Fenchurch Legal partners with Altify to launch legal finance token
Fenchurch Legal has partnered with South African alternative investment platform Altify to launch a digital token that it says will democratise access to litigation finance.
Through the partnership, Altify has launched a US dollar-denominated legal finance security token on the Bitcoin Liquid network, with the ticker ALFI.
Each token is backed by Fenchurch Legal’s litigation finance loan notes and offers a fixed annual yield of 11 per cent with quarterly interest payments.
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Fenchurch Legal, which provides finance for small- and medium-sized UK law firms, said that the collaboration will widen access to litigation finance investments.
Altify’s 75,000 South African clients can now invest, with as little as $100 (£77), in a diversified portfolio of senior secured loans to UK law firms.
The UK litigation finance market is experiencing strong growth amid increased investor demand. Fenchurch Legal said that its loan note offering has seen a 90 per cent quarter-on-quarter increase in investor uptake in the third quarter of this year.
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“This partnership with Altify marks a key growth milestone for Fenchurch Legal, and we are delighted to be the first company to join their new private debt offering,” said Louisa Klouda (pictured), chief executive of Fenchurch Legal.
“Being on the Altify platform allows us to diversify our funding sources and increase our lending power, allowing us 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.
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“We look forward to collaborating with Altify, a company that shares our commitment to technology and innovative financial solutions.”
Sean Sanders, CFA charterholder and chief executive of Altify, added: “Fenchurch Legal’s exceptional track record in funding UK law firms and delivering steady returns within a niche alternative asset class makes them an ideal partner for Altify.
“Legal finance is a compelling investment category for portfolio diversification, as it is largely uncorrelated with traditional economic cycles.”
