LegalSoli Capital

Diversified Commercial Litigation Portfolio I

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Status

Closed

Recently funded

Accepting $10,000 - $5,000,000 investments

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Accepting $10,000 - $5,000,000 investments

Overview

• Learn more about Legal Investments

Soli Capital is pleased to offer the YieldStreet community an opportunity to invest in a diversified portfolio of commercial litigation claims represented by one of the largest corporate law firms in the world with annual revenue in excess of $1 billion. Financing litigation helps law firms reduce the liability associated with the expenses incurred prior to the resolution of a case. The expenses incurred can be millions of dollars and include the hiring experts as well as hundreds of billable hours. By utilizing outside capital, law firms can reduce their liability by sharing in the economics and upside of litigation outcomes.

Highlights

Strong Collateral
Low Market Correlation
Proven Managers
Target Returns
What secures this investment?
  • The total amount financed represents up to 33% of the estimated base recovery amount. The law firm litigating these commercial cases is among the top in the world earning revenue annually of over $1 billion.

  • The outcome of litigation in general is not correlated to fluctuations in the broader market.

  • Soli Capital’s principals are authorities in the specialty finance community having raised over a $1 billion from high net worth individuals and institutions alike.

  • Target returns of 12% with a 36-month estimated term. Investors will also share in a portion of upside as related to successful recoveries. As cases settle distributions will be made.

  • This portfolio consists of eight commercial litigation cases represented by one of the largest corporate law firms in the world with annual revenue of over $1 billion. These eight commercial litigation cases are each associated with one of three incidents that involve financial transactions gone awry. Although some cases may pertain to the same incident, each case is completely separate from the others with its own merits, particulars and ultimate outcome. In all of the cases, the law firm is representing the liquidators or trustees trying to recover lost funds. Soli Capital’s diligence estimates a total portfolio base recovery of $141 million and top side recovery of $242 million. Recoveries of this magnitude would equate to the law firm generating anywhere between $30 million to $52 million. The revenue generated from the litigation is the collateral and repayment source of this investment.

Essentials

Please refer the Series Note Supplement in the Resources section for more details about this offering.

Smaller Portfolio

It is possible that the loss of any one case may have an adverse impact on the investors’ return.

  • The portfolio is cross-collateralized meaning that the proceeds of any case that settles can be used to cover the shortfall of any other.
  • YieldStreet investors are the first to receive any funds generated from the completion of the underlying cases meaning all available funds go to investors to until they are fully repaid.

Settlement Below Expectations

It is possible that the cases return less than what the diligence case values indicate.

  • The total amount of the investment represents up to 33% of the expert estimated base recovery value.
  • The portfolio is cross-collateralized meaning that the proceeds of any case that settles can be used to cover the shortfall of any other.
  • YieldStreet investors are the first to receive any funds generated from the completion of the underlying cases meaning all available funds go to investors to until they are fully repaid.

Extended Duration

It is possible that investors are not fully repaid during the estimated 36-month duration.

  • The portfolio is structured with cases of in varying stages of completion in order to provide investors with frequent payments throughout the expected term.
  • YieldStreet is conservative in all of the estimated durations stated to ensure investors are accurately assessing their capital needs into the future.
  • YieldStreet investors are the first to receive any funds generated from the completion of the underlying cases meaning all available funds go to investors to until they are fully repaid.

Plaintiff Payment Default

It is possible that the plaintiff after receiving the proceeds of the award or settlement does not pay back their outstanding advances.

  • It should not be possible; this investment is structured in such a way that investors are repaid directly law firm’s settlement or award proceeds. There is no risk related to the plaintiff defaulting on a payment to the law firm.

Returns & Management fees

Gross yield

18.0%

Yieldstreet fee

2.0%

Originator fee

4.0%

Target yield

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Schedule

Payment schedule

Event-based

Prefunded

Yes

Maturity

February 21, 2020

Structure

Tax document

K-1

Offering structure

SPV

Expenses

First year expense

$150

Annual flat expense

$70

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  • Returns & Management fees

    Gross yield

    18.0%

    Yieldstreet fee

    2.0%

    Originator fee

    4.0%

    Target yield

    Login to view
  • Schedule

    Payment schedule

    Event-based

    Prefunded

    Yes

    Maturity

    February 21, 2020

  • Structure

    Tax document

    K-1

    Offering structure

    SPV

    Expenses

    First year expense

    $150

    Annual flat expense

    $70

Content

This offering page describes only certain aspects of the offering ("Offering") of the securities issued by Soli DiverCLP I LLC ("Issuer"). The Offering is made only by means of the Investment Memorandum relating to the Offering (the "Offering Document"). The information on this offering page is a summary of the Offering, does not purport to be complete and should not be considered a part of the Offering Document, or as incorporated in the Offering Document by reference or as forming the basis of the Offering. No person has been authorized to give any information or to make any representations other than those contained in the Offering Document or in any marketing or sales literature issued by the Issuer or Yieldstreet Management, LLC, as adviser thereto, and referred to in the Offering Document, and, if given or made, such information or representations must not be relied upon. All investors must read the Offering Document in its entirety prior to investing in the securities.

Investing in private markets and alternatives, such as this offering, is speculative and involves a risk of loss, and those investors who cannot afford to lose their entire investment should not invest. Returns are not guaranteed.