As the leader in its field, Juridica has established the concept of corporate claims as an asset class. Corporate claims are assets whose value is only loosely correlated to economic conditions. Indeed, investments in corporate claims can be counter-cyclical to general economic conditions. As a result, Juridica offers investors the ability to make attractive returns against an uncertain wider market backdrop.

Corporations and law firms are interested in early monetisation of claims and sharing the risk of financing legal fees and expenses, even when they are sure of success. Simply put, litigation is not the core business of our corporate customers and more strategic uses of capital are available to create shareholder value. With the entry of outside capital into legal markets, new opportunities have been created for company finance chiefs and in-house lawyers to monetise their claim assets.

Traditionally companies have chosen whether to finance claims themselves by paying lawyers hourly fees to litigate a case or, with US lawyers, by striking contingency fee deals to lower the transaction costs. In making this decision company executives are managing several layers of risk – from legal fees exceeding budgets to unfavourable judgments and unforeseen events.

With the advent of corporate claim financing, external capital can be used to shift, limit or hedge risk in various ways at any time in the claim cycle by selling a portion of the claim in return for a share of the claim’s ultimate value.

By treating corporate claims as an asset, companies can develop the best strategy for monetising it, using the expanded options provided by Juridica’s risk capital for corporate claims.