Juridica Investments Ltd (‘Juridica’ or the ‘Company’) is listed on the Alternative Investment Market (AIM) of the London Stock Exchange. It is a Guernsey-domiciled closed-ended investment company which was admitted to AIM on 21 December 2007 having raised £80 million at £1.00 per share. It raised a further £35 million on 30 April 2009 at £1.14 per share and has total assets under management of just over US$200 million.
The Company presently has a total of 17 investments involving 22 cases. As at 14 September 2011, the portfolio comprised the investments described in the table below:
Portfolio diversification as at 14 September 2011
| Type of claim or litigation | Cases | Total Commitment | Investments |
|---|
| Antitrust (monopolisation) |
2 |
US$80.5m |
1 |
|---|
| Antitrust (price-fixing) |
3 |
|---|
| Statutory claims |
1 |
|---|
| Patents |
10 |
US$38.1m |
10 |
|---|
| Property damage and insurance subrogation |
1 |
US$0.5m |
1 |
|---|
| Contract claims |
4 |
US$9.9m |
4 |
|---|
| Arbitration |
1 |
US$3.1m |
1 |
|---|
| |
|
|
|
|---|
| Total |
22 |
US$132.1m |
17 |
|---|
The portfolio has the following features:
- Certain investments include ancillary rights to finance future cases
- Number of subject matters: 7
- Number of jurisdictions: 13
- Number of plaintiff law firms: 18
- Average exposure per case: US$6.0 million
- Average age of cases: 4.14 years (measured from the date of first filing of any litigation)
- Average age of investments: 2.23 years (measured from the date of first investment)
The above investments represent the majority of Juridica’s currently available investable cash. In addition to the above amounts, US$3 million has been advanced in July 2011 and an additional US$3 million is reserved for an investment option related to an existing investment. This investment, while incorporating the usual risk of loss, has been identified through the Investment Manager’s due diligence and valuation process as having the potential to deliver significant returns to the Company. This transaction was structured to increase protection to Juridica.
Juridica Capital Management Limited (‘JCML’) has also reserved approximately US$12 million for the Company to take a significant position in an investment which if completed will provide on-going revenue and the potential to provide significant gain to shareholders.
Net Profits from investments are paid as dividends biannually.
JCML is paid a management fee equivalent to 2.5% of the Company's Adjusted Net Asset Value. Performance fees are progressively structured with fees payable on growth of the Adjusted Net Asset Value at the following stages:
20% of growth from 8% to 20%; plus
35% of growth from 20% to 40%; plus
50% of growth from 40%.
Payment of performance fees to JCML are split in two halves where 50% is paid in cash and 50% is placed in trust and subject to claw back in the event that the Company underperforms in future years.
Performance fees are also subject to a 'high water mark' whereby no payments will be made if the Adjusted Net Asset Value of the Company does not exceed the Adjusted Net Asset Value at the end of the previous year in which the performance fee was paid.
JCML’s contract is renewable every six years, with the next renewal date due on 21 December 2013.