Primary and Secondary Litigation Investments
Litigation finance has emerged in recent years as one of the fastest-growing and most-exciting areas of alternative credit and credit-like investing for institutions. We have significant expertise as principal investors and as advisers in all major areas where litigation interests are financialized: class actions, mass torts, law firm single-event case funding, and plaintiff funding (both corporate and individual). In all our work we are concentrated on identifying unusual risk reward and in particular in mitigating adverse selection risk, which we consider to be typically acute.
In the primary market, we work with both issuers (law firm, legal-related services firms, and plaintiffs) and financiers. In the secondary market, we work with both sellers and buyers when a litigation interest is no longer suitable for existing holder; for these purposes “sellers” include not only prior financiers, but plaintiffs whose interest arose out of their commercial activities who wish to hedge or entirely transfer their exposure.
We are the sponsors, together with Brickell Key Asset Management Limited, of the first major effort to provide large-scale dedicated litigation finance to private-sector and state-owned corporations in China with respect to their foreign (i.e., non-Chinese defendant) litigation and arbitration.