Sandfield Capital Limited
Sandfield Capital Limited (“Sandfield”) lends money to law firms in the United Kingdom to pay for legal disbursements incurred to pursue certain litigation matters.
This investment is compelling for several reasons:
This investment is compelling for several reasons:
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Approximately 17% of the population in the UK live in social housing. Over the years, these houses have fallen into various states of terrible disrepair resulting in tenants bringing claims against government housing authorities. To date, thousands of cases have been filed, with a +/- 95% success rate and average settlement times of approximately 9 months. These cases are essentially “processed” with almost none of them proceeding to trial. A second category of cases is against financial institutions for failing to disclose commissions paid to brokers, as is required by law in the UK. This was a practice that was followed by a number of financial institutions a few years ago and has now resulted in thousands of cases (not as many as the housing disrepair claims) with similar rates of success, but with average settlement timelines of approximately 24 months.
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As the law firms have a high degree of confidence with respect to the likelihood of success, they take all cases on a contingency basis (ie. they are not paid their fees unless they are successful). The law firms, however, require capital to pay for the disbursements incurred to pursue the cases (eg. experts, investigation reports, etc). The lending provided by Sandfield to the law firms is only to pay for the disbursements.
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Sandfield is willing to pay our investors 14% per annum. Payments are made monthly to the Lenders by ETF. Investors have redemption rights.
In structuring the loan for Sandfield, we incorporated Grow Capital Three Inc. (“GC3”), which is managed by Union Wealth Management™. All of our investors loan their money to GC3, which then loans the money to Sandfield.
GC3 also acts as an administrator for the loans, collects the monthly interest payments from Sandfield, and distributes the interest payments each month to our investors via ETF.
There is a minimum time of one year to invest and investors have redemption rights.
Sandfield pays 14% per annum, on a monthly basis, to investors.
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It is challenging for Sandfield to raise capital in the UK capital market as part of the litigation funding is to pursue cases against government entities and financial institutions.
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Our investors loan in Canadian dollars and are paid in Canadian dollars.
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These include:
The payments are owed and paid by the law firms;
Investors receive security and an assignment against the receivables created against all of the legal cases for which loans are made to pay the disbursements. These cases are specifically segregated out for our investors;
Investors are first loss payees on all cases as against the full recovery of the legal fees, damage awards, and disbursements (even though they are lending only against the disbursements);
Most importantly, the collection of the disbursements are fully insured by an insurance company called Accelerant, an A- rated insurer in the UK. In addition to an insurance policy, Accelerant has also provided a Deed of Indemnity which requires them to pay out the disbursement claim regardless of the event that causes the disbursement not to be collectable (eg. the case is unsuccessful, the Plaintiff does not want to pursue the claim, etc).
Sandfield is an exempt market product AND AVAILABLE TO QUALIFIED INVESTORS ONLY THROUGH UNION WEALTH MANAGEMENT CORPORATION.
If you would like to become an investor with GC3, or if you would like to increase your current position, please contact Andrew Hunka at (780) 244-4769 or email ahunka@unionfinancialcorp.ca.
Important information regarding the GC3 fund is set out in its offering document, which should be reviewed prior to investment.
DISCLAIMER
Union Wealth Management™ is a trade name for Union Wealth Management Corporation, a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager registered in the province of Alberta. This site is only directed to persons within that province. Union Wealth Management provides discretionary investment management services and distributes units of the Union Financial Funds on a non-discretionary basis. The information provided in this site is for general information purposes only and is not intended to be a solicitation as such information does not consider the reader’s specific circumstances. Important information about the Funds described in this site are contained in their respective Offering Documents, which should be read carefully before investing. Any third-party information provided herein (including any technical information) has been obtained from sources believed to be accurate but cannot be guaranteed. The information on this website is current as of the date of publication and Union Wealth Management does not undertake to advise the reader of any changes.