Stonward Litgation Funding, boutique specialized in offering bespoke solutions to finance litigation both in Europe and the Americas, has a new director and Head of Legal Assets: Guido Demarco, a legal expert with extensive experience in debt restructuring (private and sovereign), NPL strategies and legal, banking and financial project management.
Prior to joining Stonward, Guido worked for the European Bank for Reconstruction and Development as a legal advisor, where he had the opportunity to work closely with different governments and high-level stakeholders. Previously, he worked as an associate at Baker McKenzie, in the Buenos Aires office, where he worked on important cross-border operations and project transactions.
Some projects that stand out in his track record include the design of a secondary market for trading NPLs in Kazakhstan, advising a large international fund on the acquisition of a majority share in a payment technology company (USD 724 million deal), and the development of a training program for judges and insolvency practitioners in Armenia.
“This new opportunity is exciting. The work they have done at Stonward over the last year is fantastic and now it is our turn to continue growing along the same path. We plan to expand our team before the end of the year, deepen our focus on the Latin American and Spanish markets, where there is a lot of demand for financing, and strengthen ties with our strategic partners. In addition, we plan to expand our range of services to assist our clients in sales of non-performing loan portfolios,” says Demarco about his incorporation. Stonward manages a $500 million claims portfolio and a $60 million NPL portfolio.
Stonward, which has just been recognized in the Chambers & Partners directory in the Litigation Support Europe-Wide guide, has a clear vocation of service and assistance, it is a strategic ally that seeks funding to its clients and associates their demand or legal needs with the appropriate funder. With the arrival of Guido Demarco, Stonward strengthens its project, and seeks to expand its operations, with a clear focus on Spain and the Americas.
Litigation funding is a legal tool whereby a third party outside the judicial or arbitration proceedings pays the costs in exchange for a portion of the recovery, previously agreed upon in a funding agreement. In the event that the claim or arbitration is unsuccessful, the funder does not recover the money invested.
In addition to financially constrained claimants, litigation funding also allows companies to obtain off-balance sheet funding to monetize litigation, as well as law firms seeking to fund litigation portfolios or even the day-to-day operations of the firm. Litigation finance involves maximizing the value of legal assets – whether disputes, awards or judgments – of an individual, company or institution so that they can be monetized, while eliminating risk.
Stonward, with offices in Paseo de la Castellana, Madrid, handles investment transactions in international commercial arbitration and litigation in multiple jurisdictions and before different arbitral institutions.
The process at Stonward:
Stonward receives a request from a client to access the litigation funding market to cover the costs related to a claim, the monetization of awards or judgements, a portfolio of cases, a practice at a law firm, etc. We talk about financing lawyers, attorney, expert witness, fees, costs and others.
All exchange of information is done under the strictest confidentiality, and once all necessary information is gathered, Stonward reviews the merits and likelihood of success of the case. If the case has strong merits, a high probability of success and of being funded, a letter of engagement is signed that includes a success fee for the bespoke services.
Then, depending on the characteristics of the case, appropriate litigation funds are contacted and the case is presented and explained to them. The funder proposes its financial conditions under which it would fund the case, always conditional upon the successful completion of the due diligence. The review of documentation is exhaustive to determine whether or not a case has sufficient merit.
Once the parties have agreed, the Litigation Funding Agreement is signed and Stonward closely monitors everything that happens during the procedure. Once the case is successfully concluded, the Settlement Agreement is executed, bringing the claim to an end.
