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