Deal Point: A private equity fund is making a strategic minority investment in a foreign company. While the terms of the investment and the fundamentals cause the investor to want to contribute capital, the investee company is the defendant in involved what its’ local counsel has advised it to be nuisance litigation with little chance of success on the part of the plaintiff. The investor is unfamiliar with the operation of the legal system in that county and given the large amount of damages sought in the litigation is unwilling to proceed until the litigation is resolved.

Transactional Insurance Solution: A Legal Contingency Insurance policy is purchased protecting the foreign company from an adverse decision in the pending litigation.