Liti Capital merges traditional financial markets with equity tokens to create next-generation fintech, making private equity investing available to everyone. Its current Executive Chairman is David Kay.
Liti Capital SA is a Swiss investment company that combines blockchain-based solutions, advanced data analytics and investigative capabilities to conduct litigation funding.
Liti Capital was formed in June 2020. The idea was born from Jonas Rey, who also heads Athena Intelligence, one of Switzerland’s most successful intelligence-gathering firms and one of the world’s most sought-after agencies in identifying recoverable assets. His two co-founders, Andy Christen and Jaime Delgado took a crucial role in shaping and implementing the vision of the project, as they bring a proven knowledge of blockchain engineering, a track record in the innovation fintech startup industry as well as operational and technical skills to round out the internal leadership team. NYC-based David Kay, one of the most successful and in-demand litigation finance strategists in the history of the 25-year-old litigation finance industry, recently joined the team as Chief Investment Officer. When David was Funding Partner and Portfolio Manager of a billion US dollar private equity fund working in the litigation finance space, he was routinely tasked with monetizing awards valued in the hundreds of millions of US dollars. This included successfully enforcing what was at the time the largest international arbitration award in history – bringing in more than one billion US dollars of cash and securities
Litigation finance, also referred to as litigation funding or third-party funding, is the practice in which an outside party invests in a lawsuit or arbitration in exchange for a portion of the profit.
In the litigation finance market, a solid legal claim functions as an asset, and just like any other investment it comes with the potential of risk and reward. Litigation funders consequently finance their cases selectively and with discretion, backing the most worthy and winnable suits.
This investment method is traditionally non-recourse, meaning that if a client loses their dispute they aren’t required to repay the investor. Claims only guarantee returns when they reach a settlement or are granted recovery. Though the high ROI makes it an attractive gamble— per Steven Friel’s The Law and Business of Litigation Finance, on average funders are pocketing between three and five times more than their initial injections.
Their most successful case to date is the purchase of 20% of an arbitration case for $20 million USD. The plaintiff was the largest shareholder of a now liquidated US manufacturing company with a $1 Billion USD sales pipeline at the time it closed its doors due to defendant stock purchase default. Lack of payment for shares by the defendant caused the plaintiff to default on financial commitment to the manufacturing company.
On the defendant side, they work with over 100 subsidiaries and significant business with substantial assets. In 2018, the plaintiff filed at the Hong Kong International Arbitration Centre (HKIAC), a top-three international arbitration court. Final Arbitration decision (no appeal) is expected in 2023 or before, if there is a settlement.
Liti Capital offers litigation funding services that operate on the blockchain. Their activity consists of financing or acquiring legal claims — one of the most appealing asset classes because they can produce high returns on investment even during economic crises. They offer anyone the opportunity to become an investor through their LITI and wLITI tokens, leveling the playing field for all.
To enhance the likelihood of success, Liti Capital only integrates into their litigation asset portfolio cases that pass a thorough and multi-step evaluation process. To this end, they conduct a complete due diligence that translates into the following elements:
1. They acquire key document evidence on the case and request a favorable opinion on the prospects of success from senior counsel and experts.
2. They assess the value of the claim, the ability of the opponents to pay upon an adverse judgement or arbitral award and the enforcement strategy. To set an optimal risk management policy, they further diversify the selected cases based on the geographic presence, the industry at stake and the jurisdiction of the claim. Furthermore, they base their selection on a well-balanced proportion of higher and lower risk cases to limit the damage to investors should a claim fail.
3. They present their strategy in more detail in the following sections.
Liti Capital is committed to fight crypto fraud. As the company mentioned: “The idea that scammers can freely operate in the crypto sphere without facing the consequences of their actions must end to bring trust and change the perception blockchain and crypto projects have in our society. Liti Capital and its extended team have a particular set of skills to initiate lawsuits in any part of the world, hire the best legal team and find assets belonging to defendants of cases Liti Capital pursues. Liti Capital commits to allocate between 5% and 10% of its yearly investment budget to finance cases that have affected its community members. Any LITI or wLITI token holder can report a purported fraud to the company.”
David Kay – Executive Chairman, Chief Investment Officer
NYC-based David Kay, one of the most successful and in-demand litigation finance strategists in the history of the 15-year-old litigation finance industry, recently joined the team as Chief Investment Officer. When David was Funding Partner and Portfolio Manager of a billion US dollar private equity fund working in the litigation finance space, he was routinely tasked with monetizing awards valued in the hundreds of millions of US dollars. This included successfully enforcing what was at the time the largest international arbitration award in history – bringing in more than one billion US dollars of cash and securities.
Jonas Rey – Co-Founder, Chief Executive Officer
Jonas is the head director of Athena Intelligence, a private intelligence firm based in Geneva and Shanghai, with a proven track of expertise in tracing and assisting in the recovery of hidden assets. Jonas has a master of arts in world governance with a focus on Internet Governance of the University of Lucerne in Switzerland. Prior to founding Athena Intelligence, he worked in the Geneva office of a multinational intelligence firm. Given his thorough knowledge of the industry, he leads the investigation, due diligence and case selection process at Liti Capital.
Andy Christen – Co-Founder, Chief Vision & Operations Officer
Andy is an expert data scientist, project manager and innovation entrepreneur, who co-founded several startup ventures in the Fintech and blockchain industry. He holds a M.Sc and a Ph.D in Psychology from the University of Geneva, a certificate in business administration from the Harvard Business School as well as a post-graduate diploma in digital business from the Emeritus Business School. Andy is heavily involved in shaping the long-term strategic vision of Liti Capital and coordinates the execution of the technical, business and marketing facets of the project.
Jaime Delgado – Co-Founder, Chief Technology Officer
Jaime is a PhD in electronics engineering with more than 15 years of experience in programing, machine learning, data analysis; as well as in Blockchain technologies and smart contracts design. His experience includes academy as postdoctoral researcher at the University of Geneva and in industry, most recently as CTO of Cerealia SA. Jaime is responsible for conducting all technical developments related to the Liti Capital platform.
Amanda Grudinskas – Chief Legal Officer
Amanda is a partner at Athena Intelligence, a licensed attorney and a UN Consultant for Investigations. She is adept at navigating high-stakes environments and multi-jurisdictional investigations and litigation. Prior to Athena Intelligence, Amanda worked in a multinational intelligence firm and a diplomatic mission to the UN. Amanda holds a Master of Laws in International Humanitarian Law (LL.M), a Juris Doctor (JD) and a Bachelor of Science in Business Administration (BSBA). Amanda is the Head of Legal at Liti Capital SA.