China-related claims,underwritten by people who collect there.
Most funders see China-related claims late, second-hand and with no view on enforcement. You see them after a seven-dimension assessment, an independent review signed by a named lawyer, and a map of where the debtor’s assets actually are. A judgment does not track rates or an index; whether it pays depends on reachable assets — an underwriting question, not a macro one.
Three reasons to allocate, two reasons to hesitate
A pitch that leaves out the second half is not worth your time, so here it is.
Recovery turns on the facts and on enforceability. Portfolio performance in 2020 and 2022 showed no identifiable relationship to equity or credit markets.
The discount reflects how accurately the underwriting team reads collectability. That edge scales with capability rather than with borrowing.
The maximum loss on a matter is the amount deployed plus any adverse-costs security given — both known before deployment.
Matters run eighteen to forty months and the timing cannot be forecast. A secondary market exists but is thin and prices at a real discount. This is not capital that can leave early.
Portfolio averages hide how binary individual matters are — most recover well, a minority go to zero. Averages are meaningless below a certain sample size.
Indicative only and superseded by the constitutional documents. Not an offer.
What a claim goes through before you see it
Public cards are redacted because counterparties require it. Behind them is the same file our investment committee votes on.
Scored on seven dimensions
Merits 25, claim-to-cost 20, recoverability 15, enforcement venue 15, duration 10, counsel 10, legality 5. Scored from the file first, then challenged line by line.
Reviewed independently, signed by name
Every score is reviewed by a lawyer who did not originate the claim. Scores can be overridden, but the original stays on the record beside the change, and the reviewer signs the assessment.
Redacted, but checkable
Public cards show type, forum, claim band, funding sought, expected multiple and stage. Registered investors see the dimension scores, security structure and milestones; diligence opens the underlying file under NDA.
Priority return
Capital is repaid from recoveries ahead of the claimant’s share, in an order fixed before deployment. No matter exceeds 12% of commitments, and no enforcement jurisdiction 30%.
Diligence us before we diligence a claim.
We will send the concluded-matter file, including the losses, before any subscription conversation.