Independent Capital, Fairer Outcomes: Why ProLegal Rejects Bank-Backed Funding

The pre-settlement funding industry has become a multi-billion-dollar financial asset class, dominated by institutional investors, securitized portfolios, and profit-driven structures. Unfortunately, this often comes at the expense of the very people funding is supposed to help — injury victims.

At ProLegal, we’ve taken a radically different path. We do not use bank or institutional capital — ever. And that decision makes all the difference for the people we serve.

How Wall Street Took Over Pre-Settlement Funding

Since 2018, over $2.7 billion in consumer legal receivables has been packaged into asset-backed securities and sold to major investors like Blackstone, UBS, and Rothschild.

Typical deals — like Oasis 2020-1 LLC’s $122 million securitization, Oasis 2020-2 LLC’s $68 million follow-up, or Burford Capital’s $400 million senior notes — show just how financialized this space has become. These capital stacks are complex, expensive, and layered with priority payees such as:

• Bank warehouse lenders
• Hedge fund noteholders
• Rating agency monitors

Who pays for that? Plaintiffs do — through higher fees, slow approvals, and restrictive settlement terms.

The Hidden Costs of Institutional Capital

1. Expensive Carrying Costs
Institutional capital comes with holding costs that start the moment funds are drawn. Think commitment fees, interest accrual, and unused balance charges — whether your client settles in two months or two years.

2. Rigid Loan Covenants
Most institutional credit is governed by strict covenants. If a provider underperforms, the lender can freeze funding, raise rates, or block advances altogether — hurting clients who need help the most.

3. Pressure to Maximize Yield
The goal is investor return, not client recovery. Because we don’t answer to Wall Street, we never structure our fees or approvals around yield targets. Our goal is simple: support injury victims with fair, fast, and flexible funding—so they can pursue justice without compromise.

4. Conflicts at Settlement
Wall Street-backed funders may push back on reasonable case resolutions, hoping to squeeze out more return. That means plaintiffs suffer while institutions delay.

ProLegal’s Model: 100% Non-Institutional, 100% Client-First — Explained

Unlike traditional funders that rely on bank credit lines, hedge-fund facilities, or asset-backed securities, ProLegal is powered exclusively by private, mission-aligned capital partners. That single choice reshapes every part of the funding experience:

• Where the money comes from.
Competitors draw from warehouses and securitized notes that demand steady interest payments and strict covenants. We tap investors who deliberately choose to help injured plaintiffs. No bank influence, no market-driven quotas—just capital dedicated to client recovery.

• What it costs to hold.
Institutional borrowing starts the meter the moment funds are drawn: interest accrues daily, plus commitment fees and unused-balance charges. Because ProLegal carries zero holding costs, we can offer flexible pricing models.

• Who makes the decisions.
Bank-backed funders must clear every advance and settlement with outside credit committees and rating-agency benchmarks. At ProLegal, decisions stay in-house with an experienced legal-finance team, so approvals come in hours, not weeks, and no third-party can veto a meritorious case.

• How flexible the payoff is.
Many institutional agreements punish early resolution with pre-payment penalties or “make-whole” clauses. We welcome quick, fair settlements and will discount or waive fees when it serves the client’s best interest—because our capital partners agree that people come before yield curves.

• Why the mission matters.
Traditional funders optimize for return on equity; social impact is an after-thought. Our investors actively seek a measurable social good alongside a stable return, so underwriting focuses on case strength and client need, not leveraged internal-rate-of-return targets.

Put simply, ProLegal replaces Wall Street mandates with a people-first mandate. That means lower costs, faster funding, and settlement flexibility that keeps plaintiffs and their attorneys firmly in control.

At ProLegal, our capital partners aren’t big banks — they’re individuals and private firms who invest in helping injured plaintiffs regain financial stability. In return, they earn stable, risk-adjusted returns tied to actual case outcomes — not market speculation.

Why This Matters to Plaintiffs and Attorneys

More Transparent Pricing
We don’t pass along interest charges from lenders — because we don’t have them. That allows us to offer more flexible rates.

Lightning-Fast Approvals
Because we aren’t waiting on third-party credit committees or monthly borrowing base tests, we can approve and fund cases in hours — not days or weeks.

Total Flexibility at Settlement
Need to discount a payoff to get a case resolved? No problem. We work with your strategy — not against it.

Built-In Compliance
All of our client contracts were drafted by Hudson Cook LLP, the nation’s top pre-settlement funding law firm. We’re compliant, transparent, and always evolving with state-specific regulations.

Ethical Alignment
We partner only with investors who value social good. That means our decisions focus on case merit and client need — not extracting the highest yield.

Real Returns, Real Impact

ProLegal’s investment model gives our Capital Partners access to a secured, uncorrelated asset that performs independently of public markets and rate cycles. That’s good for them — and even better for the clients we serve.

By aligning investor capital with a clear social purpose, we’re proving that ethical funding is not only possible — it’s scalable.

Setting the Record Straight

“Everyone uses the same capital.”
Wrong. Many of our competitors use asset-backed securities, bank lines, or hedge fund deals. We don’t.

“Institutional money is cheaper.”
Not when you count compounding interest, penalties, and restrictions — all passed on to the client.

“Bigger means safer.”
Firms like Oasis and Burford may boast institutional capital, but they’ve also had to navigate public liquidity concerns, market dependencies, and capital stack complexity. ProLegal is built differently. Our private model avoids the bureaucracy and volatility of bank-backed capital—keeping us lean, fast, and accountable only to the people we serve.

The Bottom Line

If you believe pre-settlement funding should serve clients, not banks — then ProLegal is your only ethical choice.

We offer:

• Transparent pricing
• Fast, in-house approvals
• Flexible, attorney-first settlement support
• A mission-driven model rooted in doing good

Choose independence. Choose ethics. Choose ProLegal.

— Patrick Babaian, CEO