- Legal finance as an asset class provides uncorrelated returns from a diversified portfolio of legal claims.
- Venture capital like returns with a better batting average and dispersion of returns partly from the ability to get to negotiated settlements.
- Track record of delivering >30% IRR and attractive money multiples on invested capital, and asset management fees plus future performance fees from third party capital.
- Risks relate to recent short attack, fair valuing legal claims, the esoteric nature of legal finance and limited visibility of future returns.
- For now we take a slightly positive stance on the largest legal finance player.
For further details see:
Burford - House Of Claims