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DISCOVER THE GRADING SYSTEM

Risk, illuminated

 

The foundation behind every rating we issue.

At Avallonn, we bring structure to the opaque.

Our grading system translates complex legal, financial, and behavioral data into clear, comparable ratings—helping law firms, litigation funders, and institutions understand the true quality of litigation assets.

5

PILLARS

THE

Our Methodology at a Glance

We evaluate each case using a multidimensional framework:

Financial Integrity

Cash flows, balance sheet strength, and firm-level solvency.

Legal Viability

Claim type, jurisdictional precedent, and court behavior modeling.

Procedural Exposure

Delays, bottlenecks, and the influence of opposing counsel or institutional resistance. 

Market Positioning

Demand signals, timing windows, and alignment with funder appetite.

Behavioral Weighting

Judicial analysis, social narrative alignment, and regulatory posture.

How A Case Is Graded

1

Data Collection

We gather core financials, legal documents,

claim information,

and

procedural history.

2

Legal Modeling

We simulate case strength using jurisdictional law, judicial behavior,

and

precedent.

3

Risk Weighting

Our proprietary system analyzes volatility,

delay exposure,

and

counterparty friction.

4

Grade Assignment

We issue a formal rating—from AaA to D—that reflects the case's overall stability, strength,

and

risk-to-reward profile.

5


Holistic Valuation

We go beyond monetary value.

Each case receives a valuation based on both expected financial recovery and its broader societal weight—how it may influence legal precedent, industry standards,

or

future enforcement efforts.

Powered by ALiVE

Every Avallonn rating is powered by our proprietary scoring model:

The Avallonn Litigation Valuation Engine (ALiVE).

 

ALiVE processes legal, financial, procedural, and behavioral data to generate a structured score — which we convert into a public-facing grade. It’s the core of our method: rigorous, scalable, and built for tomorrow’s legal asset market.

Why It Matters

With a growing global footprint, litigation funding has become a strategic financial tool. Legal assets deserve the same analytical rigor as traditional financial instruments. Our grading system empowers investors, funders, and litigators to make informed decisions—based not on speculation, but on structured insight.

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Where Litigation Investment Happens

2025

North America

33%

Europe

44%

Asia-Pacific

23%

Curious how it looks in practice?
See the Model in Action.

Explore how Avallonn applies its grading system to real litigations assets.

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