Irish Investors Back New Litigation Finance Firm, Uncorrelated Capital, with €48 Million Boost
Dublin, Ireland – August 1, 2024 – In a significant move for the burgeoning litigation finance sector, Uncorrelated Capital, a newly established alternative asset investment firm, has secured €48 million (approximately $53 million USD) in funding. The investment comes from a leading private credit fund and a prominent plaintiff law firm based in the United States, signalling strong confidence in Uncorrelated Capital’s strategy and the growing appeal of litigation finance as an asset class.
Uncorrelated Capital focuses specifically on litigation finance, a sector where investors provide funding to cover legal costs for plaintiffs in exchange for a portion of any recovered damages. This model allows plaintiffs, particularly those with meritorious claims but limited resources, to pursue justice without the crippling burden of upfront legal expenses. It also offers investors the potential for attractive returns based on the outcome of the litigation.
The firm’s unique approach extends beyond traditional litigation finance, incorporating other uncorrelated investment strategies. This diversification aims to mitigate risk and enhance overall portfolio performance, appealing to a broader range of investors seeking alternative asset opportunities. The backing from a private credit fund highlights the increasing acceptance of litigation finance within institutional investment circles.
“We are delighted to have secured this substantial funding,” said a spokesperson for Uncorrelated Capital. “This investment validates our vision for providing crucial financial support to plaintiffs while delivering compelling returns to our investors. We believe litigation finance represents a compelling opportunity, and we’re excited to be at the forefront of this growing market, particularly with support from Irish investors.”
The plaintiff law firm’s involvement demonstrates the symbiotic relationship between litigation finance and the legal profession. By providing access to capital, Uncorrelated Capital enables law firms to take on more cases and serve a wider range of clients, ultimately contributing to a more equitable legal system.
Why Litigation Finance is Gaining Traction in Ireland and Beyond:
- Access to Justice: Litigation finance removes financial barriers, allowing meritorious claims to proceed.
- Attractive Returns: Successful litigation can generate significant returns for investors.
- Diversification: Litigation finance offers low correlation with traditional asset classes.
- Growing Institutional Interest: Private credit funds and other institutional investors are increasingly allocating capital to litigation finance.
Uncorrelated Capital’s launch and subsequent funding round underscores the increasing maturity and acceptance of litigation finance as a legitimate and valuable investment strategy. With its focus on uncorrelated assets and a strong backing from both private credit and plaintiff law firms, Uncorrelated Capital is well-positioned for success in the evolving alternative asset landscape.
The firm is currently seeking further investment and is actively evaluating opportunities to support plaintiffs in a variety of complex legal matters across Ireland and internationally.
