Investing In Insurable Assets: Heightened Confidence (Part 11)
In this edition of Litigation Investing Mastery, we’ll discuss how litigation funding can leverage insurable assets to protect your investments.
One of the attractive aspects of real estate investing is the ability to get insurance so that, even in the event of a catastrophe like a property fire, you can still recoup your original investment.
Would you be surprised to know that insurance carriers will also insure corporate assets as well, including a law firm’s docket of claimants?
Litigation Cases: An Insurable Asset
Litigation funding is a developed industry where the underlying corporate assets can be valued by specialists and insured by A-rated carriers. The carriers view an existing portfolio of cases as low-risk corporate assets and will ensure the principal invested in the portfolio.
These carriers can offer the portfolio principal protection insurance providing additional downside protection.
Balancing Risk and Return
Insurance can lower returns, so we make calculated decisions. It is often favorable to seek principal protection through preferred payout positions from our borrowers and very strong low-value collateral in advanced cases instead of insurance.
Investors’ Heightened Confidence With Insurable Assets
While insurance isn’t always needed in litigation funding, we have found that investors find solace and gain confidence when investing in insurable assets which is an important strength to highlight in the litigation funding industry.
Our Collateral Evaluation Expert: Bill Brennan
Bill Brennan – Collateral Valuation, Diversified Litigation Portfolio
Certified Valuation Analyst and former CPA and CMA. Provided top-tier management consulting services to over 1,000 law firms during the past 35 years. Specializes in law firm valuations, including due diligence testing of a law firm’s docket of claimants for collateral in litigation funding, financial turnarounds, and strategic mergers.
We’re proud to have Bill on our team. His extensive experience and expertise in litigation funding valuations ensure that our investments are backed by strong, well-assessed assets.
Insurance Carriers & Brokers Specializing In Legal Assets
Conclusion
While we strategically choose when to use insurance, the backing of insurable assets and expert valuations like those from Bill Brennan ensures that our investments are well-protected.
What’s Next
Stay tuned as we dive deeper into the specifics of our case-selection process and provide detailed timelines of these cases.
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