Funding required for a pre-vetted professional negligence claim against a firm of solicitors and a planning consultant in connection with an application to install several wind turbines on some land in the North of England. The solicitors failed to identify the time limitation on the case and the planning consultant made an application which didn’t meet the basic requirements to even be considered by the Planning Authorities. The majority (88%) of the solicitor’s fees are contingent on a ‘Win’. Similarly, the insurance company, who have conducted their own due diligence, get paid their premium only if the case wins. The funding requirement of £70,000 is structured as an IFISA eligible bond with a coupon of 61% per annum (accruing quarterly) and with 83% of its principal guaranteed if the case loses against all the Defendants. If the case is resolved favourably, investors get all of their principal and interest before the solicitor or the claimant receive any of the proceeds.
£70,000 Amount raised
IF ISA Eligible
Funding required to prepare a legal opinion on a high value employment dispute– in relation to non-payment of contractual commission entitlements. Claim value is conservatively estimated at over £10m. The Claimant verifiably sourced over $200m of institutional capital for the Defendant (a publicly listed company) who subsequently refused to pay without a valid justification. The Defendant has already made several preliminary attempts to settle and we believe has a strong incentive to do so once proceedings have been issued. Investors in this case can expect a return of up to 260% if the case is resolved favourably at any time. Investment grade insurance which will be put in place once proceedings are issued. A preliminary barrister’s opinion confirms that the case has strong merits. Enforceability is likely to be straightforward. The Claimant’s legal counsel are experienced top-ranked specialists in high value employment disputes. In due course there will be follow-on funding (at lower returns) for an additional £810,000.
£40,000 Amount raised
It's alleged that a company director, through devious means, misappropriated a high-value property development opportunity for his own gain and to the significant detriment of the company and its other shareholders, enabled by a joint-enterprise conspiracy. Claim value £19m. Comprehensive analysis by senior barristers has identified ‘overwhelming’ evidence of breach of fiduciary duties and of joint enterprise conspiracy, including incriminating email correspondence between the defendants. The nine defendants have joint and several liability with significant property and business assets owned by the key defendants. Both the Claimant’s solicitor and QC barrister are on a Contingent Financing Arrangement (100% and 50% respectively). The insurers’ premium is also fully contingent on a case win. Bond return of 72%+ per annum for the first 3 years, IFISA-eligible.
£550,000 Amount raised
IF ISA Eligible
Breach of contract: funding required to enforce an adjudication award against a developer against whom an award was made but who has failed to make any payment. The case is backed by an A- rated insurance company which is insuring the claim against adverse costs and also guaranteeing capital used for disbursements. Bondholders will receive up to 75% per annum if the case wins. If the case loses, bond holders are unlikely to lose more than 17% of their capital invested, due to the principal protection provided by the insurer. Both solicitor and insurer are being compensated on a no-win, no-fee basis, implying good alignment of interests. IFISA eligible.
£12,000 Amount raised
IF ISA Eligible
Refinancing a bridge loan to fund the trustees of a pension scheme that are issuing a claim of professional negligence against a firm of solicitors that advised them on a property sale. The case is backed by an A- rated insurance company which is insuring the claim against adverse costs and also guaranteeing all capital used for disbursements. If the case wins, the expected return for investors is 60% to 65% per annum. If the case loses, the investors will lose no more than 21% of their capital invested, due to the principal protection provided by the insurer. Both solicitor and insurer are being compensated on a no-win, no-fee basis, implying good alignment of interests.
£12,720 Amount raised
Limited availability of capital to date means investors have enjoyed attractive returns with IRRs as high as 30-35%
The legal process normally creates a well defined duration for each investment - usually between 12-24 months, in contrast to the much longer term of typical private equity deals
Strong case review team: with a mix of professionals from both financial services and commercial litigation including lawyers named as ‘Leading Individuals’ in Legal 500 and Chambers & Partners
Rigorous case review process: combining both internal and external expertise to provide a highly objective assessment of each case thus minimising potential risks
Strict case selection criteria: detailed assessment of cases based on key factors such as their merits, economics, experience of counsel and enforceability
Extensive network within the legal sector: providing access to the broadest universe of cases with the most attractive investment potential