Looking for a place to invest your money and get a good return can be a complicated journey.
There are so many different options. Some of them — like the ones we at Siltstone Capital like to delve into — are out-of-the-box. Others are more conventional, like the stock market.
While stocks are a worthy investment long term, they only yield about a 10% return per year on average. Furthermore, because of inflation, you can expect to lose buying power between 2% to 3% annually.
Litigation finance might be a better option for you, especially if you are altruistically minded. Investors have seen returns as high as 52%, and placing your funds into a litigation investment can be a great way to make a difference in the world. While it can be risky, we do have ways of mitigating that.
Read on to learn more about why litigation investing might be a good opportunity for you.
ARTICLE SUMMARY
High Returns: Litigation finance offers the potential for impressive returns, with some investors seeing as much as 52% returns, making it an attractive investment option.
Support for Businesses: Litigation investments can provide crucial financial support to businesses facing legal challenges, helping them to maintain operations and avoid financial strain.
Overcoming Reporting Challenges: Litigation investments help businesses overcome the challenge of reporting legal expenses as quarterly losses.
Making a Positive Impact: By investing in litigation cases, you can make a meaningful difference by supporting underdogs in legal battles against powerful entities. In return, you receive a share of the winnings as a reward.
Mitigating Risk through Due Diligence: To reduce risk, thorough due diligence is conducted by investment professionals and attorneys to assess the merits of each case.
What is Litigation Finance?
Litigation finance is when you — a third party investor — provide financial support to a person or entity in a lawsuit. If the party you fund wins the case, you get a share of the money awarded at the end. Even though you get a lot of the reward money, it can be just as beneficial for the people you are funding as it is for you.
How It Helps Businesses
At Siltstone Capital, we manage litigation investments for a wide variety of corporate cases with special emphasis on patent and technology issues.
While businesses certainly have more capital than your average person, they can also take quite a blow from lawsuits. Their working capital can deplete easily, especially as the case progresses. When a funder makes a litigation investment, that money helps businesses keep their lights on and pay their employees.
The Catch 22 That Litigation Investing Relieves
When a business is going through a lawsuit, the funds are seen as expenses, which often have to be reported as they come up. This can affect the quarterly performance numbers.
Here’s the catch 22. If the company is likely to win, it will get a good amount of money that will more-than-cover the expenses. However, because the expenses have to be reported every quarter, this can make it look like the business is not performing as well as it should be.
Funders can put their litigation investment into a separate account from company funds, which the law firms bill from. At the end of the case, two transactions are reported at once — the money the business won, and the money the business has to pay to investors out of those winnings. This ends up being a net gain, and it never looks like a series of losses.
How Your Litigation Investment Can Make A Difference
Let’s say a business is founded because the CEO created a product that is world changing. It’s a metal bar that a patient holds for 90 seconds every day for two weeks. Through a complex electrochemical process, it cures depression.
When the CEO started the company, he applied for a patent, and he is now working on raising funds from investors. While that patent is pending, a bigger pharmaceutical company finds out about it and starts selling its own version at a cheaper price. This undercuts the smaller company, which has been doing everything right.
In this scenario, the smaller business needs to sue the larger one. Otherwise, it will have to close its doors. However, being a new company, the expenses of starting a lawsuit can be overwhelming.
The higher ups of the bigger company understand this. In fact, that’s what they’re betting on. They know that in a fair world, they would lose. They plan on dragging out the litigation as far as they can so the smaller company will bleed dry, and they win by default.
In this case, your litigation investment makes you a hero. You are helping out the little guy and standing up to a powerful force that seeks to do harm for its own gain. In the end, your good deed is a huge benefit because you take a cut of the winnings.
The Biggest Risk And How To Mitigate It
If the plaintiff loses, they don’t owe you a cent. This means your money either yields a great return or nothing at all. There is no in between. For this reason, you wouldn’t just put your money into any and every court case you come across.
At Siltstone Capital, we have a team of attorneys who work alongside our investment professionals to determine whether or not each case would be a good investment. We go over the case’s merits and figure out if there is a good chance the case will be a success.
This process of due diligence is more than just a way to mitigate your own risk. It’s also a good opportunity to see if the plaintiff is a good fit for us and vice versa. For example, we might find out that the case is too risky or the plaintiff might disagree with certain aspects of how we are sourcing our capital.
This process can also strengthen the case because the attorneys looking at it can come with a fresh perspective. They can offer suggestions, and they can help the plaintiff better prepare through a mock trial.
Is Litigation Funding Right For You?
Litigation investing is a great option for people who are looking to grow their wealth. If you meet the following criteria, it could be a great course of action for you:
You have enough money to invest. Different firms have different minimums. At Siltstone Capital, you have to have at least $5,000 for a litigation investment.
You aren’t investing money that you otherwise depend on. Because it is a non-recourse investment, you are either paid a lot of money or nothing at all. While our due diligence process ensures a high probability of winning, there is always the chance that you will lose.
You are okay watching from the sidelines. While we can choose cases that you are interested in, it is our policy that we do not interfere with them. This ensures that the attorneys can steer the case wherever they see fit, and that they aren’t pressured by the people who provide the finances. In the end, they usually know best.
You want to make a difference. Your litigation investment can help people who would otherwise be struggling and ensure justice is served. If this isn’t your motivation, that’s okay. It’s simply a bonus for some people.
If you would like to make a litigation investment, you should consider Siltstone Capital. Our team of attorneys and finance experts will make sure your money goes into cases that have a high potential for great returns and a high chance of winning.
In exchange for a share of monetary recoveries, litigation finance provides capital for legal costs while delivering strategic impact by mitigating risks, controlling expenses, leveling the playing field, and strengthening claims. Read on to learn how.
ARTICLE SUMMARY
Unique Benefits and Advantages: Understand the strategic impact of litigation finance, from risk mitigation to leveling the legal playing field.
Experts’ Take: Why litigation finance is becoming an essential tool for legal departments and plaintiffs seeking justice.
Implementation Guidance: Step-by-step process for securing litigation finance, from case evaluation to repayment.
Evaluating Funders: Key criteria for choosing a litigation funding partner, focusing on due diligence and non-controlling agreements.
Siltstone Capital’s Expertise: Specialized experience in providing litigation finance through the Litigo Financial platform.
Contact Us: Learn how partnering with Siltstone Capital can empower you to pursue justice without compromising financial health.
Siltstone Capital offers litigation financing through its proprietary online investment platform, Litigo Financial. Litigo allows qualified plaintiffs fast and efficient access to non-recourse capital for commercial litigation. With seasoned legal and investment expertise, Siltstone Capital assesses case merits and provides funding through Litigo across a variety of disputes nationwide.
A Powerful Financial Tool for Accessing Justice
With this foundational understanding, let’s delve deeper into the broader implications and significance of litigation finance. At Siltstone Capital, we believe litigation finance is an invaluable modern innovation that levels the legal playing field. Our litigation funding expertise helps clients access justice by financing legal costs in exchange for a portion of any settlement or award.
Having established its importance, it’s essential to understand the mechanics behind litigation finance.
What is Litigation Finance? An Introduction
Litigation finance is the practice of an unrelated third party providing capital to a plaintiff to fund litigation expenses in exchange for a share of any monetary recovery. This third party is known as a litigation funder.
It’s usually structured as a non-recourse investment, meaning the funder only gets repaid if the case succeeds. The funder receives payment before attorneys and the plaintiff.
This financial tool lifts the burden of legal costs, reduces risk, strengthens cases, and promotes fairer outcomes. Litigation finance has become an essential resource for legal departments and attorneys seeking justice.
Now that we’ve explored the core concept, let’s unpack the myriad benefits that litigation finance offers.
The Multifaceted Benefits of Litigation Funding
Partnering with experienced litigation funders unlocks a suite of strategic advantages for plaintiffs:
Mitigates Financial Risks: Funding transfers downside risk to the investor, allowing plaintiffs to avoid catastrophic losses.
Levels the Legal Playing Field: Funding neutralizes opponents’ financial leverage and evens the odds for plaintiffs.
Lifts the Burden of Legal Costs: Funding shifts substantial litigation expenses onto the funder’s books, improving plaintiffs’ finances.
Enables Seeing Cases Through: Financing provides staying power to vigorously pursue claims without budget concerns.
Discourages Frivolous Litigation: Thorough vetting by funders may deter defendants from pursuing frivolous suits.
Provides Access to Justice: Funding promotes justice by enabling plaintiffs to pursue rightful claims regardless of costs.
Generates Potential for Significant Recoveries: Robust, well-funded cases are better positioned for substantial recoveries.
Transforms Legal Departments: Shifting expenses off books while securing revenues allows legal groups to become profit centers.
Access to Additional Resources: Funding provides plaintiffs access to legal resources and industry expertise.
The strategic power of prudently leveraging litigation funding is clear. As this financial innovation gains mainstream traction, its multifaceted benefits should appeal to executives analyzing the value of legal action.
While the benefits are evident, it’s equally crucial to see how litigation finance stands as an alternative to traditional legal funding methods.
Navigating Legal Disputes – Litigation Funding as an Alternative
For businesses, legal disputes and lawsuits are unavoidable. From contractual breaches to IP theft, conflicts arise regularly across industries.
Traditionally, when legal clashes emerged, companies had limited options: They could hire counsel, but at expensive hourly rates which is costly for long, complex cases; they could find lawyers willing to take contingency fees which is risky, if the case is unsuccessful; or, they could settle or abandon claims, which often means forfeiting rightful recovery.
Upfront legal expenses can be a substantial burden, especially for smaller companies or startups. Savvy defendants often exploit this by dragging out cases to drain plaintiffs’ resources.
For corporate legal departments, managing litigation under the traditional options has downsides as legal costs can become overly burdensome. Lawsuits transform into cost centers rather than revenue drivers, and this lack of funding prevents pursuing rightful claims.
This is where litigation funding provides an alternative approach. With litigation finance, third-party investors provide capital to cover legal costs in exchange for a share of any settlement/award.
This transfers certain litigation risks and expenses from plaintiff to funder. In turn, plaintiffs gain the financial backing to build strong cases and see them through to conclusion.
Funding can also help law firms expand their market share by enabling alternative fee arrangements and financing cases the firm otherwise couldn’t support.
While litigation funding has its own complexities, for certain companies it can help:
Transfer financial risks of legal action to a third party.
Relieve some of the burden of legal expenses.
Improve corporate financials by shifting costs off books.
Level the playing field against well-resourced opponents.
In the right situations, partnering with seasoned litigation funders can provide businesses a viable alternative to traditional options when navigating disputes.
Understanding the advantages is one part; let’s walk through the actual process of securing litigation finance.
The Step-By-Step Process of Litigation Funding
Securing litigation financing is a strategic process that requires careful consideration. Here is an in-depth look at how these arrangements typically work:
1. Evaluating Legal Claims The first step is for the plaintiff to thoroughly evaluate their legal claims and assess the estimated costs of pursuing action. Strong cases with high certainty of liability are best suited for outside funding.
2. Plaintiff Seeks Financing Once identifying a viable claim, the plaintiff can begin discussions with litigation funding firms. The plaintiff provides key case details, such as alleged damages and legal expenses.
3. Funder Performs Due Diligence Experienced litigation funders undertake rigorous analysis of case merits, estimated damages, legal team expertise, and more. This due diligence process ensures the funder only takes on cases with excellent chances of success.
4. Financing Agreement Reached After completing due diligence, the funder and plaintiff negotiate the financing terms. This includes the amount provided and the funder’s percentage of any rewards. The terms are formalized in a Litigation Funding Agreement.
5. Plaintiff Pursues Case Using Funds With financing secured, the plaintiff pursues the case using the incoming capital to cover legal costs like attorneys, discovery, experts, and other expenses.
6. Case Concludes – Funder Gets Repaid If the case succeeds, the funder receives repayment of capital deployed plus their contracted percentage of rewards. The remaining proceeds are distributed to the plaintiff and legal team.
Customization
The funding can be customized to particular needs, like covering legal expenses like lawyers, court reporters, appeals. It also provides working capital to maintain operations throughout protracted cases.
This flexible dual-purpose funding empowers plaintiffs to vigorously pursue claims without compromising their financial health. When approached strategically, litigation funding can empower plaintiffs to pursue justice by providing vital capital while shifting key risks to the funder’s balance sheet.
With the process clarified, one might wonder: what types of cases are typically funded? Let’s explore.
Case Types Funded – Broad Investing Across Case Disputes
At Siltstone Capital, our experienced team offers particular expertise in litigation funding for disputes across the energy sector value chain. But in general, we provide funding through our Litigo platform for a wide spectrum of commercial litigation for patents and energy.
The case types ultimately funded are based on careful analysis of each claim’s individual merits, not the specific area of law. Through prudent underwriting, Litigo and Siltstone Capital provide financing for high-quality cases across many dispute types.
Some examples of successful cases funded by Litigo include:
An inventor recovering damages from a major tech company.
Investment: $3.8M.
Expected Recovery: $150M.
A company prevailing in a breach of contract dispute.
Investment: $4.3M.
Expected Recovery: $80M.
A biotech firm proving patent infringement.
Investment: $5.7M.
Expected Recovery: $200M.
Litigation financing can be structured using contingency fee or hourly billing arrangements depending on the circumstances.
By evaluating cases individually and funding only quality claims, Litigo enables more plaintiffs to vigorously pursue justice. The choice of a litigation funding partner is critical. Siltstone Capital combines investment expertise with legal acumen to fund prudent cases through Litigo.
While a variety of cases can be funded, the choice of a litigation funding partner is paramount. Keep reading to know what to look for.
Vetting Litigation Funding Partners
Given the high stakes, partnering with reputable litigation funders is critical. When evaluating firms, attorneys should watch for:
Rigorous Due Diligence The best funders undertake exhaustive due diligence before investing in any case. While frustrating amidst litigation, thorough underwriting demonstrates a diligent partner.
Non-Controlling Agreements Ideal funders do not attempt to control or direct litigation itself. This maintains proper legal ethics. Control efforts indicate problematic partners.
At Siltstone Capital, we check both boxes:
✅ Our seasoned legal team performs exhaustive due diligence before taking on any case. We invest significant resources evaluating merits and risks to ensure prudent decisions.
✅ We structure agreements to provide financing only, without any control over litigation strategy or management. Plaintiffs maintain full autonomy over their case.
Choosing the right partner is a critical step. As we conclude, let’s reiterate the overarching value of litigation finance and how Siltstone Capital can be your trusted ally in this journey.
Siltstone Capital – Your Trusted Litigation Funding Partner
At Siltstone Capital, our experienced team provides insightful legal analysis to identify high-value lawsuits for funding highly complex litigation matters such as patent infringement, and breach of contract. We offer prudent, non-controlling financing, robust due diligence, expertise in energy and tech disputes, and access to extensive capital.
Our priority is equipping plaintiffs to build strong cases while protecting high ethical standards. We believe litigation funding levels the legal playing field and promotes justice.
Partnering with us means:
Transferring Downside Risks – Our capital absorbs potential losses.
Lifting the Cost Burden – Shift expenses to improve financials.
Gaining Access to Justice – Pursue rightful claims regardless of costs.
Don’t let lack of funds prevent justice. Gain the winning edge that our expertise provides. Contact Siltstone Capital today to evaluate your case’s potential and unlock the strategic power of litigation finance.
Diversify beyond conventional means. Alternative asset classes offer specialized investments to enhance your portfolio.
Alternative investments are gaining significant traction, with allocations rising rapidly across institutional investors, family offices, and high net worth individuals. According to a 2023 survey by Goldman Sachs, the average allocation to alternatives among institutional family offices now sits at 44% of portfolios. This is up notably from an estimated 20-25% average allocation a decade ago. These specialized assets are moving steadily towards the mainstream.
Driving this growth is rising demand for diversification and yield, as traditional stocks and bond returns moderate. Alternatives like real estate, litigation finance, and commodities offer returns driven by factors distinct from broader equity investments and credit markets. A 2022 report by Preqin found that global alternative assets under management swelled to $13.3 trillion in 2021, up 10.3% over 2020, and are forecast to exceed $23 trillion by 2026.
These numbers show one thing for certain: the worth of alternative asset classes isn’t going away anytime soon. This beginner’s guide will get you up to speed on incorporating alternatives to enhance portfolio diversification and returns.
ARTICLE SUMMARY
Get Acquainted: Introduction to major alternative asset categories like real estate, commodities, and private equity.
Unique Benefits and Advantages: Overview of the unique portfolio benefits and advantages of alternative investments.
Experts’ Take: Experts suggest limiting overall alternative allocation to 10-20% of the total portfolio.
Implementation Guidance: Phase in gradually, diversify across asset classes, and rebalance to manage risk.
Evaluating Managers: Assess expertise, team capabilities, transparency, risk management, and institutional backing.
Siltstone Capital’s Expertise: Specialized experience in overlooked niches like minerals, royalties, litigation finance, and real estate.
Contact us: Explore how prudent allocations to alternatives can enhance portfolio growth and resilience with Siltstone Capital.
Looking to diversify beyond conventional stocks, bonds, and cash? Alternative asset classes offer a broader universe of specialized investments to potentially enhance portfolio diversification, income, and risk-adjusted returns.
As alternative assets are forecast to grow at a compound annual growth rate (CAGR) of 10% through 2026, investors seek diversification. But these complex investments require education. This comprehensive guide navigates the full landscape of alternative asset classes so you can make informed allocation decisions.
At Siltstone Capital, our alternative investment expertise helps investors like you find overlooked opportunities and drive real portfolio value. Read on to increase your know-how!
Alt Assets 101 – An Intro for Beginners
Alternatives include assets beyond the conventional categories of stocks, bonds, and cash that dominate most portfolios. Alternatives have less regulatory requirements versus traditional investments. Real estate, commodities, hedge funds, private equity, royalties, litigation finance, and more fall under this umbrella term. Private equity aims to generate higher returns by encompassing investments in private companies, venture capital, and leveraged buyouts compared to public market stocks.
These assets tend to have low correlations, meaning their performance zigs when markets zag, moving independently rather than in lockstep with traditional markets. Their returns are less correlated and move independently from the equity markets. Such specialized assets share key characteristics that differentiate them from mainstream investments:
Specialized expertise needed to research and manage them effectively.
Less regulation leading to limited transparency in some cases.
Lower liquidity with longer lock-up periods for investors.
Returns driven by niche factors uncorrelated to broader markets.
Higher complexity and due diligence requirements.
Adding alternatives to traditional asset classes provides welcome diversification for many portfolios. However, alternatives introduce more complexity and volatility, and thorough education is needed to invest effectively. For accredited investors open to modestly higher risk, these distinguishing attributes can also unlock portfolio diversification, yield, and risk-adjusted returns difficult to capture through just stocks and bonds.
3 Core Alternative Asset Categories
So, what are alternative assets, anyway? Here is a brief overview of three major categories:
1. Real Estate Investments in rental properties, real estate investment trusts (REIT), real estate funds, and direct property ownership. Can provide steady cash flow from rent payments, inflation hedging as values rise, and portfolio diversification.
2. Litigation Finance Providing funding for lawsuits in exchange for a share of proceeds if successful. Returns are disconnected from financial markets but require legal underwriting expertise.
3. Commodities Exposure to precious metals, oil, natural gas, agricultural products, minerals and other raw materials and natural resources can hedge inflation but have high volatility requiring research. Gaining exposure via funds investing in the underlying commodities or derivatives based on them is generally best for individual investors.
Adding such alternatives can enhance returns, reduce volatility, and provide downside protection since their performance tends not to closely track traditional market cycles. More and more informed investors are taking the less beaten path, and for good reason.
Evolution of Alternative Investing
Alternative investments were historically quite niche, reserved mainly for institutional investors like pensions, endowments, and sovereign wealth funds. But the asset class has evolved and opened up to individual investors over the past decades. Proliferation of alternative investment products like funds and ETFs boosted accessibility.
Key factors driving increased adoption include:
The JOBS Act of 2012 eased accredited investor requirements, expanding access.
Proliferation of alternative investment funds boosted accessibility for individuals.
Low bond yields pushed investors to seek additional yield opportunities.
The 2008 financial crisis highlighted the benefits of diversification beyond just stocks and bonds, and exposed concentrated portfolio risks.
Innovation expanded alternative investment types, like litigation finance emerging as an asset class.
Declining bond yields are pushing investors to seek additional income sources.
More liquid, regulated alternative investment funds and exchange traded funds (ETF) increased accessibility.
Financial innovation expanding the menu of alt assets, like crypto.
More resources helping investors implement prudent alternative allocations.
Ongoing financial innovation around blockchain, digital assets, data analytics, and technology will likely continue improving alternative investment accessibility and adoption. Investor familiarity with these specialized assets has risen markedly – a virtuous cycle enabling further growth.
Alternatives once considered obscure are now moving towards the mainstream as investors recognize their portfolio benefits when allocated properly. However, it is important to not approach doing so cursorily.
Allocate Alternatives Gradually and Prudently
What’s a judicious approach for allocation? Experts suggest limiting overall exposure to 10-20% of your total portfolio, with individual investors at the lower end unless they have high risk tolerance.
When starting out, prudence calls to phase your allocation in gradually over time rather than all at once. Monitor performance over market cycles before slowly increasing your target exposure.
Reasons for gradual allocation include the illiquidity of some alternatives, making overallocation difficult to correct. Concentrated risks also exist in niche markets. Phased addition allows monitoring asset performance across market cycles before increasing target exposures.
Alternatives may introduce more complexity and volatility versus traditional investments. Combining liquid alternative mutual funds with some direct investments can allow appropriate liquidity. As such, prudent allocation requires assessing one’s risk tolerance, return objectives, time horizon, and liquidity needs. Wisdom suggests working closely with your advisor to select strategies fitting your risk appetite and specific diversification needs. Combining liquid alternative funds with some direct investments can allow you to gain exposure with appropriate liquidity.
Diversifying across multiple alternative asset classes reduces concentration risk. Periodic rebalancing maintains target exposures as values fluctuate. With reasonable sizing, broad diversification, and gradual implementation, alternatives have the fundamental benefits to meaningfully enhance portfolio growth and resilience without taking on excessive risk for most individual investors.
Choosing the Right Alternative Investment Managers
Selecting experienced and reputable fund managers is critical when venturing into alternative investment decisions. Six areas to assess managers for long-term success and fit include:
1. Relevant Experience and Laser-Focused Expertise The manager should have direct investing experience and a proven track record specifically within the asset classes covered. A long history of strong risk-adjusted returns is ideal.
2. All-Star Team Alternative asset class strategies demand specialized expertise across real estate, legal, data analytics, finance, and more. Evaluate if the manager has adequate multi-disciplinary talent on staff with complementary skill sets.
3. Compliance and Controls Ensure the manager employs best practices around compliance, audits, accounting standards, and operational controls. This is essential for reducing risk.
4. Risk Management Given their complexity, alternative investments warrant managers with robust risk management practices. Evaluate their risk mitigation approaches.
5. Total Transparency Managers should provide transparency into their investment strategy, holdings, fees, liquidity terms, risk controls, and operations. Lack of transparency is a red flag.
6. Blue-Chip Backers Examine the manager’s current institutional investor base. Institutional clients like pensions validate operational excellence and credibility.
Take time to thoroughly vet managers in these areas to identify trusted partners to navigate the world of alternatives. By identifying who can help you to succeed, your partnership will deliver long-term alternative investment performance. Your manager should be collaborating in your success.
Why Partner with Us? – The Siltstone Capital Difference
What truly sets Siltstone Capital apart from other asset management peers in the alternatives space is our team’s deep operational experience and hands-on expertise specific to the energy, metals, mining, and oil and gas sectors.
Based in Houston, Siltstone Capital is an alternative investment and advisory firm laser-focused on uncovering overlooked opportunities across real assets – from minerals and royalties to litigation finance and underappreciated real estate.
This niche industry focus equips our team to accurately evaluate the upside potential in complex assets like minerals and royalties, zeroing in on opportunities that generalized alternative managers tend to overlook.
Our collaborative culture also strives to provide transparency and closely align incentives with our clients each step of the way. Client education and shared accountability help drive our mission to deliver steady cash distributions, appreciation, and downside resilience.
And, through rigorous boots-on-the-ground research and leveraging cutting-edge data analytics, we aim to maximize risk-adjusted returns and provide our clients differentiated alternative investment exposure.
Let’s touch on Siltstone Capital’s core alternative asset classes.
Mineral and Royalty Rights – Targeting Hidden Mineral Investment Treasure
At Siltstone Capital, we specialize in identifying overlooked mineral and royalty acquisition opportunities, predominantly in the oil-rich Permian and Appalachian Basins.
A mineral right entitles you to all the goodies underground – think oil, natural gas, gold, silver, and more! Royalties give you the right to receive juicy revenue slices from mineral production without operational costs.
We deploy our geoscience and energy expertise to pinpoint high-quality minerals and royalties in prime basins like the Permian and Appalachia. Focusing on assets with likely near-term production generates a steady cash flow feast along with long-term growth potential.
In collaboration with our clients and partners, we target several prime benefits:
Exposure to real assets uncorrelated to stock markets
Monthly cash distributions from royalties
Upside as production expands over time
Inflation protection as commodity prices rise
Tax advantages unique to mineral assets
By maintaining a strict focus on minerals and royalties primed for near-term development, our approach aims to deliver a combination of resilient cash yield and long-term growth for our investors.
Real Estate – Harvesting Income from Niche Places
Siltstone invests in niche real estate like farmland, manufactured housing communities, and recreational parks. These unleash income through rents and leases while offering stability and growth potential.
Key advantages:
Steady cash flow from rents/leases
Inflation protection as rents increase over time
Lower volatility than stocks
Tax perks and investment portfolio diversification
Our hands-on approach enhances returns from real estate assets while generating robust risk-adjusted yields for our partners.
Litigation Finance – Legal Funding for Returns Untethered to Financial Markets
Litigation finance is a distinctive asset class that Siltstone Capital expertly navigates. We specialize in funding high-value commercial lawsuits, specifically within the energy and technology sectors, leveraging our deep industry knowledge for an edge. In return for shouldering the risk, we take a percentage of the proceeds from successful settlements or awards.
The advantages of litigation finance are manifold:
It’s non-correlated to the performance of broader financial markets, offering a unique investment diversification.
The potential for substantial returns due to large settlements.
It grants investors a diversified avenue beyond mainstream assets.
There’s a meaningful social impact, enabling underfunded cases to see their day in court, thus furthering justice.
Harnessing our team’s robust legal and financial expertise, we meticulously assess the merits of each case. This ensures we minimize risks and focus on lawsuits with the highest probability of favorable verdicts. For accredited investors, litigation finance presents an opportunity for returns that stand apart from traditional assets.
Ready to Diversify with Alternatives?
While adding alternatives may introduce more complexity, the benefits for your overall portfolio in terms of diversification, risk-adjusted returns, and yield generation can be compelling. In that spirit, we hope this guide has armed you with knowledge to sagaciously allocate to alternatives.
Are you ready to dive into successful investing in alternative asset classes? Our team is here to collaborate with accredited investors on venturing beyond stocks and bonds. Contact Siltstone Capital today to start exploring overlooked alternative opportunities.
