Pravati Capital launches fifth litigation finance fund with USD200m
Pravati Capital, a litigation specialist and consulting firm, has launched its fifth investment fund, Pravati Investment Fund V (Fund V), with USD200 million.
Fund V follows four of Pravati's successful funds launched over the span of seven years. The new fund offers, for the first time, non-US and US-tax exempt qualified international investors the opportunity to invest in alternative investment vehicle specialised in the litigation finance sector.
Fund V, as past funds, is structured using the proven methodology of stringent due diligence in selecting and structuring investments, while providing opportunities for law firms to restructure, regain financial footing and build their asset portfolios. Pravati's focus remains on investing in non-correlated assets with limited risk independent of the economic cycles offered by the growing litigation finance sector.
Pravati's founders leverage their 18 years of specialised experience in financial litigation to create unique opportunities for both clients and investors. Fund V, along with the four previous funds, will continue to provide breakthrough capital solutions that allow ﬁrms to restructure and emerge stronger in distressed markets throughout the United States. The fund's strategy will continue to build an international all-weather, alternative investment fund with a solid risk-reward profile generally not affected by economic cycle changes compared to traditional equities and fixed income funds.
"We are pleased to offer Fund V to qualified international investors seeking an alternative investment vehicle in the litigation finance sector. Litigation financing is critical for an average person who may be fighting deep pockets and needs to level the playing field," says Alexander Chucri, Chief Executive Officer and Portfolio Manager of Pravati Capital.
"We strongly believe our work has a positive social impact by helping to capitalize justice by funding worthy cases that deserve the opportunity to be litigated," Chucri adds.
Pravati Capital acts as the middle-market lender, merchant bank and advisor to mid-size law firms around the world and provides non-recourse, and recourse cash advances to law firms that are generally collateralised by underwriting a portfolio of cases. The company invests in a broad range of high probability, complex, plaintiff commercial disputes.
Pravati Capital Fund V is expected to have short-term duration of 36-48 months. The fund aims to deploy funds in excess USD200 million in the following 18 months.