Restitution Capital: A litigation impact fund investing in high-value civil litigation against corruption bad actors

Restitution Capital understands that countries (sovereigns) require a unique, private sector approach to civil enforcement, through claims development, litigation and importantly and transparent return of assets. We work end-to-end with government partners, providing unique support that other litigation funders cannot. 

The problem that Restitution Capital addresses, in brief:

Most countries cannot recover looted assets or bring litigation against large, aggressive and well-funded defendants on their own. They lack personnel, expertise, knowledge of legal frameworks used for confiscation, and funding for costly litigation.

In particular, these governments traditionally relied on criminal prosecutions to return stolen assets, including by working with foreign prosecutors. 

Due to the high standards of proof required in criminal prosecutions, the need to trace assets hidden through complex multi-jurisdictional fraud, the limited resources of prosecutors, the political pressure applied by very well-funded defendants, and the sheer volume of IFFs being drained from these countries, the percentage of money returned through criminal prosecutions is exceedingly low when compared to the amount lost to corruption and IFFs. 

How Restitution Capital works with countries is unique:

Using litigation funding pioneered by the private sector, we turn the bane of corruption and corruption-based IFFs to the advantage of developing country governments and help them create an asset class that has immediate value. Restitution Capital has identified a gap in the market for developing country governments who have not traditionally been served by litigation funders in the market. 

• Early approach. Restitution Capital identifies claims early, working with government partners to proactively identify and develop claims. Through long-term, trust-based relationships on the ground, Restitution works with numerous, key stakeholders to achieve an information edge which makes a qualitative difference.

• Holistic support. Restitution Capital provides government partners with capacity building and knowledge sharing so that they can enhance their own investigations and asset recovery work.

• Claims development.  Restitution Capital has agreements with government partners in which the government transfers the claims (and control of the litigation) to Restitution Capital in exchange for these governments receiving a vast majority of the economic interest in the net recoveries of the claims. Working with its investors, Restitution Capital litigates the claims, winning valuable judgments, awards and settlements that return large amounts, as quickly as possible, to government partners, as well as investors whose risk capital is essential.

• Structured return. Working with international organizations like the World Bank, the International Monetary Fund, the United Nations and others, Restitution Capital ensures that money returned to government partners is used in a way that is transparent and accountable, which drives national and human development and helps break the cycle of corruption.