Investments in legal finance tend to be illiquid. Consequently, funds that invest usually lock in their investors for seven or more years. Realising liquidity out of a legal finance portfolio often takes time, which can be inconvenient even for experienced investors. From a funder’s perspective, revenue streams are difficult to predict. This makes it difficult to demonstrate portfolio track records, which in turn is a further challenge to raising new funds. We offer to buy into existing portfolios after completing our due diligence on each case within a portfolio.
Benefits for stakeholders
By entering into a secondary transaction, we provide instant liquidity for investors, making an investment in legal finance even more attractive. At the same time, we support managers in smoothing out volatilities: Having succeeded in passing our rigorous due diligence, they can demonstrate a track record by getting a stamp of approval for their underwriting process from a trustworthy market participant.