A Non-Correlated, Income-Generating Investment

The legal services sector represents a significant portion of the U.S. GDP (0.98% in 2022), with revenues increasing from $354 billion to $428 billion from 2017-2022, representing a 3.83% annualized growth rate. The legal services market, for perspective, is larger than air and rail transportation sectors combined, a fact that highlights the importance of this sector to the U.S. economy.
With this growth, litigation finance is fast becoming the most relied upon way for attorneys and plaintiffs to get the financial backing they need to grow their firms and fight their cases. Investment in litigation funding has shown robust growth, with a year-on-year increase of 16% to USD 17 billion in 2021, demonstrating resilience even amid disruptions caused by the COVID-19 pandemic. This upward trend is expected to continue, with projections estimating the market could reach USD 31 billion by 2028.

The United States remains the world's largest market for litigation funding and its fastest growing market, accounting for more than half of the global activity. Pravati believes that the surface has barely been scratched on the $400bil+ legal services market in the United States.
Third-party litigation funding
investment globally rose by
16% year-on-year to USD 17
billion in 2021.

– Us litigation funding and social inflation – the rising costs of legal liability; swiss re institute (2021)

The Pravati Difference:

We seek to allow investors to access the growing litigation finance market through our exciting alternative investment vehicle. As with any alternative investment, investors must understand the unique risks involved, weigh the potential benefits against those risks, and understand the risk-hedging measures taken by fund managers.
Litigation finance is fast becoming the most relied-upon way for attorneys and plaintiffs to get the financial backing they need to fight cases. In 2018, the ABA Journal reported that one-third of lawyers surveyed had relied on litigation finance to help fund cases, and 70 percent of firms indicated that they are likely to rely on it within the next two years.
While that represents a 237 percent increase in private practice lawyers using litigation funding in 2012, this multi-billion-dollar market has barely scratched the surface of the $110 billion generated annually by the top 200 US law firms.

Unimpeded by Market Performance

For eligible investors** seeking a unique strategy, Pravati’s investment funds offer an opportunity that is free from the influence of broader markets. Pravati’s investment funds are a viable alternative for investors looking to truly diversify their holdings and hedge against volatile market swings.

Alternative Litigation Funding for Income-Seeking Investors

Pravati investment funds may be attractive for an eligible investor seeking periodic income distributions as well as capital appreciation from a portfolio of litigation finance receivables.

Conservative Funding Focus

Pravati’s investment funds emphasize the strength of the Pravati Capital underwriting team. Our experienced underwriters pinpoint the mass tort, commercial liability, and personal injury cases that have a strong likelihood of settlement. We follow this approach as a way to lower risk while increasing total settlement amounts.

Built-In Diversification

A solid choice for investors seeking diversification of assets, Pravati’s investment funds offers an attractive alternative litigation funding investment. Pravati anticipates using funds raised to invest in a broad range of cases, each with what our underwriting believes will have a high probability of success. Additionally, by investing in a wide variety of cases, we anticipate that settlements will constantly occur, which will keep returns flowing into the fund.

A Great Choice for Social Impact Investors

The asset-backed bridge capital provided to plaintiffs and law firms by Pravati’s investment funds gives wronged consumers, patients, and others the ability to hold drug manufacturers and others accountable.

Ideal Investment Transparency

Pravati investment funds are diversified funds of financed litigation cases that are continually monitored and cross-checked. Pravati Capital shares this information with investors through timely and accurate valuations and performance updates and works with third-party administrators, auditors, and legal counsel to ensure investors’ capital is protected.

Join the Untapped Litigation Finance Market

Available solely for eligible investors, Pravati investment funds allow individuals to join the relatively untapped litigation finance market through our alternative investment vehicle.
*A NOTE TO OUR INVESTORS: We report quarterly on the performance of the fund. Reports are issued within two weeks of the end of each quarter. Additionally, investors will receive their own private communication reporting on their respective capital account balances.

*SECURITIES DISCLAIMER: The Pravati investment fund private placement offerings referenced above is being made only to eligible investors that can bear the economic risk of their investment for an indefinite period of time and can afford to sustain a total loss of their total investment. The information set forth above does not constitute either an offer to sell or an offer to purchase securities. No investor funds will be accepted absent the execution and delivery by each investor of final definitive legal agreements.

**“Eligible investor” means a person that (i) is an “accredited investor” (as defined in Regulation D under the Securities Act); (ii) is a “qualified purchaser” as that term is defined under Section 2(a)(51) of the U.S. Investment Company of 1940, as amended (the “Company Act”), or a “knowledgeable employee,” as defined under Rule 3c-5 of the Company Act, and the rules and regulations promulgated thereunder; and (iii) meets other suitability requirements set forth in the subscription documents for the Fund.

Pravati Investment
Fund VI, LP

Discover if the Pravati Investment Fund VI, LP is a good fit for your portfolio.

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