Restitution Impact is a commercial enterprise, but it seeks to maximise total recovery of corruptly acquired assets for the benefit of its Sovereign Government clients and en route, generate fair returns to its investors.
This is the Restitution difference.
Traditional litigation funding is not going to achieve the best return for Sovereign Governments, because litigation funders’ operating model focuses only on assets where there is a high chance of recovery as they demand a very high return on investment. Their approach is very much a short-term “profit” model.
Whilst litigation funds might invest the costs of a recovery action, they will usually want to see their costs covered and then split the recovered funds 50/50 with their client. So even a successful claim is unlikely to see the Sovereign Government recover even half the stolen funds.
Restitution’s approach is more akin to that of a long-term investor. Our partners are “patient capital” investors and this longer-term view allows us to build a portfolio of claims which include those which a traditional funder might exclude as too difficult to pursue. A larger portfolio means not just potentially higher recovery for our Sovereign Government clients, but also less volatile returns for our investors.
Taking some of the capital generated from early claims and investing this in further claims, helps to make these funds sustainable as long term investment vehicles. Our goal is that they are locally listed and by developing local capital markets, give investors and governments a stake in making their sovereigns more transparent and investible. The “fund” model then provides liquidity and opens up other avenues for capital raising to pursue further restitution claims.
Our partnership approach does not end there. Our programme includes using the recovered funds to provide infrastructure in support of greater economic stability for Sovereign Governments. Careful monitoring of recovered funds is needed to ensure they are not uncorrupted and one aspect of this is training of local civil servants in anti-corruption practices, open procurement and transparency.
Overall, the Restitution approach should help secure the return of stolen assets for re-investment in national infrastructure, help stabilise government finances, embed an anti-corruption mindset in governments and their peoples. Creating this virtuous circle has the opportunity to improve the economic prospects of our Sovereign Government partner nations in the eyes of international investors and rating agencies and can only help to ensure progress towards a more economically secure future.