Woodville Litigation Funding Investment Review 

Woodville Litigation Funding investment review – that will be the topic of today’s article.

If you have been proposed Woodville Litigation Funding and want a second opinion, you can email me (advice@adamfayed.com) or contact me here.

We can sometimes offer discounts, and other benefits, if you want to invest in Woodville, compared to many other providers.

Introduction – who are Woodville and what are the basics associated with this investment?

Woodviile are a UK-based company who specialize in litigation funding. The main focus is in consumer finance and personal injury.

The company makes a return of the proceeds if a successful claim is made by somebody who qualifies for one of the loans.

Woodville offer a one, two and three year bonds. The returns are 10%, 11% and 12% respectively.

The investment is available in Euros, USD and British Pounds.

The investment minimums are $10,000, with most investors doing much higher sums.

Where is the investment sold?

The investment is sold globally, but especially in expat hotspots such as the UAE, Saudi Arabia, Qatar and beyond.

Often it is part of a wider portfolio, sold on platforms such as Custodian Life and Capital Platforms.

What are the positives associated with this investment?

• If you are holding Woodville as a small part of a diversified portfolio, then it might fit in with your strategy.
• There is the security of having First Charge over the legal cases
• The insured option, which is only available on amounts above $100,000, offers enhanced protections
• 0% default rate so far, and an expanding company in an area (litigation) which is becoming a bigger market over time.
• The returns are net of fees and charges, so clients don’t have to calculate a complicated ROI
• The litigation market is growing and is currently worth hundreds of billions a year. There is a constant demand for this kind of work, even in economic downturns.
• Woodville are focused on the more liquid end of the market, with many of their loans maturing in 6-12 months. Many larger providers don’t give out these kinds of loans to law firms.

What are the negatives?

The main negatives are:

• You are locked in for 1-3 years.
• If you don’t go for the insured option, you are taking a bigger risk than through A-rated corporate and government bonds
• Like all investments like this, you are taking a bigger risk compared to investing in say A-rated government bonds, but the returns are much greater too. The question is if the risk-adjusted returns are worth it.
• You are reliant on your investment advisor to construct a good, well-rounded portfolio, which meets your needs. This is the case with any investment though, and can be a positive or negative depending on who is representing you.
• Woodville is completely focused on the UK-market. This is good in some ways. It is a tried-and-tested market, and there isn’t the complexity of multi-jurisdictional lawsuits. It is also a stable market, because some people always take the litigation route. In fact, people are arguably more likely to seek litigation during troubling economic times. It does mean you are reliant on one economy though.

Conclusion

If kept as a small percentage of a larger portfolio, Woodville can offer a value-add if you are looking to diversify, as can the insurance option on investments above $100,000 or currency equivalent.

Allocations to the non-insurance option shouldn’t be overly high, however, as risks do remain.

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Adam is an internationally recognised author on financial matters, with over 492.2 million answers views on Quora.com and a widely sold book on Amazon