Investment Criteria

 

Overview:

Litigation Funding is form of specialty finance. As such, each deal is structured in order to accommodate unique nature of the claim and align the economic interests of the claimant and legal services providers with those of Juridica.

Juridica seeks to meet its investment and yield objectives through investing in a diversified portfolio of corporate claim assets. The Company focuses exclusively on business-to-business related claim investments where the amount in dispute exceeds US$ 25,000,000. Juridica does not invest in personal injury, product liability, mass tort, or class action claims.

While each case and deal is different, Juridica will consider both claim specific and contextual variables when evaluating an investment opportunity. These considerations include: (a) the strength of the merits; (b) the quantum and provability of solid, direct, and causally related damages; (c) claimant’s experience and commitment; (d) the trier of fact; (e) the experience and skill of counsel; (f) timing; (g) disparity, if any, in the relative risk tolerance of the parties; (h) probability of settlement; and (i) external headline and political risks.

Size:

Investment size typically ranges from US$ 2,000,000 to US$ 10,000,000, although larger investments in exceptional opportunities or a portfolio of opportunities are made. 

Types:

  • Antitrust and competition law – including both monopoly and price-fixing, opt-out claims (but not class actions) by businesses in the US and in Europe.

  • Arbitration – where financing is arranged for both domestic and international commercial arbitrations.

  • Bankruptcy and Insolvency – including commercial claims held by trustees and liquidators.

  • Contracts – where financing is provided for various commercial and contract disputes, ranging from defaulted debt collection to distribution agreements, joint venture agreements, franchise agreements and investment contracts.

  • Environment – where financing is provided for environmental claims, including claims for clean up and indemnification (but not claims against governments).

  • Finance and securities – including merger disputes, shareholder disputes (but not securities class action disputes), fraud claims and many other commercial financial disputes.

  • Intellectual Property – including patent, trademark, trade secrets and copyright infringement, licensing and enforcement activities. In some instances the Company will arrange investments in the underlying intellectual property rights themselves and work with patent owners to optimize the revenues from their property.

  • Insurance Coverage, Commercial Insurance and Subrogation – including both commercial liability and first-party insurance and reinsurance claims, and complex multi-carrier coverage disputes.