FAQs
1) Does ELF Capital finance non-corporate proceedings, that is, if the subject of the dispute is not damages or asset recovery?
No, this is not the specialization of the Fund.
2) What is the typical amount invested by ELF Capital in a particular process?
It all depends on the process. The final decision is made by the Investment Council of the Fund. The usual coverage of the investment risks in the case we finance, shall be no less, than 1:2. The amount of investments becomes clear already at the stage of due diligence (see Section "Investment Process"). In the practice of the Funds, like ours, the usual level of investments is about one hundred thousand dollars.
3) Is your Fund ready to invest in our legal protection, given that we do not have money to pay for lawyers? And we will not have them even after the end of the process?
We are ready to offer you our help even in this case. To do this, you must have non-cash assets. Remember that the ultimate goal of the Fund is to generate investment returns for shareholders.
4) We want to ask you for help. At the same time, we openely declare that we do not have money for legal protection. We are also not ready to transfer non-cash assets to you before the process begins. You can recoup your investment as the Fund only if you win our business. Are you ready to provide us with financing on such terms?
The basis of our investment income is the corporate disputes won, not the illiquid assets that we occasionally acquire as a cover for our risks. Everything depends on the quality of the dispute in which you are participating and the prospects of its winning. At the same time, being an investment fund, we do not hide that an advance transfer to the Fund of non-monetary assets increases the chances that our Investment Committee will decide in favor of financing of your legal defense. But directly the advance transfer to the Fund of assets of any kind is neither necessary, nor sufficient condition for working with us.
5) What does the Fund mean by non-monetary, non-liquid assets and distressed assets?
A) under non-monetary assets we mean assets that are not money, that is not the legal tender of a particular country.
B) under illiquid assets we mean assets that, being non-monetary, can not be sold immediately. Among these we can include buildings, structures, land plots, property complexes, stocks, shares not listed on the stock exchange, vehicles, machines, equipment, and so on.
C) under problematic assets, we mean assets that are subject to a wide variety of problems: pre-bankrupt or bankrupt companies, hard-to-repay debts, construction or resource projects that are facing shortfalls in financing, non-operating enterprises, etc.
6) What is the main expense of the Fund ?
The main expense of the Fund is the payment of the bills of legal companies that we hire to organize legal protection of our clients.
7) Does ELF Capital receive any rights in the proceedings?
As a rule no. We just hire a firm that, in our opinion, is able to organize legal protection and do not interfere in its actions. Mind, that the Fund shares risks with the applicant. We are in the same boat and we do not grasp the captain’s hands, preventing him from controlling the ship. For the same reason, we do not consult the applicant in the matter of choosing a firm that organizes legal protection. We only provide capital in the form of paying its bills.
8) How one should understand your words that one of the specializations of the Fund is the dealing with problematic and illiquid assets?
It should be understood literally. ELF Capital, combines two types of specialized funds – fund of problematic assets and litigation fund. The Fund's financial policy allows us to consider the illiquid assets credited to the Fund as assets that increase the capitalization of the Fund. Our unit, which is not formally affiliated to the Fund is responsible for the management of such assets. This unit specializes in this class of assets which problems are of a legal nature and can be lifted or reduced by the skillful governance of the legal rights of the owner.
Often we help to the applicant simply to put things in order in his distressed assets, without even giving him direct legal protection.
9) How does the Fund work with the patents?
This is the most closed part of our work. In the very near future this part of our work will be transferred to a separate fund dealing with patent investing. The fund will also be under our management. In general, the policy of our Fund in this area is that we either organize an experimental production "based on the patent" and develop it to a prototype stage for the purpose of selling to a profile investor or offer the profile investors the patent itself as an asset belonging to our Fund. We can offer several options to the owner of the patent at its discretion when he enters the transaction,
10) What is your difference from a law firm?
We are not a law firm. We are an investment fund. EUROPEAN LITIGATION FUND.
We usually do not conduct legal affairs and do not participate in trials and proceedings. We only invest in them, in other words, we only provide capital for their solution on certain conditions.
However, we facilitate the prompt return of assets after the appropriate court decision.