FAQ's
General Questions
What is the Hibonite Litigation Finance Fund?
The Hibonite Litigation Finance Fund is a regulated investment vehicle that provides structured exposure to litigation finance. The fund applies institutional-grade governance, strict risk management protocols, and independent financial oversight, ensuring that investor capital is secure, insured, and strategically deployed.
How does litigation finance work?
Litigation finance involves providing capital to legal cases in return for a share of the settlement or judgment. The Hibonite Litigation Finance Fund selects pre-vetted, high-probability litigation cases in English & Welsh courts, ensuring legal clarity, predictable resolution timelines, and risk-adjusted investment structures.
Is the fund regulated?
Yes, the Hibonite Litigation Finance Fund operates within a fully regulated financial framework of the Isle of Man FSC, ensuring strict compliance with investor protection laws, fiduciary governance, and independent auditing standards.
Security & Risk Management
How is investor capital protected?
Investor capital is protected through:
Capital Protection Insurance (CPI) – 100% of deployed capital is insured against case-specific risks.
After-The-Event (ATE) Insurance – Provided by A-Rated Insurers, covering case costs and mitigating downside risk.
Independent Third-Party Oversight – All fund transactions require approval from an external fiduciary body, ensuring that capital cannot be misused.
Who approves financial transactions within the fund?
An independent third-party fiduciary must review and approve all capital movements, allocations, and withdrawals, ensuring that investor interests remain the top priority.
Does the fund operate in high-risk jurisdictions?
No. The Hibonite Litigation Finance Fund exclusively finances litigation cases within English & Welsh courts, avoiding jurisdictions with lengthy legal timelines and unpredictable enforcement.
Investment & Returns
What is the minimum investment?
The minimum investment is £125,000, with contributions accepted in GBP, USD, and EUR.
What is the investment duration?
The standard investment term is 48 months. Early withdrawals are available under specific agreements, subject to a 3% exit fee.
Why is the investment term 48 months?
The 48-month investment term aligns with standard litigation timeframes and the profit cycles of litigation finance, ensuring risk-adjusted returns and structured capital deployment. While some cases do close earlier, this variability is factored into the portfolio construction, allowing for capital redeployment. However, the standard average case duration is longer, requiring a structured investment term to fully realize returns while maintaining risk control.
Why do other firms allow earlier access?
Other firms may allow earlier access, but this often introduces greater risk, reduces capital efficiency, or sacrifices return stability. Hibonite’s 48-month investment term ensures full case resolution, structured capital reinvestment, and optimal fixed returns while minimizing investor risk through insurance-backed protections.
How are returns generated?
Returns are structured through pre-agreed litigation settlements and insurance-backed risk frameworks, ensuring predictable capital efficiency.
Is litigation finance correlated with traditional markets?
No. Litigation finance is a non-market correlated asset class, meaning returns are independent of stock market fluctuations, interest rates, and economic cycles.
Governance & Compliance
How is the fund audited?
The Hibonite Litigation Finance Fund undergoes independent audits and fiduciary reviews, ensuring full financial transparency and compliance.
Who can invest in the fund?
The fund is not available to retail investors. It is exclusively open to:
Ultra-High-Net-Worth Individuals (UHNWIs)
High-Net-Worth Individuals (HNWIs)
Institutional Investors & Private Banks
Family Offices & Hedge Funds
Qualified Status Definitions – Isle of Man
Self-Certified Sophisticated Investor
A Self-Certified Sophisticated Investor is an individual who confirms they possess sufficient knowledge and experience in financial investments to understand and accept the risks involved. Under the Financial Services Act 2008 and relevant Isle of Man Financial Services Authority (IOMFSA) regulations, an individual may self-certify if they meet specific criteria, such as being a member of an investment network, having prior experience in unlisted securities, or fulfilling other qualifying conditions.
Certified High Net Worth Individual
A Certified High Net Worth Individual is an individual who meets specified financial criteria, generally based on income or net assets. Under applicable IOMFSA regulations, this typically includes individuals with an annual income of at least £100,000 or net assets of at least £250,000, excluding their primary residence, pension funds, and insurance claims.
Certified Sophisticated Investor
A Certified Sophisticated Investor is an individual assessed by a qualified financial professional as having the necessary investment experience and expertise. To qualify under IOMFSA guidelines, an investor must obtain a certificate from an Isle of Man-regulated financial services firm confirming their expertise and must have been actively involved in unlisted securities or similar investments for a defined period.
Investment Professional
An Investment Professional is an individual or entity engaged in investment-related activities, such as fund management, financial analysis, investment advising, or securities trading. Under the Financial Services Act 2008, investment professionals include firms or individuals licensed by the Isle of Man Financial Services Authority (IOMFSA) to provide regulated financial services, including investment management, advisory services, and securities trading.
**Not available to US Citizens or US Based Institutions/Corporate Entities
How do I invest?
Investors can subscribe through:
Direct investment into the Hibonite Litigation FinanceFund LLC.
Accredited brokerage platforms and investment partners.
For further inquiries, please contact our investor relations team.
