How to profit from third-party finance and enjoy capital protection and guaranteed investment returns.

1. How To Profit From
LITIGATION FUNDING
Litigation Led Investments
Alternative Investment -Extraordinary Returns !

2. What is Litigation Funding?
Third-Party Litigation Funding is based on an individual (or
commercial entity) entering into an agreement to fund a
lawsuit or legal claim, in which they have no prior interest, in
return for an agreed share of any proceeds that result from the
successful outcome of that case.
This agreement may take the form of;
o a fixed percentage of any amount awarded
o a multiple of the actual funding provided
o a combination of the two.

3. Why is it needed?
The real benefit of Litigation Funding is that it can provide an
option for a party that either does not have the resources to
fund a claim or wants to limit the resources that it has to
commit to fund a claim.
A company, for example, may have to put aside funds for
litigation that could have been used for more strategic
purposes, i.e. Research and Development, Marketing, etc.
Many legitimate lawsuits never see the inside of a court room
due to the enormous costs involved and many more cases fail
to go the distance simply because the plaintiff runs out of
money when fighting deep pocketed defendants.
The advent of litigation funding has somewhat removed this
cost barrier and enables everyone to have access to
justice.

4. The Litigation Funding Market
o Commercial Litigation Funding has existed for over 30 years but until recently was
only available to hedge funds, insurance companies and other financial institutions.
o Global Litigation costs are predicted to exceed 300 billion US Dollars by the end of
2012
o Large commercial institutions are now heavily involved in Litigation Funding,
showing enormous profit margins to their shareholders from successfully settled
cases.
o Recent examples of capital raised in the UK for investments into Litigation Funding
are:
Allianz GBP160 million
Juridica GBP100 million
Burford Capital GBP 80 million

5. In a recent
survey of
leading UK
companies,
the cost of
litigation was
the #1
reason they
abandoned
their case

6. Reasons why? - Transferring the risk
A very basic example of why someone may require Litigation Funding
Without Funder WIN LOSE
Costs (300,000) (300,000)
Damages 2,000,000 0
Costs recovered 200,000 0
Other sides Costs 0 (200,000)
1,900,000 (500,000)
With Funder
Costs 0 0
Damages 1,200,000 0
Costs recovered 0 0
Other sides Costs 0 0
1,200,000 0

7. How does it compare as an investment?

8. How does it compare as an investment?
Traditional investments, such as shares or property, suffer from constant volatility and are
invariably ‘correlated’ (i.e.. linked in some way to global or national influences).
Litigation Funding offers a totally ‘non-correlated’ investment opportunity, providing
realistically achievable returns between 12-25% per annum.
These returns are possible because all cases accepted for funding have passed extensive
Due Diligence by legal experts and been judged to have at least an 65%+ chance of being
settled successfully.
Capital Protection is through a combination of up to 4 separate tiers of protection - in the
unlikely event that a case is lost.
The Litigation Funding industry is one of the most scrutinized investment areas, with the
legal fraternity ensuring complete transparency.
And most importantly – 95% cases are settled out of court within a reasonable time-
frame, which will offer a clear EXIT STRATEGY to investors.

9. In 1998 the UK
government were
concerned about
the legal system
and in particular
the rapid rise in
costs to pursue
litigation and
conducted a major
review of the UK
legal system

10. History of Litigation Funding
The reason for this review revolved around 3 problem areas
1. Spending on Legal Aid was doubling every 5 years
2. The rise of costs pursuing a legal case (solicitor fees and court costs)
3. The appeal system was being congested with large companies dragging cases out
(David vs Goliath)
The result of the review brought about the ACCESS to JUSTICE ACT in 1999 which changed
the law to allow privatisation of 3rd Party Litigation Funding which essentially allowed
companies/individuals to provide funding to people /companies that needed it
Today it is COMPULSORY for solicitors/barristers to inform their clients about all of the
options available to them for funding a potential case.

11. What Type of cases are funded?
 Commercial disputes
 Trademark infringement
 Breach of contract
 Shareholder action
 Wrongful trading
 Class Action cases
 International Arbitration

12. What are the case selection criteria?
All cases considered for Litigation Funding go through a strict
Case Selection process.
Criteria include;
o Cases must be approved and passed by an expert legal
selection panel
o Cases must have a predicted settlement figure in excess
of $2,000,000
o The case must be judged to have an 65%+ chance of
success
o The defendant must have the ability to pay any
settlement amount/judgment
o The legal costs of pursuing the case must be
proportionate to the size of the claim
o The case must be insurable

13. The Risks and Rewards
o Up to a 3 Year investment period
o Investment spread over a portfolio of cases
(typically 3-5 cases)
o Capital is 100% principally protected using a
combination of 4 separate tiers of protection.

14. “After The Event ” (ATE) Insurance
o Covers all of opponents costs
o Covers all of our costs including
insurance premiums & dividend costs
o Ensures return of investors’ capital

15. PRINCIPAL PROTECTED UNITS
1. Each case is reviewed by SIX legal experts and commercial
practitioners and then an Independent Legal Review panel
prior to being accepted for funding
2. All cases are insured with an ATE insurance policy by
(minimum) ‘A’ rated insurers
3. Contingent Loss Insurance that covers any costs not covered
by the ATE insurance policy
4. Redemption Account- which provides absolute priority for
payment of principal amounts to all Centaur Unit holders

16. Why would insurance companies take
the risk?
o High Premiums –typically 20-30% total
costs
o High percentage of wins
o Pick and choose the cases they insure
o Odds heavily stacked in their favour

17. WHY DO SO MANY CASES
SETTLE OUT OF COURT?
o Can NEVER afford a judgment to go against
them
o Sets a precedent
o Open up the flood gates for similar claims
o Bad publicity can drastically affect share price

18. THE RETURNS

19. What are the likely returns?
The Notes guarantee a ‘Fixed Return’ of 9%* per annum,
paid 6 monthly (4.5%), for a term of 36 months. In
addition, a loyalty bonus of 9%* is paid upon maturity.
(Total equivalent to 36%* if held to full term)
In addition, monies are invested in the entire portfolio of
cases and a ‘Win Bonus’ of 20% is paid prorated upon the
portion of monies invested in each successful case.
For example, if your £10,000 was used to fund 5 cases of
£2,000 each, you would receive an additional £400 for
each of those successfully concluded cases.
If cases settle early, the Principal could be re-invested into
another case so that you have the potential of achieving
multiple win bonuses. Capital is 100% principally
protected using a combination of 4 separate tiers of
protection.
* Conditional on being held to full maturity – otherwise pro-rated for term of investment period

20. PRINCIPAL PROTECTED NOTES
Case 1 Case 2 Case 3 Case 4 Case 5
Investment 2000 2000 2000 2000 2000
Year 1 - 9% 180 180 180 180 180
Year 2 - 9% 180 180 180 180 180
Year 3 - 9%* 180 180 180 180 180
Maturity - 9%* 180 180 180 180 180
Known return 2720 2720 2720 2720 2720
Result WIN WIN X WIN WIN
Win Bonus -20% 400 400 - 400 400
Total Return 3120 3120 2720 3120 3120
Total Returned Over 3 Years GBP 15,200* or 52%*
* Conditional on being held to full maturity – otherwise pro-rated for term of investment period

21. Note: Below are examples only
TIME LINE OF INVESTMENT
Investment Time Line
Start--------------------1Y---------------------2Y---------------------- 3Y
Case 1 --------------------------------------- WIN
Case 2 ---------------WIN ------------------------- LOSE
Case 3 --------------------LOSE -------------------------- WIN
Case 4 ---------------------------------------WIN
Case 5 -----------------------------------------------------------------------------
Cases 1 & 4 Win - so a 20% WIN bonus is paid out, payable when the next dividend period is due. Original Capital
invested in these cases is returned at 2 year period along with 6% maturity bonus
Case 2 Win - so a 20% WIN bonus is paid out, however money is reclaimed by ATE and this is reinvested into another
case. Second Case Loses so no extra WIN bonus is paid. Capital is repaid, dividends are paid for 28 months and
maturity bonus of 7% (prorated on 28 months)
Case 3 Loses so no WIN bonus is paid, ATE is claimed & this is reinvested into 2nd case. 2nd Case Win - so a 20% WIN
bonus is paid out, Capital invested in this case is returned at 2.5 year period, dividends are paid for 30 months
and a 7.5% maturity bonus is paid (prorated on 30 months)
Case 5 is not completed before the three year time frame, investors are given the option to pull out and get their
Capital back, keeping their interest payments, but forfeiting a WIN bonus OR continue to participate in the case
for which they will receive an equivalent dividend payment for as long as the case continues and if it was
successful receive the WIN bonus

22. Track your investment
Clients can monitor cases and their investment information along with updated
progress reports through a personalised, secure online Portfolio Tracker.

23. What is the next step?
If you would like to learn more about this exciting non-
correlated investment product, please contact