Institutional and High Net Worth investors typically allocate upwards of 20% of their portfolios to “alternative" asset classes such as Private Equity, Venture Capital, Hedge Funds, Real Estate, Timber etc. Often the objective is to realize outsized returns on capital for a comparable level of risk. Indeed, many alternative assets are intended to be negatively correlated to public equity and debt markets.
Each of the asset classes mentioned above has been in existence for decades, and the dramatic growth in investment vehicles simply shows that in each class - statistically - performance eventually reverts to the unextraordinary mean. When there are more US hedge funds than there are Taco Bells, the challenge is to find that one team that is doing extraordinary things.
Litigation Finance is a new and exciting alternative asset class that offers outsized returns on capital for a reasonable level of risk....idiosyncratic, non-systemic risk with zero correlation to the public markets.
Most Litigation Finance funds pursue a range of personal injury, class action, and trade lawsuits where the settlements can be massive. But in such cases, there are major uncertainties no party can score: duration (and the costs associated with a never-ending process), damages, and the dice-rolling of what may come out in disclosure.
Dulany Street Capital is the world's only litigation finance fund focusing exclusively on Intellectual Property cases, which are highly predictable in terms of cost, duration and damages. Cases come down to objective judgments based on real science surrounding the prior art, not some smoking-gun email that surfaced in Disclosure.
Dulany Street Capital focuses on non-recourse investments in meritorious IP cases. It’s all we do.