Investing in Litigation Finance with Your IRA

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In this episode of the Directed IRA Podcast, host Mat Sorensen sits down with Kris Kjolberg, Managing Director & Head of Capital Strategy at Pravati Capital, to break down litigation finance—a growing alternative asset class that many investors may not be familiar with.

Mat and Kris discuss how litigation finance works, why law firms need access to capital, and how private lenders can step into a space where traditional banks often can’t. Kris explains the difference between financing individual litigation cases and providing portfolio financing to law firms, along with the potential returns, underwriting process, risks, and what investors should understand before considering this type of investment.

In This Episode, They Cover:

• What litigation finance is and how this emerging asset class works
• The difference between single-case litigation finance and law firm portfolio finance
• Why traditional banks often cannot lend against law firm receivables and cases
• The potential 16–24% industry yield range discussed for law firm portfolio financing
• How litigation finance can provide non-correlated exposure within an alternative investment portfolio
• How Pravati Capital evaluates law firms and investment opportunities
• The importance of underwriting, diversification, case duration, and concentration risk
• Pravati Capital’s experience across 8,000+ transactions and 250+ law firms
• The risks investors should consider, including extension risk, regulatory risk, and repayment risk
• How litigation finance can potentially fit into a self-directed IRA
• What the investment process looks like, including the investor data room and due diligence
• Accredited investor and qualified purchaser requirements
• Fund structure, investment minimums, and the track record discussed during the episode

To learn more about Pravati Capital go to pravaticapital.com

Connect With Kris Kjolberg

• Email: [email protected]
• Phone: (623) 521-7343

Disclaimer

This podcast and its content are provided for educational and informational purposes only and are not intended to provide investment advice. Nothing discussed in this episode should be considered a recommendation, solicitation, or endorsement to invest in any particular investment, fund, or asset.

Investing involves risk, including the potential loss of principal. Viewers and listeners should conduct their own due diligence and consult with qualified financial, legal, and tax professionals before making any investment decisions. Directed IRA does not provide investment advice or recommend specific investments.

For questions or to learn more about this episode's topic, book a call with an IRA specialist here: https://directedira.com/appointment/

Interested in learning more about alternative investments? Join us this year at the Alternative Asset Summit October 22 & 23, where you'll hear from industry experts and connect with like-minded investors exploring new ways to build wealth: https://altassetsummit.com/

Other:

Mat Sorensen: https://matsorensen.com

Mark J. Kohler: https://markjkohler.com/ 

KKOS: https://kkoslawyers.com

Main Street Business https://mainstreetbusiness.com