While the majority of our offerings have predefined payment schedules, i.e. monthly or quarterly payments, some investments distribute interest and principal based on the occurrence of certain events.
Each offering has its own payment terms, so you should carefully review the offering materials. The anticipated payment schedule is always outlined on the offering page of the investment offering as well as the Series Note Supplement or Investment Memorandum.
Predefined Schedule
Offerings with predefined payment schedules pay at regular intervals (monthly, bi-weekly, quarterly, etc.). The offering page of each investment details the exact payment schedule. The offering page also outlines whether investors can expect principal payments throughout the duration of the investment or at maturity of the deal. It is important to understand that a monthly or bi-weekly payment schedule does not necessarily mean that payments will be made on the first and fifteenth of each month. Check out this infographic for more information.
Event-Based Payments
Some offerings are structured with an event-based payment schedule. For instance, event-based payment schedules are commonplace for portfolios of pre-settlement litigation advances. An event-based payment schedule means that investors receive payments as soon as individual cases within a portfolio settle.
Payment dates and amounts cannot be pre-determined because the timing of the settlement of the underlying cases is uncertain. Given that these investment offerings are made up of multiple underlying cases, an investor can expect to receive multiple payments throughout the term of the investment. For litigation finance investment offerings with one underlying case, you can expect to receive one payment of principal and interest upon final settlement.
Payments are not guaranteed and may be subject to delay or total loss. See the risk factors for each applicable offering for more details.