A team of former lawyers is bringing a new asset class to investors with the launch of a closed-ended fund investing in litigation cases.
Therium Capital Management (TCM) expects its Therium Fundco investment company to be listed on AIM in August.
Therium Fundco intends to fund legal cases with a minimum cost of £100,000 and a maximum of £5 million per case. It is targeting an average return of 250% of the original investment in each case.
The fund managers have already provided funding for one case, which TCM said has been settled at its return target.
The trust will also invest in after-the-event insurance to create an income source. The insurance provides cover for legal costs in the event the claimant loses a case.
Therium Fundco has a projected dividend yield target of 5% and has a five-year life before it converts into a run-off vehicle. It will also levy a performance fee of 12% subject to NAV growth in excess of 6% a year with a high watermark.
For a full report on this product see Citywire.
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