INVESTING IN LAWSUITS W. EDWARD TRUANT EP. 92
Edward Truant, CEO of Slingshot Capital, is a leader in the field of litigation finance. He co-founded one of the world's first litigation finance fund of funds. From case studies to three keys for success, Edward talks us through this niche market.
“Market managers understand that there is risk around single case investing, and the best way to deal with that risk is to deal with diversification, deal with some of the systemic risks that are inherent in the asset class, and build a portfolio big enough that you can really emulate the returns in the industry.” — @etruant [0:14:48]
We dive into his experience in private equity, and what he’s learned in the move to litigation finance. Find out why settlements are a far more desirable outcome compared to court or arbitration. Edward has a wealth of knowledge in this field that spans the globe (from Canada to Australia and everything in between), and he shares some tips on how you can identify, or become, the best fund manager. Tune in to hear why due diligence and diversification of your portfolio are crucial to the success of the fund, and what Edward wants the world to know about this market.
KEY POINTS FROM THIS EPISODE:
David versus Goliath: the origins of litigation finance.
Why a trial or an arbitrage outcome is a negative outcome for fund managers.
What types of cases require litigation financing.
Miller UK versus Caterpillar: the returns on investing in a good David versus Goliath situation.
With and without cause: the situations where fund managers can back out of the agreement.
Edward’s advice on finding a fund manager and how to gain experience as one.
Find out Edward’s experience in private equity over the last 30 years.
The seven best practice elements to litigation financing: case merit; defendant solvency; enforcement and collectability; legal counsel; defendant’s past responses to litigation; judge and jurisdiction; and alignment of interests.
Three keys to successful litigation finance: diligence, diversification, and manager selection.