The JurisTrade Litigation Asset Marketplace provides a “transparent” electronic platform which facilitates both primary funding opportunities in litigation finance, as well secondary sales of such interests.
The potential market for litigation finance ranges in the “several $100s billions, of which only $30 billion is currently funded.”
JurisTrade is designed to unlock this “unmet demand through its liquid and transparent marketplace.”
The litigation finance ecosystem has been “clamoring for years for this type of market solution.”
Similarly to various other asset classes, JurisTrade was reportedly built on a foundation of “industry standardization, transparency, and process streamlining, which eliminates uncertainty and, thus, attracts liquidity for litigation finance, a bona fide uncorrelated asset class.”
Clients of JurisTrade reportedly include institutions, law firms, litigation finance funds, and family offices.
JurisTrade’s Phase I rollout includes “nine diverse investment opportunities including a high-profile single case, a judgment monetization case, a law firm debt refinancing case, and several mass action-related cases.”
An OTC service desk is being offered to assist clients in “negotiating terms and structuring all manners of trades and vehicles, among other things.”
Other market features, technology, and analytics will be rolled out soon according to the announcement.
Typhon Capital Management, Larry Hite, and two family offices are sponsors of JurisTrade.
JurisTrade will be leveraging their collective “expertise and experience.”
Typhon, in particular, provides trading operations on JurisTrade.
Clients can use JurisTrade to directly “engage in claims trading, such as bankruptcy and mass tort, then leverage Typhon to invest in or create custom passive funds holding any manner of litigation interests or loans, and actively managed funds, such as thematic claim trading, market making, or activist litigations.”
Typhon can also structure insurance wrappers “around litigation-focused investments.”
The senior management team of JurisTrade “includes James Koutoulas as CEO, Kevin J.P. O’Hara as Chairman, Shawn Hartpence as Chief Commercial Officer, and Andrew Barroway and Larry Hite as strategic limited partners.”
Larry Hite, Founder of Hite Capital said:
“Mr. Koutoulas is a seasoned hedge fund manager and attorney with a unique skillset encompassing derivatives-trading, complex bankruptcy and class action litigation, and software development making him the perfect CEO to bring the emerging asset class of litigation assets to a wider audience. He and I share similar philosophies on structuring vehicles with asymmetric, positively-skewed, and uncorrelated return profiles which will be much appreciated in the litigation investing world.”
Typhon Capital Management, led by CEO James Koutoulas, is a multi-strategy hedge fund and platform “specializing in tactical futures, quantitative, and cryptocurrency trading.”
Typhon creates custom portfolios and structured products for institutional investors and wealth management firms and is “headquartered in Miami Beach.”