Thu, Feb 20, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Litigation finance specialist Pravati Capital launches third fund

Friday, October 27, 2017
Opalesque Industry Update - Litigation finance specialist Pravati Capital has launched Pravati Credit Fund III, LP to capitalize on opportunities in the burgeoning litigation finance sector. Litigation finance is the area where participants involved in some sort of legal action either require or desire funding to bridge the gap until settlement proceeds are released.

Fund III will continue to capitalize on the success of Pravati's first two funds and 16 years of specialized experience in litigation finance with a proven methodology of stringent due diligence in selecting and structuring investments.

The strategy aims to build an all-weather fund of differentiated return streams uncorrelated to traditional equities and fixed income based on conservative underwriting mandates for investors. Pravati carefully selects mature stage, high-probability, high-value cases or case portfolios where there is established liability and precedent for settlement.

Pravati has historically only accepted 1 out of every 30 potential investments. Allocations are typically split between law firm portfolios and single event plaintiff cases with the loan rates charged ranging between high teens to mid-30's depending on the risk.

The new fund is structured with an expected duration of 36-48 months, commensurate with the life of the loans typically held in the fund. Preferred income would be distributed quarterly with principal and additional interest earned to be returned at termination of the fund.

Pravati Credit Fund III, LP has already surpassed its original fundraising goals with private participation vehicles reaching capacity but remains open for investments in the commingled fund. Pravati plans to deploy in excess of 100mm over the next 12-18 months.

"Litigation financing is more than just a business for us," said Alex Chucri, CEO of Pravati. "Bridge financing is a critical tool for the average person who may be fighting deep pockets and needs to level the playing field. We want to support that person and the law firm who is behind them."

Pravati, meaning to "befriend, help, protect, and comfort" in Sanskrit, also aims to positively impact the community. Cases and law firms funded historically include wrongful termination, intellectual property violations, breach of contract, serious injury, commercial litigation, and mass tort.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. PE/VC: Venture debt: Is it a loan? Is it equity? Is it an pportunity?, PE, VC investments in India hit all-time high in 2019[more]

    Venture debt: Is it a loan? Is it equity? Is it an pportunity? From Forbes: Venture Capital is usually the default option for fast-growth startups looking for a cash injection, thanks to our willingness to take risks in return for equity, and with no need to pay anything back - at least

  2. Other Voices: Evolution of shrinking hedge fund fees - what do investors and managers need to know?[more]

    By Don Steinbrugge, Founder and CEO, Agecroft Partners (DonSteinbrugge@agecroftpartners.com): Hedge funds fees remain under extreme pressure across the industry. This strong trend is driven by declining return expectations from investors, inc

  3. COVID-19: Investors track ships, chase rumours to get edge on COVID-19 risks, Coronavirus risk puts the bull run on pause, China was wise to let markets stumble[more]

    Investors track ships, chase rumours to get edge on COVID-19 risks From Reuters: As investors crunch numbers to determine how the coronavirus will hit China's economy, hedge fund manager Nathaniel Polachek has tied much of his outlook to the fate of a ship anchored near Weihai, China.

  4. Bruce Berkowitz is back!, Coatue's new quant fund lost money in the fourth quarter[more]

    Bruce Berkowitz is back! From Institutional Investor: Famed value investor Bruce Berkowitz has hit hard times over the past decade, with big bets on losers like Eddie Lampert's Sears Holdings. In fact, over the past 10 years, his Fairholme Fund's annualized return is only 4.89 percent -

  5. Opalesque Exclusive: Optima A.M. bets on healthcare and biotech innovations with long/short strategy[more]

    B. G., Opalesque Geneva: Optima Asset Management has just launched the Optima Healthcare and Biotechnology strategy, which will be managed by five portfolio managers