Providing Capital to Law Firms for Growth

Our Investments

Virtus focuses on high-volume, low-risk cases, a lucrative sweet spot in the market that is currently overlooked by larger firms, but that small-to-mid size firms struggle to take on without additional funding.

By providing this funding, Virtus can tap into a £1bn industry that is set to grow exponentially over the next few years, and unlock the opportunity for a rise in litigation cases among new audiences.

By taking advantage of ‘no win no fee’ arrangements where legal fees are only paid if the case succeeds, and ATE insurance protects the fees if not, Virtus can offer sizeable returns from only a small outlay.

Investment Philosophy

At Virtus, our investment philosophy is rooted in prudence, diligence, and a commitment to supporting the growth and stability of law firms through responsible lending practices. We recognise that law firms operate in a dynamic and often unpredictable environment, facing unique financial challenges and opportunities. As such, our approach is tailored to meet the specific needs of this industry while prioritising the preservation of capital and the generation of consistent returns for our investors.

Risk Management

We understand the inherent risks associated with lending to law firms, including fluctuations in case settlements, regulatory changes, and economic downturns. Our risk management framework incorporates thorough due diligence, stringent underwriting standards, and ongoing monitoring to mitigate these risks effectively.

We diversify our lending portfolio across different law firms, practice areas, and geographic regions to reduce concentration risk and enhance resilience to market fluctuations.

Conservative Underwriting

Our underwriting process emphasises rigorous analysis of a law firm's financials, including revenue sources, cash flow projections, client retention rates, and partner track records. We conduct comprehensive risk assessments to ensure that each loan is secured by adequate collateral and backed by the firm's tangible assets.

We adhere to conservative loan-to-value ratios and prudent debt service coverage requirements to safeguard against potential defaults and minimise credit risk.

Client-Centric Focus

We prioritise building long-term relationships with our law firm clients based on trust, transparency, and mutual respect. By understanding their unique financing needs and business objectives, we structure tailored lending solutions that align with their strategic goals and help them achieve sustainable growth.

We maintain open lines of communication with our clients, providing proactive support and guidance throughout the loan lifecycle to address any challenges and seize opportunities for value creation.

Long Term Orientation

We adopt a patient and disciplined investment strategy, focusing on generating sustainable, risk-adjusted returns over the long term rather than chasing short-term gains. By fostering enduring partnerships with law firms and prioritising the preservation of capital, we seek to deliver consistent value to our investors while promoting the stability and resilience of the legal industry.

ATE Insurance

We understand that one of your primary concerns as investors is the protection of your capital and the assurance of returns on your investment. We want to emphasise how After the Event (ATE) insurance plays a crucial role in safeguarding your interests and mitigating risks associated with our investments.

ATE insurance is a specialised form of legal expenses insurance designed to cover the costs of litigation in case of an adverse outcome. Here's how it works and how it benefits you:

Risk Mitigation

ATE insurance serves as a risk mitigation tool by transferring the financial risk of litigation from the invested capital to the insurance provider. In the event that a legal case funded by our investment does not yield a favorable outcome, the insurance policy steps in to cover the associated legal costs, including court fees, expert witness fees, and opponent's costs if applicable.

Preservation of Capital

By securing ATE insurance for our investments, we protect your capital from being depleted due to unsuccessful litigation outcomes. This ensures that your investment remains intact and preserves its value even in the face of legal challenges.

Enhanced Returns

ATE insurance enhances the overall returns on your investment by reducing the impact of legal risks and uncertainties. With the assurance that litigation costs are covered by insurance, we can pursue legal actions with confidence, potentially leading to favorable settlements or judgments that maximize returns for our investors.

Diversification of Risk

While we diligently conduct due diligence and risk assessments before initiating any legal proceedings, ATE insurance provides an additional layer of protection and diversification of risk. It serves as a safety net against unforeseen developments or unfavorable outcomes in litigation, thereby reducing the overall risk exposure of our investment portfolio.

Our Parners