The appeal
Litigation funding offers the prospect of high, uncorrelated returns. The potentially high returns are driven by robust, high-risk premia that reflect the value funders offer claimants. The returns are typically completely uncorrelated with equity and bond markets.
The Challenge
Litigation funding poses barriers for institutional investors. Binary win-loss risk, specialised legal knowledge, uncertain duration, and broad portfolio diversification requirements often place the asset class outside internal mandate or investment capabilities.
The ALP Solution
ALP believes in an asset-backed, capital-protected approach to litigation funding. This approach allows professional investors to fund legal claims within a standard credit framework. Capital is deployed against identifiable, legally enforceable assets and structured with contractual downside protection designed to ensure the return of the investor’s principal.
Why Protection Matters
Protection enables institutional investors to participate in single claims or concentrated portfolios, replacing the requirements for diversification or subordination.
Opportunities facilitated by ALP can align with institutional mandates, including:
Content is for informational purposes only. ALP coordinates introductions and does not provide investment advice, offer, or solicitation of securities.
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We coordinate the design of each transaction with partners. We work with them to provide quantitative modelling, cash-flow analysis, and structural evaluation that meet investment and credit committee standards.
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Request a call to explore how ALP’s capital-protected structures can align with your investment mandate.
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