capital provider.

Outcome-model underwriting

Facility sizing runs through the same outcome models that underwrite individual cases. We model the portfolio's expected return distribution — not just the loan-to-value ratio.

No recourse beyond the portfolio

Collateral is the case portfolio itself. Whether a facility requires personal guarantees, fund-level recourse, or LP commitments is set by the capital provider.

Ready to discuss a facility?
Warehouse, NAV lending, and co-investment structures available