The architecture
Investment Committee Protocol
Ten standing provisions.
- I
Composition
The Investment Committee comprises senior professionals drawn from litigation, structured credit, and institutional risk. At least one member must hold formal legal qualifications and active legal practice.
- II
Voting Threshold
Every commitment requires a supermajority. A single dissent on merits, quantum, or recoverability is sufficient to defer the matter pending further diligence.
- III
Quorum
No commitment may be approved without the participation of all sitting non-recused members. Capital is never deployed by partial committee.
- IV
Recusal
Any member with a personal, professional, or prior counsel relationship to a party, firm, or matter recuses absolutely. Recusal is recorded in the IC minute.
- V
Conflict Register & Clearance
A standing conflict register is reviewed at the opening of every committee session. A written Conflict Clearance from the Compliance Officer is a precondition to any IC consideration.
- VI
Non-Interference Doctrine
A binding internal rule prohibits HLC staff and IC members from directing litigation strategy, instructing counsel, or interfering with counsel's professional judgment at any point.
- VII
Concentration Limits
No single matter exceeds 12% of committed capital. No sector exceeds 35% of the portfolio. No single law firm represents more than 30% of matters by count.
- VIII
External Counsel
Independent external counsel is retained for every legal-merits assessment above the screening threshold. The IC does not rely on internal opinion alone.
- IX
No Side Letters
There are no side letters, MFN clauses, or undisclosed economics. Every commitment is documented on the same standard form.
- X
Records & Audit
Every IC memorandum, vote, recusal, and stress-test is preserved for a minimum of seven years. The complete file is available to claimants on request, subject to confidentiality.
§ Confidentiality, Work Product & Common Interest
“Materials shared with HLC in the course of evaluating or funding a matter are handled as confidential and, where applicable law and the parties' relationship support it, are intended to fall within the work-product doctrine and the common-interest privilege.”
HLC does not seek privileged communications from counsel beyond what is reasonably necessary for underwriting and monitoring. Before sensitive materials are exchanged, HLC executes a written non-disclosure and common-interest agreement with the claimant and counsel.