Quantitative approach
to co-investment in litigation finance
LEXCAP has aggregated significant case level data from leading managers in the third-party litigation finance field. Our access to data has provided insights into statistical metrics of this fast growing 25-year-old asset class, the performance of which is not correlated to rates or markets.
LEXCAP develops structures that, through diversification, overcomes second order correlation that can exist across individual manager portfolios. LexCap develops consortia of established managers for contracted co-investment participations. Co-investment partners are selected against a variety of quantitative and qualitative thresholds.
LEXCAP develops co-investment pools for institutional investors to access third-party litigation finance co-investment. These co-investment pools are intended to be issued on a vintage year basis to moderate portfolio duration.
LEXCAP objectives:
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Asset Class Accessibility – We seek to structure low and deferred fee products that provide broader asset class access for institutional investors.
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Mitigation of ‘second order’ correlation – Through diversification of managers endowed with specialisations across case types and geographies, we seek to mitigate manager centric risks in an asset class not directly correlated with markets or rates.
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High returns – We target co-investment with proven managers who have a demonstrated focus on the continuous improvement of their underwriting practices as underpinned an acute awareness of factors driving investor returns.
LEXCAP is a subsidiary of a UK regulated firm.