Who is Pravati Capital?

Pravati Capital is an Arizona-based SEC-registered investment advisor that operates a senior-secured private credit strategy focused on the legal sector. Founded in 2013 by industry pioneer Alex Chucri, the Firm has funded over $248mil to law firms and litigants, helping law firms grow their business and leveling the playing field for litigants. Our core strategy aims to produce a non-correlated all-weather hedge with a consistent, high yield for investors.

The Investment Opportunity

Traditionally, it has been challenging for plaintiffs and law firms to access capital. Law firms couldn't raise capital from non-attorneys, and banks couldn't lend against the value of their case portfolio. Our product bridges this gap, allowing firms to unlock and leverage the value of their legal assets, secure tailored financing, accelerate growth, and manage the costs of litigation.

What we Offer Investors

Non Correlated Returns

In the investment world, market volatility is a constant challenge, with traditional investments such as equities and bonds being subject to a wide range of dynamic and systemic external factors such as interest rates an geopolitical events. This type of risk is difficult to mitigate. Our strategy focuses on the legal sector, which is an industry that historically has been very resistant to economic fluctuations. In the last 30 years the number of civil cases being filed in the US has grown at an average rate of 3% per year, even during uncertain times such as the COVID-19 pandemic.

Our investments are collateralized by the monetary value of thousands of individual underlying cases, which provides a diversified asset base from which our investments derive repayment.

High Yield Cash Flow

Our investments are typically originated at fixed rates between 19% and 27%. Because of the highly diversified nature of the underlying collateral of our investments, which produces ample cash flow, our Funds have historically been able to deliver regular quarterly distributions to investors over the Fund lifecycle.

Focus On Principal Protection and Risk Mitigation
Investments originate at an average LTV of 25% and are structured so that Pravati has a senior secured priority interest in all law firm assets, current and future, and personal guarantees from the law firm's partners. Asset valuation is conservative, and we retain interest in legal assets we assign no value to.
Pravati Investment Fund VI
Our latest fund vehicle is currently seeking commitments of $250mil. Our core law firm lending strategy builds upon decades of market experience and insightful investment selection.
Benefits For Borrowers
Our funding arrangements provide an array of benefits. At its core, law firms and litigants are able to leverage Pravati’s extensive valuation and market expertise to:
Unlock Value Of
Litigation Assets
Manage Their 
Balance Sheet
Effectively
Accelerate
Growth

Investment Characteristics

Our services are designed to function similarly to those offered by a bank. We provide borrowers with lines of credit and term loans at interest rates ranging between 19% and 27% per annum, based on the level of risk. These investments are backed by the law firm's case collateral and assets. We collaborate closely with borrowers to evaluate their cash requirements and business objectives. Progressively disbursing funds based on predetermined milestones, we maintain open and regular communication, diligently monitoring performance and working to ensure the firm maintains optimal financial health.
19-27%
Annualized 
interest rate on 
new originations
$2.5 MIL
Average size 
of investment
2-2.5 YRS
Average duration 
of investments
1st Lien Position
Senior secured, first lien 
position on all firm assets 
and receivables
25-30% LTV
Our investments are originated 
at a loan-to-value that provides 
ample valuation risk protection.
DEAL FLOW AND ORIGINATION

Over the past decade, we have developed a strong origination program contributing to consistent deal flow for high-value investment opportunities. This enables us to select only the best investments with favorable terms. Every deal undergoes rigorous underwriting, and historically, we provide funding for only 5% to 6% of the deals in our pipeline.
$2.5 BIL
Total Funding Requests 
Recieved Between 2020-2024
5%
Percentage Of Total Loan 
Appications We Fund.
A UNIQUE ALTERNATIVE PRIVATE DEBT STRATEGY

Our private debt strategy is unique and stands out among other offerings. Pravati has consistently delivered Net IRRs above the Pitchbook Global Private Debt Benchmarks for each vintage year. Our strategy is not exposed to the same systemic risk as other direct lending strategies because law firms generate revenue from legal cases, which are not correlated with economic or financial market changes.
Pitchbook Global Private Debt Benchmark*
Pravati
*The Pitchbook Global Private Debt Benchmark IRR is representative of the average Net IRR for all reporting private debt funds across all geographies on Pitchbook. Pravati returns represent the Net IRR of all Funds Pravati launched and subsequently liquidated for each vintage year. Note, constituent pool of Funds included in the benchmark return are different for each vintage. A copy of the benchmark Net IRR construction is available on request.
There is no guarantee of future performance. Investors should make their own evaluation of likely future results. Seecertain of the legends and disclaimers at the end of this presentation regarding any data, projections, forwardlooking statements or other information or views discussed in this presentation, including in this section.
SERVICE PROVIDERS

Best-in-class service providers assist our management team in delivering transparency and accuracy to our clients and investors.
Fund
Administration
Audit
Legal/Tax 
Counsel
Valuation 
Agent
Banking 
& Trust
Data
Room

Contact Our Team

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Meet Our Team
Alex Chucri
CEO
Alex@pravaticapital.com
Jeff Rassas
Managing Director

Jeffrey@pravaticapital.com
Garrett Dowling
Chief Compliance Officer

Garrett@pravaticapital.com
IMPORTANT DISCLOSURES

Interests in pravati investment fund vi, lp (the “fund”) have not been, and will not be, registered or qualified for sale under the u.S. Securities act of 1933, as amended (“securities act”), or any state’s, foreign jurisdiction’s or other securities laws, and the interests in the fund are being offered and sold in reliance on exemptions from the registration requirements of such laws and may not be transferred, assigned or resold except as permitted under such laws and in accordance with the fund’s governing documents. Accordingly, this confidential presentation (this “presentation”), the confidential offering memorandum (the “ppm”), the limited partnership agreement of the fund (the “partnership agreement” or the “lpa”), and the fund’s subscription agreement (collectively, the “offering documents”) have not been filed with (or reviewed, approved or disapproved by) the u.S. Securities and exchange commission (the “sec”), any state securities commission, or any other local or foreign regulatory authority, and neither the sec nor any state, local, or foreign securities administrator has passed upon or endorsed the merits of an investment in the fund or the accuracy or the adequacy of the information contained in this confidential presentation and the offering documents. Any representation to the contrary is a criminal offense.

Any security described herein may be sold or transferred only to eligible investors. “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 defined under section 2(a)(51) of the u.S. Investment company act of 1940, as amended (including the rules and regulations promulgated thereunder, the “company act”)) or a “knowledgeable employee” (as defined under rule 3c-5 of the company act) and (iii) meets other eligibility requirements set forth in the subscription agreements.

An investment in the fund is speculative and involves a significant degree of risk. Risks include, but are not limited to, the fact that the fund has or may have: no operating history; volatile performance; leverage use; very limited liquidity with no secondary market expected and restrictions on transferring interests; high fees and expenses; regulatory and other risks of the fund’s business (including, but not limited to, the fact that the fund is not registered under, or generally required to comply with, the company act, the securities act, and the u.S. Securities exchange act of 1934, as amended (“exchange act”), and, accordingly, is not required to provide periodic pricing or valuation information), and delays in distributing important tax information, and a dependence on the fund’s general partner, pravati investment fund iv gp llc (the “general partner”), and on the fund’s investment manager, pravati capital, llc (the “investment manager”), which will have authority to manage the fund’s operations and assets. Prospective investors should carefully consider all risks described in the full offering documents in determining whether an investment in the fund is suitable. The fund may not be suitable for certain investors. There can be no assurance that the investment objectives described herein will be achieved. Nothing herein is intended to imply that the fund’s business or investment methodology may be considered “conservative”, “safe”, “risk free”, or “risk averse”. Investment losses may occur. You should be aware that you could lose all, or a substantial amount, of your investment in the fund. Accordingly, prospective investors should have the financial ability and willingness to accept such risks and the lack of liquidity that is characteristic of investments such as the interests of the fund. There will be no public market for the interests (nor is one expected to develop) and, subject to certain limited exceptions, they will not be transferable.
© 2020 Pravati Capital. All rights Reserved.
DisclaimerTerms of ServicePrivacy Policy
crossmenu