Update on Invest in Cases: February 2021

It’s now a few months since Ignite Invest introduced its litigation investment direct into cases, in conjunction with SRA Law firm Fuse Legal. We are now starting to see cases being progressed through the various stages of litigation. This starts with pre-litigation, through the issue of proceeding defence filing and disclosure , witness exchange, pre-trial ending with trial/final hearing and a date for the resolution.

The cases progressed are based on the Plevin Supreme Court ruling and are all precedent-led cases. This means that the lower courts must make their ruling based on the highest court in the land. Many clients are liking this investment as is one that fits with the current marketplace as Covid-19 has caused significant disruption. In the same way Payment Protection Insurance (PPI) was borne out of the financial crash of 2008, we expect the same from the Plevin ruling to do the same coming out of the pandemic.

Our initial investors are now starting to get status reports showing early indications of the projected damages values for fast track cases (greater sterling value) are coming in around £15,000 and £3,600 for small claims. Whilst historical performance is not necessarily an indicator of future performance, it is good to see expectations being achieved. Even with the lowest contractual amounts the investment returns are very much above-market averages as the cases being progressed are precedent-led.

In the early stage of the launch, when volumes were low, there were a lot of higher value cases. As private investors have started to invest the flow of cases has switched in percentage from the larger value cases to the mass market of smaller value claims. Whilst the damages on smaller cases are less, so is the processing cost which is a quarter of the fast track cost. A big benefit however is that the processing time is significantly less and therefore increases the annual return on investment. The fast track cases are on target for pay-out of a maximum 15 months with the small claims significantly less than this.

We are now seeing significant interest from Family Offices and Institutions which will bring more attention to the sector.

Whilst, we at Ignite Invest and investors are pleased with the initial results it should be highlighted that the litigation is in the early stages and whilst there is insurance cover to cover costs should a case fail to win the investment will produce a variable and not a fixed return. The averages are not guaranteed and investment decisions should be based on the contractual minimums of £10,000 and £3,000 depending upon case type. All investors should be suitably qualified and any investments should form part of a diversified portfolio.

If you would like to find out more about our Invest in Cases opportunity, you can find out more here: https://www.igniteinvest.co.uk/investments/current-investments/ or call our team on 0203 355 1178

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