Private equity’s newest asset class:
real estate litigation Investors see opportunity for outsized returns
One of the latest focuses for the private equity market is real estate litigation. (Credit: iStock)
Peter Martenson, head of global distribution at Eaton Partners, discussed the practice at length in an interview with PitchBook. He said one of the advantages of focusing on litigation finance is that investors can choose the type of portfolio that they want to build.
“Some investors focus on pharma cases; some focus on real上海千花社区 estate; some focus on tax cases,” he said. “The specialists can build portfolios that cater to LPs’ levels of risk tolerance.”
Martenson compared li上海千花网 tigation financing to venture investing, given that they both do not always result in a return of capital. However, if the investor does not want a high loss ratio, they can also get involved during the later stages of a lawsuit when returns are more likely, yet lower.
“So we’re seeing a couple types of risk/reward approaches,” he said, “one that mimics the VC model a上海贵族宝贝 nd one that looks more like synthetic credit investments.” [PitchBook] – Eddie Small
Tags: Commercial Real Estate, Private Equity
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