Angels Share | The Justice Fund (ASJF)
Angels Share Justice Fund (ASJF) will offer an opportunity for qualified investors to acquire Limited Partner Interest in two ‘green’ disputes funding vehicles: ASJF Global Insured Dispute Claims Fund IV and ASJF US Insured Dispute Claims Fund V. Both funds employ the same investment strategy (to invest in ‘green/ investment-for-good’ claims) but differ in investors’ jurisdictions. The funds acquire senior economic interests in commercial litigation and arbitration (Disputes Claims identified by the ASJF team) globally, and potentially also mediations. LP interests could be capital-protected (to a 50% extent) by a bespoke insurance policy.
Projected financial structure and returns
Diversified portfolio: Commercial litigations/arbitrations of essentially US and European (including UK) jurisdiction.
Regulated: unique regulated position allowing for institutional investors to participate.
De-correlated investment : Investment is uncorrelated from other traditional asset classes (listed and private) with a shorter time horizon.
Key strengths of Class A Senior shares:
100% capital protected at any time covered by the insurer S&P rated A+ Financial strength.
[Fixed maximum term of 5 years to be covered by the insurer.]
Expected IRR net : > 15%
[Insurer participates in the case selection process]
Proprietary structuring and underwriting process: enabling a mix of case insured and non-insured investments in the portfolio.
About disputes claims funding
Disputes claims financing consists in funding a litigant or law firm before or during a litigation or arbitration to cover case-related expenses, or other expenses such as working capital while the case is still ongoing. In exchange for receiving funding, the funded party gives up a pre-determined portion of the proceeds from a successful claim. The funder typically advances capital on a non-recourse basis, and takes a security interest in the claim to secure its rights under the funding contract.
Legal services represent a multi-billion dollar market annually, organized with high visibility and large participants. The market is growing.
The size of the litigation finance market has never been precisely measured but industry practitioners have estimated that high-value commercial lawsuits and arbitrations could represent $20 billion a year of demand for litigation. A figure that is consistently growing as long as corporate and law firms are more and more aware of the opportunity and the way it works.
The innovative features of the Angels Share Justice Fund (US and Europe)
Disputes claims funding in the ‘green’ and the ‘action-for-good’ sectors is a niche and innovative area. Angels Share Fund will fund meritorious claims, including Energy Charter Treaty claims, that concern ‘green’ biofuels, renewables, climate change, human rights and ethical and sustainable investments (that are assessed by the Angels Share analysts to have a greater-than-60% chance of success before an international tribunal) (‘Green Cases’). The advantages of this is that certain benefits may be available to the fund (tax, carbon credit and other financial advantages related to investment in the ‘green sectors’).
Over the last ten years, disputes claim financing has been a core focus for global investors frustrated with the low returns in the traditional private equity investments. Green Cases will be EVEN more attractive to investors because of the capacity for the investment to do good (compensating sustainable investors and influencing global policy at the State and multinational level).
Utilizing innovative structures combining insurance and commercial litigation risks, ASJ Fund will issue three tranches of capital-protected products with semi-fixed maturities to investors designed to benefit from ‘environmental benefits’, and backed by the media agency powerhouse and influencer reach of the ‘content for good’ that EAA generates. These are features which EAA believes is unique in the funding space. This capital protection structure (through insurance) will enable the ASJ Funds to raise at least $10M to invest in Green Cases to start with, generating profits, 10% of which will be returned to EAA to produce further Content For Good as part of its wider and main objectives.
ASJ Fund’s team of legal experts, working together with the EAA partners and the opportunities generated through their global reach to law firms, clients and international organizations and Fortune 500 companies, will allow access in a timely manner to a steady, diversified and attractive set of Green Case funding opportunities.