HLC
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How we invest
From a legal asset to an investment decision.
HLC examines a legal asset systematically before capital is committed. The sequence below is the public process: five stages from submission to realisation, and the considerations examined along the way.
The sequence
- 01
- Submission
- 02
- Initial Review
- 03
- Underwriting
- 04
- Investment Approval & Documentation
- 05
- Monitoring & Realisation
The public process
Five stages, from submission to realisation.
Process sheet
HLC's internal review differs by product and legal asset. Active disputes require merits, quantum, budget and enforcement analysis; mature legal assets may place greater weight on finality, obligor quality, enforceability and time to cash.
01
Stage one
Submission
A matter is lodged in writing through the submission form. Submissions are received by Hudson's intake and business development function and acknowledged, ordinarily within one to two business days.
02
Stage two
Initial Review
Conflicts, confidentiality, legal permissibility and broad eligibility are considered, and the appropriate solution and structure are identified. Hudson may request further information, defer, or decline.
03
Stage three
Underwriting
Where a matter proceeds, it is underwritten. The work differs by product and legal asset: active disputes require merits, quantum, budget and enforcement analysis, while mature legal assets place greater weight on finality, obligor quality, enforceability and time to cash.
04
Stage four
Investment Approval & Documentation
A recommendation is considered by the Investment Committee. Where a commitment is approved, terms are documented, legal clearance is completed and the transaction is executed before any capital is deployed.
05
Stage five
Monitoring & Realisation
After execution the matter passes to portfolio management: drawdowns, milestones, reporting and reserves through to realisation and distribution under the agreed waterfall.
Submission does not create a funding commitment. HLC may decline, defer or request further information in accordance with its investment mandate.
Underwriting
What is examined before capital is committed.
Underwriting is a written exercise conducted matter by matter. The considerations below are examined together; none of them is scored, none of them is decisive on its own, and satisfying any one of them does not mean a matter will be funded.
- 01
Legal rights and the legal asset
What the claim, judgment, award or entitlement actually is, who holds it, and whether it may lawfully be financed or transferred in the jurisdiction where it will be conducted.
- 02
Counsel and litigation control
Who is instructed and on what basis. Claimants and counsel retain responsibility for litigation strategy and professional decisions; HLC does not select, instruct or supervise counsel.
- 03
Merits
Liability, causation and the procedural posture of the matter. Merits are only one part of the analysis and no single consideration determines the outcome.
- 04
Quantum and recovery
The measure of loss advanced, the evidence supporting it, and the distance between the sum claimed and the sum realistically recoverable.
- 05
Enforcement
A legal asset has value only if it can be converted into cash. Collectability, obligor quality and the enforcement route are integral to the analysis, not an afterthought once liability is resolved.
- 06
Capital requirement
The maximum aggregate commitment contemplated across the expected life of the matter, together with budget, phasing and timing.
- 07
Transaction structure
Which solution and structure fit the legal asset, jurisdiction and counterparties, with economics, governance and enforcement arrangements documented.
- 08
Realisation
How and when the matter is expected to resolve, and how proceeds are administered through to distribution under the agreed waterfall.
HLC does not publish its underwriting methodology, its internal analysis or the economics of any transaction. Pricing and terms are transaction-specific and are provided in writing only after appropriate review.
Principles
What the analysis is built on.
- 01
Capital Preservation
Every proposed investment is considered in the context of downside exposure, capital requirements and portfolio resilience. Capital preservation precedes headline return.
- 02
Disciplined Underwriting
Merits are only one part of the analysis. HLC also considers quantum, budget, timing, enforceability, counterparty strength and the path to actual recovery.
- 03
Legal Independence
Claimants and counsel retain responsibility for litigation strategy and professional decisions. HLC provides capital and protects its contractual economic interests within applicable law.
- 04
Recovery Focus
A legal asset has value only if it can be converted into cash. Collectability and enforcement are integral to HLC's analysis, not an afterthought once liability is resolved.
- 05
Jurisdiction-Specific Legal Review
Legal permissibility is assessed for each matter in the jurisdiction where it will be conducted, and clearance is given in writing before any capital is deployed.
- 06
Documented Governance
Investment decisions are taken by a formal Investment Committee, recorded, and subject to conflict and recusal procedures and General Counsel oversight.
Legal independence
Capital, not control.
HLC does not select, instruct or supervise counsel. It does not direct pleadings, evidence, strategy or witness decisions, and it does not conduct settlement negotiations. Contractual protections are drawn only so far as applicable law and professional rules permit.
Standing position
Hudson Litigation Capital is not a law firm and does not provide legal advice.
Investment decisions are taken internally. The Investment Committee does not correspond directly with applicants.
Confidentiality and disclosure
HLC treats submissions and matter information as confidential. Privilege, work-product protection and common-interest treatment depend on the circumstances, applicable law, the parties involved and any relevant agreements. Counsel should avoid submitting unnecessary privileged material through the public form.
HLC is confidentiality-first and disclosure-compliant. HLC does not voluntarily publicise funded matters. Funding-disclosure obligations vary by jurisdiction, court and tribunal, and HLC complies with applicable mandatory requirements.
Jurisdiction-specific legal review is completed for each matter, and legal clearance is given in writing before any capital is deployed.
- Solutions
The four families of legal capital.
- Governance
How investment decisions are taken.
- Mandate & Eligibility
The perimeter and published bands.
Understand the process, then make a preliminary submission.
Submissions are received by HLC's intake and business development function. Submission does not create a funding commitment, and no fee is payable on submission.