Fenchurch Legal, a specialist in litigation funding for small and medium-sized UK law firms, has partnered with Altify, an alternative investment platform connecting investors with tokenized private market assets.
This collab will now aim to offer investors access to Fenchurch Legal’s litigation funding investments via Altify’s digital platform.
Via this partnership, Altify has launched the legal finance security token on the Bitcoin Liquid network, with the ticker ALFI.
Each token is “1:1 dollar-backed” by Fenchurch Legal’s litigation finance loan notes.
This Real-World Asset (RWA) tokenization approach democratizes access to the niche market of litigation finance—an investment category “traditionally reserved for high-net-worth individuals and specialist finance institutions.”
With ALFI, Altify’s clients can now invest, with as little as “$100, in a diversified portfolio of senior secured loans extended to vetted UK law firms. ALFI is a USD-denominated security token offering a fixed annual yield of 11% with quarterly interest payments.”
The UK litigation finance market is experiencing robust growth, with increased investor demand. Fenchurch Legal’s Loan Note offering has seen investor “uptake increase by 90% from Q2 to Q3 this year.”
This growth is driven by law firms seeking funding for increased “case volumes and investors’ interest in stable, alternative assets.”
This partnership marks a milestone for Fenchurch Legal, aligning with its vision to connect with a wider pool of investors.
By joining Altify’s platform, Fenchurch diversifies its funding sources and strengthens its ability to “support law firms in the rapidly growing litigation finance sector.”
This partnership with Altify marks a milestone for Fenchurch Legal, and they are eager to be the first firm to join their private debt offering.
Being on the Altify platform allows them to diversify their funding sources and increase their lending power, allowing them to further support law firms and meet the growing “demand for litigation finance in the small consumer claims market.”
Altify investors will benefit from Fenchurch Legal’s investment structure, where loans are secured against “case proceeds, proceeds of insurance policies, law firm assets and PGs of shareholders, enhancing investor capital protection.”
Fenchurch Legal’s track record in funding UK law firms and delivering returns within a niche alternative asset class “makes them an ideal partner for Altify.”
Legal finance is an investment category for portfolio diversification, as it is largely “uncorrelated with traditional economic cycles.”
But minimum investments in this category have “historically” been in the six figures making it a “largely unattainable” asset class for most investors.
The ALFI token addresses the “accessibility” challenge, by providing clients with the opportunity to own a single token and begin investing with “the equivalent of $100.”
This partnership aims to shift the landscape of legal finance, as traditionally only the lawyers profit from legal disputes, but with ALFI, “both lawyers and investors can earn an attractive return.”
