Overview:

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Blue Lakes Advisors partnered with a top-tier litigation funding asset manager to design and launch a bespoke investment vehicle tailored to the needs of our clients, including wealth managers, family offices, and qualified investors seeking access to uncorrelated legal finance opportunities.

Challenge

Litigation finance products are typically designed for large institutional clients with long-duration strategies and higher risk appetite. Our challenge was to translate this model into a diversified product with a more balanced profile suitable for a broader, more selective investor base.

Our Approach

• Strategic Partnership:
  Collaborated with a litigation funder experienced in managing accounts for major institutions, aiming to create a product for a smaller but more diversified pool of investors.
• Client-Driven Structuring:
  Leveraged our deep understanding of client expectations to curate a portfolio of litigation claims that matched key investment preferences:
  • Shorter Duration:
    Focused on advanced-stage claims in efficient jurisdictions to reduce investment timelines (typical litigation finance: 7+ years).
  • Adjusted Risk Profile:
    Selected low-litigation-risk cases backed by legal precedent and strong enforcement prospects.
  • Attractive Returns:
    Designed a well-balanced return profile with exposure to multiple high-potential claims, fully uncorrelated from traditional markets.
• Rigorous Due Diligence:
  Evaluated each opportunity based on:
  • Claim duration and stage of legal process
  • Jurisdictional efficiency and enforceability
  • Legal complexity and defendant solvency
  • Partner funder’s track record with similar claims
• Custom Vehicle Structuring:
  Created a compliant, tax-efficient investment vehicle in a favorable jurisdiction, fully aligned with investor requirements in terms of governance, liquidity and legal framework.
• Marketing & Launch:
  • Developed all product materials and hosted a secure data room for prospective investors
  • Produced videos and marketing content featuring the fund managers and strategy explanation
  • Conducted global roadshows (Switzerland, Spain, Hong Kong, Singapore, Dubai) with our partner to introduce the opportunity to key clients

Results

• Successfully raised €30 million, fully deployed into the curated litigation portfolio
• Although the product has not yet reached maturity, the performance to date is tracking ahead of expectations, with strong early-stage results from underlying claims
• Investors receive regular portfolio updates and communications as part of our post-investment support model
  

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