This week, Australia took a significant step towards redefining the relationship
between work and personal life by introducing a new “right to disconnect” law. This
groundbreaking legislation for the country allows employees to ignore work-related
texts, emails, and calls outside of their designated work hours without the fear of
facing any repercussions.
The law marks a crucial shift in workplace culture, aiming to protect workers' mental
health and promote a healthier work-life balance. The intrusion of work into personal
lives has escalated since the COVID-19 pandemic saw a huge growth in the work
from home culture.
Australia is not the first country to introduce a right to disconnect law. Several other
nations have already implemented similar legislation, recognising the need to protect
employees from the negative effects of the “always-on” culture.
France was the pioneer, introducing its right to disconnect law even before the
pandemic, back in 2017. The French legislation requires companies with more than
50 employees to negotiate with staff about how to manage after-hours
communication. If no agreement is reached, the company must establish guidelines
to ensure that employees are not expected to respond to work communications
outside of their regular hours. The French law was a response to growing concerns
about the impact of constant connectivity on workers' health and well-being.
Italy followed suit in 2017 with a similar law, which grants employees the right to
disconnect and obliges employers to negotiate clear terms regarding after-hours
communication. The Italian legislation aims to address the same concerns as the
French law, recognising the importance of protecting employees' personal time and
mental health.
Spain introduced its own right to disconnect law in 2018. The Spanish legislation
requires employers to ensure that employees are not obligated to engage in work-
related communications outside of their normal working hours. The law also
mandates that companies develop policies to manage after-hours communication
and to inform employees of their rights.
Belgium implemented a right to disconnect law in 2022, which grants public sector
workers the right to disconnect from work outside of normal working hours. The law
recognises the importance of work-life balance and seeks to protect employees from
the negative consequences of constant connectivity.
Portugal took a slightly different approach with its law, which came into effect in
2021. The Portuguese legislation goes beyond simply granting employees the right
to disconnect. The law prohibits employers from contacting workers outside of their
regular hours, except in exceptional circumstances. This law is seen as one of the
most stringent in Europe, reflecting the country’s commitment to safeguarding
employees’ personal time.
There is now a growing conversation to introduce similar measures in the UK. The
Government is currently considering introducing its own right to disconnect law. The
idea has gained more and more traction in recent years, particularly in the wake of
the COVID-19 pandemic.
The UK government has recognised the need to address the challenges posed by
the always-on culture and has been exploring the possibility of introducing legislation
to protect employees’ right to disconnect.
In 2021, the Irish government introduced a right to disconnect code of practice,
which could serve as a model for the UK. The Irish code of practice outlines three
key rights:
There is growing support for similar legislation in the UK, with calls from trade
unions, mental health advocates, and workers’ rights organisations.
Supporters of the law say that it is essential to protect employees from burnout and
to promote a healthier work-life balance. They say the current legal framework in the
UK does not provide adequate protection for workers who feel pressured to remain
connected to their jobs outside of working hours.
There is no set timeline for the introduction of this law in the UK, but the growing
momentum suggests that the UK could soon join the ranks of countries that have
implemented this important protection for workers soon.
In recent years, the boundaries between work and personal life have increasingly
blurred, largely due to advances in technology. Smartphones, laptops, and other
devices have made it easier for employees to remain connected to their jobs around
the clock. While this connectivity has its benefits, such as increased flexibility, it has
also led to the rise of the “always-on” culture, where employees feel obligated to
respond to work-related communications at all hours of the day and night.
This constant connection can lead to significant stress, burnout, and a decline in
mental health. Studies have shown that employees who are unable to disconnect
from work are more likely to experience anxiety, depression, and other mental health
issues. The expectation of being constantly available can lead to strained personal
relationships and a lack of time for hobbies, rest, and other activities that contribute
to a balanced life.
Australia’s new “right to disconnect” law represents a major step forward in
addressing these concerns. The legislation grants employees the legal right to ignore
work-related communications outside of their normal working hours, unless
previously agreed upon or in exceptional circumstances. This means that employers
can no longer expect or demand that their employees respond to emails, texts, or
calls after hours, unless it is explicitly part of their job description or an emergency
situation.
The law aims to safeguard employees’ personal time, allowing them to fully
disengage from work when they are not on the clock. It also places the onus on
employers to respect their employees’ boundaries and ensure that they are not
overburdened with work outside of regular hours.
The introduction of this law is expected to have a profound impact on Australian
workers. For many, it represents a long-overdue acknowledgement of the importance
of work-life balance. By legally protecting employees’ right to disconnect, the law
helps to alleviate the pressure that many workers feel to be constantly available and
responsive.
This change is particularly significant in the context of the COVID-19 pandemic,
which saw a dramatic increase in remote working. While remote work offers
numerous benefits, it also makes it more challenging for employees to separate their
work and personal lives. The new legislation provides a clear framework for
employees to establish and maintain boundaries, which is essential for their overall
well-being.
The introduction of right to disconnect laws represents a significant shift in the way we think about work and personal life. These laws acknowledge that employees have the right to disengage from work and to enjoy their personal time without the expectation of being constantly available.
In addition to protecting employees’ mental health, right to disconnect laws can also have positive effects on productivity and job satisfaction. When employees are able to fully disconnect from work outside of their designated hours, they are more likely to return to work feeling refreshed and energised. This can lead to increased productivity, higher quality work, and greater job satisfaction.
It is thought that by respecting employees’ boundaries and promoting a healthy work-life balance, employers can create an environment where workers feel valued and supported.
This, in turn, can lead to higher levels of employee engagement, lower turnover rates, and a more positive overall work environment.
While the right to disconnect laws offer numerous benefits, they also present certain challenges and considerations. One of the main challenges is ensuring that the laws are effectively implemented and enforced. There may be ambiguity about what constitutes an “exceptional circumstance” that would justify after-hours communication. Clear guidelines and consistent enforcement are essential to ensuring that the laws achieve their intended purpose.
Additionally, there may be resistance from some employers who are concerned about the potential impact on their business operations. In industries where after-hours communication is common or necessary, such as healthcare, emergency services, or global companies with different time zones, implementing a right to disconnect law may require careful consideration and adaptation.
Another challenge is ensuring that the laws are inclusive and take into account the diverse needs of different workers. Some employees may prefer the flexibility of being able to respond to work communications outside of regular hours, while others may want a strict separation between work and personal life. The laws should be designed in a way that allows for flexibility and choice, while still providing protection for those who need it.
Australia’s new right to disconnect law is a significant milestone in the ongoing effort to protect workers’ rights and promote a healthier work-life balance. By granting employees the legal right to disconnect from work outside of their designated hours, the law addresses the growing concerns about the impact of the always-on culture on mental health and well-being.
As other countries, including the UK, consider introducing similar legislation, the global conversation around work-life balance is gaining momentum. Right to disconnect laws represent a crucial step towards a future where employees are empowered to take control of their personal time and enjoy a healthier, more balanced relationship with work.
While there are challenges to implementing these laws, the potential benefits for workers, employers, and society as a whole are significant. By prioritising the well-being of employees and fostering a culture of respect and balance, right to disconnect laws have the potential to transform the way we work and live for the better.
“A people without the knowledge of their past history, origin and culture are like a tree without roots.” Marcus Garvey
It’s common in the investment sector for managers to perform due diligence. This process generally allows the wealth manager to dig deeper into the quality and legacy of an investment opportunity and see if it has a proven track record or shows signs of unexpected future growth.
The past can never determine the future with 100% certainty, but it can help us understand what we’re dealing with. The same is true for Litigation Finance. Whilst it often appears to be the new kid on the block, its rise to prominence dates back to the 1990s and has simply snowballed ever since.
Before the 1990s, Maintenance and Champerty were illegal in the UK and Australia. Maintenance is where individuals or groups, who are not connected in any way to a legal case, provide funding to enable the case to be tried, and Champerty is maintenance for profit.
Due to this early legislation, lawmakers prevented outside involvement in legal proceedings. Changes to the laws and regulations in these two jurisdictions have paved the way for litigation finance to become the asset class of choice for many High-Net-Worth Individuals (HNWI) and other interested parties searching for investments which are uncorrelated to volatile markets.
The rise of litigation financing in the United Kingdom and Australia was almost simultaneous, but followed different directions. The Criminal Law Act of 1967 in the UK decriminalised Maintenance and Champerty, which resulted in tort liability being renounced. Then in 1990, the Courts and Legal Services Act was passed, which meant that lawyers could enter into conditional fee agreements (CFAs).
Not only did the 1990 Act unlock the door to the litigation financing of today, but more importantly, it allowed potential litigants, who had previously been unable to afford to sue for any wrongdoing, or did not qualify for access to legal aid, the possibility of justice.
In a 2002 decision, courts implicitly endorsed litigation finance; only funding arrangements intended to undermine justice would be considered unlawful. And so, with the door to litigation finance now firmly open, a vibrant market for claim funding galvanised.
Australian courts legalised class-action lawsuits in 1992, which afforded courts a more efficient way of dealing with group claims. A further decision was passed in 2006 when the Australian High Court held that litigation funding was not an abuse of process nor contrary to public policy.
Personal Injury Cases were the cornerstone of litigation finance in the United States (US) before the mid-2000s. Since then, even though the litigation finance market is still relatively new, the market continues to expand; nowadays it is not unusual for law firms and companies to use litigation funding to raise capital, finance lawsuits and mitigate risk from their bottom line.
Litigation finance isn’t new. It is, however, an asset class that is outperforming all other traditional assets and is proving to be unaffected and uncorrelated to volatile markets. Our GreenPark Platinum team can help you learn more about this lucrative alternative investment opportunity.
“Unprecedented events occur with some regularity, so be prepared.” Seth Klarman
Wisdom abounds with reassuring words when markets drop, and investors see their statements pointing in the wrong direction. It’s easy to listen to the gurus and remind yourself that things will eventually turn, but what do you do when you need a quicker turnaround and can’t wait for the markets to correct? What if your event horizon is slap bang in the middle of a recession?
Well, for starters, it’s helpful to remember that you’re not stuck in one place, and you will always have options. Especially when it comes to fund brands – if you think a brand is all that matters, think again. Many disappointing investment fund performances come from the most popular investment houses.
A 2020 report by Yodelar (empowering investors website) analysed 14,600 funds and 95 Fund management firms for UK investors, highlighting that not only were some of the largest investment brands among the worst performers, but the ten worst were also responsible for managing more than £500 billion of client money. And this was two months before the pandemic crashed markets around the world.
At GreenPark Platinum, fund quality is significantly important to the health of a financial portfolio. Poorly performing funds can affect your overall investment portfolio, and inefficient investing means you are missing out on maximising growth due to subpar fund quality.
If you haven’t looked into the performance of your investments, now is the time. This allows you to identify which funds might not be doing their best and find potential areas for improvement. It is also an excellent time to consider diversified investments and alternative opportunities unrelated to the traditional stock market.
Litigation finance flourishes during tough times, partly because it is countercyclical. When other industries are under strain, their inclination to pursue litigation increases. This opens up opportunities to reach deals that include interest for funds provided, and if a case is successful, receive a share of the proceeds.
While many businesses focus on public equities, litigation finance is not dependent on the traditional market, making it a largely recession-proof opportunity.
Here at Greenpark Platinum, we specialise in connecting you to high-quality cases within the sector, providing security, fixed returns and high growth potential. We are renowned globally for raising capital and continue to set the platinum standard within the industry. Our team utilise expert knowledge and experience to deliver unique, short-term investment opportunities.
“Even the intelligent investor is going to need considerable willpower to keep from following the crowd.” Ben Graham
We always believed that there are substantial growth opportunities in litigation finance regardless of what everyone else is doing.
Not too long ago, we shared a blog on the increased interest in litigation finance, mainly because of its countercyclical nature. Not only is the asset uncorrelated to the stock market and the factors which affect it, but times of financial stress tend to cause a spike in legal cases as companies use litigation to recover potential losses they may have suffered. This is excellent news for those investigating and investing in litigation finance.
The increasing availability of third-party litigation funders allows more companies and individuals to pursue litigation to recover losses suffered during financial crises, especially after the global lockdowns in 2020 and 2021.
It’s important when investing, to know what you’re investing in. Litigation finance has a strong and growing track record, and despite its relatively young age, the global market for litigation finance is already large and growing fast.
Cases involving up to nine-figure sums often contribute materially to the generation of such impressive growth. For example, IMF Bentham staked roughly $25 million into covering the costs of a class action lawsuit on behalf of 6,800 plaintiffs seeking damages over the failure of the Wivenhoe dams, which caused the Brisbane floods in 2011. At the time, after the judge presiding over the case ruled in favour of the plaintiffs, IMF Bentham forecasted returns of $100-$130 million against their investment.
However, estimating the litigation finance market’s size has always been challenging, given the privacy surrounding many cases and the different methods of valuing the market across different territories. A 2018 report by Absolute Market Insights valued the global market at $10.9 billion and forecasted an annual growth rate of 8.3% to take the market to $22,3 billion by 2027.
The report was even published in February 2020, before the full extent of the COVID-19 pandemic had caused global markets to crash in March, and it makes a case of reiterating that litigation finance “may be inversely correlated to financial markets, as litigations may increase in recession time due to the high number of insolvencies”.
What is clear, though, is the wealth of investment opportunities as one of the best short-term, high-yield investments that exist within the sector.
To learn more about how you can benefit from diversified investments and the current boom in litigation finance, please feel free to get in touch with our team to discuss your requirements.
“Minimizing downside risk while maximizing the upside is a powerful concept.” – Mohnish Pabrai
Safety, income, and capital gains are the three significant objectives of investing. But they’re not the only guiding principles. Over the last century of emerging markets, climbing and crashing stock exchanges, bubbles, crypto, dotcoms and some of the most diverse changes ever, there are common rules that successful investors always seem to hold on to.
Here are a few:
This last one is particularly important to our team at GreenPark Platinum. We’ve been in this exciting neck of the alternative-investing-woods (Litigation Finance) for a long time, and we’re always aware that we’re still meeting new investors every week who have never heard of litigation finance.
As our founder, Laura Mann, likes to explain it: litigation finance is when a third party provides capital to a plaintiff, in return for a share of any successful financial outcomes from the lawsuit. The funder will receive a share in the profits of the case. The funding provided applies to litigation costs, including attorney’s fees, investigative fees, expert witness fees and court expenses.
We firmly believe that ligation finance makes strategic corporate sense in terms of mitigating downside risk, offering security and the advantage of focusing on the problem rather than on costs. Everyone and anyone can benefit, from individuals to class actions, large companies to universities and businesses of all sizes.
Here are some examples:
A bonus is that litigation finance is a non-correlated, alternative asset class which produces solid and absolute returns. Regardless of how the economy is doing, there will always be legal claims. Interest rates, stocks and bonds are irrelevant when it comes to litigation finance. Litigation finance outperforms other alternative investments and offers a moderate time to liquidity – the liquidity time for litigation finance is only 12 – 24 months.
Greenpark Platinum’s speciality is litigation finance, and we are renowned globally for raising capital in litigation finance cases. At Greenpark Platinum, we utilise our extensive knowledge and experience to deliver unique opportunities to diversify portfolios and generate returns that are not related to organisational performance or stock markets.
“We’ve always done it this way…”
This phrase is attributed to Grace Hopper, an American computer scientist and United States Navy admiral, when she said it was possibly the most damaging phrase in the English language.
She was well known for trying to do things differently so that we could achieve better outcomes. She was so passionate about looking at the world differently that she was said to have a clock on her wall that turned anti-clockwise. Another wise proponent of this approach was Albert Einstein, who once said that it’s insanity to keep doing the same thing over and over and expect different results.
When it comes to wealth management, we need to listen to sage advice and not stick to always doing things the same way. We need to look for different ways to meet investment goals, address the comfort level of our clients, navigate tax implications and work with flexible time horizons.
More and more wealth managers, investment brokers, financial advisors and similar agents are choosing to work with Greenpark Group because they want to expand their business and give their clients better options.
Some of the most demanding challenges that wealth managers face (investment goals, income needs, tax etc.) have all been exacerbated in the last few years with global lockdowns and the knock-on effects on families, businesses and the markets.
Event horizons have changed, and investors have found that they need shorter time to maturity to see quicker growth in their capital. Through the Greenpark Platinum platform, we can access 6 and 12-month opportunities, allowing more immediate access to funds.
In the past, we’ve-always-done-it-this-way-investing looked like investing in property as a dominant portion of an investment portfolio, but the recent hikes in the UK interest rates (and many other countries) have made property a potentially higher risk for investors. This uncertainty has led more people to look for alternatives, like the litigation opportunities available on the Greenpark Platinum platform.
We’ve also seen that some brokers are looking to boost their own revenue ahead of the end of the quarter, and having a 21-day fee payout is a reprieve that will benefit many small- and medium-sized wealth management practices.
Our network also benefits from the non-geographical confines of our investment opportunities. With an increased number of clients emigrating, we’re able to connect you with exclusive, non-market-linked opportunities that can benefit your clients, no matter where they are domiciled.
We see it all the time, in so many sectors and industries: those with the best players win. And often, those with the most money buy the best players and win.
It’s not too different when it comes to legal proceedings. Sometimes a perceived imbalance in the law is less about due process and more about unequal access. Those who are seeking fair dispute resolution are unable to pursue their claims due to the high costs associated with the legal process.
Many factors contribute to the cost of commercial litigation: research and interrogatories, depositions, motions and conferences, subpoenas and witness preparation, trials, appeals, and attorney fees, as well as all the costs then associated with court fees, consultants, and investigations.
Access to justice requires plenty of capital; litigation is costly.
As such, even those with a compelling case may reach a point where they will have to postpone or even abandon following through with their case. The considerable divide between average and wealthy litigants creates barriers to judicial engagement and slants the eventual outcomes for those with inadequate funding.
At Greenpark, through litigation finance, we are able to help solve this challenge by giving plaintiffs an effective substitute for regular or exhausted lines of funding. With us, your invested capital can address the problem of unequal access to the judicial system, whilst potentially earning you decent returns.
Litigation finance may be used to pay for legal fees (including expert witnesses and court fees), but can also help the victims who are seeking justice for their case by paying for living expenses, or supporting businesses involved in complex lawsuits and are waiting for payouts from a successful conclusion to their case.
It’s important to remember that litigation finance differs from traditional loan structures – which is how it’s beneficial to those who need financial support to see their case to completion. Litigation finance solutions are structured as non-recourse investments, which means that those being funded owe nothing if their claim does not result in a recovery.
If the case reaches a positive outcome, they would simply owe a predetermined portion of any damages recovered.
However, this is not about trying to secure a specific outcome; it’s about ensuring equal access. For the most part, Greenpark and our partners boast an impressive track record meaning we can select opportunities where we foresee a 65% or higher chance of success. Additionally, in many cases, this is less risky than other asset classes.
This allows you to invest your money to improve access to litigation for those who need it most, with a high chance of positive returns.
As humans, we’re often afraid of new things. Because new means change, and we’re not always ready for change. We’re far more trusting of tried and tested practices and philosophies that can show proof of concept. When it comes to investing and finding alternatives to traditional markets and strategies, it can be a risky landscape.
Litigation finance is several decades old, even though it is only recently finding increased favour with investors.
In short, litigation finance is the mechanism or process through which litigants can finance their litigation or other legal costs through a third party funding company. So – to some degree, it’s always been around.
As a formalised, legitimate framework, it has been permitted in England and Wales since 1967 (and in insolvency matters since the late nineteenth century). Commercial litigation funding was allowed in Australia in the late 1990s, following similar developments in the US, Canada and Asia. It’s far more unregulated in countries like South Africa, but there are case histories that have offered guidelines for pactum de quota litis – the agreement to share the proceeds of one or more lawsuits.
Litigation finance is not a new strategy, ticking off the boxes of being a tried-and-tested alternative investment opportunity.
It’s also helpful to know that litigation finance is generally not considered a loan but rather an asset purchase or venture capital. Most commonly sought in personal injury cases, it may also be sought for commercial disputes, civil rights cases, and workers’ compensation cases.
As litigation finance is a non recourse cash advance, our many years of experience at GreenPark Global have equipped us to identify qualifying cases that have sufficient merit to deem the investment in the cases to be worth the risk.
Litigation finance is not a new idea, and we’re not new to this game. We’ve been doing it long enough to gain access to cases and opportunities that offer increased possibilities for lucrative outcomes.
It’s not about how much money an investor has; it’s about how many choices they have. This is probably what our team at the GreenPark Group resonates with most. We know that when we can invest money in a way that makes a difference, we are able to connect with a deeper purpose and opportunity to leave a legacy of value – not just for ourselves but for others too.
When pitching litigation to your network, it’s essential to understand how and why it connects with some people and not with others.
Whilst so many are simply looking for high-net-worth clients and corporations, we’re looking for clients who want to know that they have choice and control over how and where they invest. We’re looking for investors who are seeking alternative asset exposure as high as 20%.
We believe, from experience, that this is where litigation finance can be an advantageous inclusion in their portfolios. Even more so when one considers the expense and knock-on costs of fees, fees can be a point of contention, especially when dealing with corporations contributing millions of dollars.
With litigation finance, there are no additional fees for the investor. Everything is built into the structure. This helps streamline and pitch a complex portfolio shift or restructure.
Another elegant feature of litigation finance is that it is not taxed at the source (a particularly attractive benefit to residents in the UAE and Singapore).
Ultimately, when it comes to litigation finance, there’s a level of exclusivity that appeals to an astute, well-resourced investor. Often, erudite individuals and companies seek non-traditional, off-market opportunities that cannot be accessed elsewhere, coupled with competent, experienced asset managers they can trust.
For the last two decades, our group has been building relationships and a solid track record of providing both of these opportunities. By partnering with us, you, too, can offer this to your network when pitching litigation finance.
As Einstein often said, doing the same thing in exactly the same way and expecting different results is the very definition of insanity. Investing can feel a lot like that too. Part of us wants to stay put and ride out the storm during times of market volatility, but part of us wants to jump ship and row in the other direction!
The challenge with investing in the markets is that unless we consider alternatives that are not market-linked, we may simply jump from one ship to the other, whilst remaining in exactly the same stormy sea.
So here’s the challenge; what do we do in times of market volatility?
We recently read a blog from PIMCO that highlighted how alternative strategies, which can have low or no correlation to traditional markets, may also offer access to an expanded set of market opportunities.
Simply put, investing in alternatives can help provide better portfolio diversification for those who can accept a potentially greater level of risk.
During times of market stress, this is especially important. This is why GreenPark Global connects investors to compelling alternative investment opportunities.
As PIMCO says on their blog, here’s how adding alternatives to a portfolio can create new opportunities:
It’s important to remember that there are different ways to engage with markets beyond the more traditional buying or selling of individual securities. These approaches can help buffer a portfolio when public markets are volatile.
Alternatives broaden the investable universe. When traditional investments seem lackluster and maybe even scary, alternatives can offer additional opportunities by tapping into specialized marketplaces beyond stocks, bonds and cash. This may include litigation finance, real estate and infrastructure (amongst others).
During times of market volatility, alternative strategies that are not in daily-liquidity vehicles may be less likely to be forced to sell quickly and at a lower price than their more liquid counterparts like mutual funds, which may need to raise cash to meet redemption requests from investors. At the same time, they may be positioned to take advantage of attractive buying opportunities that are discounted because of market stress and dislocations. Plus, more illiquid assets often demand higher yields from investors due to the increased risks.
If you’re familiar with the phrase “never put all your eggs in one basket”, then you’ll know that this is taking it one step further and finding hens on completely different farms, not just focussing on one source and one container.
Litigation finance offers you and your clients an exceptional opportunity to move in a different direction, access new opportunities and bolster liquidity.
One of the most prominent innovators of our time is Apple Inc. Founded by Steve Jobs, Steve Wozniak and Ronald Wayne, the multinational technology company has a weather-worn record that has been established over almost 50 years.
From 1997 to 2002, their slogan was ‘Think different’, and it helped them torpedo into a niche market of creative individuals who wanted computers because of what they could achieve, not how they were made.
Until then, much of their marketing (and that of their competitors) had focussed on specifications and upgrades that were heavily inaccessible to the non-techy user. Jargon shrouded the emotional journey to choosing a computer, and IBM was enjoying the lion’s share.
The simpler, cleaner ‘Think different’ campaign spoke to deeper motivations for using their computers and devices. It was no longer about comparing older machines with new machines; it was about what the user could achieve with an Apple machine.
The campaign was an enormous success. Critically acclaimed, it garnered numerous awards and accolades. Not just because it was an outstanding campaign, but because people were ready to ‘Think different’.
The same is true for thinking differently about investing. After decades of market-linked opportunities, litigation finance is an alternative investment opportunity ripe for the picking. This is why Greenpark Global connects investors to compelling alternative investment opportunities.
Alternative investments are supplemental strategies to traditional long-only positions in stocks, bonds, and cash, and in a global economy, they’re highly attractive. Litigation finance offers an active, return-seeking strategy with different risk characteristics from traditional long-only investments.
Alternative investments are attractive to investors because of the potential for portfolio diversification resulting in a higher risk-adjusted return for the portfolio.
With over two decades of experience, we have the skills and acumen to conduct performance appraisals that account for asymmetric risk–return profiles, limited portfolio transparency, illiquidity, product complexity, and complex fee structures.
Just like the reframing of Apple’s campaign, it’s not about simply trying to do something differently; it’s about thinking differently, too. This is why, if you want to explore the opportunities and expand your investment landscape, litigation finance (done right, with the right team) can be a lucrative and exciting alternative investment strategy.
They say that if your dreams don’t scare you, they’re not big enough. But, when it comes to the practical side of investing, it’s entirely the opposite. If you’re scared, the answer may not be to simply invest more. The first thing to do when the markets scare you is to get in touch with your personal advisor.
This is because we’re all different, we have different needs, situations and risk appetites. All of these play into our fears; essentially, what scares or excites us. Whilst the financial profession and complex array of products are full of advanced mathematics, they’re not detached from our emotional intervention – and that’s why we should always check in with our advisor (or pool of experts!).
And then, typically, they should advise you to do one of three things…
1 – Do nothing – stay put
2 – Try to beat the markets
3 – Explore alternatives and diversify
Doing nothing
It’s helpful to remember that every choice we make in life has consequences and risks, so our goal is not to avoid risk entirely but to mitigate risk – in every life decision. We will risk loss by doing nothing, but we will experience risk by taking action, and this is a mathematical certainty. This is why it’s important to check in with a third-party expert (our advisors) who can help us see the bigger picture when we are limited by our fear.
Trying to beat the markets
Often, the first reaction to poor fund or market performance is to switch funds or asset classes. It’s what we’re most comfortable with and seems to be the most logical switch. If one company is struggling and its stocks are falling, let’s jump to one that is performing better. But, unfortunately, this doesn’t always lead to growth.
Explore alternatives and diversify
Diversification through leveraging alternatives and adding variety to an investment portfolio has proven, throughout history, to be the best way to mitigate risk. And this is where litigation finance offers an incredible opportunity, regardless of what the market is doing!
With two decades of experience in litigation finance, our founder, Laura Mann, has always believed that the journey to sustainable wealth management lies in securing options outside of the traditional marketplace. This requires a unique set of skills and networks to create opportunities that will consistently hold up and build a track record of success.
Greenpark Platinum has achieved this and continues to engage with a growing client base to secure a reputable and reliable place in the alternative investments space..
“All of you are likely spending more time than you realize selling in a broader sense—pitching colleagues, persuading funders, cajoling kids. Like it or not, we’re all in sales now.” – Daniel Pink
Sales has gained a bad rap in the era of expanded consciousness and increased awareness of the importance of relationships. But this is not because sales is no longer relevant or necessary; it’s because this activity has been attached almost exclusively to a transaction of monetary value.
If we can start to integrate the relational side with the transactional side, we can create a more extensive and healthier way to exchange value.
Quentin Monjiols from investae.com recently shared some insightful ways to engage in sales in a way that attracts, connects and engages.
He says the following: When you pitch your investment products, there is usually a large number of prospects who ignore or refuse what you have to offer. One of the main reasons is because we tend to start by trying to sell too soon. The first step should always be to make your prospect receptive to change.
In other words, we need to understand the conversation investors have in their heads.
1 – Get them open to a different idea
One of the most frequent mistakes is trying to sell before any interest is shown. For example, instead of saying,
A / “I have an opportunity for you that delivers 10% a year over three years”,
it might be better to say,
B / “Have you heard of [litigation finance] as an asset class? It is an asset in which interest is rising among many investors right now, see article here from (famous news source)”.
When saying A/, right away you are trying to sell. If you start with B/, you are trying to make your prospect open to change.
2 – Make it relatable
Most prospects need a reason why they should have your investment product in their portfolio. Nobody invests because your investment opportunity is “the best on the market” or a “good trade idea”, but because it makes sense for their personal situation or for themselves. Bottom line – they can relate to it.
3 – Show other people that have invested (to show they’re not alone)
People like to be the first but do not like to be alone. Therefore, show them they can be “one of the first” in this asset class since other renowned investors are already doing it.
4 – Stay in touch
Nobody likes to make an investment decision on the spot. When you get a prospect open to the idea, they need time to swallow and digest the information.
The best strategy is to stay in touch in a way that keeps the conversation open and accessible.
Hopefully, as we explore these approaches more intentionally, we will be able to not only sell more but add value and integrity to how we conduct our businesses.
Have you ever wondered what your investments are funding?
With our near-limitless access to information and growing social awareness, the world of investing has expanded to meet our growing needs to find and create meaning. There will always be unscrupulous players in the corporate sectors, but for the most part, we are now able to make much better choices in how, and with whom, we invest our money.
Litigation finance offers us an opportunity to invest with people who, without our support, would likely never “have their day in court.” We like to think of it as a David versus Goliath legal situation, where we are funding David.
And let’s be honest, would you rather be funding David or Goliath? Litigation finance can be transformational for the underdog, and Iowa College of Law Professor Maya Steinitz calls it one of the most critical developments in civil justice of our time.
At Greenpark, we have seen how litigation finance helps balance the scales in a justice system that can favour the wealthy and well-connected. In our previous blog, we spoke about how the party with deeper pockets, or a more robust appetite for protracted litigation, can draw out a case until they ‘win’, and all they’ve effectively done is out-financed their opponents.
Ultimately, litigation finance benefits both the claimant and the investor; the claimant benefits because the invested capital gives them a fighting chance to win or settle. The investor benefits because they can generate significant returns while providing support for the claimant.
Over many years, our team has been building a sterling reputation in the litigation funding sector, finding deeper meaning for our clients whilst helping them beat inflation and engage in non-market correlated investments.
Cases vary, but typically they could look like this:
If you would like to know more about alternative investing or explore ways to bring more meaning to what you’re investing in, please feel free to reach out to our team and let us show you how we can help.
Thanks to social media, the public is starting to see so much more of what used to happen behind closed doors in our judicial systems. Long, drawn-out cases that handle everything from corruption to celebrity scandals are now closely followed and live-tweeted. The past-its-sell-by conundrum still exists: those with the most money have a higher chance of winning court proceedings.
Most litigation is not what we see on Netflix shows like Suits, All Rise or The Good Wife. These entertaining series can sometimes have us believe that litigation can happen in a matter of weeks (one or two episodes) – but the reality is that it generally takes years. For those who have ever been involved in litigation to handle a contractual dispute, the experience is slow, frustrating and incredibly expensive.
“Litigation funding allows lawsuits to be decided on their merits, and not based on which party has deeper pockets or stronger appetite for protracted litigation.”
— Eileen Bransten, New York Supreme Court Justice
This is why litigation finance is such an attractive opportunity for investors. It creates a unique opportunity to support voices that may not be heard due to a lack of funding to support their case in court, making it about the merits and not just the money.
But again, it’s not quite as simple as that. Whilst the outcome of the cases should not just be about the money, the goal of seeing this as an investment opportunity is precisely about the money.
Our goal at Greenpark is to help you benefit from our extensive experience and partnerships developed within the litigation finance sector. This is not just about trying to win court cases for those who deserve to be heard; it’s also about creating attractive returns for those who want to invest in something more meaningful.
So, for us, it’s about both the merits and the money.
Our focus is on raising capital for high-value litigation cases. We provide an institutional-grade structure at a lower entry point, enabling you to demand yield and exceptional growth potential on money introduced, providing one of the best short-term high yield investments available. Forged over the past three decades, our wealth of experience and reputation allows us to access exclusive opportunities which cannot be accessed elsewhere.
Money is linked to every decision we make; with litigation finance, we can identify ways in which we can direct money towards some of the most important decisions so that it can be about both the merits and the money.
When it comes to investing, we are frequently asked about how long it will take to see a return and if that return will beat inflation. Given the state of the economy and the constant threat of inflation, these are questions that every investor should be asking themselves.
As Venita VanCaspel once said, inflation takes from the ignorant and gives to the well informed. Increasing your knowledge of options and remaining aware of what’s going on in the markets are great ways to protect yourself from seeing your investments depreciate from the effect of inflation.
Global inflation rates have put pressure on long-term investments in the last few periods, and short-term investing has always presented a higher risk.
Here are some of the latest figures (figures from worldpopulationreview.com)
There are several ways to beat inflation; traditionally, investors have looked to bonds or stocks. Bonds are a popular option to increase your savings rate, but they are a low-return investment. Stocks offer a higher-return investment, but they are tied to the stock market’s overall performance. If the market performs poorly, you’re likely to see lower returns.
To bolster your portfolio, you need to look beyond the traditional structures and increase your exposure to other asset classes. Litigation finance offers an opportunity for short-term investing and above-inflation returns and is not linked to market performance.
Litigation finance allows investors to fund a wide variety of legal proceedings. Cases are only considered if the plaintiffs (or defendants) have a 65%-or-higher chance of winning the case, but don’t have the capital to fund the projected proceedings. Investing in a portfolio of cases gives the investor a much higher chance of seeing significantly higher returns than inflation.
In recent years, investing has become a lot more complicated, with new investment options constantly being introduced. While this can be a good thing, in the long run, it can be pretty confusing for investors to make sure that they are making the right choices for their money.
One of the best ways to make sure that you’re making the most out of your investment is to keep track of how long it will take to get your money back. This will give you an idea of how much risk you’re taking with your money and will help you compare different investment options and make sure you’re getting the best return possible. With litigation finance, the return can be anywhere from four to thirty-six months, depending on how you want your portfolio to be structured.
When you need to diversify your portfolio, you need as many tools in your toolbox as possible, and litigation finance is a proven tool to beat inflation.
Have you ever sat in the departure lounge and stared out of the window at the incredible activity? There’s an entire world on the other side of that window, focused on making sure that people can engage in one of the most dangerous activities in the world: hurtling at 900km/h, 36 000 feet up in the air.
Thanks to these people, most of us don’t even consider this activity dangerous; in fact, we consider it a normal part of life.
A plane will not be cleared for flight unless due diligence has been done. Hundreds of people need to check off all the boxes for a safe flight. This due diligence is essential to saving lives; no other form of transportation is scrutinised, investigated and monitored as much as commercial aviation.
Over the last two decades, survivability has been over 95% on commercial flights, and research has found that it’s almost 20 times safer than driving a car.
But aviation is not the only industry where due diligence is essential for legal compliance and professional accreditation. From extensive medical tests performed before invasive surgery or complex procedures that save lives to our own financial services industry that looks to protect and preserve livelihoods, due diligence is not only a sign of professionalism, it’s a sign of ethical responsibility.
Investing is often likened to gambling, but when done correctly, it couldn’t be further from the hit-or-miss (and sometimes rigged in the house’s favour) entertainment value of gambling. This is what makes due diligence so crucial for investment opportunities. Whilst we acknowledge we can never have a 100% success (survivability) rate, we can mitigate risk by doing copious amounts of research.
When it comes to litigation finance, the cases we choose are never considered long-shots. A standard element of the framework for due diligence conducted on our litigation finance disputes is that cases must have a 65% chance (or higher) of resulting in a favourable ruling or settlement.
Some of the boxes in this extensive process can include things like securing a thorough knowledge of the basic facts of the case and legal arguments, and details about jurisdiction, judge, counsel, case timeline, budget, and expected damages. While each case is considered on its own merits, we would also consider regulatory due diligence, track record (of the judge, similar cases and opposition counsel), and may consult outside experts where necessary.
One of the attractive traits of litigation finance is that a winning case isn’t just about securing the livelihoods of our investors; it’s also about ensuring a higher potential of a win for the defendant who will benefit from the financial support to see the case through to completion.
Our goal is to create win-win outcomes where both legal, financial and ethical standards are upheld to the highest bar. This places litigation finances in a unique position to add strength and diversity to your investment portfolio.
Market conditions are often likened to the weather, and appropriately so – they can change as quickly and be as damaging! When the water gets choppy, and the passengers get restless, it’s easy to opt for a more secure vessel; to jump ship. But changing vehicles doesn’t necessarily change the water in which you’re sailing. Sometimes, it’s not just about changing the boat; it’s about sailing in entirely different waters.
Ultimately, market volatility drives alternative options. When there is plain sailing, no one looks for other ideas. But, when the conditions change, innovation gives rise to more options that can turn into a more fruitful journey in the long run.
Your clients and network may very well look to you when this happens and expect you to have a list of alternatives available. Hopefully, some of the more alacritous investors will be looking for this opportunity long before the weather changes and rocks their boats.
As Laura, Founder and CEO of Greenpark Platinum, says: “I think that in times of market volatility, especially given the recency of the Russia-Ukraine conflict, alternatives are such an important and wise allocation to portfolios.”
For years, Greenpark Platinum has been building and securing a recognised reputation in the litigation finance sector. This is because, whilst the recent upsets in the markets from COVID-19 in 2020 to East-European conflict in 2022, market volatility is nothing new, and diversification has always been a way to mitigate risk exposure.
Litigation finance is not market-linked, meaning it is an asset class that produces strong and absolute returns. The value of litigation finance claims are not derived from or influenced by traditional asset pricing mechanisms like the stock markets and do not tend to move with fluctuations in the economy. This uniqueness provides a more stable return on investment forecasts.
Many investors, both novice and mature, will be looking for short-term options to either recover recent losses, diversify their portfolios, or simply expand their appetite for investment success. If you’ve seen this already, you’ll know that this only gives credence to Mann’s sentiment above.
Whether your choice to explore litigation finance is reactive or proactive, you will be fortifying your options and offering your network a more comprehensive range of options for their investment journeys.
A rocked boat doesn’t need to be a bad thing; what’s important is that you have a better option ready when you decide to jump ship.
Doubts and behavioural biases plague even the most astute investors. Ultimately, any investment strategy that will hold the highest potential for possible return is one that remains consistently funded. If the funds are pulled… our clients won’t reap the potential benefit. It seems obvious, but it happens more than we like to discuss.
Being invested in an investment strategy requires more than just a monetary investment; it also requires an emotional and cognitive investment. In recent years we’ve found that many people exit too early, and their poor timing decimates their wealth. Sometimes it is from fear and panic when the media steers the market narrative, but often it’s from a deeper need to be connected on a personal, more meaningful level with their investments – and we don’t always know how to articulate this.
At Greenpark Platinum, we’ve created a space to help short-term investors connect with investments that are more meaningful and impactful; litigation finance.
Litigation finance is a non-correlated asset class that produces solid and absolute returns. In short, litigation finance is the financial backing of one side of a high-stakes court case in exchange for a percentage of the proceeds (if the side you’re supporting wins).
It also provides a focussed engagement of funds. We’re all confined by bounded rationality, which means we can only make decisions based on the limited knowledge that we can accumulate. According to psychologist Herbert Simon, instead of making the most efficient decision, we make the most satisfactory decision. With so many investment options available, and so many linked to market performance, investors can easily be overwhelmed with options, be distracted by news and media furore and lose focus.
Lost focus means an increased departure from connection to the investment.
Another behavioural bias that catches our clients is the need to chase trends – especially in the 12- to 36-month investment-horizon space. We all have an extraordinary ability for detecting patterns, and when we find them, we believe in their validity. But when it comes to investing, past performance is not always indicative of future performance. Sudden moves can be costly, which is why, to provide early liquidity, we constantly seek opportunities to sell our portfolios. Often, this happens as early as six to twelve months after a capital commitment.
With over 20 years of global litigation finance experience, we offer an exclusive claims portfolio investors can’t find anywhere else. Our reputation earned us access to these cases, built on a longstanding tradition of raising capital for some of the highest-profile court cases worldwide, ranging from real estate disputes to mergers and acquisitions.
We believe that our deep connection with our work will help you provide investment opportunities to your clients that help them find deeper meaning, connection – and investment – in their investments.