Alternative investments

Legal Financing 

The legal market is undergoing an historic period of evolution that as well as challenging the way a traditional law firm works it provides an excellent opportunity for forward thinking law firms. To capitalize on the opportunities the forward thinking law firms require financing to provide working capital and to finance Special projects. '

Legal financing provides one such alternative investment that meets the investment principles of the Audax Pension. 

The legal profession represents a valuable and important segment of the UK economy, generating £23.1 billion per year or 1.8% of GDP and £3.2 billion in exports, according to information provided by the Ministry of Justice and UK Trade & Investment. In 2012 it was estimated the UK Legal Financing market was worth in excess of £500 million.

The legal market is undergoing an historic period of evolution that, as well as challenging the way a traditional law firm works, provides an excellent opportunity for forward-thinking law firms. To capitalise on the opportunities the forward-thinking law firms require funding to provide working capital and to fund special projects. 

Working Capital – One of the biggest challenges facing successful casework is working capital. Regardless of how strong the case, or how worthy the claimant is, many cases are either unable to start and/or continue to progress due to the cash flow restrictions of the client and/or the law firm. Two major contributors to the situation are the withdrawal of most forms of legal aid and the recession leading to traditional lending channels, such as the banks being unwilling to provide the much needed working capital. 

Project finance – The forward-thinking law firm and other associated businesses need to develop new efficiencies (through best practice and implementation of new technology) and to develop new, enhanced services that are required for the changing face of the UK legal market. We consider providing financing to projects that meet our investment principles. 

The size of the UK Legal market and the strong demand for the financing provides the potential to receive a higher return than the traditional listed schemes. The demand and highly regulated nature of the UK legal market also provides an excellent platform to implement measures to manage the risk to the investment made by implementing strict investment selection criteria, both in terms of the Law Firms (and their projects/services), the casework and other matters we provide funding for.