LEGAL CLAIMS
Uncorrelated Assets
Capital Protection
Strong market knowledge and
Proprietary Sourcing
Legal Claims is an asset class uncorrelated with other financial market assets, non-cyclical and with historical time-resilient returns.
This asset class can be used to build a diversified portfolio by mitigating risks through the right structure seeking capital protection and asymmetric returns.
Ideally, we search for claims that present (i) low competition due mandate restrictions or conflicts of interest, (ii) high probability of agreement, (iii) excellent counterparty credit, and (iv) expected time for settlement or agreement between 3 to 8 years and an average portfolio duration of 5 years.
Investment in Legal Claims encompasses all kinds of investments in credits related to judicial or arbitration proceedings, not exclusively in Brazilian Judicial Payment Debts (“Precatórios”).
Those credits may be the object of transactions in disputes involving commercial and corporate disputes, arbitration, expropriations, tax litigation and labor claims, among others.
Algarve Capital seeks credits with a high degree of certainty (unappealable decision, strong precedents, binding theses) and structure transactions with a capital protection bias and conservative collection scenarios.
Given the uncertainty regarding the payment term inherent to this type of asset we seek returns comparable to equity investments.
